Virginia Argus. [volume] (Richmond, Va.) 1796-1816, 1811-07-01

the existing state ofthings when you legislate
concerning them. The same means may be
necessary & proper now which wouldno have
been twenty years ago you change the means
to attain the end, but the end itself the en-
umcrated power in the constitution, remains
unchanged. AS long as the constitution ex-
lists, you must select the means most proper
for executing the enumerated rights at the
precise moment at which you legislate res
pectlng them. If this be the true constructi-
on OF the constitution respecting the re-char-
ter OF the bank, the question merely resolves
itself into an enquiry how far such measure
is at present expedient. To determine at
this moment whether OF not it be constitute
onal, or in other words expedient, to incorpo-
rate the bank of the United States, am to
say whether, under existing circumstances,
IN the present state of society, situation of
trade and revenue, the preservation and con-
tlnuance OF this institution is essentially neces-
sary. 1T itbe essentially necessary, we have
right to rc-charter the bank. have been.
precise in stating this view of the subject, be-
cause it has not before been taken by any o.
ther gentleman.
With respect to the eXpediency of rech ar
tering this institution, l am somewhat sur
prised that any doubt should be entertained.
1t appears to me that gentlemen have be-
come incredulous beyond all possible bounds
believe, sir, it was a wise saving Of the
sage Plato, that incredulity is the fountain of
knowledge. But even to this maxim there
must be some limit, as seems to be illustra-
ted on the present occasion, when incrcdulity
has been carried beyond unreasonable bounds.
When general distress is in view when all
aroundusis proof of the fact; when men in the
best credit, men who have heretofore had the
greatest command of money, now feel the
want OF it /; when there is a general cry of
distress from your large towns when our
table is loaded with petitions from all orders
OF people in our country, depicting in the
most vivid colors their present sufferings and
gloomy anticipations; when the surrounding
banks are curtailing one half of their accom-
modations; when our whole commerce is
paralized by the various aggressions it has
experienced, and by the shock which the a
citation OF this question has already given it,
for gentlemen to shut their eyes to the effects
OF the dissolution of this institution is to me
astonishing. In another point of view how
can it be questioned? The honorable gen
tleman from Maryland, whose knowledge we
have all benefited by and acknowledged on
various occasions, has said, WHAT'S most un-
questionably true, that money is like any o.
Their article of trade, valuable in proportion
to its abundance or rarity. Then if you
strike out of circulation the increased capital
circulated by the bank of the United States,
is not relative scarcity to be expected p
But it is not merely to the extent of the in
creased capital circulated by the bank of the
United States that money will be driven out
of circulation. Those gentlemen who tell
you that the state banks in this period of ca
lamity and distress can afford sufficient aC-
commodation, are in my estimation infinite
ly mistaken. The state banks will in the first
instance frequently tend TO increase the evil.
The same men who have accommodation in
the bank of the United States, finding it ne
cessary to settle its accounts, is anxiously
employed in drawing into its vaults all the
money it can to settle it's affairs. The state
banks, knowing there will be a run upon them,
are also drawing in the money due them by
the very individuals whomit is imagined they
can accommodate by extendedloans. Those
state banks which were to relieve the mer-
chants, &c. will join in the pressure ; in or
der to secure themselves, they must produce
the same curtailment to their customers
which is used by the bank of the United
States. So that not only will the amount of
the capital circulated by the bank of the u
nited States be driven out of circulation, but
much also, for time, of that paper which
the state Banks were in the habit Of issuing
to individuals. 1t isimpossble to say to what
extent the circulating medium will be dimin-
ished; that it will be to great extent for
short time there can be no sort Of doubt
And the depression of the price Of -four at
this period is proof that the present appre-
tensions have already produced this effect !;
for although would yield much to the supe-
riority of Information of the gentleman from
Maryland on mercantile affairs as on most
others, yet in this instance his information is
not, III my estimation, correct Is it a noto-
rious fact that flour is now in as great de-
mand as ever it has been in Cadiz, Lisbon
and GIBRALTAR it is not long since I saw
an account of -four having sold at twenty dol
lars at Gibraltar Now, sir, if merchant
here knew he could get this price there, of
from eighteen to twenty dollars, as is I'M
questionably the fact, would temporary de-
PRECISION of the prices ut Liverpool, as has
bgen imagined by the gentleman from Mary
ind, have any effect hcret None at all. If
OR MERCHANTS could get eighteen or twenty
4llarsR ~ LisScn, the depression Of price at
liverpool woFld not have the least operation
beTe; it's 2Sunquostioned fact that the price
in TIC ports have mentioned is constantly
kept up-and yet the price did fall at the
moment the bank question was thought to be
decided think, it fclltwo dollars immedi-
ately; and It was no doubt from the difFcul-
ty Of obtaining money, which it was supposed
would result from the dissolution of the bank