Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1816-06-29

20 B. Experience has ascertaned that a
bank is ordinarily in prudent aud safe
course OF business, which has one dollar of
specie IN IT'S vaults for every three dollars
OF ITS paper IN circulation If then the OBJ
ject It the banks be TO prepare for specie
payments, they would be as near to- that
object by providing on silver dollar, rs by
calling in three dollars of paper. But as
the three OF paper when In Cir ulatinn, bring
IN IN interest Of something more than
per cent, the additional silver dollar, BY
which their circul alton is sust lined, is worth
about IS per c-nt. which is certainty more
than it would cost. And although the re-
suit were the same as TO the banks, it is
ry different AS TO the community. The
late extraordinary prices uf Tobacco, the
Chief staple OF the Country in which the
incorpor ted banks are stu ted, require
an increase in Tic medium Of exchange,
and consequently its late reduction is felt
with more severity. 1t would be uncharit-
able to suppose that the banks 10 not rnr-
SUE tn course which they believe to be
best or that by the operation of verv
natural, tho not very liberal pr.nc pile, they
wish to add TO the public distress for the
purpose of augnenting the opposition to a
measure which they find TO be inconvenient
and think TO be dangerous. l., however,
tie plan they have adopt d be the best,
men the evils attending it should be borne
as unavoidable, and are TO be dsoriDeti, not
to tne Legislature, but Immediately 70 the
previous disturbance given TO the natural
Course ct mon y and trade, by the suspen-
sion OF cash payments, and renotcl,; to the
war. If it be not the best course, the blame
as well as the remedy is exclusively with
the backs.
Among the arguments used TO enlist par
tzans IN favour of repeal of this law, is
the one that it has lowered the price Of to-
bacco. The price of this commodity hav-
ing fallen as the curtaiiing has Increased.
oAe is supposed to have caused the other.
Bat if The fall in the price were owing to
the scarcity Of money, there would be
greater difference between the cash and
credit prices than at present exists; or at
any rate, the present credit price would be
equal to the cash price before the banks
began to curtail ; hut the fact is known to
be otherwise. Besides, there is such
prompt and accurate Intelligence of the
state OF the markets, communicated to ev.-
cry part of the Union, that if the prices a
broad W uld justify higher prices here, the
CAPITAL of our northern towns, which is so
easily transmitted here, Gin specie if ne
cessary) would imme u ateiy be Invested in
the purchase. But 1t is we'll known that
many OF the merchants OF those towns, af-
ter recommending the tobacco market IN
Rchmnnd, forbore to purchase at the cur
rent prices. which wild spirit of specuia-
ton had raised far above what the COM
modify was then worth in Europe. We
ind that the price of land n many parts of
the country, and Of n groes every where,
are very much increased and it would be
most extraordinary, # this law, which does
not, except in small degree, operate on
the prices of the articles which are pur.
chased for our own use, sh,u have the
effect of greatly lowering the prices of
those commodities which are bought to sell
abroad.
While the great duction in the price
of tobacco, is principally to be ascribed to
tnc tail OF the price III Europe and to the
return of prudence and reason in the pur-
chasers, it must be admitted that the
Withdrawing large portion of the current
money out OF circulation, must, by lessening
the number of cash purchasers, and Of
competition generally. have ,fftcted the
Price OF that commodity. in Common with
every other. IT is d fficult to estimate this
difference. Lit may be 10 per Cent It may
perhaps, be yet more. But this is an evil We
must encounter, If we have a redundancy of
paper, though IN the present instance it may
have been unnecessarily increased by the
mistaken policy of the banks. We are
now brought TO a choice of evi S. We have
an irregular and inconyenient currency.
whose value does not rest on the solid foun-
dation ofthe precious metals, but fluctu-
ates with every prosperous or adverse
gale--which is local IN its credit and Cir
culation--and hangs somewhat loosely on
the public confidence. 1t has already de-
preciated below the standard TO which il
once concerned, and to wSich we wolld
again raise it. We cannot howe YER thus
raise 1t without some loss, and we must
pay the price, if we would have the COM
modify. 1t must also be recollected that
much OF the loss we appear to sustain, in
restoring our currency to its former value,
is merely nominel; Since part of the re J..
cent high prices is to be ascribed to the de-
precIation of paper from excess, and con-
sequently while we lower the prices of o.
ther articles by diminishing that excess. we
also raise the value Of the paper.
So far then as this law, mich has been
SO much reprobatcd, may stimulate the
banks TO prepare for specie payments, I
tbiokit wise and salutaly. L. was imperi-
ousiy called for by the voice of the nation ::
II IS JUSTIFIED by the app owed principles of
pohtloai &c onony. And so far as its oper-
ation produces Inconvenience. that neon
venec /, either to be imputed TO the III
ADVISED course pursued by the banks. or
Is inevitable, and is more than compensa..
ted by the restoration Of our currency To a