The Evansville daily journal. [volume] (Evansville, Ia. [i.e. Ind.]) 1848-1862, 1858-05-17
Commercial Bxchsngcs.

OF that city, for the control and regula-
ton of the exchanges Of the whole coun-
try, in both foreign and domestic bills
Its design is, to make New York, the
centre OF exchange on this continent. as
London is for Europe. 1t is proposed to
establish one great Bank in New York,
to deal in exchange, ard to establish
agencies at all the commercial places in
the Union, and.in the British provinces,
to purchase and3sell exchange on every
point, to which the commerce OF the
country extends its operations. The
plan is a feasible one, il it shall not be
defeated by the jealousies and rivalries
among the banks themselves. 1t would
be of an immense benefit to the CON-
MERGE Of the country, if conducted with
broad views and in liberal spirit. The
great want Of trade. at the present time,
is an improved medium of exchange
The present rates Of exchange, are an
enormous tax upon the business Of the
country, and are a reproach to the period
that has achieved such surprising im>
provements in the means OF intercourse
The operations in exchange on the East
cost four times more now, when we are
only 48 hours from Philadelphia, than
when we were ten days distant.
We see that sight bliss at New Orleans,
on New York, are at par. At Memphis,
they are two per cent premium-at st.
Louis, ID premium-here and Indianapo-
lis, they are l per cent-at Cincinnati,
* per cent. In Cincinnati the bankers are
buying New Orleans sight bills, at q to
per cent discount, and selling them at
par and Il premium. In New York, ex-
change on New Orleans, is a per cent
discount, while in New Orleans, ex-
change on New York is at par.
The most valuable service conferred by
the United States Bank, was its econom-
the country. During its existence,
though the facilities, intercourse and
remittances bore no comparison with
what they are at the present day, ex-
change was never more than one quarter
or one-half Of one per cent, between the
most distant and remote points. Since
her dissolution, the commerce and trade
OF the country has been taxed by the
local banks, to the amount of one and
two, and sometimes three per cent
on the same operations.
This results from the nature of the
business, and the partial and conflicting
operations Of the local banks. An in
stltution, or a combination Of them, that
can embrace within its sphere. the whole
range Of the commercial operations Of
the country, can make its exchanges al
most without cost to itself. The debt
and creditor the purchases and sales,
Of every community, with the world be :
yond it, must very nearly balance; and
an agent that can take its bills on every
point to which it sells, and buy from
every point all tho bills drawn on it for
its purchases, will find, in settling the
account, that it will balance ITSELF ant
that little or no money has been require,
in the operations. This was found t
be the results of the exchange bushes
:. Of the U. s. Bank. Bills Of exchange ar
the representatives Of the interchange {
the articles, by export and import, whic
must be equal, or cannot for any lengt
Of time be unequal; and the Institutio
that can embrace the whole circuit {
them, will find the whole service is &C
complished by keeping the debit an
credit records of the community, an
the use Of small amount Of means,
advance the amount of the temporar
differences in the accounts. The moi
completely the exchange business can /
extended to the entire circuit OF trad
the less means and the less labor is r,
quired to perform it, and consequent
at the less costs.
Small independent institutions, eac
operating on one or two separate Gil
cults, and in rivalry and conflict wit
each other, as is exemplified by tn
course Of our banks, serve to derang
and complicate, rather than facilitate e1
changes. The runs for specie upon eac
ether, back and forth, are all at varianc
with the natural course of trade, an
are arrangements Of its channels, and
public injury, instead Of facilitating tn
settlements Of trade.
Any arrangement hat shall drive OF
small local institutions from the busine.
OF exchange, for which their capitals an
connections do not enable them to do it ,
cbeaply and well as larger institution
would be hailed as the coming of a bstt,
era. When the exchanges of the cour
t-y can be done-as they ought to be-
between the most distant points, for on