Alexandria daily advertiser. [volume] (Alexandria [Va.]) 1803-1808, 1804-08-28

and that it is in. aid of confherce that they
can be rendered most useful, most proht-
able, and most safe.
s" The Golfers Of the bank so fax rs Its
dealings are confined to such customers, G..
e. merchants resemble a water pond, from
which neigh a stream is continually run
ing OUT. yet another is continually running
IN, fully equal to that which runs out; so
that without any further care or attention
the pond keeps always equal, or nearly e.
qually full. Little. or no expence can ever
be necessary for replenishing the Golfers Of
such a hanA.n Page 57s, lst Vol. fhisa.
EJt.
But when bank is conducted upon di!a-
ferent principles, when the money is lent
out upon mortgages and fora long hnlr,
Mr.. Smith observes, 6 The stream which
is in this case continually running out from
it's Golfers is. necessarily much larger than
that which is continually running in, so
that unless they are replehished BY some
great and continual effort of expense, those
Golfers must sooabe exhausted altogether"
Of this latter description was the Bank Of
AYR which faded, but not of this descrip-
ton will be the Bank Of Potomac from
the improvements in the agriculture ofour
western countries and from the opening of
the river Potomac, rich and extensive
commerce will swell the stream flowing in
20 it, while tie stream flowing out wall re-
fnanerate the be1aeGt, and impart to com.
merce, in its turn, ,an additional extent anti
vigour.
The author of the aforesaid publication
is noe, however, singular in his fears of
danger from the too great multiplication
OF Thanks; those fears were equally prevalent
In Great Britain at the time of the publlca-
ton of ssThe Wealth of Na!ions"-Mr.
Smith speaks thus upon the subject" If
banks are restrained from issuing any cir
culating bank notes, or notes PAYABLE to the
bearer, for less@than certain sum, and If
they are subjected TO the obligation OF an
Immediate and unconditional payment OF
such bank notes as soon as presented, their
trade may with safety TO the public be rem
dered In all other respects perfectly free.
The late multiplication OF banking compa-
MES, in both parts of the United Kingdom,
an eveit by zviich many people haze been
much alarmed, instead of diminishing, In
creases the security of the public. 1t obi
ges all ofthem to be more clrcumspect in
their conduct, and by not extending their
currency beyond its due proportion to their
cash, to guard themselves against those ma
lieious runs, which the rivalship of so many
competitors is always ready to bring upon
them.' Here we have indeed important
testimony in our favor, and with much
pleasure do adduce. the. opinions of this
very intelligent author to qalet the fears
Of those who apprehend danger from the
extension of the banking system in our
country, in addition to which | must OBJ
serve that there appears to me to be one
check which must ever operate to prevent
It's being carried to a dangerous extreme,
which is, That whenever the profits are SO
lessened by the increased number of such
establishments, as to reduce the price Of
stock to par, or less than par, then no new
subscription.can be filled. cannot, there
fore, see any reason to believe with the
writer aforementioned, that the danger of
the community is such as to require legis-
lative interference to suppress our. estab-
lishIneat, nor Go | see any thing in the ex-
listing laws of Virginia, or-of the United
States, to excite alarm in the Stockholders.
The opinion Of the writer that Congress by
p1edgng i,selfto the Bank of the United
States not to establish any other bank DUR
ing the term of its charter, and thereby
bound to suppress any Banking Associate
OIL which may establish itseJ within the dis.
trict,sis an opinion which conceive does
no. require refutation,
HIT should we even admit the rrorrietY