Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1815-12-12

y
sl9,as nsogey. thus by SOFT III ineomprehehs-
&c u.agie. the debtor Gpteons 10 be tuLei into a
money lender, whist in truth lac is only adding TO
t.e eu.bersassments whi.h ihresten to oyerwhelm
h'n Tor IS Dr.. Smith justly Observes, g he Is only
enabled TO get much dec per la debt that hen
'uin conesr will tail so Iiuch heavier On himself 4
his creditors
TIE man,ern which these unchartered banks
are frequently put into operation farms another OBJ
lection TO them. Clafe cd banks lave never been
ermtted by the Legislative body TO commence bu
sincss, without paying in considerable portion OF
the'r capital. Not SO with these unlicensed insttu-
tons Like tie Scotch banks, they commence with
small part oi their nominal ca,lal, aud the conse
quencc is AS DR. Smith remarks " that uhsr cotf.rs
never we'll filled" These imprudenees ii not
committed by ALL in many instances exist and tho
tie payment OF their subscriptions is BY no the
only pledge OF their selvency, yet is il Of the
securities for their regularity AID COOL management
Is il then possible that in matter Intimately con-
ectvd with the public interest, OF AL ,escTipti-
ms should be permitted To carry into their
wild and l-diges,e schemes, 10 tie great detri-
ment of The community 2 Already we see msa
welding these prodgious engines, who scarcely
he presumed to understand their managemt ut.
W.T. out any presi'.ss acquaintance with their
pcated machinery, they undertake 10 direct it, and
HE Intricate concerns OF i bank are entered upon
Ms tho they could he instinctyelv urders,ood.--l
the mean ume ia 81 who at frs, may have doubt
eel Their capacity Tor the management OF affairs with
VIII ella trey had not been previously couversant, be-
holding others not better informed than themselves
in the direction OF these important inst tutoas are
stimulated to new projects of similar character in
winch they too may have an opportunity OF en- -yiny
cDices or displaying their intuuve eapacitics.
Whether institutions, sprngins from such causes,
are hkeiy an general, to be- mansged bcneic ally Ia
the community may he safely lett to the I, hc elton
oi ever unbiased understanding | do not mea-
to ledge that highly honorable ard wealthy idvii-
u"ls may not occasi naliy ciae for the sabijh-
meht oil banks IN situations propou for their inte-
rest and least un.a,urable for the community
But II IS not enough that banks are SOMETIMES cs-
taalIshed and managed on proper principles. II is
tie business of the Legislative Body, in who's HANDS
are the dt sties o the people, to take all posSbl.
care, that such Institutions should ALwATs be sn
that they should ncoer be erected Tvt1I they ought
rot, ,oiere they ought not npon Principles pre-
Judicial 10 the public.
These considerations become infinitely stronger,
when we reflect, how general has become the itc!
Tor issuing paper and to Whist dreadful consequences
It is leading. Seeing the example set by associa-
tohs, individuals promptly pursue their STEPS. Inn
keepers and slopket pers, gamblers and sviGdlels,
ih'vNte persons and corporations, disseminate t,eir
notes through society. AS they pass ;hrough the
hands ot persons out OF trad, we'll as through
those oil mercantile men, and are circulated equally
among the ignorant AID the intelligent, the most
shameful impositions and frauds are practsed with
success The plain country-uan, when h. sells his
hcur or his corn, Is cheated wnh notes that he ca-
not paswithouta discount; co the stranger in pas
81 through the ia"d, is c0uap"lied 10 receive ir
change, trash tiat he is frequently unable TO get rid
of and numbers engaged in the konoiTu5L
bisiress at lining upon others the vile stuff which
chance or necessity has TIN own into their hands,
The most detesable swinflei Justify themselves by
the practices OF the unlicensed banks, laugh at their
prosecutors, and that they are not more guilty
than their associated neigibois. Witness the notes
of The pretended Exchange Bank of New York;
and the pretended Bank CT "The Indiana Manu-
featuring Cooipany." OF the former, FIVE ard twen-
ty thousand have been supposed 10 be ia circulation
ana the ho'!eSt gentlemen engaged in the latter, have
Deen probably not less successful Both these Banks
are MERE FIcTIoNs vet these have fount their
way into society. They look as WE'LL are as n,!mi-
raoiy engraved, and as hand emely ornamented as
any paper in the union The villains engaged in
these gigantic hands, procure for circulation very
beautiful notes, send their comrades through tn.
country to give them uriency pass them to The ig-
norant and even TO the Intelligent, aud among the
iuhn'te number and variety ofnotes to be- with,
iind no difficulty in practising their abonnabe arts
upon every class OF individuals. --ARE NOT THESE
E'ILs!--.fHd do Mcy not S1Iiny veIV naf,nuhv
from the issuing cfunhcens.l PaPer? DO not the
swndlers engaged in such infamous frauds, ID Ga.
city IN their preparation, arising from the Infinite
va ety OF paper in circulation, and from the want
oil some distinguishing characteristic among them
And at these things happen in the green tree what
VIII be done i'll the dry :" AS yet, We have but
lew Banks compared with the numbers we may
expect, III be once admitted that all who please,
NAV, without the sanction of the law, associate rs
Bankers How necessary is it, then, that the legs.
lauve power should by its charter, give some stamp
To the currency, which may in some degree enable
The poor well as the rich the farmer rs well as tie
merchant, the man ef ordinary capacity as well
as the more intelligent, the stranger as we'll as The
citizen, to know the bills Of the substantial banker
rom those ct the wild protector; and to distinguish
those which furnish real compensation FOR his Ia
pour or his property, from the worthless rags OF
banks without credit, or swndlers without princi-
pie
1t there be train of events calculated to bring
all notes into dlsrepute, aud TO produce a general
Failure of paper credit, the circumstances ON which
have touched, will unquestonabiy occasion it
Already we begin to feel their influence for
scarcely man III society receives note from lis
nlghbor, without suspicion and distrust. The con-
sequences of such iainrc of paper credit, a. ali
times dreadful, (c) will be more sensibly felt in
nation so commercial ours, particularly 1t pc
ROD when every other currency is ent re!y driven
from circulation. How shall the common tranck
and Intercourse Of society he carried on, il no man
can trust the medium ofeXohange-if confidence in
the ohy currency is sappcd Why do the laws 50
severely punish the coDifefsito,of the current cain,
but that by diminishing the public faith in this nsrtl-
ment OF traiick, society becomes dsiDnted trade is
embarrassed, and all the Caray sing eff cts upon
industry, produced, which follow from s;agna-
ton ia the common dealings of the country And
yet it may be seriously asked whether the offence
oi solitary steitor, who slowly sends ls base
metal into circulation, can, in its effects upon the
currency, pare with the widespread evil Of M
undstug society with notes Of bal crcd and thus
inducing suspicion aud dstrus of all paper whasocy-
err?
The necessity ofalegslatvc restriction ofthe pow
er OF banking, it not apparent before the late e.
vents, has been rendered so by them. The position
NtTN. fN.ct.e y. III. 81 4.