Daily Richmond Whig. [volume] (Richmond, Va.) 1861-1862, 1861-10-21

y" 49,
of gold 10 the currency OF France In lieu OF the sz3o,
100000 Of silver which the had LOST but 800 900,
q comparatively small sum, which vss much than COM
psnsated for by enabling the Bank Of France 70 oontn
ne the entire line Of i discount thus sustaining the in
dustry and commerce OF France. | We contrast 10
mes sures and policy othe Bank Of England with the
sures and policy Of the Bank Of France We that whilst
the Bank OF gland carried ruin and bankruptcy wherever
is Il Auence could reach especially throughout the Uni
ted King dom and the United States the Bank Of Fance
by keeping the volume Of her discounts and the currency
full protected the industry and commerce OF France,
and BY giving employment 70 her people, made FrsI
even In the midst OF war, prosperous and happy, and
enabled the wise sovereign Of France 10 relieve bis peo
pie from the burden Of the war BY placing among them
selves his Treasury notes. In sums varying from francs
TO 1000 for an amount equal TO the increased expenses Of
bis Government This fact is further illustration Of the
capacity Of people 10 absorb public debt, issued 70
the people themselves in shape whch enables them TO
uu Il a, currency or to hold Il as investment.
The proposition submitted to the people Of the Con.
federae States Is understand it, is that the people
shall agree lend to the such part other
produce as may not be requisite for their own sup
mort and receive in payment the Treasury notes and
| Bonds of the Government Would 1t not be much
more simply measure for all the creditors OF the Govern
mept 10 receive the Treasury notes OF the Government
IN payment and for the several States and all Banks and
corporations and all the people to receive and pay out
their notes az money so then the entire issue should,
in the first place. be in Treasury notes. made fundahe at
the option Of the holder because In that will not
only save the interest the sums requisite for currency
but we would get currency better than gold or silver,
because II will perform all the functions Of specie and not
be subject influence ereed upon specie currency
| BY the Bank OF England. f--
Some apprehend that the effect Of large issue Of
Treasury notes. currency, will be 10 limit the orcus-
uon Of bank notes 80 as TO lessen the profits OF the
Banks and that therefore, they will refuse to receive
and pay out Treasury notos. We have seen that the
Of giving to Congress power to coin money aud
regulate It's value and to fix standard Of VI ghts and
| measures, to Establish jusdcs" between man and
uan by giving fixed ard stable value to money that
that the effect of the and policy Of the INK
of England Is to defeat that purpose by repeated
contrActions and expansions Of the currency Of EGG
llnd which constantly recurring fluctuations in
the value Of money and quent fluctuations in the
values Of property That the purpose Of these contrsc
lions il 10 thrpw upon the commerce Of England the
i onus Of recruiting the bullion wanted for the Bank;
and that the elect Of the of the Bank Ia that
instead of reosvirg the staple products of Other nations
exchange for their exports, as under we'll regulated
system CT free ade the merchants OF Engand would do,
they are compelled to demand tps;e, because the pro-
cess Of cemouon the part OF the Bank 10 to require
payment Of debs due the bank and nothing but gold
or silver or Bank of England notes viii be reserved 10
payment instead Of receiving cotton or oher American
produce in exchange for h goods the British merchants
compelled to demand epecie The f ct OF that demand
| il ir strGted by the facts stated by Mr. Codwel, who
4 Gays:
| "In August 1857 the loans of the New York Banks
amounted 22 600 0OQ and the deposits to sS4 900,
900 In the middle OF October th loans had fallen 10
s97 900 Od0 and the deposits to sS2000O0l Thus the
Banks xers compelled to withdraw from the public $780,
900 900 Of paper currency TO keep GOO Of specie
| In their vaults"
The consequence of this contraction By the Binks Of
New York to arrest the progress Of the industry OF
the United Srues and BY spreading ruin and b'ankruty
throughout the land TO dimiash thar own business and
| profS.
Ii is important that we ehorld fully understand the
process, by which the Bank Of Eugland Ieguwes the
changes that may rightly appreciate It's effect on the
| currency Of other nations hasing trade with En-
gland We therefore repeat that, wanting silver to pay
the expen Of the in Inda, the Bank Of England
| paid premium sufficient TO caufe an export Of
silver from France 400 0 and that instead Of
ang its discounts aud thus arres!ng the progress Of
the industry Of France the Bank Of France purchased
s2J9 500 600 Of gold to supy ths pas Of the exported
silver aud was thus enabled not only to keep the Vol-
June Of lie circulation full but To continue specie pay
ments whilst the Banks Of New York, following the er
ample of the Bank Of England curtaed lhelridscouns
neary ouehalf in their iruisss Efforts to continue spe.
Gle pawn ants. Tho contrast between the action OF the
Bank Of Franc, and that OF the Banks Of New York;
aud the resulting efscs, shovr sst the Banks are
most prospt rous when the CONN lily s-e prosps
Gus; that the solvency Of the Banks depends OH
the soivency Of those who's, notes are discounted by
he bank aud that their prot depend the stability
Of the values Of property, for upon tbs depends the
ability Of those who may be indebted TO the Banks 10
/ make ppnctual payments.
We have seel That the Bank Of Eogland may at any
time by refusing to reneg their ascopntS, compel the
merchants of England TO refuse to received our exports
in exchange for their goods aud that the eject under
the present system will always be TO cause such an export
OF specie to compel cur Banks to contract their dis
counts aud thus greatly lessen their prcs We be-
eve ana a,sus that Treasury notes are uudab at the
pleasure Of the holder 1t yin pre- ent their depreciation
and that nssmueh these no'es will teats a. ABUNDANT
and cheap currency equal gold aud silver for the pu
/ af kut no he
tble into specie aud therefore will not be, like bank
4 astes medium by which our specie be Withdrawn
/ from baass .oE expert. 1. erefore the issue OF
Treasury notes. by creating asya6,n; end cheap cur
renew which will bs stable in value, will relieve the
Ranks of the Confederate States from their depender 90
on tbs CAM Of England aud the foreign exchange, h
regulated By that BInk sud By giving heal!hful sn u
us to The industry Of the country 80 ncresse the buzz
meas as TO enlarge the profits cf the Danke For the
profits OF the Banks depend much upon the extent
Of th, business snd the Fsny of punctuaity in pay
ments than upon the circulation cfther own notec in
proo of this we refer 10 the following statement Of tie
capital paid H. the deposits and current abies and the
dividends Of some Of the Banks in London:
Rank Capital paid In. Deposits And Rate OF
London AM w,.,r.ln,ter $4,000 sss,a5.ss is
.is. R Is.' s Ssb s: sn sSSS ess .
Il will be seen that although these banks not
thonsa to issue their own notes, the proportion OF paid
I'D capital 70 the deposits and current liabilities OF the
London and westminster y put seven PET cent, Whilst
thu, of the London Joint Stock Back but IL per cent
and of .he Union Bank IL Is but l.2 giving 10 one
Bank IT, another % g. end to the other 20 per cent
as divdends.
We might give detailed statements and trace the causes
which have led to the 1yency Of Banks In the United
sstes and in Great Brtaiu to show that although there
have been Of dishonesty they chiefly the re-
suit OF kue;aons 10 the value Of property caused BY
arrangements Of Che srenSy attributable TO the causes
se have enfravor, to eIpIso, ara thus shs~ more |
copclusyely that the Banks az they deal in CT dit are
of oil others most interested ia protecting the value OF
ered. by giving stability to the currency Bat We hope
that the relation between the quantity Of bullion In the
Bank Of England snd the value OF money la !ldon aid
the money mlrket Of the United States Is now DO vel
uni ,rsood that further illustration Ia unnecessary We
therefore conclude b. brief resume OF the points made
and facts cited in the course Of or remarks. |
Money is q token issued by Gortrnment qnd naade
tsnde. "a p,yE, Mt Of aebs
Nothing but gold and syer poin is tender Ia pay:
ment OF Debts in the Confederate States. Therefore