Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1815-12-14


az Banking system. Waving, however. dscus-
'.on OF that question, wn venture suggest that
4 her Banks ha,e enabled her e. command her re
oirees W I'll increased facility, they have probably
cen amnig the prominent eaus Gftl,e oycrgrown
tates 81 the higher, and the paupc OF the low
~ c'ss rs OF her eietv.
Iii not easy, indeed to imagine the existcr.e Of
IN extc' i've system 81 banking, without tint Sc If
Its LIS st operation is tn array th.. two great
lass at society ITO opposite ranks-'tlose who
haze money, ard iho.e who zsdnt il IN other
lords, the rich and tho poor. The rich are thus
ssS"e'at tog Their rs money GeiierS-tc poor, tic
imprdent, the distressed, nay, all in Strengthened
circumstances the noney 6oi~oyrers. 1t is irue
that to n certain degree, these classes must an
wall exist, independent Of B.nks. There must al
was be money LEADERS and money borrowers. But
he power ct money lenders society, where
iaiks ere not established, IS no more to be
pared to the effect Of e BsnSing sysem than the
Operations ofau undiscipneJ m'i,, wild, those Of
wei regular forces The eject Of the BAN
King system, is to marshall the wealth 1ld mnnied
interest ct the country, TO enable IT to act in
cert, and WIKI the greatest possible power and ex-
pererce, ,hiik, has n, owed, tia, commercial
tactics are 40 less operative than military sc.ence
| IN adding to the force or sssocistcd bodies.
ltn wit. these AL antag's thu, the sys EN-
ucnces its operation. Ire nature ri the trafc II car
n on Is next TO be considered The whole OF the
iSisr, business consists in trade in paper,aa ex-
| change If notes.
The borrower gives thc Bank his rot.
carrying interest, for n Of the Bank carry
ing no interest In other word the poor man i0r
| the man who wants none, paws interest on his
! note, while the rich man pays oone o. his Can
there be any doubt ct the practical op eratins or
| such trade If \ and u, two prisa,e citizens,
exchange their notes suci terms, we shouli pro.
nounce ri once, tina; the wealth OF the one, NUT
pass INTO the Golfers ot tic other. Ii canut be ~
therwise al the traffic between individuals and the
Banks. Ii is susceptible of a:t NJ teal calculation
| that the great al those 80 no deal with them
must get poorer, whist the Pans becomes richer.
The evidence beiOr. eyes proves this. The
| Da ks divide o per osnt ard heir stock rises 20
| $40 for the 500. This Gccunu,lIti3n in some
hands, necessarily implies d:s ing o! wealth fro.n
| others. While the aggregate opueace of society
! is the same, one man cannot become wealthy,
without another bt coming poorer II is worthy Of
| remark too, that Bank profits have remained very
| Sreat.-BankcrS have been growing very rich, even
| during the late war; when ia general wealth nj
| soce' was on the decrease rather than augment
| ing.
| know that It may be cnntenletl, that this en-
clisnge of notes IS t0 hecaus it is c0luitaY'. Sn
IS an nsurious or gambling contract; but shall we
not prevent the evils to society, and the ruin Ct IL
, divtluals which they produce
| know it NAV b. said, also, that the Bank Note
carries interest, because it is demardcbl. aud
payable in specie ~ sight. But though this man b.
| done, % is not done Aslnng as Barksare in cred
it, tits rarely done. DIR. Smith somewhere estimates
that $4,000 specie, will circulate SiOO, COO ia
proved that in ordinary times il viii circulate thrice
| that sum. Thus in most Bank tansac. ions tho
the borrower Is sure to pay interest (lor he pays i:
| IN Advance, the lender, (ihe Bauk) never pay
intrec.t; aud rarely pays principal before the boz
rower's note becomes due. According to -, Smith s
| supposton, the principal is not demanded mure
than once in five times and according to the course
OF business with us, not more than once in ten
| times, before the borrowers note is payable.
We might perhaps be justified in CARRYING
4 Iarfl I'm I'M
is sufficient to slew that the original inequality in
| trsie, which have suggested, does exist, under
every superstition to overwhelming degree.
lam aware it may be commended, tao. that, az the
| Bank Note answers all the purposes of specie, ans,
wi suit the borrower as wen SIS specie, it is
fair transaction. V,ry possbly-But, this does
| not meet the ccavec Il my argument l contend,
merely, that Il 3enlTg Sy stem, hy its conriyan-
ces, by the association ct moned men, give. them
greater power in aDassng wealth, and in draining.
| The pockets ot ,',e middle ard poor Glasses, tia-
they would have without such association. The
command of money, independent OF banks, gives thin
powerto the rich, It true. But, until they are as
| sncintei, they have in general onIy the com m and
| OF money. When they become united BY the II =
gic Of the BANKING System, the ca, ital is enlarged
which they have to lend; for they acquire a COM
and Oh credit, which avails them much IA p,onep
| Before such uuion, few men Can negotiate Their.
notes 20 Bank Notes are negotiated. Ard wher
therefore, by Banking, they acquire this faciiity it
operates ike mechanical power society. With
no actual 7rc;ghi, they have double the po,c-
err.
Thus, il we suppose ten men each possessed Of
$1,000, it i9 manifest chat these ten will only be
| able 10 lend 100000, before they associate and
| form Banking Company. But, when they be-
| come united, they will lend double the arnouat of
| their capital $4,000. One-half of which viii
| be on their credit. Hence it is manifest that the
rich, by banking double their lending capital. and
| thus double their power Of making money, of n
massing wealth themselves, or (Which is the s4r1c
thng) OF taking wealth from the pockets of borrow
ers.-Ihs precisely the evil anticipate, AMI of
which complain and appeal to the experience
OF nil, whether even in the present comparatively
limited state ofthe Banking System, it has not be-
| gun to manifest itself.
| Itmay be said, indeel, with some truth, that {
! rich are sometimes borrowers, and men oil moderate
| fortunes sometimes bankers.
| As to the rich, who are borrowers, they are ei-
! Their the imprtde1t rich the thriving ,ich. If
| the former, they will soon pour their wealth into
the bank Golfers, to swell the luxury and wealth of
/ the bankers, ard thus confirm the position we have
| advanced As to the thriving rich, who borrow
to make gains, and not to spend, they obtain dis
counts no doubt either for sharing sbectiQfi o..
| making great bdrgRius-thus giving additional i'm
| petus to the powerful machine, in its operation mp
| on the poor and middle classes. The very power
| which rich man has of commanding money by
borrowing Of the Banks, enables him to speculate
and make great bargains. But this power is chief
y conDcn to the rich, and great bargain is new
e. made one side, without q bed one on the 9TH
err that the operation which have imagined. is
continually going on, and the rich, not content with
the fair gains Of their actual capital avail tn mselves
IN every share, of the credit which it gives them 10
double its operation. Those of the wealthy, who
foriu the Banks, effect this by the usual banking o.
4 Il. 4. u. 4