Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1816-06-22
70 tie Editor oftAe Enquirer
MOL.

tue CONSTITUTION
70 tie Editor Of The Enquirer
NO. |.
SIR,
Altho' the merits of the late law
which gives summary remedy against
the banks of this state, have been SO ire
quently and variousIy canvassed, there still
exists among the well informed, great con-
trarety of opinion on the subject / shall
therefore offer no apology for troubling you
with some conside rations IN favor OF this
law, IF which ] am the decided advocate.
Before l examine the objections made to
this act OF the Legislature, will beg leave
to correcta misconoeption OF it's provisions,
which, if | am to judge from the writer's in
the newspapers, no small part of the com
munity seem to entertain. Z The law does
not, as has been said. impose any :. new"
or severe penalties" on the Banks for
refusing to pay specie after the 18th Nov.
next. Before tie passage of this act, the
Banks were liable to be sued on their pro-
mlssory notes, in the same manner as in
dividuais, whereby the holder of the notes,
who wished to convert them into coin,
might obtain judgment and execution
within nine months at most from the time
his suit was brought. The law in qaesti-
WI SNOSt'tQbCo Il tAsOliOil, VA lSii udyS nOLlst,
for the suit. 1t thereby alters the remedy,
by-simplfying and eXpeiiting the legal pro-
ceedlngs. without altering the Judgment or
"penalty," which. in both cases, is the a
mount of the note, with interest from the
time of the demand. Both cases require
the same evidence of the debt. The forms
and delays OF execution are the same III
both; and in both have the Banks the
same right of appeal. The remedy which
IS thus extended to these corporations, is
familiar to our laws. 1t is given to the
Commonwealth against sheriff, and other
public detaulters to clients against attor-
nlss and To principals against securities.
Since the new as well as the old remedy
against the Banks, remains with the Com
munity, who may, as heretofore, forbear
to bring suits on their notes, and since the
Banks have the same means of postponisg
payments bv the delays incident to executi-
tons and appeals, it is clear that the law
does not absolutely compel the Banks to re-
sumo specie payments by the 15;h of Nov.
the time OF its commencement But with
out doubt, the objects of the law were, to
manifest the wish of the Legislature. that
the Banks should It sumo cash payments in
the course of the PR sent year--to stimu>
late them to prepare for this desirable e.
vent-and to restore public confidence in
Bank paper, which in many parts of the
Country had been visisly impaired and was
still further declining. The writer of these
remarks, sees as little to censure in the
measure adopted by the Legislature, TO eff
feet these objects, as in the motives which
dictated it, and he rests his opinion on the
propositions subjoinGd and the arguments
in their support.
l The o,oh e0o;o,7 of ohac;e ho,,,,e,,fs =,
highly mconVenient and injurious 10 the
community, and should cease as soon as
POSSIBLE avifhout endangering the safety
of The Banks.
In our complaints Of the course. thought
necessary by the Banks, to prepare them
for the resumption of cash payments, we
have in great measure lost sight of the,
nischiets OF a new paper currency. While
siuarting under the pain Of the remedy, we
forget the disease, and underrate its dau-
ger. Let us, ther-f fore, bestow some 3tten-
ton on this part of the subject. Whenever
there exists medium of exchange, which
is not convertible at pleasure, into gold and
silver, the universal representatives of va"
lue, its price must fluc.uate according to the
variations in the balance of trade. These
fluctuations i'll value, produce great private
Inconvenience, operating sometimes TO the
injury Of the creditor, & sometimes to that Of
the debtor they moreover, throw the trade
of the community out Of its natural chan
mel the fear of depreciation, in one case,
preventing sales and transfers of property,
and the hope Of it giving undue encourage
ment to them, in another. 1t is believed,
that these conclusions are warranted as
well by the lessons of experience as the
deductions of theory.
Nor in the case o. paper currency, can
we guard against depreciation from redun-
dancy. The quantity of money, which any
country requires, depends on the number
aad value of its exchangeabe commodities,
and the frequency with which they are ex-
changed. IF more than this quantity be
put into circulation, it necessarily depreci-
ates (; and this depreciation, acting as a
bounty, causes it tn be exported abroad,
whereby its value is increased and the e.
quilibrium is restored. Thus the gold and
silver OF Spain and Portugal, where these
metals are most abundant, are constantly
flowing into the neighbourng countries, al
though too their expectation is prohibited
by law. When they bore an extraordinary
pri in England, they we're sent there
from the United States; and now that they
are higher here, they are coming back to
US. But as the paper currency cannot find
market abroad, the depreciation caused
by its excess becomes permanent. These
are causes steadily operating to produce
such an excess. Even amongst the safest
customers Of a Bank, the prospect of future
gain, or the pressure Of past engagements,
are constantly tempting them to extend