Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1816-12-27
RICHMOND. DECEMBER 81, 1916.
FOX THE ENQUIRER.
RANKS

the proposition, which that discussion has
so fully illustrated that, from the estab-
blishment of spccie-paying banks, no e.
wills, but many benefits, will result.
say specie-pnying Banks not banks which
undertake TO pay specie, aud ito pay spe-
Gle in prosperous times; but, banks which
can give sufficient guaranteeto the State,
that under all circumstances, favourable
or adverse, inpeace or war, when the ba-
lance OF trade is with or against us, they
will continue to pay specie.
In the truth or falsehood of the propo-
sition, whether we can establish banks OF
this kind, lies Tin my opinion) the princi-
pal stress OF the argument for or against
them and as this view of the subject has
been scarcely noticed in debate, permit
me 10 invite the attention of the Lesisla-
ture TO the objections, which NAV arise
out of this proposition, and 10 ask a con-
sheration of them.
II is said, that no charter can be grant
ed TO bank, but upon the condition of
DTS paying and continuing to pay specie
that the charter is TO be forfeited, the mo-
ment il fails to comply with this condition
that additional penalties are to ooerce
such bank to meet It's engagements, for
winch summary remedies are TO be enact
ed--that lis officers even are TO be pun
ished torthe delinquency-an that these.
or such other provisions as its most lea
lons opponents can devise, offer TO the
public sufficient security for the faithful
fulflment, on the part of the bank, of all
lts undertakings: with which, we are 10
presume, no future Legislature will. in part
or IN the whole, dispense.
Now, this last assertion is, perhaps, ia
king for granted the mostimportant thing
to be proved: for, we have right, think.
10 presume, that future Legislatures wiW
do what the interest of their constituents
shalt, at the time, imperiouSly require; and
fear, that the establishment of MANY of
these institutions will, in difficult times,
under the pressure of such circumstances
as have already occurred, render it essen
fial to the public interest, that less evil
should be encountered, viz: the stoppage
OF specIe-payments, TO avoid greater,
VIZ: rapid depreciation Of the circula-
ing medium, and consequent universal
bankruptcy and distress.
deem IT next TO impossible, that
bank can re established, aiiordif,g 10 the
people In ITS vicinity any thing like the ia
ciilties and benefits expected from If.
which will, under all circumstances, be
able to exchange IFS notes for specie.
If bank were TO adopf the principle in
granting It's accommodations, which A.
dam Smith asserts, is the only one il can.
with safety TO itself, adopt-that if would
only advance to the merchant, or under
taker OF any kind, such part of his CAPT.
tal as he would otherwise be Obliged to
keep by him unemployed and ia specie 10
answer occasional demands, il might pro
badly be able, from the ease with which
st could call in It's debts at all times, 10
meet IFS engagements and departure
from that principle may have been, for
aught know. the true cause of our late
difficulties. But, we know, that this prin-
ciple has been denied in theory, and re-
Jecfed III practice. Banks are expected
10 advance, and do now advance, upon
reasonable security, the whole or large
part oftlIe capital, on which the merchant
trades, or the protector specuates. Thew
are intended to aid in the improvements.
OF which the returns are slow anddistaut'
such as thelmprovements of land; as well
as III those OF which the returns are of
an opposite character If, indeed, their
operations were confined to Adam Smiths
limit the people of the West would have
iittle occasion for them, and the table of
the House of Delegates would no longer
groan under their petitions-The friends
of those banks avow very different oh
Jects-they are intended, saw they. TO aid
agriculture as well as commereeDto adj
vance capital to honesty and to enternrize
to clear forests, drain marshes. open III
yers, improve roads, and convert the how
ling wilderness into garden.
1t must be confessed that a bank. poy-
ernedby these principles, will, in atime of
peace and prosperity do more for the i'm
provement of country, than one actua-
Ted by more prudent councis-And as
proof of il, we have witnessed the effects
OF such banks, during such period, upon
some OF our Sister States. But, we were
very near Witnessing a s enc of very dit
ierent description-Almost bv miracle.
we have been saved from the effects of a
appreciated currency, which few more
years Of war might, and q beieye) would
nave rendered very little better than the
oid continental paper-A confidence on
me part Of the people, that the war would
not be Of long continuance, and that on
the return Of peace the banks would re-
ISuihe pecIe-paymeDts, upheld IN some
nneeree the totfering credit Of bank-paper
R4ul, already the most mischievous and
disastrous effects had been felt, by the
PnDllc. The value ofth paner in their
lands. had been sunk oDe-ffth, and IN
fome Instances, one-fourth Those, who
1ci9 The paper, were Of course the losers
III "Lai oportIon-Crcdltors who held
mone OF IT, were prevented from getting
.'elr JUST debts, however necessary to
..usem. unless they accepted this depreca-
~" currency honestly contracted