44D 



THE FARMERS' REGISTER. 



to procure the agency, of a naiiuual batik lor that 

 purput-e. , 



III tins (an£iled coiitrov^y on the expediency 

 of a national batik lor runiishtiig a cotnnion cur- 

 rency, and lor e(pializinj^ exchanges, it eeems 

 to be taken lor graiiied ihat a coiumoii circulating 

 mediuni is essentia! to that end. This is not so. 

 The currency (paper) ol' the United Slates, whe- 

 ther when in good or in bad repuie, was confined 

 10 this country, and so is the proper currency ol 

 Great Britain to its own ternlory. Unless by 

 accideni, ami in some rare and trivial ca^es ol' ex- 

 ception, no bank-noie of either couniry ever Ibund 

 iis way to the other. And as paper constituted 

 the great body ol' the currency of each, even j 

 when the paper was converiible to specie, there' 

 was no currency in cotiiuion between these two | 

 great commercial countries, whose regular com-; 

 iiiercial busine.-s Is scarcely surpassed by that ol 

 any on the globe. Yet this absence of any com- 

 mon currency has not been the slightest obstacle 

 10 the exiended and most beneticitti exchange ol 

 commodiiies, hiid iranslerrence of lunds. And it ;s 

 as easy lor an American to make a purchase, or 

 a payment in England, as in any remole city ol' 

 his own couniry when our currency was deemed 

 in ihe best condiiion. 



Now il'ihere could exisi, by possibili;y, and had , 

 long existed, a paper-issuing bank, or jjaper cur- 1 

 reiicy common to these two couniiies, so that this 

 paper money had been used lur iransmissiun In- ; 

 stead of dralis or bills of exchange, it would be j 

 now as general and lixed a popu ar beliel, as it is 

 in regard lo Virginia and New York, that no 

 trade could be beneficially carried on, except at 

 immense lo^^s in exchange, between the Uniied j 

 Slates and England, without such common paper [ 

 currency, or a joint and common bank ol' issue. { 

 Extend the ap|)ricaiiun of the doctrine, and there I 

 would be found as great commercial necessity lor j 

 a joint bank lor all Europe and all America — I 

 indeed for Asia, Africa, xYustralia, or lor the whole ' 

 commercial world. Yet we all know the general 

 fact that trade is carried on perlectly well without 

 any such joint banking establishment or com- 

 mon currency. And none know so well the false- 

 hood of the assertion of the absolute necessity ol'a 

 common paper currency, as the bank men and com- 

 mercial men, vvho use it as an argument to urge 

 the establishment of a national bank, which they 

 want lor other and selfish purposes. Ignorant 

 politicians, and their ignorant and blind followers, 

 may indeed believe this doctrine. But intelligent 

 merchants and money dealers have more know- 

 ledge than to believe what they aim to make the 

 poliiicians and the peo|)le believe in this respect. 



The great operations of trade between dilier- 

 ent countries, and between difierent pans of (he 

 same great couniry, are conducted by exchanges of\ 

 commodities, dxid not by payments and transmis- j 

 sions of money, whether of paper or of specie, lor ! 

 the amoums purchased and sold. Exchanges ol'j 

 products between this couniry and Eni/land m'ght I 

 take place to the amount of 100,000,000 annually I 

 furnished by each couniry, and if liie total ' 

 amounts were equal, not a dollar need be trans- 

 mitted 10 make payment. The American who 

 sold tobacco or cotton in England, would receive 

 (in preference) not money, but a draft on England, 

 which he would sell at a premium to some one 

 who wished to purchase or pay Ibr goods i^ Eog- 



liand. The operation is so simple and clear ae to 

 I need no furiher ex()lanaiion. Extend the applica- 

 tion to the wliole trade between the two countriHs, 

 and the result is, that, even if each individual sale 

 were made lor cash and puid Ibr in money, there 

 wouLi be no need of transmitiinii any money 

 across the Atlantic ; as it would be more profitable 

 lor the latter class to purchase su<:h foreign funds 

 or dralis, raiher than lo transmit money, no matter 

 whether ihere existed a specie or a paper currency, 

 or unilorm currency of either. 



But it is true that a precise equality of sales and 

 purchases ol (he United Siales and England in any 

 one year would not be possible. But 'hat does nol 

 affeci the principle of the position. The balances 

 only would have to be paid Ibr in s'pecie, between 

 countries ihe least connected in trade ; and these 

 balances will be very small compared 'o the whole 

 amount of exchanired products. But between 

 couniries closely coiinecied in trade, the balance 

 of one year would generally be settled in the next 

 year's transactions, and be almost always dis- 

 charged in commodiiies insiead of money. 



The generally prevailing opinions ol" the neces- 

 sity, and of ihe mode, of iransltjrriiig the revenue 

 of the Uniied States are as erroneous as those up- 

 on trade between different couniiies. 'I'he whole 

 revenue of the govetnmeni has not to be brought 

 to one place, thence to be sent to every place of 

 disbursement. As in the case just staled of trade, 

 it is only the balances that require to bf* moved ; 

 and not always even the balances. Under the 

 present system of indirect taxation by duties on 

 importations, the greater part of ihe revenue will 

 be paid in (he ciiy of Ntnv York. All the dis- 

 bursements of government which are made there, 

 or can be as conveniently made there, will of 

 course ahsorl) so much ol the revenue, and save all 

 charge tor Irani^lerring the amount. But this is 

 but a very small propoiiion of what may be so 

 paid. On account of the city of New York being 

 the great commercial capital and mart, it vvill fol- 

 low (hat money there will be at least as valuable 

 to all persons who have to make purchases, as at 

 any other place in the union, and generally more 

 so. Conse(pienily, if government has to pay a 

 sum, whether in Maine, Iowa, New Orleans or 

 Norfilk, a draft on New York for the amount 

 would be more valuable to the creditor, as he 

 could forthwiih sell it for more lo a merchant or 

 broker, or to a bank, ihan the amount of the debt 

 in specie. Thus, much the jfreaier part of the ex- 

 penses of government might be paid without 

 any actual transfer or removal of money bv the 

 eovernment ; and the transfers which would be 

 subsequently made, to equalize the supply and 

 demand Ibrspeeie, would be in the ordinary course 

 of trade or exchange, and conducted at the cost 

 and risk of |)rivale individuals, or banks. The 

 permanent balances, wheiheraccutnulaled by pri- 

 vate trade or governmental taxation, would in- 

 deed have to be transported from the points of 

 unnecessary accumulation, to other places where 

 wanted and due. But ihese pertnanent balances 

 would be small in comparison to the whole amount; 

 and the expense of removal, even in specie, would 

 not be worth naming in comparison to the cost of 

 a government banking system as a means for 

 transferring government funds. And, moreover, 

 these balances have now lo be so transported, 

 and in Bpecie, and always must be, under any 



