Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1815-11-04

was Always IN request and in use But when
the enemy had bcgun to block up our RI
Vers. and interceps oar commerce, we were
unable to purchase most of the articles
"hiCh we wanted. by means of our own
produce 1t was TOO bulky to bear the ex-
pence ct transportation over land-ex-
ccpt little tobacco. Yet various arti.
oiVS were wanted, which we could obtain
from the Mort. Tie enemy had been so
generous to our Eostcrn Brethren as to leave
open tneir ports while they had shut up
our own. Thus, most of the foreign goods
which we Consumed, were procured
from the Eastern StateS--whose indus
try Eat the sane time furnished us w tn
many domestic stufis, as substitute for To-
reign tabrics.-tesdes these, we n al Ia nav
tor the colonial articles which we fount on
the coast or n. Carolina and cur mer-
chants, not contented with supplying our
wants, had, in spirit of speculation. YES
ted considerable funds in The cotton. the
staple offs. Carolina ard Georgia. Most
Ut these articles were paid for in orr n; nix
notes d; but these soon returned unon our
banks for specie. Dragh's ver$ made
upon them from the North aud the
South and the candle was burning at
both ends at cnce. Yet the press,,r'e was
not confined TO Virginia alone. Boston
pressed upon New-York, New-York ON
Philadelphia, and Philadelphia on Rich
mond: Atlength, some Northern Banks re-
sorted 70 the same measure, which had
6een twice before adopted by the Bank Of
England-and Suspended their payments
in specie. The Banks of Virginia follow-
cd in their wske. The fact was. that the
specie was only drawn from the Banks. 70
be principally sect tn Boston and thence
out OF the Country. 1t was sent cut of the
country, because in the restricted state of
our commerce, few of our staples were
sh'pped, bills were scarce, and dear. and
thers was OF course occasion for specie in
make up Tor the unfavorabc balance of
trade "a
The bank paper of those parts of the
North, wherever we dealt, wherever ,va
had use + their paper, now came into
demand, and as less OF it was to be obtained
than was wanting, 1t rose in value. II was
worth IN the market more than orr own
banS paper. But this was not the ONLY
species OF paper, which rose aboz,e mar.
ouch individuals, as had funds or conncc-
tons in the North, soon discovered that
they could make a profit by drawing Bills
Oh Exchange, and this became very usual
and profitable practice.
When the war ceased, il was expected
oy the most sanguine speculative persons,
that this state OF things would cease with II
and that the Banks would iu,me,y;1tcl,, ~
sumo theic specie payments. This would
nave been in itself impracticable as timr |
was wanting to draw back their naner in |
10 their vaults, and the specie into the |
country. But III the mean time a new and |
Unexpected series CT events arose to retar,l |
-hese arrangements. The new war in En-
'ope called upon the British Government |!
% advance immense sums of money in the /
nape ofSu6S'aieR-As British paper would |
lot answer the purpOse, the precious ne
ais were to be raised to be sent to the con.
inent. Coin OF course rose in England
rose here, and much of it went abroad r.
btaln the agio. Instead then of getting
&cS the specie we had LOST, VIC had t9
- tis-sc u'!'4Cuit4Ss 80 I1,S e,urs.Inig.
are ccasnS-eXpences are re
renching--and France, not q. Britain,
becoming the pay-master. Specie has
onsequentiy fallen in G. Britain. We have
hen not only less ago to tempt us to ex-
ort 1t, but our produce to a considera-
lie amount is exporting and Will be pro-
nised in considerable quantities, and Bills
nay be drawn on them, to pay the debts of
ur merchants. Bills therefore will be
nore used for This purpose, and specie less.
-for not only is specie lower there, but
Ills are more abundant here. It will, in
eed, be less profitable to buy and remit
Ills than it might be, as the Course of Ex-
hange Will be still against us, until we
improve our deprecated currency. The
Exchange is perhaps not only against us,
II account of the balance of trade being
gainst us, but from the disrepute OF our
REGULATING medium.
It becomes then the duty ofthe Banks to
refare for change. Let them call in
heir outstanding notes with a firm but
radual step. AS these notes were put
ut either on loans to the government or
individuals, they should be called in, by
radual sales of the public stock they hold, *
y gradual curtailments of the notes, which
hey have discounted.-When,b by this mea-
ure, due proportion of their notes has
cen drawn in, those which are still ailoat.
VII become more valuable from their very
carcity there will not only be fewer to
resent for specie, but fewer 7riX be pre-
ented, because they will be really wanting
circulating medium. Let it even now
c understood, that the Banks 7piH, within
few months hence, resume their specie
ayments, the agio will soon disappear,
nd specie viii sink down to the par of |
.ank paper. All difficulties, all idle sus-
icions, all absurd reproaches, will quickly
anish away.