Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1816-06-29
TO the Editor ofthe Enquirer
NO. ,.

m@nts with safrty. IRE Legislature gvqs
bound 10 urge them 20 that measure.
When charter is granted to banking
company, that company engages, in return
Tor the valuable privilege conferred on
them, ct substituting their paper for money,
that 1t shall be perfect substitute and
that whenever any holder of their notes
WISHES to convert them into coin, he NAV
do so on application. As their paper at first
obta ms circulation solely from the entire
confidence of ,e ppslic in this convertible
~, 1t was presumed that they could keep
no ITS circulation only so long as this ex-
pectaton continued to be realized. The
SIT interest Of he company was tn, refore
thought to afford the public sufficient Sc
curity, that they would always be ~prepar-
ed to make cash payments. 1t was never
tor moment belle that bank, in this
country at least. could support its credit
and continue IT'S operations after it had
stopt payment. Had the contrary been
foreseen, it can scarcely be doubted that
the laws which in Incorporated them, would
have guarded against the exercise of pow
CT, SO miSchievous and se liable 10 abuse,
by additional sanctions. These conditions.
which were omitted only because they
were supposed to b unnecessary, may be
considered as implied :: the banks are there
io'e, as much bound in justice and consci-
ence to fulfil then, as if they were express
ed and 1t was the duty of the Legislature
to supply the place of the omission.
Nor ought the banks to be deferred by
the temporary diminution of their profits
which the resumption of cash payments
m make necessary. Ii they had punctu
ally complied with their engagements dur
ing the late war. and paid specie when it
Was demanded. it is clear that from the
strong tendency which specie had to leave
uS, ct being the only commodity we could
give Ill exchange for the foreign mcrcha an
d,ze, we continued to purchaSe) they could
have loaned out very little more than their
capital. 1t is inciGent to all banks to ex-
perience these vicissitudes--to suffer by an
untavourable balance of trade, and to pro-
ut by one that is advantageous. Those of
Virginia, had, in years Of prosperity, made
10 On IL per cent. on their capital: In
times OF adversely their profits were natur-
ally reduces to or Z per cent. But by
refusing to emit specie for the protested
purpose of keeping it N the country, and
thus benehttng the public as well as them
selves, they were able to make the same
profit in war as they had done in peace.
Their annual dividends have Continued as
before from 10 TO ~ psr cent. Having de-
rived these extraordinary gains from vio
iation OF their eoga gernsnts. which violation
was sanctioned solely OH account of its pro-
missing to secure the future benefits of
specie circulation to the country, the public
IS warranted in expecting from them some
sacrifice to restore the currency of the
Country to its former condition. The sus-
pension of specie payments has been
source OF profit to them of Inconvenience
r to US. II wing paid the price, We are sure
ly entitled TO the consideration.
While the public had such strong claims
on the banks for the renewal of specie pay
ments, the Legislature had every induce
ment To enforce them. At first the sus-
pension was said to be only during the war;
Peace at length returned, and then few
months were required for all things to be
settled IN their proper places before 50 inn
portant measure could be ventured oE.-
Nearly year, however. had elapsed, and
they seemed to be as far as ever from
Condition to pay specie. No effort was
made by them to import specie and it is
believed that not solitary dollar of their
paper was sacrificed by either of them to
procure dollar III silver. 1t was then a.
lodged that the Banks of all the States
should act in concert, and that our Banks
could not safely pay specie before it was
paid by the Northern Banks. But the
Northern banks III turn sal that they cou.'
not hazard this step until il was first taken
by the Southern Banks. urging, with some
reason, that the balance OF trade being "a
gainst them, they would be Immediately
drained OF their specie, which is the natu-
raj corrective OF an unsavorable balalce.
And while the American community was
banded about between the Northern and
tue Southern banks, these corporations
were receiving as great, and in some
instances, greater profits than ever /; and
we're making no efforts to restore to
the country the specie which they had
fcnnd their accoun; ia banishisg. il surely
beloved the guardians Of the public welfare
to interpose and dem and Of these Corpora
tons to redeem the pledges they had SOL
EMMY 3 ven, and 20 restore the currency
Of the country to the condition in which it
was before they had been allowed e. adul.
tefate it, even although they shouil b. COM
pclsd to rstHnd part of the profits they
had mad by the adulteration.
But It is said that the law has had the ef-
feet of compelling the banks to cal in their
loans, by curtaiiing their weekly discounts,
and that this sudden dimHutlon Of the cir.
culatiug medium is Injurious and oppres-
sive.
1t may readily be admitted, that the
course now pursued by the banks must
press very heavily on the commercial part
OF the community, and be more or less fslt
by all the other classes, except brokers &
usurers. No considerable portion of the