When the banks, or any considerable number of the banks, of any particular State--Massachusetts, for instance,--shall have made themselves so far acquainted with each other's solvency, as to be ready to receive each other's bills, they will be ready to make a still further arrangement for their mutual benefit, viz: To unite in establishing one general agency in Boston, another in New York, and others in Philadelphia, Baltimore, Cincinnati, Chicago, St. Louis, New Orleans, San Francisco, &c., &c., where the bills of all these Massachusetts banks would be redeemed, either from a common fund contributed for the purpose, or in such other way as might be found best. And thus the bills of all the Massachusetts banks would be placed at par at all the great commercial points. Each bank, belonging to the association, might print on the back of its bills, "_Redeemable at the Massachusetts Agencies in Boston, New York, Philadelphia, &c._" In this way, all the banks of each State might unite to establish a joint agency in every large city, throughout the country, for the redemption of all their bills. In doing so, they would not only certify, but make themselves responsible for, the solvency of each other's bills. The banks might safely make _permanent_ arrangements of this kind with each other; because the _permanent_ solvency of all the banks might be relied on. The permanent solvency of all the banks might be relied on, because, under this system, a bank (whose capital consists of mortgages), once solvent, is necessarily forever solvent, unless in contingencies so utterly improbable as not to need to be taken into account. In fact, in the ordinary course of things, every bank would be growing more and more solvent; because, in the ordinary course of things, the mortgaged property would be constantly rising in value, as the wealth and population of the country should increase. The exceptions to this rule would be so rare as to be unworthy of notice. There is, therefore, no difficulty in putting the currency, furnished by each State, at par throughout the United States. At the general agencies, in the great cities, the redemption would, doubtless, _so far as necessary_, be made in specie, _on demand_; because, at such points, especially in cities on the sea-board, there would always be an abundance of specie in the market as merchandise; and it would, therefore, be both for the convenience and interest of the banks to redeem in specie, on demand, rather than transfer a portion of their capital, and then pay interest on that capital until it should be redeemed, or bought back, with specie. Often, however, and very likely even in the great majority of cases, a man from one State--as California, for example,--presenting Massachusetts bills for redemption at a Massachusetts agency--either in Boston, New York, or elsewhere--would prefer to have them redeemed with bills from his own State, California, rather than with specie.