The enquirer. [volume] (Richmond, Va.) 1804-1815, 1805-04-23

| SN'SHNtO So'niHcICc, WnttGcr tNO1c ca
oaciiies had already rip-ned to zach fate OF
maturity as to require the augmentation of our
banking capital. You would not fure!y iavi!h
upon little village all the improvements and
ornaments Of a magnificent city, even though
its natural advantages ihonld pronife 70 exalt
It to the mott brilliant dettiAy. You wo,i.d not
think of Introducing the refined manufactures
into the mott fertile regions of Africa, where the
inhabitants are perhaps in want of bread !
M. Surely not. think with You, that we
ought always TO fit our PADDLE to the horfe: hut
1 contend that this principle itfelf is in favour
of my prefint fcheme.
C.. Where then are yoar data? Every one
may underitand and admit this principle: but
the whole difficulty conits in the proper APP
plication of it. Had the French been fOoner
convinced that they were not Immediately fitted
for the enjoyment of free government, they
might fpared themfelves the agouifing throes,
which they futaned in their abortve attempts
TO eftab'iih one. l do not mean to compare the
trifling consequences Of having too much or roo
little bank capital with the tremendous horrors
of a French revelation: hut furely it is incum-
bent upon us in fmall things as we'll rs in great
to regulate our conduct by genera! principles.
What fandard then have you for discovering.
that the capita! of the prefent bank OF
Virginia is not equal to the effe6tua
M. The experience Of fome of the Northern
States. What do you think, for inftance, of
the commerce of Pennsylvania, Z" whole domef-
tic exports are not equal to th0fe of the city of
Richmond; =" and yet the whole capital of the
Virginia Bank, is only 100000 dollars, Whit
the Philadelphia banks alone are worth 1000, 1000
dollars, executive of the u. States bank, which is
ettab!lhed in that city? Under fuch crcum-
frances is it matter Of furprife that Philadelphia
ihould extend her trade even to Virginia and
that Ter merchants fhould become or carriers
and importers
C. Beware my friend of the lights of falfe
analogy. Cannot you perceive, that the H.
tna'ion of Philadelphia aud Richmond is ma
terially different n. Philadel,hia is large &
bobnlouS city in proportion 70 Richmond How
many more drawers and Indorlers, mufl it con-
tain how MANY more negotiable notes how
much greater will be the profits of the bank
end. Philadelphia is not on,ya commercialb..t
nsnngfaauring city. Thefe manufactures re-
quire the aid, and Interpolation of the banks.
Il is therefore improper for us to confine our
idea of the operation of iuch banks to the COM
mercial enterprises alone, of that city. sdly.
Whatever be the ratio, which is eftablfhed be-.
tween the domeftic exports alone ofPennfylva-
mia and Richmond, it is IN ndifputable fact,
that the whole amount OF the exports of Penn
fylvania is nearly twice great as that of Virgil
MIA. BY the late report of the fecretarv of the
treaturv, the ,rlt was more than millions of
dollars. the lat was l-2 millions. The buff
nefs of the Philadelphia bank mutt conftauent-
iv be much more x,erGve than that of the Bank
of Virginia. f. 1t is in vain to fav, that great
part of this export and carrying trade is tfelfthe
efef of the great banking capital of Philadcl-
pfia, and that the increaie of the bank flock of
Virginia would Immediately turn the current of
our trade into our own channels. Such a change
mutt be gradual and impcrceptibe. 1t cannot
be forced by extraordinary exertions. We have
already commenced the career of nnovat on,
by the Establishment of our prefent bank. But
would it not be ridiculous to create a new ca
pital for the contamination of an event, which
time alone can comPieatly accomp,ifh [?
NJ. But, come, | will no longer divert your at
tention from the queRion b. fuch vague & analogi-
cal ftatements. One good fact is worth thouf-
and fuch arguments. Let me ak You then,
whether it is not a t1a that the Virginia bank
has very lately refnfed TO difcount confidera-
bic amount of tgood paper. IF YOU admit this
faa, what ftronger confirmation can you give to
my fundamental petition, that the brefe7t CAPT.
tai of that bank is not equal TO the efeRuai de-
mands OF the market What other reafon can
you al}ign for this rejection OF good paper, ex-
cept that the bank has already extended its
dfcounts to the utmoft limits of its Capital &
is not this in fact admitting, that if its capital
were more extenhve it would not have been
under the fame. neceiiity of rejecting thefe ne
gociable notes
C. Why appeal to me, Sir, for the truth of
theie reports have rot been initiated in the
mafonic myfteries ofthe bank. 1t iGnot in my
power to fay, how much paper it has pafIed
or how much it has rejected. We will take for
granted however that the prevailing report is
perfectly correct. VIII the inference which
you have drawn from it be likewifc correcf ?
Suffer me to enquire in ny turn whether
this is the only report that you have heard
about the hifory of the difcounts lately folici-
ted at the bank.
M. 1t is not. What was only pro5becy fome
time ago, has now turned out to be the fai7.
Many or thefc negotiable notes are faid to have
been prefented for difcount for the purpole of
borrowing from the bank itfelf, the very money
which was intended to pay up the laa initial
ment off its capital.
c. In other words, thefe monied negocators
were deiirous of taking ont of the Golfers of the
bank with one hand, what they were obliged to
pay into it with the other. And, pray, what
would have been the fituaton of the bank, had
| allits shareholders reforted to the fame exped-
ent ! Why, infead of having the whole of its
capital depoiited in actual fpecie, it would have
had no more than 3-4shs Of it in fpecie, whit
the other 18th would have been veited in the
paper of its fhareholdcrs. But you well know.
fir, that the extent of fhe difrounfs nd tt, .,