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 instance, Mobile and New York, may be entirely eqtlai, whilst the local currencies of the two places may be greatly unequal in yalue and when exchang- ed, one for the other, would exhibit that inequality in a striking manner do the local currencies most generally throughout the union at this time. During the last winter the notes of the Bank of Mobile and the Planters and Merchants Bank, (both specie paying Banks) of Mobile, bought checks and bills of exchange on New York at par, within fraction of par whilst at the same time the notes of a non specie payIng Bank another street in the same ci

 ty, (to wit, the Branch Bank al Mobile) with cap

 ta paid in of four millions of dollars, could not buy a bill or check on New York short of a premium of ten or twelve per cent Now, in this case, the pre- mium of ten twelve per cent paid for check on New York in the notes of the branch bank, showed

 the degree of the depreciation of the paper of that bank below the specie standard. It did not show any difference inequality in exchange, for the fact that the notes of the other two specie paying banks

 would buy exchange on New York at par, proved the exchanges to be equai. By exchange, we mean the exchange of uaiue in place for paue in anolh

 er-not the nominal amount of bank notes Tn one place for the same of bank notes in another; but the salue of sad of bank in specie in one place. for the same pdlue of specie in another.

 The depreciation of bank notes below specie par does not al ise from any inequality " Arrangement of the exchanges" but from the failure of the bank or banks issuing them to redeem them in specie- = Whenever bank paper is not convertible into specie,

 its value mnst necessarily fall below specie par-the rate or depreCidtlOn DelnS Oi Dl a variety of circumstances, as, for nstance the quantity in ci' culation in proportion to the demands of business for a circulating medium; the indebted ness of the community in which it circuates To dis tant foreign communities, growing out of their commercial intercourse; the prospect probability of it's early or ultimate redemption in specie; and other crcums that influence the condition and use of credit and currency. It Is indeed, possible, that paper convertible into specie may be kept at par with specie; but such a state can only result oI oIl dad

 rigid limitation of the quantity of such paper in cir cuatlon. a scanty supply of tue demand that may exist for circulating medium.

 And, upon the other hand, when bank paper is dily convertible into specle lt Is at once and there up0n af par iCith specie-sometmes, indeed, shade above specie par-especally silver par, in conse- quence of it's greater portability and convenience for business transactions It is only when the bank note GU, rency of place is in such a condition, that it's exchangeable value be regarded us indicating curately the true rates of exchange. And when the local currency of the place is in such a condition that is when it is convertible into speoiethe rates sf exchange with other places having the same of d currency-a SD, ce paying currency-are regu- lated exclusively by the action of trade, and the cost of transporting specie from one point to another.- At neither of such points will the depreciation of bank paper below specie par exist, and consequently afford cause for misleading and bewildering the mind in regard the true rates of exchange. A merchant of Mobile or New Orleans, for example, will not pay five, ten fifteen per cent premium for check or bill of exchange on New York, when by calling at the counter of the bank he exchange his Alaba- ma or New Orleans bank notes for specie, which, in 8 very few days. he can ship or transmit to New York al a .rifling cost, not exceeding from and a half to two and half per cent. It IS the circum- stance that he has in his power to withdraw the specie from tho vaults of the bank, and transmit so cheaply to the desired point, and the certainty that he will do rather than pay high rate of change, that places the bank in his power, and com pels i: to furnish him with Northern funds or such funds as his necessities require, at low rate of ex change. The merchants at the commercial points at the South, and indeed throughout the world, are by these means enabled to command the exchanges to fix their rates within just limits; and at such rates thus established at commercial points, by the camille operations of those points, the whole rounding country Is aeeommodated and all foreign payments and distant monetary transactions are per- formed Specie paying banks are compelled 10 keep on hand an abundant supply of exchange, to accom- modate the commercial wants of the couniry-other wise their specie will be drawn from their vaults and finally, suspension of specie payments render ell unavoidable, And will take occasion here to remark, as pass on that it should eyer he inva- rable unalterabe rule of conduct for every hank at every commercial point in the union, never to issue

 solitary dollar of its paper for circulation, except upon n basis composed of the specie in it's vaults, and available bona fde bills of exchange, drawn upon the transfer or sale of the commodities of commerce. The amount of its notes in circulation should never exceed the aggregate amount of its specie in vault, md of real business bills of exchange, drawn upon he products of the labor of Ihei country. bank should neve discount even the genuine business notes representing the real substantial business transac-

 ions of the community in which it is located. except with its actual capital Capital alone should be the ,asis or means of such discounts and never should bank venture to issue dollar of its paper upon Iii, except in the discount of genuine available bills ,f exchange, which, within reasonably short peri ,d, will field return in specie or specie finds.- Under rigid adherence to this rule, the evils which ,aye afflicted the country heretofore, and which now weigh so heavily upon it, from blending of the iunctons of issue and discount in banks, would be ,yerted, order and uniformity restored to the ", equality to the exchanges, soundness and health Q trade and credit. sound specie paying curren ,y, adequate the just demands of business, would De the result of such action o the banks, and this Is what the country wants.

 We have seen, however, that $llO,OOO,OOO, or two thirds of the whole bank currency of the coun- ry are not convertible into specie, and consequent y, are deprecia,ed -yariousy deprecated-beow specie par in different quarters of the uuion This Representations aud the varied degrees of it, ranging

 rom three to five per cent, to as low as fifty per cl