Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1815-12-16


to circulation, by those who lave au iterest 10 TIE
banks, winch depreci ted the circulating medium
and ell down with IL the value OF specie, q
wl,,,h ttat medium was supposed to be the repre-
sentative, long the banks pre,endedto pNY ther
aCtos o. lc ,aand.-Now, that the notes ARE not
pill. tic quas.u'y putinto circoiston must be in-
creased Gas tie only e'lecS upon hank eNteLdns
is rcuiaion, the eceSsiiy II paying or dnicad)
ahich NOR Sc must augment their q, ptceatoi
and cons Iien.ly n G.li in the ya.ue VI pecie, so
long AS the uo,es crcust voluntarily rs payments
by general consent. The banks relieved from the
nece sly OF paying their notes. lessons the deinan
J. specie, smd becomes an additional cause - a In.
IL its market v;,ue. All which may eusiiy be ex
planned, practical statement ot t@nsae ton, al
the u, c, on the SOth os March last of specie and
hls oa England, and TIE prices Of bills England
IN Frasce, any other country, where So ce i tt
Circulating medium Forns;aneC, 4 draws ON En-
gland Tor lOJOi sterling NJ tie exchange ot per
cent. Discount, the rate at Ncw-N ork on ihc 5oh
o March ISIS, Of course he receives Zoe lis b'
9i0st riine 322 dollars, with winch he hny spe
er whirt q; ,h. time was quoted ut pr. Ct. lreu
un. and gets i0q6 dollars which he siiilso France
ami sci siOr ) francs so's the dollar, the price
here, wtich rnhk ~ Jos francs, with winch he
l'Ns a't''l on L0udon to pay the draft OF lOoW
" icli he drew tie sad bi n the present rXcoauye
offs, would be 1900 sieyling, or profit on the
ta sactin Of 206i ilis, or, in other words, the
i,096 dollars wss bought by the Ergishmtn at
New Tx, ecdl s., Ring 9l5 daiisrs cheaper,
tha he coui have bought them ~ France, o. per
h;ps any other country Europe.
The profit AID consequent temptation to export
orr S't Gle, Is muci,erc ter sine uie st0ppagc OF
III" Bslks rs, fore that, thu discount a. lrilish
bills. wss high s per cent, nearly equal To the
denre crtior vi the British parer, on the continent
o fnrope ; hut, since the stoppase of the Raui's,
the dc! reciStOn Of our CIRCULATING medium,
has apparently rose the British paper nearly 10
per cent; from all which il is clear, that specie ia
cheaper with us than any whore else, that the guam
tty ct Bank Paper is tlIe cause of it, ard that
the Govt rnmeut's toll rating the stoplage Of the
Hanks will only increase the evil by augmenting the
t rptaton-The unheardofrsge for speculation i,
our country, (witness the SHE'D and water-'neioa
specuatoNl can leave doubt, but that sp eeie will
be sent cot OF the couatry, lore ssi vii! bring
profit. which Just be as long ss Bank Noes pass
current witle cut the obligation O paving them, or
vi lie there is a dollar in The country. Sup use,
O. onsh ratler absurd that the patriotism # 0ur
own merchants would ureve't them from expnr-
ting specie. No ore can iorIbt, bu, that PIE Bit
'sh merchants will 10 il, rs one can doubt hut
that they have Zone it 10 great cxtcGt and that
thGi' Armies IN SV.in surDiie auoTt entirely,
with specie 'rOn orr country, rs viii be present
j. tn IN arTnI S. and the confessed powers, should
they 30 to war. 1t therefore oliows that the lon
gr tiie Banks dclal 70 resume their payments, the
les will be the amount Ofthe specie in the country,
and al course the difficulty they viii iid. in
procuring sufficient quantity, wtilc fr.rn tie IN
creased circulation. greaterquantitv viii become
necessary. may he sreuPd that the Qns-tty shut
~ in The yeults 9th Bar Ks at tleir sloppugt will
D. tsined-no doubt hut, ul't quaa'ity as 20
gr at a. Frs, q WHICH IN III ro6abitv hiss been
deer as-g from the Temptation to issue uHd- r. and
cuirr FER the proft ~ lie Bank, or is FAVOR te.
" is may huish ~ different wavs either g. "a
vor tie PuiI or in favor oi the Rank It 81 bF
t laws Of eammo- ju-tce forcing the Bank, Z
make & oil their engagements, and pay speci- lor
their notes on demand, or, l. spite o. cppin 70 hon
es'y, The cou.bnaan OF bankig a4d j. yiss,;ve m
Huenee, tolerate prot CT the nor,-,,rrf lrancc
OF contract. AID tacitiy, + by law make al bunk
notes a lee'l tarder.
Let IS st suppose, that jpficr ari the pub &c
sooG Wild rec the vision of cur lei aiorf, u pre
vent AZ ;ccimul dcn Of evil, >, forcing tn b. k
10 make ap01 thc.r ,naae, snen's ard IA, s-aeie
hetore &c trace tie EFT cts Of sish ucaS'irC. N,
l. Towing gem raj rriscpies NAV be ~ efu Then
bity, q'ianiuul a. value ola Circulating rocliA.n,
whether specie o. paper, is limited - the quautuul
am vaine o. the articles. 70 ae tran.felTs5 by 81 e
nd purehose. For example, The value o. articles
Bought asG sou in a country, suppose 100 mil MS
ana the circulating fueinm ncces,ary 10 The tgars
81 those articles, 40 millions Il i5 evident ,ha any
eange, either IN the quaniUIn value OF those ~
Eccs, that vonld rednee il to SO mil0rs must e.
q1aiiy reduce tie necessary circulating no,!um 20
% m'.'ioasi tie other 90 millions, if tie Medium
Wes spccic becoming unnecessary, would f:i,l in
value, until It would ray profit to be transported
To n market where Il was wanted, and bore better
PRICE; bn, 1.-THE circulating medium was paper the
20 millions, reOd rcd snperiluous by tic reduction
m the quantity or value Of the articles to b. trans.
ferTCd by il, rust either be withdrawn fJon the
circulation, ~ being psh By those who sncd /, or
The v'oie 10 millions kept up Tor the trlnsfcr Of
hi the valnc Il a.tic'cs, nomnally raj Ing a. half
~ TIE value 81 the whole /; on, in other word de-
pifcistIng IN paper currency 60 for I II ncces-
slty ov terest induced those who had The power Ia
create the paper, pat 90 millions move into die
circulation, II would raise thc 80 millions OF art
clcs n he transferred 10 three times their real va
Inc that Is, the paper wOnd deprecate 20 S fri,
nc. The proportion 0f circulating ncdiga Reees-
ssry IN tiTsnsf any given value ofsrcles or nier-
etandize, depends on crcumstanc 8, and The state
OF society: For instance in times of peace, sAen
the regular supply punctuslly fills up an uniform
and regular cOusnmption, To- FIVE ard steady prices
OF the merchandise, leav,s little or no room Tor spe-
culston. end they rarely pass through more tfas
tHo crthrec hands, before they are either consumed
Or exported. Jndersueh circumstances s, the qnan.
h'y Or gaiue Of the circulating me,,ium neeess4-y
to transfer gwen Quarity O! Mstchai die IS i.ue,
less than in time ri war, wien a. st,le ,tsrrufons
ohftruct The regular supply ofth markets, AMI
c7usc greet aEd rapid chang in the value NJ the ar
tees, iniuciuC immcderate and repeated spect-
'a'ions. SO, tint the same articles may be transfer
rd 90 or even 50 times before its iiasl eoosump-
lion 10 thiscasc, che circulating medium. rreessa-
~ totan7fcr the same qrauty Of merchandise.
must De much greater under ccraia cir.uga,tan.
G. $ perhaps. uble. The application ni the above
theories foour own change Of situation. NAV per-
hsps be the ius' ofte stoppage Of oar banks
bot tiat must .cave 20 another sheet, eco.
Pnris, I'm .1fag, 1915
49,
q III be Sold 10 The binI,est bfider C,,.,.,,,,.