Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1816-02-20

Y.
into our country t. be employed in trade
it is because it cannot be more benehclaily
employed here than elsewhesc. If SO, A
merican merchants will naturally endca-
vor to obtain it. If they possess for it e.
quivalents, they can do so /; and if they do
not possess equivalents ard cannot pro-
cure the N, it wouiI BE- of no use when Il
did cCme--would it not shcn be better in a
natural course OF trade, to suffer it to be
come naturalized American capital, than
10 employ it IS fcreign capital Z" Is the
position assumed in the report, 20 be over
thrown by such reasoning as this? The
report very justly contends, that Il nation,
like an individual that is deficient in capi-
tai, may advantageously borrow from ano-
Their thst has q surplus. and that the es-
Establishment of banks gives facility to
such loans.--But says the commentator
Z" would it not be better in the natural
course of trade, to suffer it to become ma
turalizcd American capital, than to en-
ploy it as foreign capital ;" That is, wou;d
1t not De better for a man TO have a capital
OF his own, than to borrow one Ii th.s is
what Sencx wished to prove to US, he has
succeeded exactly to the extent OF his
wishes, and no further.--'' It's use (says
SeneX) only proves its value to II" sc who
use it,Sl its value Ia them is exactly 81 much
lost to the nation" That is 10 say, if IN
dividuils borrow foreign money at 6 per
cent interest, ard SO employ it that it snail
Well them 90 per cent. yet the nation is a
iooser by the bargain. Such are the sage
conclusions of this teacher of pslitc.l e.
conomy.--It never was intended by the
author of the report, as S.nex, by his
garbled statements, would wish co shcw,
that the establishment OF fifteen new banks,
by which bank dividends would be redu
red, would hold forth greater Inducements
tor the investment of foreign capital, than
were offered by the existing banks. The
principle laid down in relation to the ban
king system generally, was that It's ten
dcncy was to draw capital from abroad
when deficiency existed at home; and
this think has been fully admitted by Sc
mex, when he Informs us that George lid.
had two millions invested in the Bank of
the y. States His majesty, l presume,
would hardly have lent his money to indi-
viduals in this country, or have sent it
here at all. if that bank had not been esta-
blished. Here then again we find nothing
in the report but what the commentator
will admit.
1t was upon the calculations of such f.
nanciers as this, that the foreign capital,
invested in the bank of the u. States was
banished from our country, and shortly af-
ter our being involved in war, the Sec
rotary ofthe Treasury was sent to Europe
charged with the double duty q borrowing
money, (foreigR money too) and making
peace.
Scnex seems to triumph greatly when he
quotes from the report an expression used
in relation to the nc essity OF bringing back
he 20 Il.
it is sid "they VIII involve the country
and themselves in common ruin?' "Was
it wise then, says he, i'll our legislature, to
give to any set of men, the power TO in
voive the country in ruin els it wise,
then, to multiply the engine of destruction
fifteen fold 20 If power is gwen into the
hands of men, it may be abused, but this
has never been deemed sufficient
argument against entrusting necessary
powers under the best checks that the case
admits Of. These are not the only men to
whom power has been given TO involve the
country in ruin, and yet the ruin been a
verified, and the report points out the mode
by which that ruin may be avoided in the
case OF the banks namely "a restoration of
specie payment, and which at the same
time converts his engine of destruction,
into an engine Of Prosperty." Where then
is the absurdity att ibuted to the report in
the do, trine advanced by it. that to prevent
extravagant emissions ofpaper by the pre-
sent banss * other mismanaecmen &c the
best preventative Of the evil will be found
in the multiplication IF banks aud the con-
qnent competition ?"
VIII not competition for busin SIS and for
credit, induce those corp oratious, as it does
ind vduals. to act win more regard TO
public opinion, and if the new banks be
established, will it not produce this saluta-
~ competition That the new aud the old
hanks have the power, in reasonable
time, 60 procure the ne, essary specie, can
not b. doubted.--Thc pr-c Gus metals may
be bought Ike any other commodity, & the
banks should ne compelled to give the pTi e.
The petitioners were willing to take their
charters upon these conditions, aid until
they could procure a competent supply OF
specie, % nit their operations to an eX
tent commensurate with what they might
have. How is Sencx ju'tified in deriving
from these d0ctrln stre abeurdiiy wbi IN he
attributes to tho committee, namely, d" that
when hanl p per has already bcen 81 exttn-
sively circulated as to drive the specie from
thu country the b st way to recall twill he
to issue more bank papcr."-The commit
tee has advanced no such doctrine. 5enex
too is grossly Incorrect when he states the
cause Of the evil, namely, that it was ''thc
extensive circulation uf bank paper which
drove the specie from the country" so as
to produce tho suspension Of specie pay
ments And secondly, when he attributes
to the committee the sentiment, that the
best way to recall it VIII be 20 issue more
bank paper. To the latter allegation it is