Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1815-11-29


and though every calculation was there
tore made upon their prudence, they over
traced,--'n two years stopped payment,
and were found to be engaged in a bust
neSs by which they tosr more tnan 8 pr
cent. upon three fourths of thsir deal
ings. 90
The operations of this bank seem to
have produced effects quite opposite to
those intended. 1t 10 doubt gave tempo
rary relief 20 those projectors, who. as
they supposed, were Carrying OH spirited
undertakings in different parts of the coun-
try, and enabled them TO carry them on
for about two years long +, than they could
otherwise have done. But it thereby only
enabled them to get so much Gester ia
dSof, so met Tohe7l RUN came il feH so much
..sGUicr upon them aud their creditors. In
reality it aggravated III the long run
tine distress which those projectors had
brought upon themselves and their coun-
try. l. would have been much better for
themselves. Their creditors and their coun-
try, had the greater part Of them been
compelled to stop two years sooner."--
in the lorg run the oper tons OF this
bank increased the distress Of the country
1t Was meant to relieve"
The history of this institution sufficiently
proves, L conceive,
That banks have been. and may be
| established by projectors and spectators,
when the circulation Of the country is al
ready tuii, and CT course Cannot require
more paper.
That such men, thro' the medium Of
borrowers, can force into circulation
more than due quantity of paoer.
That banks so established have over
traded, and ruined Themselves. and great
ly injured the country, uotw outstanding
their strong Inducements to prn!euce.
That banks have been and may be os-
tablished, and carry on extensive business
in tuatiorS and at periods when their es-
tsb ishment is beth public and private IN
jury.
And lastly. that such Institutions, sus-
tceptble of such extensively lnjuii us ef
fscts on society, ought therefore to be un-
der the controul of the legislative WIS
dom.
The history Of this institution also shews
us, how little weight We ought to- give to
the argument (as applied to the matter in
question: that individuals are the best
judges Of what relates to taSir own inter-
| est. When Sci ty is so deeply implica-
ted, it has not only the right, but should
exercise the power o! Judging.
IL seems also worthy of remark, that
the example of the Scot ish bank is pecu
Harry opposite, from the variety of respec S
in which It resembles the Institutions that
have sprung up among Us:
The Scotch Sank Was without controul :
SO are they.
The Scotch bank was established 70 cor
rect the supposed want OF circulating me-
dium $50 az they.
The CrntCb HauLy 80
leve the distress of the country-falsely
| attributed to the iliberality Of the old banks
n refusing to is cunt $50 are they.
The Stockholders in ii c Scotch bank paid
up only one instalment. and borrowed to pay
thcr st:-,so it is said the Stockhold-
ers in some OF the new banks have done.
The Scotch blnk was intended to pro-
mote improvements OF land so they pro-
fcss 20 do.
In short, the character of the dealers in
each, appear 10 have been much the same,
and we have only to wish most earnestly,
that heaven may avert from our new banks
the evils which fell 50 heavily on thcirpro-
tltype.
/ am aware that il IS generally said that
the evil Cf q too great emission of paper
vii remedy its Il whenever specie y
ments are resumcd. But the very argument
pre-supposes u pre-exstng evil and ii S
the business Of Legislative VISION, t. pre-
vent such evils, rather than suff them t.
Correct themselves. in tru,h, the GORGE
1--WE never is applied un-l the eyi mas brsn
sensibly exp erienccd, as q run upon he
banks is never made. until something of
the depreciation has been felt. Moreover,
the application Of the corrective, produce e.
Its inConve nieuces, AM leads TO that fln-ru-
alton N the qu-ntity of papcr which we
shall hereafter d-monstratc to be pregnant
with evil.
a DISINTERESTED CITIZEN.
e } To avoid prolixty, have transcribed only
such parts Of the passage as deemed applicable.