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

go al siu> <oufttFy, ittc CotiStsiieIS siC VII
creased by the facilities of bank accom-
IN odations
gain-The proposition of Smith, that
the produce ofthe land y labour ofthe coun-
try is somewhat INCREASED by the establish
ment of banks, and that such increase is
aticoys advantageous to the country, has
been questioned by an eminent wrlter,l
upon very strong grounds m
crease IN the produce of the tand OF the
country certainly encreases the comforts
OF that class of people, which Is every
where the most numerous. But there may
be aa increase IN the produce OF Its fdtoer,
without having the same effects: for
Trey depend upon the direction which
IS given 10 that !abour. If it IS employ
eel ia INCREASING manufactured produce,
or IN commercial pursuits, 1t as possible,
that the country at large may derive no
great benefits from it. SO That at last the
question of utility in respect TO the banks,
depends upon the manner in which the
capital they advance 10 individuals is like
yto be employed. ifto farmers, TO i'm
prove their lands, it will probably be be-
neficially employed, but then the returns
are slow-lf to other people, for other
purposes, 1t may or not be thus employ
ed.
But it NAV be said that if we refuse to
incorporate banks, we shalnot escapeany
oftlse evils or dangers OF banking, whilst
we lose all its benefits, because the notes
of other states rtH find their way into the
channel of circulation. This may be
true in part, and perhaps, in addition to
the earnest petitions of the western peo-
pie. might induce the Legislature to esiab-
lis! two or three banks, under prudent
restrictions, in those sections ofthe state
where foreign money now constitutes the
greater part of the circulating medium,
with a sufiicienfcapital TO enable them TO
issue as many notes, as will shove these
foreign notes from the circulation. Yet
1t ought not to escape us, that i'm a Ii ne of
war, orduring any other unfavorable pc
ROD, we have little TO apprehend from the
depreciation ofthose foreign notes-They
would be Immediately sent out of the
state to pay our debtcreated by an unfa
vorable balance of trade, and no time
would be allowed them to deprecate.-
Once away, they would never return, I'M
I'll every thing gotright again nor would
III be necessary to supply their place in the
channel Of circulation, because as there
would be fewer sales and exchanges,
smaller quantity ofthe circulating medi-
UNI would answer. II is true, that after
we got rid of those foreign notes, we
should have nothing wherewitl to paw
our debt, but gold and silver, or the notes
OF banks already estsblished-I}ut this
would only induceus to limit our imports,
lessen our consumption of foreign arti-
Giles, give more encouragement TO our do
mestIc manufactures, IL convert the period
otwar into what it ought to be, a period of
self-denial and privation-Ino other words,
1T would III great degree preventus dur
ing such period from contracting debt
and the return of peace would find us in
aaund and healthy state, prepared To
enjoy IFS blessings, and with renewed in
dustry and enterprise, to push its advan-
tages.
Again if NAV be said that the example.
ofthe BOSTON Banks during the late war,
contradicts all this theory. But upon
consideration twill befound To confirm
IT. If the Boston Banks, unaffected by
the war, with the balance of trade greatly
III their favour, with every advantage,
which such state of things gave them,
could scarcely prevent themselves from
beng drained their specie, what would
have been the consequence, if they had
borne their share of the public burthens,
II their ports like our own had been her
medically sealed, and if the balance of
trade had been against them in favor of
the South Is there man in the world
who believes they could under such cir
cumstances have continued their specie
payments for three months =?
But, the Bank OF the u. s. NAV be look
ed 70, to prevent these evils in future.
\ consideration of this subject in alIts
details would lead me far beyond the IL
init have proposed 10 these remarks. !
will, therefore, content myself with obser-
wing, that 1t must be obvious, at single
glance, that the Bank of the u. S. with a
ny capital, which it eau be supposed will
be assigned 10 Virginia, would be utterly
inadequate TO furnish us with notes paw
our taxes, to pay the foreign debt we
should be constantly contracting, and to
redeen' all the notes of our own banhs cir
iatinS III other States.
Upon the Whole then, both for the reas-
ons have given, and because this sub
lecf OF banking, III the manner and upon
the principles we conduct it, is vet upon
trial, should think it would become the
wisdom and prudence of the Legislature
to wait few years, for the benefit of the
experience, which the many experiments
now making in the world would give it be-
tore II adopts the course, which some gen
tlemen have so earnestly ana eloquentlv
recommended, and from which there is
noretreating.
r.
Nautilus, , rol. chap.7