Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1816-12-27


which every considerable change i'm the
standard ofvalue has, in all countries. oc-
casioned.
We have just emerged from this impure
atmosphere and begin TO breathe purer
air, when great number of these very i'm
| stitutions Go be Concerned 6y The same pri,,-
ciptes) are called for, which certainly pro-
duced the alarming state of things have
noticed
| The question then recurs-Can we. bv
making these specie-paying banks and by
| enacting all our pains and penalties TO con-
tinue them SO, avoid the evils which we
have just experienced, and the greater C.
Wis rom which we have scarcely vet esca-
ped
\ bank, 20 make any profit, must issue
IFS notes 10 "a; least double the amount of
its capital. This issue can be made only
by granting discounts to Northumberland
10 produce any thing like the expected be-
neiits 10 individuals engaged in manufac
lures, III agriculture, &c. where the re-
turns are slow and distant, as we'll as to
merchants, where the returns NAV, i'm some
cases, be quicker-hte bank must, there
fore, discount accommodations 10 Il
considerable amount, paperwhich they
cannot calm in sixty DAYS, or even in
four, eight, or twelve months. If they do
this, (and unless they do it, they cannot
accommodate the farmers of the West. J it
will, IL my opinion, he utterly impossible
for them, in times OF great pressure, of
danger, and of difficulty, to continue their
specie-payments. Suppose, for example,
the same circumstances were TO unite, as
we witnessed during the late war-Sup-
pose the balance OF trade to be greatly "a
IL 4
the Northern banks to shut their vaultsd a.
refuse to redeem their notes-Could our
banks go on to pay specie, with paper out
TO double the amount of their capital 3
Would there not be continual drain TO
the North, with no possible means of re-
plcnishing ourvaults2 Would not all the
holders of notes, as soon as this fact was
notorious, become alarmed, and press for
the specie remaining? Is it not fact adj
mitted on all hands, that the Banks ofVir-
gInia although at the commencement of
the war, their situation was as good and
their credit as high as that Of any proEta-
Bile bank can be, could not much longer
have met the demands tliatwere daily and
hourly making on them? And why Be
cause, the balance of trade was greatly d.
galnstus in favour OF the North as think,
1t must be III every war with an enemy.
who are able TO blockade our ports.
Let us, for moment, attend TO the ef-
fects Of such a state oithinr.
A bank is established in the western
country, with capital ola million of dol
lars. This capital has been principally
subscribed by the owners and cultivatOrs
of land; for. in the sections of country
where the banks are proposed TO be To-
Gated. there are not a sufficient number
ofany other class able TO take the greater
part of the shares. BY this operation,
there is apositve diminution of the funds,
which would probably be deroted to agyicui-
ttroi purposes, if there were no banks and
of course an injury would accrue to the
farming interests, equal to the sums sub
scribed; unless the banks should grant
accommodations to the agriculturist, at
least to the amount of his subscription.
Whether, If the bank were wiiingto grant
such accommodations, the farmer would
bewIllng 10 accept them. would depend
greatly upon the proportion which the
profits Of agriculture bore to the interest
OF money. Matthias has remarked, that
land will hardly ever be improved, while
the interest OF money and the profits of
mercantile stock are high. lie thinks we
can scarcely look forward TO any effect of
tins KIND, until the interest of money sinks
TO 3 per cent. The reason is Obvious
1t the capital employed in the cultivation
OF land, with the personal labor, care, and
risks attending II, yields less than capita!
vested In bank stock, or in mercantile spe-
culafion, there is no inducementtog give il
that direc ton, and if the farmer cannot,
by his agricultural improvements, make
the interest which he is obliged to pay for
The loan of money, lie has no motive TO
borrow. Now, in this country, doubt
very much whether, upon an average, the
employment of capital i'll the cultivation
OF land, produces as much as 6 per cent. :;
and II that is not the Greragc prsfit, farmers
generally could not afford to borrow. Of
course, the establishment of banks in a
country so situated, would not necessari-
~ improve its condition, or increase its
real wealth. But admit that the western
farmers are willing to borrow money TO
improve their lands, because they could
afford to do so, and the banks willing to
make TO them the most liberal discounts,
TO an amount greater even than the az
gregate Ofagricultural subscription-TW
millions OF notes are issued upon its one
million capital, and the greater number
of those notes have found their way to
the channel of circulation through the
hands of farmers, or through the hands
of other persons engaged in different
schemes of 2rofit and improvement
From the nature of this transaction, these
individuals would not be expected to re-
pay the loans made TO them in any short
period. These loans constitute the larger
mart of the rapifal emp1oved Nv the bor