The enquirer. [volume] (Richmond, Va.) 1804-1815, 1804-08-25
NO. V~...CoNcLupEp.

IN the preceding part of this eiIay, it was oh.
ierved, that there were three great operations
oy which the banking fytem might appear
competent to promote the agricultural intereit.
1t was fhown that the fy;R of thefe methods was
really lmpracticable, which propofes to eta
6hih bank upon the BATS Of land, and filbie6t
that land to fale after the expiration of a Ger
tam period, for the payment of its notes. The
principle feemed Efficiently clear, that land
could not ierve as the BATS of fuch an eltablih
nent, and that no bank could really be well eff
taollihed, which was not bottomed upon an A.
dequate capital in actual fpecie.-It was fhown
tnat III this country at leaft, the /eeond method
was extremely dangerous, which propofes to adj
vance capital to the farmer, upon the mort
gage of his land, or upon the faith of his future
crops. A iecond principle appeared equally
clear, that " in fuch country as ours, it could
icarceiy be the intereft Of the bank to lend it's
notes upon any other lecurity than private notes,
or upon bills of exchange guaranteed by pro.
per endoriers, or upon fome other depoGt
winch is equally certain its z,aIue, and eon4srt
i6le into moaey at equally. Rort berioGs.' Whe-
ther 1t is not in the power of the bank TO con-
tribute to the farming interef by procefs of
Tbs kind was the third enquiry, which was
propofed for our confederation.
8. a fimple cafe will be fufficient to illu0rate
~ ''''uiS duu utliity Vi lnis operation. a far
mer poIei'es not only land, but the produce Of
that land. His granaries and his barns are fiIled
with the richet treafures ofthe earth; with corn
wheat or tobacco. There is no demand for
them IN the market at this particular period .
out the period is not far diaant, when the de.
manu- viii rife, and tine value of his commodities
Will iHcfeafe. Meanwhile his necefIities or his
convenience require the poiIefiion of certain
i'in OF money. His annual taxes are to be maid -.
or the fi1erif waits upon him with an execution,
which he can neither diicharge nor evade.-2
L his IS imple, but certainly it is not 4 Gngu.
lar cafe. No great depth of logic, or exten6on
Oh experience is wanting TO Convince us that
tnere are many farmers, whole contracts to nav
tneir debts are regulated by the period when
tne'r crops may be expected to come in, and
"hole crops generally meet with the very WORT
market, when they are frit collected. So that
they have fometimes the greaten demand Cor
money, at the very period when their crons will
command the lowet price. Is it not in the
power OF the bank TO relieve them from this
entertainment and by advancing TO them a
certain ium OF money, efficient to fupply their
immediate ncceiiites, to allow them a LONGER
time tor feeking out other purchafsrs, or wait
ing until more favourable market il onened for
their commodities As it is not to be fuppoCsd
that the bank will do any thing contrary TO its
own ntereit' the only enquiry in fact ought to
nave been whether there is any conlequence TO
be expected from this operation, which il not
auipicious to the mott mercenary views of 2
bank. That there is not, under certain copdi-
tons, may be clearly deduced from the p,inci.
pie which has been already deagnatcd.
1t lis the interee Of a bank to lend sc money
upon the faith Of well eador5ed notes and bills
or exchange. or of fonre other depoet edualiy
certain IN its value, and convertible into money
at equally fiort periods. The characteristic
properties OF this depoft mot be, that it ff1outd
be imperaiiasic or usaiiera5Ie IN rs nature. =.