Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1815-12-12
FoR THE EN- FOURIER.
MORE YET ON BANKING

'I,he reasons why nations IN their mutu-
y, dealings, have adopte Gid and , liver
nsa general Instrument OF commerce, as
we'll as Measure Of value, have been so
often and so well explained, as to make
n repetition of them needless.
The adoption OF the precious metals Tor
these purposes, gives them more uses, and
therefore greater Intrinsic vafue, indepen-
IDENTITY of their value as exchangeable COM
moait;es. than can be impaired to any pa
ner money. which is confined to the Cir
cnlation alone, of particular country
The precious metals in the form OF Boil
lion may be very good Measures OF value OF
considerable amount. but are very iucon-
venicnt instruments. for the general c'rcu-
Iation of exchangeable commodities.
In order to adapt the precious metals to
b tn these purposes, in the best way, ma
lions have divided, subdvided, stamped aud
put them forth, as coin or metallic money.
Uniformity in the weight & hneness of the
different coins. is of such high import in Sc
caring the confidence of men. and shielding
them from fraud in their dealings, that the
prerogative of coming, in other words. the
furnishing an easy, secure and general cir
Gu ating currency, is oonsidered as peculi-
ar to the sovereign authority of q state, and
debasing or counterfeiting the public coin,
is held to be very high crime, and is gen
orally punished with a rigour, proportion
ed to the mischiefs it has l tendency to pro-
ducs.
When the amount and variety OF eX-
changeabie commodities among trading ma
tions increases to a certain degree, even
coin is found TO be an inconvenient instru-
ment of commerce, and a variety of written
Obligations, as Bills OF Exchange or Bank
Notes, are very commodiously substitutes
in its place--but, all these obligatory bills
or notes give assurance on the face OF them,
that payment Of their amounts shall be
punctually made on demand, in Gold or
Silver Coin. The value of such B lis or
Notes, has its foundation solely in the con-
hdence of men, that they will be so paid
and redeemed, and this confidence alone
re rs, or the past experience Of meh, that
such obligations have been very generally
and punctually so paid and redeemed, Ell
Their IN metallic money, OF some exchange
able commodity, at the option of the cred
itor.
When promissory notes, in the shape of
bank paper, have usurped the place of a
4 legal and established currency, much con-
fdence in their value may, for time, sur
yive the actual existence of very serious
causes of dlstrust, in their credit These
causes wi commence, when the redemp-
zion of such notes, according to their tenor,
is evaded or refused, or when the currency
is overloaded with mass of superiuous
n Notes, beyond what the circulation of the
exchangeable commodities and dealings of
d country fairly demand.
Both these conditions of paper currency
unavoidab.y depreciate its value !; both uti-
matcly tend to an expl5s:oa Of paper credit,
"A by which many bold or fraudulent speCu-
8 lators IN paper projects, may BIZ left in af-
4 huence, and multitude of their c1nfiding
a dealers will be leftin ruin. The progress
n Of depreciation is gradual C insidious; and
as it is sure to raj e the nominal prices of
all vendible articles--it is often mistaken
81 FIR prosperous increase THE industry, ca
Il pital and productions of a country. The
81 evil may be fondly cherished, to the very
moment, when it is ready to inhict the deep
est injury on the land and labor, which res
4 c1ed it from perjury and nurtured it into
81 vigur
n These effects viii be likely to operate
with more force in country, like our own,
81 where the population is scattered over so
q vast surface, an where the inhabitants
oil the country so very much exceed in mum
Der, those of the trading and manufactur-
q ing Towns. In the latter, the constant and
81 Tapid interchanges of money, impart to
them quicker and more sagacious per-
g ceptiOn of the actual state Of the circula-
Jug UhtOiuN, ana their Close contact quick
3 ems the diffusion of accurate information,
81 beyond what can be looked for in distant *
81 rural settlements.
The Ranking business in England, is con-
Quoted in a different way from that of m st
countries in Europe. The National Bank
which is alone incorporated, besides It's
dealings with the government i'll its fiscal af-
fairs, deals also with individuals, as a Bank
ct discount and deposit. The private ban
Aers Of that country derive their profits
from discounting bills, by issuing their own
Mhotes payable on demand. These issues
within certain limits, may safely exceed
both their cash capital and their deposits
taken together. The amount of.deposits
8eepends upon the opinion of the capacity.
integrity and capital of a Banker, which is
Entertained by the monied people, within
y The circle of his business.
But, the Parliament Of England have been
100 sensible Of the high Importance of re-
Suated carrency TO general credit, and the
- securi,y Of individual dealings, TO leave so
Nsighty a matter, altogether to the prob
"A yof Bankers, and the personal confidence
their customers; they have never lost
sht of the strong temptations to over-tra-
Shg, which the nature Of banking profits, in
n special manner, creates, nor of the ruin
vat awaits individuals from a misplaced
1fidence in Bankers. Numerous Legisla-
we regulations have been enacted, touch
Ng the Bank Of England, as well as the
MplYate Bankers. The latter have been res