The enquirer. [volume] (Richmond, Va.) 1804-1815, 1804-08-01
o NJ b ii ~ X S.
NC. II.


or the country, but b. rendering greater part |
OF that capital active and productive than would
csherwie be 70, that the mot iudicious OPERA |
lions of Banking can increafc the indultry of the
country" Into this hmple principle have at |
tempted TO retolveall the advantages which can |
arie from the :hree great operations Of a Bank Z: |
It's advancing its notes upon cath accounts, up |
on Bills OF Exchange Orupon notes. It has been |
already ihcwn, that whcnthe Scotch Banks illlc |
their notes upon calh accounts, the individual |
has no longer any occaiion to keep any part of
his capital idle and unproduGtive in his Golfers,
for antwering occaiional demands. When the |
Banks diicount Bill of Exchange, it has been
already ihewn, that The merchant has real and
active capital put into his hands, inltead of
mere piece of paper, Bill OF Exchange, which
would have otherwiie remained dormant IA his
deik, until the expiration OF the time when il
becomes due, or which he would have beenobl-
geo have made over to Tome other perfon at
greattrdiicount. When bank diicountsthe notes
otanndividual, whohasdead property already in
his hands, or who expects TO receive certain fun
OF money at the expiration of a certain period,
II Is cafy to fee that it thus enables him to con-
vert his idle and inactive flock into uieful and
productive capital. In whatever way therefore
we may conlider the principal operations OF the
Bank, we ihall find them generally tending to
this great Object the " rendering of greater
part OF the capital of individuals &c active and
productive than would otherwiie be TO-" What
thcie advantages will amount to within certain
ipace tftime, it is always i'll the power of every
individual who deals with the Bank, to reduce
to certain precife calculation. But there is
another advantage of a familiar fort, which no
doubt extends to every individual in greaterOr
LET'S degree, but which is distributed over 10
many of them, s. which requires frch an indefi-
ante tpace of time TO accomplish, that it is i'm
poifble to fay how much oft falls to one indi-
vIduai, aud how much to another within GER
tam period and which may therefore be faid
70 be an advantage to /ociefy at L9,.ge, rather
than to particular indiViduaL5. This is a. adj
vantage which the mott ordinary minds will be
ready to admit.
The wealth of every fociety not only confias
OF ITS prov,iions, raw materials and finilhed
work, but alto of a certain medium, which is ne
ceiiary to circulate thefe commodities among
Its different members. There is icarcely foci-
ety, IN which this circulating medium does not
require comfortable labour to produce and to
tnalntaInlt. In almot every civilized country,
the mon coty metals, as gold and filver, have
been ic!etfed for this uftful Office. Thefe me-
;aiS iiiiiit either De collected from the mines of
the country itielf, or from the mines of other
countries.
! But Mould they be dug ont of its own
mines, high rent mutt bc paid, confide-
raole itock mutt be employed, and a coniidera-
bic quantity or iabour NUT be elitauftcd before
the ore can be drawn out of the earth, and be-
fore the metal Can be extracted from the ore.
what the rent of the lard, the profits of this
itock and the wages of this labour may be in
proportion to the isock and tine labour, which
they will really purchaGe when they come to
market, may certainly vary very much with
the fertility of the mines, and the real va
lue of the land, labour and ftock. It is
certain, however, that few mines will afford
quantity OF metal, which fllall much exceed
| IN vaiue, the expence of working them. AS the
produce Of the mott diltant gold or FLYER mines
can o. brought into competition with each other
| IN the fame market, there are even very few
winch can afford the necciIary expencesof work
ing theIn at all, becaute the produce of few
mines, IN proportion to the expence of working
them, is 10 great as o coroc nearthe ratio which
the produce of the richeit mines in the CONNER
ciai world will bear to the expence of working
fben hndhenceit is, that Smith has attemptedto
draw the reatOn why 10 many gold and FLYER
| MN IN Europe, III the EAT Indies and in Ane-
rica have been completely abandoned. We
may therefore conclude that The value of the
gold and the FLYER which are drawn from the
! mines OF Il country is not much greater than th,
| iat1or and itocS which are eXhau1ed in WORKING
them: or IN other words, that the gold in 500
gaincas, which is extracted from the mines will
icdrcely purchaft more labonr when it comes
to market than was expended in les 2cqnifition.
1t may be therefore aierted, that the labour and
itocS, which were fpent il the acquiftion Of 500
gulneaS, were nearly equal in value to that fun,
and that hence, if the ule of that money could
have been iuperieded, or if cheap circulating
medium could have been fubGituted in its
place, 4 quantity of labour and Gock, equal in
value to the 500 euincas, might have been al
mott tived to the county, its productive induC-
try might have extended with this new capital,
and proportional augmentation might have Ia
Ken place inthe quantity sProviGons, itsraw
materials, or its finihed work. get, even If this
original petition be not altogether accurate
even # the gold and FLYER when they come TO
market thould purchafe much more labour and
Rock, than what were expended in their acauif-
ton, it is fill fuicsnt FOR my purpoe TO fate,
that they will have in other countries a value,
nearly equal to that which they had in their own.
Should therefore a very cheap circulating nc
dunn be Introduced into commerce, and Mould
1t have The erect OF eXpeing this gold and FLYER
to foreign Countries, il is obvious that almoft ~
much itock and labour will be faved to the
country, as will be equal TO the value Of the mo-
ney which goes abroad. But will the eRablilh-
nent of banks and the introduction of their pa
per money have the effect Of expelling this foe
Gle! Is = queltion, which will mott properly
come after the confederation of the fecond cafe,
which h1o biet, aIr,s,I,y Gto,sn