The Daily state journal. [volume] (Alexandria, Va.) 1868-1874, 1874-03-11
THE ExCHEQUER AND ITS OPPO-
NENTs IN RICHMOND

ExcheQuer as its chief op)ectlon, that IL may
specie payments from panic.
Now what produces q panic? Is is not a
loss of confidence? What is best to pre-
vent panics? A well organized national in
stitution hike the Exchequer, every note of
which would be secured by % per cent of
coin and 75 per cent Of government bonds
In the Issue Department, and one dollar as
good business paper as the country can
make, regularly maturing for each note in
the hands of the public. This certainly
would be the case for each Exchequer |
note in circulation, and acah the limit fired |
in the charter, that beyond t,cice its capital
upon business paper, and 10 per cent only
on collaterals of corporations, which pay
per cent dividends, no discount or loan
could be made except on government
bonds limited to their face value, thus pre-
senting and having ready at hand tcice the
amount of ece,y dollar of its circulation
to answer the demand for coin in available
assets. Every note out also would be o,ced
to the Ercheqaier by some one obliged to
pay it back in a short period. In the pres
ent system the banks have not one dollar Of
their government bonds aohere they can touch
them. 1t is known that much of the debt
due to the banks is upon collaterals on
stocks and bonds of uncertain value. The
banks suspended on paper, and were totally
useless to the country, and went down
faster than telegraph could carry the mes
sages over the wires. We all know the
rates Of interest are usually per cent
per month in all the agricultural portions
of the United States. Surely the national
banks IN Richmond were coming money for
their owners. We call the attention of
The Dispatch and the public to some facts
in relation to the National Bank of France
and the National Bank Of England. and their
organizations. BY law three names are
required for individuals to obtain discount
at the Bank of France. This feature
shows the sagacous common sense of Ma
poeon. Every note of the Bank of France
is thus faced by an unquestionable obliga-
tior or by government bond on the obi
gators of some city like Paris, or some
corporation bond, recognized as beyond
doubt.
Every note of the Bank of England has
in the Issue Department bonds of the gov
eminent, coin, or excheuuer bills, or that
which is equally good, and bonds in the
Banking Department unquestioned person.
al or government obligations to the full
face value of every Bank of England note
which is in circulation. These principles
of the double issue and the double assets
we have in the bill for an Exchequer, fol-
lowing the grand principles laid down by
Fullerton and put into operation and adj
hered to for now nearly seventy-fve years,
that the circulation of any paper money
on par with coin permanently must hare
its e6qur from, the issuers as a loan, the pay
ment of achich creates the refur to bring ii
back again. Here we beg to remind The
Dispatch that the Exchequer differs as
wide as the poles are apart from our legal
tenders. and be it known to the advocates
of the present system Of finance that
whilst our Government bonds, at 5 and 6 per
cent interest, to the extent of nearly two
thousand millions, are to-day more than
par, yet before US is the fact that we have
only about s4OO, 100000 of legal tenders
issued to pay debt, and which did not
have its effiux upon the great principles
incorporated in the Exchequer and acted
on by the Banks of France and England,
and these legal tenders for which the Gov
eminent is bound is at a discount of IL
per cent as compared to coin. OF course
our bank circulation, redeemable by legal
tenders, can have no greater value.
We crave of the reader the consideration
of these farther facts: The capital of the
Bank of France is only $36, 900, and
its issues $575, 100000, and its notes are
at par with coin; whilst the Bank of Eng
land, upon capital of some 1000, 900,
GlICulhteS soliO Yloo,ooojoVOs ahu hcCpS
credits on par with gold for the deposits
Of its own, and other joint stock banks in
London and England, with coin basis Of
of about 500, Oo0,0 of more than ST.
500,O00,000.
Now, we deal with'facts and principles,
not with the places at which men are born.
Whether the author of the bill has been
known as great Wall-street financer, we
deem it the occasion to remind The En-
qurer of the fact that Daniel II. London
was for twenty-five years citizen of Rich.
mond. We do not think any man in the
state can rightly accuse him of any lack
of state pride and affection. Such an OBJ
lection against this great measure shows
disposition in which the people of Virginia
we are sure will not be ready to sympa-
thize. What would be said OF newspa-
per in Kentucky or Ohio whose only OBJ
lection, or its chief one, to great question
should be the fact that John w. Ste
yenson or Senator Thurman was born in
Virginia. If it be crime that citizen of
Vermont, who is representative in the
Congress of the United States from one of