Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1816-06-26


ing the precious metals, to limited "a
mount have not added the deposits to
the notes in circulation for without doubt
much of the gold and silver which is now
boarded away private Golfers, would be
deposited i'm the Banks as heretofore, for
safe keeping and, it is said, that inmcdi-
ateiy after the peace, it being a very pre-
vaient opinion that the Banks would Soon
resume cash payments, there was Con-
siderable iHnu,S of specie. IL may there
fore be presumed, that 1t specie payments
were resumed, the access,ons ot specie by
new deposits. would be equal or NOR. than
equal TO the draughts Of speci- which the
former deposits would occasion.
But it is objected. that gold and silver
are not to be obtained that already high
premium is given for them in Bank paper
and that the effect OF such an additional de-
mand, would still further raise the price.
1t is admitted that an adequate quantity
OF the precious metals could not be obtain
ed in any part of the United States, but
at price beyond the ability of the Bank
TO give. Indeed Tiers is not in al the
States together perhaps, half as much spe-
Gle as would be REQUESTS to support the
present amount of their CO ulating paper.
But it may be Obtained from abroad and
N some countries with which we trade, It
Nv StfttcT ptcnLy Lilau USUAL. bOiifIS
were lately at par in England. There is
an abundance of silver and gold in Cadiz,
Lisbon, and every part of Spanish and
Portuguese America. 1t would be strange
indeed, if we could procure the products
OF every region OF the globe, to the utmost
extent of our wants, and could not also pros
cure gold & silver and still stranger, if we
could also procure sufficiency of these, as
is evinced by the shops of cur silver-smiths
and jewellers, in every form except that
, OF coin. There certainly never was a time
IN which the State of Virginia was better
able to pay for their importation. The
price OF tobacco abroad IS high at present
beyond all former example, and the ba-
lance of trade. taking all countries together
is greatly in our favour. From the pre-
sent rate of sterling bills in Richmond, it
might at first seem as il the balance was
against us with Great Britain, with whom
the great bulk of our trade is carried on.
But the price OF bills here. is raised by the
price in the neighbouring states, and with
these exchange is as much in our favour
as with England it is against Us. BESIDES,
though exchange with England is nominal
!y above par, il is so only as 20 Bank pa
per; for If the precious metals be taken
as the stand.:d, as ought to be the case,
sterling bills are now at par in Virginia, OF
below it.
Our Banks then, might have procured
specie, either by the purchase OF sterling
bills with their foreign paper. and import
ing gold and silver themselves or by
SAT r and probably cheaper plan, have con-
tractei with merchants to import it. Let
us suppose that this operation would have
oecasioned loss of from - to 10 per cent.
on the million we have supposed it neces-
sary to purchase, and no fair estimate Can
make it greater, this lnss, when laid upon
the whole stock of the Banks, which is up
wards OF four millions, would be but from
3 to four per cent taken from their divi--
q nds for single year--a loss which would
be bat temporary-which is in fact rather
apparent than real, since they would be
amply compensated by the greater credit
and currency or taeir paper. and the Con-
sequent increase of their profts-and
which at all events, they are bound IN no.
nor, justice. and policy to incur if they re
gard their solemn engagements. their past
profits, and their future stability and safe
~.
But it is also objected, that in resuming
spscie payments, the banks of the several
states should act in concert, otherwise
those who first begin. viii be drained of
their specie by the rest.
IT, however, the balance Of trade is in our
favor, or in other words, if the Northern
states owe US more than we owe them, AS
is admitted to be the case at present, it is
not easy to see how they can procure our
paper to any great amount or at any rate,
10 an amount beyond what they require to
make purchases or remittances here.
Whenever the Banks of Virginia resume
cash payments their notes will be equal to
specie, and where spec,e commands a D re-
MUM, so also will they. Indeed, as the
states north of us are debtors to us at pre-
sent, Ca fact evinced by the existing state
of exchange) the Virginia notes which our
country merchants carry on for the pur-
chase o! goods. will be worth more than
specie, and no Bank can purchase them,
tor the purpose of drawing specie, without
iEcurring considerable loss. Thus, sup.
pose the rate of exchange, between Phila-
delphia and Richmond to be per cent in
favour Of Richmond, andSpecie in Phiia-
delphia to be 10 per cent. advance on the
paper of that place. A draft shen for $500
specie on Richmond, will be worth Sos
specie in Philadelphia ; bat SiO5 specie in
Philadelphi4, are worth, at 10per cent. adj
vance, S1154 in paper money. Now
Richmond note Of 500, is equal to a draft
on Richmond for 50 much specie--it is in
fact draft Of the most valuable kind: of
course 500 OF Richmond paper, will cost
Is ll55 in Philadelphia paper, which is per
'e''' 'nore than the cost of SOON specie.
This loss, moreover, j. exclusive Of the
rec 81 r..