Virginia Argus. [volume] (Richmond, Va.) 1796-1816, 1816-01-13


Pohcy OF nation, than that which exists i'm the
General sediment of mankind: There can be. ins
deed, but one other human test, that. us,,allv
natter ny and always fsihcous. which is to b.,
round IN the opinion which nation entertains OF
herself, -
Il is not a wise man who does not sometimes
profit by the malice of his enemies. Nations are
but associations of men
your committee are aware, that some of the
Posiuons LAID down in the early part of this re-
port, are not universally admitted
1t has been said, that the currency of co,,ntrv
bears fixed proportion to its conn, sgce anS
consequently that bank cannot circulate aotes.
10 greater value, t.ian the gold and silver cor,
which 1t disp,aces. But the institution of ;, bant
not oniy promptly supplies any pre- existing de-
iect oil specie, but lncseas the commerce and
the circulating medium OF the nation nv The
same operation. This double purpose, il effects
ny us loans. Money IS power; aud The loan of
money, the transfer of yower; power 10 com
nand and set IN motion all tie snews of labor
and to q icken all the effcts of industry
n.s been u.ged, against the institution of
banks, that hey cannot create single. addition.
al dollar. IS hteN.ly true but they can oh
'iousiy create new demand for one, by giving.
Use 10 new Contracts which require the use ofmo.
ney, the common medium of exchange. Whate.
ver mullpl.es the uses OF money, cannot fail IN
create new demand for il and money necessarily
follows that demand. In this sense. money maj
be truly sad, IN contradc ton of a Grecion nb;io.
SSopher, to beget money, and Banks 10 create if.
Ii country advancing in population and wealth.
wIth the rapid,ty of the United ;ates of Amer.
ca, furnishing so many, and such divers uses
Tor money, TINS creative power has had ample
scope Tor activity. Hence the multiplication of
Banks IN The Northern and Eastern states neve-
occssoned, I'm al the CONNIE lcement of the ,ate
war, any considerable dimmution OF the e profits
or me smallest depreciation of their c,rcu,atinr0
paper. Nor would the war, which drew It's re-
crllts from tie least productive classes of socie.
~, have had either of these effec,s had Il not
oeen accompanied by The prostration of the for
eign trade, on which, even the interior conme,ce
Oh the United st:,,es was so materially dependent
on The contrary, the consequent augmentation Of
NE publ taxes, and the numerous onracts 10,
winch, the war Itself, gave rise for paving, SUBJ
suhting' cioath'nS, armng and transporting.
from place 10 place, the national force for the
erection Of fort LEGATIONS, the extension of tho
navy, and the purchase and distribution of mile
taFy stores, supposing other circumstances tn
nave remained unchanged, would have OCCASION
ed an immediate demand for "a new circulating,
medium, or nave eqnlred an increased activity
from the old
IL rs not pretended that the demand for tbe
medium OF exchange, in any country, NAV be ex"
tended, indefinitely, or at the Eleasure otIts bank,
aid to tie tuil amount OF their loans Experience
alone can GecIde to what extent those loans mas
DC safeiy Carried. That experience every bs,lr
IA Liz CotllSG OI IT'S eratfDuS 4 kez
Circulation of its paper does n,+ increase with its
i"Ai,s' some part OF hat paper wii be Brought n-
10 me bank "a SIcha sc, for what IS ofuDiyer-
sal demand, the & id silver coin which i re.
presents. Should here be already mo e go d or
siFer com ~ the Country than IT'S interior coma
ihefNe requires, However extended by the loans
Of tue bank, 1t will be expor ed, II the course OF
us fore gn irade, 70 supply the currency or some
olher country or the reluUdancywill be applied
home or abco4d, to some of lie caees .,hch IN.
der the precious metals, at ali times, articles OF
commerce.
IL such be the general character and operation
OF banking, IT remains for the c mn, tee 20 en-
qure, N relation TO the numerous portions t,,-
new banK charters, whether any danger IS TO be
aPpFehen led 20 the Commons cath, from their
multiplication beyond their preset murnbeg.
The chef hazard to which II bak IS eNpos.d d.
Is that o! overtrading or issuing so many II ia
notes. as may deprive 1t of the ab lity to ,als then
up with specie, when rresens ed tor pavnen
should bank thus put Itself in situation, TO be
compelled TO violate its most solemn ENGAGE
mems, 1t Will de,eTvedly lose all pub c co66.
dence, since punCtuality on its part and that oP
It's customers, constitutes The yery principle of
ITS exsteice This is that, alone, which makes
1t expedlent, or e. en- safe, for the Commensurate
10 permit the issue of its paper it is that Which
stamps upon tins paper ans value or affords IN e
any circulation whatever
1t has been found possible, though not without
BIeSl puol'C INJURY, Tor Political reasons, sane.
TONED by all the patriotism OF a walton, TO sustain
ITS credit to certain extant In such STATE Of
things, The pubic expectation will be kept alive
that the period, although indefinite not very
remote, when the faith VIII ch has been once So.
lemny Phghted will he honesty redeemed, and
g eat prudence may enable tie bank 20 prevent
total deprec ,ation Of rs notes in circulation.
But should II cOntnue 20 refuse the paymenE
otits Just debts, and permit it, characi e. To he
dishohOured, eitberfsr he sake filed pain on.
IN consequence of fasJ msma1Iagerns nt. tile prb-
lie confidence viii he speedily converted into
general dptrust-to distrus will lcceed uniyor-
81 alarm among q c holders Of It's paper, and a
sun upon the bank for the pecie Il has 50 i,n.
justly withheld, will involve uself and The coun-
try IN Common ruin.
The best preyentive Of this evil win be found
IN The multiplication OF banks, and tleir conse-
quent competition. Sensible of the length 10
winch these prelImnTy rem ks have be al
ready ex ended, your Comm lee firbear to en-
large upon the mhue0ce OF this valuable agent.
which, has ever proved self 70 be the public
friend, IN all the occupations Of man, Il which il
IS applicable. II there be one, 20 which il - De.
Larry so, your Committee believe tito be that
under cOns Iteration.
Your committee arc, however, inclined 10 be.
l,eve, that the multiplication OF banks Will be
suihc emily restrained IN this Commonwealth. BY
an adherence TO the pol cy which has hitherto
dictated the tenn, Of their charters.
lt IS scarcely passible, that, under a governs
ment, which requires bonus equivalent u 90
per cent, for the charter OF eyery bank when
!, incorporates, those inst titiuns can be multi