Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1816-01-09

Wy, perform by It's means, tic purpose OF
countless bolts, and numerous clerks. 1t
saves many anxious nights and laborious
days.
Such would be the effects of a Bank, if
its office were confined 70 the mere receipt
of gold and silver coin for sale keeping, s
the loan of it, upon the notes or Obligations
Gifts customers. And were It deharrcd by
law, of the liberty of issuing rs own notes,
IN lieu OF specie, such would be its act
ual condition.
But # a Bank loaned, at legal interest,
no more than its real capital, the revenue
or dividends of its Stockholders would be
less than such interest, By tie annual ex-
penses of the bank, the insurance, repairs,
and interest of the fixed capital, vested in
Its buildings and furniture, and the sala-
rles of its officers and servants.
Even if it extended Its loans, to part
or its deposits, unless they were very con-
siderable, the additional revenue, thence
arising, would not supply this annual ex-
penditure.
Under such a restraint. Banks could ex-
st only IN very large cities, or CONNER
cal countries, where great Capitals had
been previously accumulated.
But the actual profits of those institutions
IN America have been greater il territories
very little foreign trade, than IN the most
populous and wealthy cities. Some of the
Banks in America have diviied among
their Stockholders an annual revenue ex-
ceeding twenty per cent upon their ca
ptal. The price OF the Stock of the first
Bank incorporated in this Commonwealth
rose, not long after its existence, to one
hundred per cent above par. This effect
results from the authority with which they
have been invested of issuing their own
notes payable to bearer. The sum, which
this authority enables Bank 10 lend, may
exceed its specie capital, i'll the proportion
IN when the demand for q circulating me-
dunn iii the country whose currency it
supplies, exceed d the quantity of gold &
silver com in circulation before the crea--
ton of the Bank, and in which that demand
is, Itself, subsequently augmented by the
loans Of the Bank.
Whatever power the laws may confer
on Bank to issue its own notes, the ex-
tent to which it can carry that emission,
must depend also upon the public conf
dence in their value.
While Bank remains faithful to is en-
gagemcnt. TO redeem it's notes, whenever
required, by the payment of the gold or
silver cDin, which, on thsir face they Pur-
>
preciate below the value Of both those spa
cies c: coin. On the contrary, they Will
often possess higher value thaa either.
from the superior facility which attends
their transportation.
Before the late war, the notes of the
Eastern Benks, commAn ded, in the
western States, a premium Of, from two
to three per cent. The war which, il is
proSr IS, occasioned So many remittarces
to the West, speedily reduced this pre.ni-
um l.; and, finally, created to the East,
greater premium In favor of the notes of
the Western Banks. These effects APP
pear to differ, but their cause was Tie
same; the greater facility Of Transmitting
paper, than even the precious metals
Since the peace, the balance has settled
down to ITS condition before the war
Nothing can destroy the operation of the
C4use.-lts effect would, undoubtedly, be
diminished, by an extension Of the nayiga-
ton OF the eastern aud western warers, and
good roads across the mountains which IL
vide them.
% long as Bank continues to fulfil its
obligations, the permission which it has
to ISSUE paper inst, adj OF specie, will be,
alike, attended with pubic advantage
OF no lnconsi3erab Importance. BY sup
that reduction OF the weight of its pieces
by constant use, which requires, and aug
ments the eXpence of a periodical recon-
age or subjects the nation, whose curren
cy IS gradually worn cut and debased, to
an unfavorable exchange abroad, and TO
all the Inconvenience at home, of a slow
though certain huctuation IN the value of
Its circulating medium.
The institution of Banks has another va
liable effect III increasing the facility of
obtaining foreign capital, for domestic
use. There has been a singular prejudice
IN the United States, against the employ
ment OF fore gn capita as If, It's use, did
not sufficiently prove is value.
fit be the policy Of nation, in time Of
war, to borrow money which cOusutuies
It's sinews from its foe, it cannot be less its
interest in peace, to employ the capital of
other nations for domestic improvcmt mt.
The establishment Of Banks aiT rds the
facility above mentioned, because the m d.
OF their government, renders the distan G
between taeir capital and the residence OF
its propuetors, wholly immater,al, brovi-
ded there are, IN the vicinity Of the seat If
! thcir operations, a sufficient number of
competent persons Interested in their good
| conduct, to prevent the abuse e power by
those, to whom their direction is confded.
| A very considerable part Of the stock II
| the Banks of the District of Columbia, is
now held by inh btants Of Virginia; as
the greater part Of the stock Of the late
Bank Of the United States was held by 70
| regners.