The enquirer. [volume] (Richmond, Va.) 1804-1815, 1805-01-11

much argument was ufed for and againa the
propohhon, the Queition does not feen to be
or tqrshrt importance either to the interrh OF
the tockholders, OF the benefit of the commu-
u.ty.
lt is well known TO all who have even a fu-'
perhcial acquaintance with banks, that their
operation is 10 encrcaie, perhaps to double the
circulating medium or the place where they arc
inttltuted, in coniequence of which, they aug
ment competition among buyers, aud thus raiie
the price or every commodity. BY this natu-
raj effect OF the Virginia Bank, the price of to-
bdcco, as well as OF every other article will be
increaied, aud they will readily meet with pur-
chafers at fair price for caH. Now il is grant
ed that 1t would be inprutlent 20 take an article
10 buctu2tng in price as tobacco, as lecuritv for
the whole or the current price, but only for
certain proportion, FAY two-thirds or three
tourths; consequently, very few will apply to
the bank to receive part of this price, when
they might eatily, by iale, obtain the zybos.
know 1t may be faid, that tobacco is COM
monty much higher in the fpring and funmcr
than 1t rs IN autumn and winter; and thoie who
purcbate 1t at one ieaion, make large profit by
keeping It by them, and telling it az another
and that every holder of tobacco note, NAV
have this advantage by means of the propofed
bank accommodation. The argument is fpeci-
Gus, but it is deluive. Before this nititution
eXiited, the circulating medium OF the country
was not proportioned 10 its produce-in conf.
quence or which deficiency, the extraordinary
difference of price alluded to, might have exit
ed. Thofe who had money made a great nro-
mt from the ute oft; but now the cafe is chang
ed. The bank has TO increafed the money of
the country, that any merchant may ealily p,Ir-
chaie as much tobacco as he pleaies, and nav the
cath for it. The number of purchaGers. if TINS
increated according to circumstances. and the
advantage OF keeping tobacco hal. wear. nv
the incrcaied number of competitors, is reduced
to the ordinary profits OF commerce. IF the
planter ihouid chooie to keep his tobacco for
an Incredie or price; be content TO pay intereit
for the money he draws out of the bank. and
aep out Of his element to turn fpeculator-;s
he more likely to loie or to gain by the adyen-
turc or will he probably make more accurate
calculations OF the future value of tobacco than
the experienced and weI-nformed merchant ,
The bye-law, by giving a temporary ac-
commodation 10 the owners of tobacco. holds
out 4 fnare 20 the unwary, and many a planter.
excited by his too iausuine hopes, NAV fee that
tobacco, which he could have fold at fair
price and free from all charge, facrifced under
the hammer or the auctioneer.
The propoled meafure could be better ipni-
fled if this bank did not find it eafy TO lend its
money iii the uiudl way, without refortinq to
extraordinary means ; Ill fact, to the bufneis of
pawn broker. But it has been Gated nv com
petcnt authority, that the demands for dfcounts
at the bank are increafng, and will probably
foon be as great as prudence will warrant
Even the difcounts were itiI lefs, confefs 7
hardly fee how they would be ncreaied by tbe
meafure propofed. Money is chiefly borrowed
hy merchants and ufed by them in the purchafe
of the great itaples of the country, tobacco and
-four. Now IT is clear that if the holders of
theie articles have lefs occaion to eH them, the
merchants have efs location TO borrow money
to buy them
In qgsfions OF this fort it is common to ~,
tui 6ono? What is the advantage propofed ,
And if the preceding reafouing be co,r,,9, few
holders or tobacco will depofit their notes with
the bank, IL the directors lhoud avail thelnfelves
of the permiition granted by the bye-law, and
the corporation will not be gamers by thoC. few.
So much has been faid on the fcore of boljey !:
on that of i1lcor Ucnisa-r, fome additional trou-
bic may be given to the officers of the bank, bv
the propofcd regulation, and it might involve
the corporation IN an injunction or law-fuit ::
but on the other hand, it may prove conyeui-
cNce to the holders of tobacco notes, who NAV
thus borrow money without aftIing the favor of
friend, perhaps of Granger, to become their
fecurity. Above all, many refpe6table individr
ais !ee::! &c -!Ei fEoTr Tie rneafre, and they will
better feel the good or harm refulting from il
by experience, than learn them by any previous
argument.
The above remarks are confined to the con-
liberation of tobacco. The objections to flock
as depoft, are lefS numerous and weighty ::
but there were fome lenfble but general fe-
marks on circulation, made BY the firf oppo-
fer OF the refoiution, which were but partially
replied to.
nDCEnIrrn