Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1815-12-09
BANKING.
FOR TIE ENQUIRER.
CONSIDERATIONS
On the subject Of Cnchdrfered Banks,
BTA DIsINTEREsTED CITIZEN.


! re Ec,is ~ .Unchd,Yeiea 6nikIlag E.slq6lsh.
nieRts.
have attempted 60 show, that among the evils
o. the Banking System, and particularly of the uni-
ritsd establishment " Banks without tl,e authoI-
itv Of law, IS the tendency produce depr cat on
and general failure OF paper credit But even tho
che evil should not be extended so far tho the
depreciation should ouy be temporary, and the
confidence of the public in the circulating medium
should be restored, yet is there lnctua;ing charac
term paper currency, which is an evil of great
riagnitude III itself.
specie eircul,d tina is pretty unifarm and stable
{: when its exchangeable value varies its Glib s.
Row sIsce ptibe OF accurate calculation. Ii is
this character combined with their DURABILITY and
convenience, which has led mankind to adopt the
precious metals rs the medium Of commerce. No
character, indeed, can be essential to curfen-
cy than that of uniformity OF value for, the medium
o. exclanges Only adopted q standard with which
IN compare the relative value Of other commodities
Now what properly serve a standard or Bied-
SIRE which is rot in itself perfectly fixed and aseer
tanned ? For, "as measure OF quantity, such as
q natural foot handful, which is continually va
ryng in its quantity, can never be an accurate
ynessure of the quantity OF other things, com
ncdity 1ostch sHssfcontinHafy vmyi's i7l rs
-5G1e, can re1'er bran accurate 1edctHe Of e sa-
Inc gfother c0'umotErss" Hence, it is plain, that
co far AS a circulating medium is deficient in uniform
ty tfyslue far does it fail to answer the ends for
which il Was designed. No man, in varying s. luc-
taating state Of the medium Of exchange can safely
buy sell, 1iucc the price given or taken though G.
quail at the time OF teiransaction, might soon b, come
Otherwise. Every she or purchase being thus at
tended with considerable risk arising from luetu-
alton, general embarrassment is created through.
ont all the classes OF society. An indispositim to
trade or exchange, is experienced; confidence il
DESTROYED, aud active commerce must cease. Ante
cedent contracts are not faithfully perlnrTned the
moral principle is weakened. The debtor waits for
the moment Interpretation to pay of his debts at an
under value the creditor IN his turn, presses for
payment when he sees his advantage in It the wa
pes of labor are iuctuatng and variable salaries
anauitics and fees are either oyeigrd uuderpaid
and inequality and unfsrness peryades the whole
transactions of society.
This luctuating character belongs more or less to
every paper circulation, and IS what distinguishes It,
~ great measure, from specie currency. The
latter depends upon tie value Of the metal pieces
the former, upon the confidence that il will COM
T,and money when demanded oftho banker. And, as
q variety Of circumstances affect this confidence 60
slsnIs the exchangeablc value Of The medium pro-
portionably affected. Any doubt which occasionally
atpchcs to Bank paper, more or less affects it,
ysue.
Causes, yet more operative, however, give rise to
ertat fluctuations IN the value Of paper currency,
even when redeemahe with specie.
The remarks in the foregoing papers, have had
q tendency to shcw the possibility Of banking insti-
trlini- throwing into the circulation more bank psf
tsr than it can easily absorb er employ. There are
different degrees Of Ibis excess. ltmay be en- sled
90 far rs 70 produce iHsuvcncy Of banks, general
depreciation anda totallailurc ofpaper credit These
extreme evils are rarely experienced But, more
partel and temporary injuries, arc not without cx-
afaui,s Bsnks have been frequently inprudent in
o,pr-fdiings ia issuing too much paper, which
scne'ally returns npon them, producing what is
called m. upon them. Even when most pru-
ecnte conducted, tie directors Of banks cannot al
va s property regulate he quantities ia Iu2rket---
WITH 40 'l,cr sucntiou, they sometimes override
aod sometimes unter-lo tie business" England
hs Afforded striking Instances OF this immense 6uc-
tu 1r iu the quantity Of paperin circulation, and Of
Us eject noon tlo price oi cnnmo'lnirs and # the
rfe-e~. We are told bv Mr. Thornton, that
si,. u,ia-f~ 0f onto Of Use Bark Of Engiand il cir
, .m.ci Or ivy ilf iayor two preceding the sus-
1..icr NJ ep'n ?sJnea's, was about million Of
,.o4.ia t.eti,gr SHORE 'ime before or Afterwards
4 .ttal .o. IS bo.uc ie1rr, the price ~ Hem WIS
&. gro re- Groc hlghsT /" Wis lg pie price %. cum
.atesfeY,e jta.n, ,oo. Ga; iev g t!tsi, from