The enquirer. [volume] (Richmond, Va.) 1804-1815, 1811-02-09


on which remains unchanged. can on,,
add a few explanatory remarks i'm answe
70 the enquiries of the committee, as stateS
IN your letter of yesterday.
Ihe banking system is now firmly esta
blished, and, in its ramiications. extends tc
every part of the Uni cd States. Under
that system, the assistance of the banks APP
pears to me necessary ior the punctuai col
lection of the revenue. & for the safe keep
ing and transmissicns of public mones.-
That the punctuality Of payments is princi-
pally due 70 banks, is fact generally &C :
knowiedged. 1t is, to a cersain degree,
enforced by the refusal of credi at the Gus
ION house. SO long as former revenue bond
actually due remains unpaid. But think,
nevertheless, that in order to ensure that
precision in the collection. on which depends
corresponding discharge of the public en- :
gayements, it would, it no use was made of
banks, be found necessary tn abolish altoge
thcr the credit now given on me payment
of duties measure which would fleet
the commercial capital, aud fall heavily on
the consumers. = nat the public monies are
safer by being weekly deposi ell in banks,
instead of accommodating in the hands OF col
iectors, is self evident. Aud their trans
mission, whenever this may be wanted for
the purpose OF making payments il other
tudH iuOSC OI COilSSllDu. CANNOT, Win
any convenience be affected on large scale
IN an extensive Country. except through
the medium of banks, or of persons acting
as banker.
The question therefore is, whether bank
Incorporated by the United States, OF IA
number OF banks Incorporated by the seve-
raj states, be most convenient tor those pur-
poses.
State banks may be used, and must i'm case
OF a non-renewal of the charter, be used bv
the treasury. Preparatory arrangements
have already been made to that effect and
1t Is believed, that the ordinary business viii
be transacted through their medium, with
less convenience, and in some respects with
perhaps less safety than at present, but
without any ,nsuperable difficulty. The
difference with respect 10 safety, results
from the organization of the Bank of the u.
States, by which 1t is responsible tor the mo
ney deposited in any of its branches, whist
each of the state banks which may be en-
pioyed, will be responsible only for the sums
on is own hands. Thus the Bank of the
U. States is now answerabie for the monies
collected at New Orleans. and deposited
there in lis branch, a security which will be
lost under different arrangement. Nor
will he U. >. have any other controul over
the manner IN which he business of the
banks may be conducted, than what may
result from the power of Withdrawing he
pubic deposits; and they will lose that
which charter or dependence on the
general government for charter now give
over the Bank of the u. ). Inc facility OF
obi aiming such accommodations as may at
times be wanted. will Tor he same reason
be lessened, and the national power will to
that exten be impaired. !, uay be added.
hit even for he ordinary business of re-
ceiying and trans hitting public monies, he
use of state bank may be forbidden by the
states, and that loans to the u. 5. are by ma
ny of The charters forbidden, without a spe-
cial permission from the state
AS it is not perceived on he other hand,
thae single advantage will accrue to the
public from the change, no reason presents
itself, IN the ground of expediency why
an untred system should BIZ substituted IL
one uude, which the treasury business has
so long been conduc ed with perfect secu-
rity TO the U. ). and great convenience not
only TO the officers. but also to all those WHO
have had pay nents Of a public nature to
make N to receive.
Ii Goes not seem necessary to advert TO
the particular objections made against the
present charter as these may easily be OBJ
viated by prope alterations What has
been called a national bank, or, in other
words, new bank of the United States S,
instead of the xisting one may be OBJ aimed
by such altera ions. The capital may be
extended and more equally distributed :
new stockholders may be substituted, to the
foreigners. as had been suggested in the
report of Cd March. 1909; and any other
notifications, y hich may be thought expe
dent. may be introduced, without inter-
ruptInS tine operations OF tine institution now
IN force, and without disturbing all the COM
meIclal concerns of the country.
Ii indeed the Bank of the United States
could be removed without affecting either
its numerous debtors, the other monied in
situations, or the circulation of the country,
he ordi airy fiscal operations of government
would not be materially deranged, and might
be carried on by means of another general
bank, or of state banks But the transition
viii be attended with much individual and
probably with no inconsderabIe public in
jury. Il is impossible that an institution
which circulates thirteen millions OF dollars,
and TO whom the merchants owe fourteen,
should terminate its operations, particularly
IN he present unfavorable state of the A
merican commerce. and after the great
losses lately experienced abroad, without
giving serious shock to commercial bank
ing and national credit. Il is not intended to
overrate the extent of an evil which there
are no certain data to appreciate. And
without expatiating on the fatal add una
voidable effects. on individuals without
dwelling IN the inconvenience of repaying
at this iime to Europe, capital of seven
mi lions; and without adverting to other
Ia. II