The enquirer. [volume] (Richmond, Va.) 1804-1815, 1811-06-07
,ion should be under the influence of British

capitalists.
The honorable gentleman from Massa
chusetts, (Mr. Lloyd) to whose dispa sson.
ate, enlightened and dignifed observation.
listened with great pleasure. informed us
that there was capital of fifty millions o
bank paper in circulation in the u S. ant
the specie circulation for its support did moi
exceed 10 mill oDs-and that was daily di-
minishing. IF this be the true state of the
circulating medium, think he extension
OF bank paper circulation already too great;
and it would not be surprising to me. if a
knowledge of this fact alone should lessen
its credit. It's excess has certainly become
an evil, and instead of being still further
extended. ought TO be. curtailed. But the
most objectionable circumstance to this ex.
cess OF circulation ofbaris paper, conceive
to De It's inevitable tendency to exclude the
specie circulation, which it substitutes. A
specie circulation is certainly greatly pre-
ferabie to paper circulation; it has an in.
trrinsic value in itself, whereas the paper
circulation has nc Intrinsic value and its
currency depends upon the value of the
specie circulation which it represents. Of
course circulation of value is excluded
from the country, and substituted BY one of
no value and in times of war or other
great political calamities, when the go
aid OF banks for its support, their capacity
to lend would be the most diminished. #
not entirely destroyed by the abs nee of
specie capital, which the circulation of
bank paper has ban,shed from the country.
l presume, the gentleman would not consi-
der the Punishment OF circulation of in .
t1nslc value. and substituting it with one of
a representative value ONLY, amongst the
prosperous effects resulting from the opera
ton OF the bank of the us The gentleman
from Massachusetts,, (Mr. Lloyd) favored
the Senate with the perusal of his notes of
the evidence of the democratic MERCHANTS
and manufacturers of Philadelphia. lpaid
great attention to this information derived
from practical men and should be sorry to
mlsconceive 1t: and cert ainly could not dis
respect 1t. But there were two facts, sta
ted and assented to by all of them, which
seem to me irreconcileabie with the opini
ons expressedby those gentlemen, respec-
ting the real causes of the presen, scarcity
of money. and the distresses conseouen,un nm,
on that scarcity The first fact was. that
the bank In Philadelphia discounted pre-
cisely as much now, and proposed to do so
till the4Ath OF March, as it heretofore had
done.
The other fact was, that the paper had
not depreciated,b but was still in good credit.
he complaint was not that the paper when
was not of good credit, and would
not answer their purposes; but that they
Could not obtain it. Now, Sir, cannot CON
ceiye how the scarcity of money, and con-
sequent distress, can arise from any appre
hension OF putting down the bank, when
precisely the same sum of money is now put
into circulation by it as was formerly done,
and the money itself in good credit. The DE
I'M av~yy dIAfE
Judgment are not properly attributable to
these causes, but to some others more
inscrutable. and which have ESCAPED the
observations of these gentlemen. Perhaps
they may more justly be ascribed in some
instances, to the general embarr assment of
the commercialworld at present, particularly
the embarrassment of American con- nerce.
at the present moment and perhaps
IN some instances. to SoEG unknown embar.
easements and difficulties in the particuIar
occupations of the complaining individuals.
There is another fact to shew. that the
alarm at present is greatly exaggerated.
or is certainly greatly beyond any real
cause for it. 1t will appear from the Seeeta-
rvs report. that the debts due to the bank
OF theOnIsed States are only 8 100000 less
BOW than they were 10 months ago 49,
ut course the discounts Of the whole
institution could only be lsssened to
that extent, and it is impossible tor me to
believe, that the payment of that trivial sum
compared with the whole mercantile CAPT
tai OF the United States could be seriouly
teit by the merchants generally; especially
as they have been twelve whole months ia
paying 1t. 1t the payment of that sum in I9
months could produce all the distresses
we hear of. l hope we shall hear
no more of our immense Mercantile
wealth, and the great extension of our
capital Yet this is the only real
cause tor all the clamor & alarm circulating
[hro1sh the Country. think with some
confidence, that the consequences of putting
down the bank of the II States must he
artihciaily exaggerated. or very much mis-
apprehended; and this opinion is grounded
upon the consideration, that is directlv
repugnant TO the interest of the bank RI
cause the apprehended distresses. and ire
directors certainly have the power 70 avoid
the production of them. And ] think ina,
when a calculation is made and a coucl,.
Sion drawn upon the idea that a monied in
sttuton Will pursue its own interest. il NAV
larry be SAID to be grounded on a solid
consideration. cannot see how putting down
TINS institution can materially affect tbe
Pecun'ary abilities OF the nation: its act,.I
funds for discounting will be nearly The
same; the position of them oplv will he
changed; they will find their way into the
state banks, and their abli,v to d;scount
"ill be increased prnpor,ionably to the in
crease OF their deposits. Nor am I az all
alarmed at the suggestion, that eleven mil
IONS OF dollars will be drawn out of the
M ri 30, al. nj