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


S,,.hla AZ MEASURE the Government by an increas-
"A jspe Of NOES ayertb.e uso bonds a. diminished
,.s of interest," shOd encel sufficient sum oil the uh
led debt 20 supply the requisite cfeulAion and tous re-
d1s the bonds 10 par nus the boadi and the notes
MAJ ne made 10 regulate the value Of each other 50 IS
tbat the value o. each shall a, ali times be at par with
Ag,u; "a We have before said the Banks Of the Uoi'
ted States have been often permitted 70 suspend sIe
e plymen aud the value Of tue notes OF the snsperu
"a Blnks a. currency has been 30 fully estaohsheo'
tia. 1t Is only nees snry TO compare the iftAsuS
notes With tia Bank notes to prove that lhey "u'
be a reliable currency. Congress hiss power 70 Vo
row money on the credit Of the Contederae s.A'es
TIE treasury notes viii be loan, ana congress n
~ $50 Law and coll ct taxss duties imposs ara CESS
Tor revenue necessary pay the debs proVue IUr e
commoa defence and carry on the goVernheu. ', Su
Confederate States" TIE power OF ta1shon tuciuu's
the right 20 pay the debts AID as ne balN hoe' reP
ent the propsrty Of the Buks Gu " and the IFeasuy
go r.prssspt an he property Of al III, people OF all
die Confederate Stat = ice uing as well the property OF
R,nks a the ohr properly OF every Description u ie
Iowa that The ba,s Of the Treasury notes 70 as men
Stronger than the basis OF the INK noes As 'he reAe
et5 OF all tee people Of the Confederate States IN
ludiuV the wealth Of the ,nks themselves, "a to the
.,.tS OF the Brkl Bat have guarantee that
hers vii not be an over ssus Of the Treasury notes ~
The ,, that 40 u,h as are funded will be debt on the
people who hrouSd their representatives can regulate
the issues 50 as 20 limit the sums 10 De iuaded.
The writer had the mos to be the intimate and COM
dsntsl p.rsonL aud plic friend Of Mr.. Calhoun, and
for many yeara ynd ue his opinions prinepes con
duct and motives, from the asPsrsions OF h perscnaI
and poltc, enemies aud ESP scly from the aspersions
Of those whose political principles III hey are worthy 20
bs diguh q a. priucillNs) measures, ana poHcy ne
then ioresau aud foretod, would, triumphant n the
Government necessarily dissolve the 1on Ihe SUD- 'c'o
6,sne. currency was ir qrenily discussed oetS'en
them and Gr Calhoun again and sgaia SAID tna
f nnbe credit, uader wise regulations, fOr6'GdiHg az
- ;,,t, Vas the cheap aud he't form OF currency
W. Ia now living, his whole alence Souli De eH-
rted 70 protect the Confederate Saes irom me qeecs
Of the monetary system OF ElglLnd ana tue OU'ei
ssstss TO which &c have referred .
In 6-m,tion Of the views, We would refer 10
,hs sble york on the Ways and Means Of PaymeRt,
tT SeoheR Colwen, OF PnilldsPh.a, IN Whea ne eve
chapter on the Of public credit a. currency Inc
facts and illustrations which be gives va eXfl'nauon OF
the uss Of credits are important that We quo'e maen
=, large UDOn this sui C. he says;
Whatever nav be sad in define, oil the poston ula'
uaper currency j. bsed upon the precious met'is -
wy sHt Ia tla both h this eogut'y and IN khg!aNdi
PAPER earency is the chef meii1m OF payment In me
49, eobt months 1851 the srug7 OF payments NJ
the NJ. YORK eJrir 1use hlctuAed between goo
100000 AID s70O0OO 900 for eael month; Ia aul'aSA
60 which large payments occur d, not nacAtel ~ tue
AZ ssri,g aouse Az Iayments made in any Bank by
bsL on that R,nk are coup ted there and do no: 90
90 N, CLEARING House. The Banks only resort 10 TIE
Clearing House Tor the adjustment Of the checks they re
eays aud tho claims they hold Oh other Banks. Inc
fran =
500 OJO GOO from January 10 August, 1851 During
that time the average amount OF specie ~ te banAs
Uas under SI2 O0O 600 deposits averaged 50 OO0V
and the ercua ion Ss,OuOOUo. l; "a appar, theI'
tls, SlOs 100000 Of Bllk and deposits Effected
by aid OF the cooks OF the Banss plymen; OF rot less
than $50 600 OOp daily, VII the 1000 o. specie
10 the Blnks scarcely moved az all.
..Tbs actual agency OF the precious metals IA ttre
current daily payments j. altogether too small ~ be eher
,npre,iated or note d. Il is cuy employed for the
hi tH la inralm
"a sic trade e have already atvered 70 .he fact that
hsn the panic OF s51 set in il cost The city Of New
York contraction OF park tacil;ea to the amount OF
Sss 900 600 20 retain Sl2 uuOVOu Of gold. II August
1851. the loans Of the New lotk Banks announced 70
slqe OO0 600 aud the depos s94 600 600 in the mid.
lie OF October the loans had hsa 10 S9TOOOOOO and
he dsnosirs 10 $50 600 900. Thus the Bagks were
obliged - withdraw lron he public SG6 100000 OF paper
currency 20 keep s2 700 90 OF gold in their vaults
This vas withholding Cay 100000 o! the Customary
n1nt facilities for 5x.v-sG dlys So o1g the Banks
onld by this extraordinary contraction, keep their aver
re Of specie TO nca-y the amOunt Q! S2OvVUp, they
,anGnued Il. AoOu. the middle VI DC oOer even tbs
terrible expe lent iaIed. Toe pAdence OF The public
gave wsy: the psopl :eP2ed ilo the Banks and TOOK
OUT - 90 600 Of specie aud the Blrks stopped Bat
the AID operation Of this eop1acueh atS
M. shown BY the fact Of the wlihdrlbSl o. f1oOo""'
Of currency in ~ many days. The amount OF cur
r-ncy any particular time never eAuioS .ne III 'u''
Of pIymeuts which that currency can su c. IN sHgc
i,y is p9wer or efficiency mus. be estimated by the
sam OF the paynens Shor can &c accomplished wi!hln
= yiyeu time Toe real contraction or cimiauuoh q
oaymeuts would be shown by acOnpaT'ca Of the actual
transactions Of the banks tor day or week as iha c
t.rsnt nsri5ds compared As il hal not BEEN custom
.ry 10 report the whole movement VI The funds n tho
banks must resort 70 the Clearing House ior the
hast approxmlon. tbs average ele2T' e. IL Ne"
Yrk exceed STOJ 600 900 each month from tuuiy 10
Aupu1t 1851; in september they SiSl 100000, in
Octobsr they were reduced 20 sos OJJUOO much les
chau half the months average IRON Anusry 10 August
Here Is an actual falling OF m the monthly payments OF
She Clearing House alone OF $3.50 600 UJO or more hen
Sl2 600 900 daiy that H. the efforts Of the banks TO
keep less than 900 OF specie involved dimnu
ton Of the payments OF the city Of Sl2 o)0OOO dairy
The whole sum Of the payments madj L. toe Cleaning
House IN the months OF september, OjtoNer, Novtmoer
and December 1851, Vero less by Sl,f1s VJLllo t1al
the amount paid To, preceding fou, mouths The So
verify of this contraction further shO'n by toe al
,aues Of atsre5. tr'm 10 per cent. IN jay 20 Il
aud 30 per cent. 10 October.
Toe sane writ'r esns:ss the plym,n7 in the United
States in 1887 az $40 ono O0O 600 aud assumes that SEQ
600 600 900 paid through the agency o. the Banks
and BY set of; and says:
THE crel, system has thus accomplished the great
result. Of separating he scus sac aud delivery OF con-
nOdiies-the actual transactions OF COMMUNICATION
she payments. TIE progress OF oyilz On and private
ints gritty have made this possbl; its immense advan-
sage such not Only 20 secure is continuance ont
20 make l. very stroog safeguard 70 commercial hOr-
esty Almost the eltrs commerce, foreign AID dones
lie of the whole civilized world ia carried from
dAy to day and year to year with much less believe
thGq one per cent Of the actut values exchanged 10
coin aud bullion The Whole Of the prices sales, bar
gains books Of account, and bills OF exchange are
oppressed lney Of account and tic whole processes
establishment b. bslkers brokers aud elsaiire houses
are ali stated and expressed in money Of account.
"Tde credit sys,sm, lheu u,er'ene5 with is yarious
devices o! books o. account p-U uiOcy notes, bills OF
exchange, bank notes bank dspo.ie clearing hous ,
&c. TO enable the paroles ~bo haze bought AID sciG ~ho
are ali CT d sors AID all bors 10 hquide their deots
a7d credits and thus Cxingusa them ar they ere
.aat; that L. where a merchin: has 70 receive dud
the year 900 O01 aud pay $3.50 COO the credit system
adjusts the whole sum Of $500 OoO by Piyag The $4,000
deretes IN mjrc7 and ex'ilgushiug the $3.50 600 by
Sc. OF or lqg'd.i,n The goods, which 60 out OF the
mAuufseory or ireborss, pay for those which come 10.
The dfrene5 Gully rec lirel money To Greet the *
change With advantage hbo:eTs, horses, warehouses,
wagons drays Cal a bo1is, railways aud 5 ps are en-
n Iyet to Ihc: tie payments, gold end silver !or IN,
balarc - bis Of eKehang pron'fs)ry notes, bank noe