Alexandria gazette, commercial and political. [volume] (Alexandria [Va.]) 1812-1817, 1816-03-29
s s,s21,M
5 6,s2l,597
100000

| The actual capital of the six I'M
chartered banks does not amount, 1t
lis believed, to more than two mil
iiious at the present time.aDd the SUN
of Ave hundred thousand dollars has
been fixed on as the amount OF the
Icapital Of each, because it is preba-
lble the demand for bank capital may
increase before the expiration OF the
proposed charters, and because the
lproyisi0ns Of the national bank bill
Iprohibit the granting OF any others.
| This capital offvc millions three
hundred thousand dollars is not con
tined in IFS active operations, and its
beneficial Effects to the population
lof the three towns in the district, a.
mounting to abeuf twenty thousand
souls. Even If il were, it is beIieV-
ed it would not exceed the proper
ton of back capital in Baltimore to
the population Of that city. But
when we take into the estimate the
extensive aud rich county on the
shores efthe Potomac and even on
the Shenandoah stretching Up near
" two hundred miles west and south
west, into Virginia. whose produce
chiefly centers in this district, and
whose prosperity is in some measure
on The command OF capital
there, we may venture TO doubt the
accuracy Of that opinion which pro-
oounces tho banking capital TOO
large. A single fact ought to place
this matter beyond doubt. IL is The
fact that there is no difficulty in the
Iemployment of the capital. That
capital cannot, It's believed. be just
}Iy pronouusedto be too large. which
so far from exceeding the demand
for capital, does not even now meet
the extent OF that demand. Ii is
notorious that the banks of this dis
triet are even now unable to discount
all the paper which is offered them
by men Of unquestioned solyeney, oi
the highest responsibility, and en-
gagged in the most iaudable and
Lucrative employments: and though
this incapaeity proceeds in some
measure from the absorption by
government stock Of a part OF
their capital, yet that circumstance
is neither supposed to be Of a snifi
cient Importance to vary materially
the position assumed, nor ought II
Indeed to he taken into the estimate.
The only evil it is supposed that
lean be pIausibly assigned as likely to
1 flow from the chartcring of the nm
incorporated banks. is that which
may be supposed to arise from &
surcharged circulation OF their paper
So long as banks continue their o
lperatioas without redeeming the''
Enotes with specie, tl.is IS a we'll
grounded apprehension. Tie love
lor gain, ore of the most powerini in.
stincts Of the human lle""t without
,he salutary check OF specie re
ienntian will always tempt banking
associations to overtrade. Eat tht
necessity of paying sreeie TOR lheli
notes when demanded. affords
an ample check TO that pro
pensitv, at leas, in The present state
jofour pablic affairs. The commit
| tee will not intrude upon the House
| a disquisition OH q proposition SC
plain as to be at present almost re-
lceived rs an axiom, that ala excessive
Issue Of notes will furnish its own
lcheck. If banks redeem with punctu
atty the notes they send into circua
ton. And as The principle OF specie
redemption is the foundation of This
report, il is believed that no evil viii
lepsue ftom the adoption OF the mea-
sure recommended by them,
9. The evils which are likely t.
cnsue from suppressing the unchar.
tered banks already in operation are
on the other hand believed to be great
and manifest.
| Your committee are not in pos
session Of any statement OF the con
Germs Of the several baRks from