The Washington union. [volume] (City of Washington [D.C.]) 1857-1859, 1858-09-23
TIE BULLION BANK.
prom ihq Now York Journal q Commerce, Sept a..

From the New York Journal Of Commerce. Sept 81
Ia former discussions of the hard money question
we came to the conclusion that paper currency I
as it only theoretical representative of value, and
connected with the idea of credit 10 the suer is annual
y becoming less popular in this country WHILE the
other hand the costly and dangerous movements oare
bodies OF coin and bullion, where absolute necessity
exists for the actual possession OF the precious metals
equally opposed TO the saving tendencies of the
age; and that reform should, therefore, be effected
upon common ground where the true friends OF sound
currency might all cordially unite To carry out thit
object advocated the plan of depositing the coin al
some convenient locality where it might remain intact
the ownership TO be represented by negotiable certificates
OF convenient sze thus obyatng all necessity OF its fire.
quent movement from place to place. while for all prac
teal purposes it would be absolutely within the control
OF It's owners After referring TO the objections made
against the treasury place of deposit for indvd
ua funds, suggested In March last that "a private
depository might be opened, under sufficient guarantees
which should assume the trust and answer most If moi
| AL the objects to be desired in such agency"
within day or two past we have received crculai
containing proposition for the establishment of such
agency in the shape of bullion bank with capital Of
million dollars, to be located ia this city. The bank
to be forbidden by its articles from lending investing
anything but its capital 1t is to receive depostes
and to pay Checks other banks do but not 10 lend
any portion of its deposites and to deal only in coin
The profits of the business TO be made upfrs by the
interest the capital, which is to be safely invested
and second, by the charge TO each deposor of small
banking commission for the transaction of his business
be regulated by the necessity of the case but it is
pued that oncenth of per cent the annual total
of depostes would bo the outside limit while large
business would reduce the charge to onethrtieh of
per cent, and allow the stockholders liberal dividend
1t is not necessary that such establishment should
clash at all with the operations of banks of discount
and are therefore, not surprised to learn that the
officers of Of largest and most conservative
institutions have expressed their hearty approval of
the project In addition to the guarantee of large
capital, the new bank, if established, is likely
to be under the management of considerable
number of most eminent citizens, that the
pertinent will have the test of fair trial
If successful it will draw out of insecure hiding places
large amount of coin now boarded and will gather
accumulation of specie that will not be affected by any
sudden panic But the greatest good anticipate from
it will be its tendency interfere with the creation of
that immense debtcurrency, which Is the real agent in
producing great reyusons. The clearings of
banks, shown by the records of clearing house,
eight thousand millions SS 900 900 900 y an
nualy This immense volume of currency is not money,
to very large extent representative of money
it rather representative of debt and 1t is its rapid in
diminuon which marks the period of buoyan-
cy depression which, in effect makes and unmakes
with such fearful rapdty the fortunes of merchants
mechanics and traders 1t is paper currency not reg
uated at Albany-beyond the reach even of our law
makers generally ebbs and flows in such steady
tide that il be watched and waited upon and turned
to profitable account but liable to such sudden expa-
sions and conractons that it will float whole
nifty, almost against their will, into channels beyond
their depth The exaggeration of these nscrpve val
ues thus represented in the exchanges of the clearing
house. is the worst s'nhation of credit ever expe-
rienced because it in such plausible guse, is
difficult of CONTROL and in of sudden reaction,
Furnishes alike the innocent and the guilty while its
agency is almost wholly concealed The terrible lesson
of last year has directed public attention to this subject
and the discussion has taken practical turn which
hardly fail of a useful result. ~e-sr