Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1815-11-18
FOR THE ENQUIRER.
CONSIDERATIONS
On the subject Of Uncharfe,cd Banks,
BTA DIsISTLnEsTRD cIrIz1S.

a
No. VII.
Tie E1fls Of UruchGrte,ed Banking Establish
nfenLS.
In the commencement of these Numbers, pro-
sosed to treat FIRST of those matters which were
likely to be peculiarly interesting individuals con-
ceIned in tine new banking establishments. A sin
anxiety present speedily possible to the
public view, some Considerations which might be
calculated TO arrest the evil, gave rise to this ar
rangement. Though have not the vanity even of
hoping that have contributed 10 any degree to this
desirable event, do not perceive with less el7ti-
caton that the rage for Banking Establishments
has in nosna degree subsidized; ~ am sang,ine in
the expectation that the good sense Of the great mass
OF the community, will discern the evil, and apply
the proper corrective.
Having devoted more attention, perhaps, to the
subjects already spoken Of than may have general
~ been thought necessary, approach, though with
much diflide CO. the sderatioR ofmatters Cf much
greater difficulty and importance. propose, ia the
prese mt and some succeeding papers, 10 deyelope as
Ear as my scanIy Information will permit or my lin
tied penetration enable me, the many evils which
likely result to society at large from the un-
restrained establishment OF banking institutions in
t,e State of Virginia. On this subject, shall not
pretend to dogmatse but desire TO be considered in
the light of an humble enquirer; and, if in what
has already appeared, different spirit has everbsen
manii. sed trust it WILDE attributed to its proper
cause.-the hasty manner in which these papers
have been prepared for the press
1t is by no means my intention torevive the lili-
gated questions which once sgated the public mind,
in relation to the general effects OF the Banking Sys-
TEN. However disposed to allow their lulI force to
the arguments of tie Republican party IN this stat
whi.h they urged so long with honorable consis,cn-
cy, must acknowledge It to be too late to revive
them, except so far as they apply with additional
propriey to the unlimited extension Of the banking
system, by the unrestrained establishment Of I'M
chartered Banks In this point oyew, they would b.
indeed, well worthy demonstration. And, upon
such aretrOspect, those, who have long and unsuc-
eessinlly commended against system of paper credit
would discern, IN the present state OF things the Ia
mentabe accomplishment OF their gloomy fnrebo-
dngs. ", indeed, IL possible to conceive, that
any mau rejoice in The public embalrassments,
because they prove he las had the best 81 the argu-
ment IL is believed, the ndexble and patriotic men
who sists the establishment Of banks, might de-
rive tlst melancholy pleasure, from the cOntempa-
ton of the multiplied difficulties in which the Cir
culating Medium Of the United States, has for some
| time been involved.
But, whateverma be the justness Of the objee-
| tons which have heen urged against the Banking
System, as such, they will be found, think, TO ex-
ist To the utmost extent, when applied to its
strained extension, by the unlimited establishment
| Of Unchartered Banks. ! shall proceed to state
| succinctly some OF tie most prominent evils which
| threaten TO flow frOw this abundant sauFcc.
| Among the advantages sometimes attributed TO the
/ Banking Sysem on the one haad, and s.reuuously
denied on tho other, is the augmentation Of the cir
/ cuaiipg medium Of the country. The benefits to
be derived FROM moderate increase Of the circula-
ting medium, under particular circumstances, might
| well be admitted, without detrinent to the argu-
| ment shall urge. Ttcy are denied, however, by
! the profound DR.. Smith, who informs ms, { a }
"hat it is not by Rugmenting the capital oi coun-
try" that the operations OF Banking ncrea:c its in
| dusiry But the eTgis OF such an sugmch'atios are
sufficiently manifest The FIRST shalt mention, is
| the debrcci0fiOn il occasions.
Nothing can be conceived, more important in the
character OFFS circulating medium than its unform
| ~ in value and quantity. II is true, that as the
wealth and trade Of society Increases the quantity
Of the currency ought also to increase, and will b,
necessarily augmented This natural increase o
quantity IS essentially necessary 70 preserve the u
l
fq) smiths Wealth Of Nations, vol T. Go, Dublin Edido
| 40, ia vols