Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1817-01-02

III
counted will bepaid as fastas il becomes
due, and in 90 days the whole amount of
paper discounted above The capitat oftfie
bank, will have been paid, and by that
operation will have returned toit. all the
notes which were in circulation. or specie
Tor notes OF banks paying specie,) 10 meet
those still aflOat. And the bank would
be left safe from any further possible in
jury than diminution of It's profits Ii
is scarcely possible for The Whole amount
Of the notes i'll circulation, to return up
on a bank within 60 days A general
suspension of specie payments by the
iiaIksin the United States, can only be
produced ~ great political events, Which
may be forescen long before they happen,
and which, when anticipated, may he
guarded against by timely PREPARATION
| think, then, L have shown, that in
prosperous times, q srecic-paying bank
may be safely and proiilabi, conducted,
whilst, under the most adverse circun-
stances, it may be perfectly safe, and
lis profits then precisely equal TO the dit
ference between the interest upon It's cap
iial, and the eXpence of its management.
And it is very doubtful whether, ,u,des
smch circumstances, money employed IN a
NY other way, would prove more protita
bic. III am right, almost the whole of
RS objections must fall 10 the ground.
He, however, supposes, g that III those
sections OF the state in which If is propo-
sed to locate banks, the capital must be
subscribed by farmers and culii,aiors of
the soil, by which there would be posi-
tire diniamioa Of tie .tnads which would
probably be des otcd 10 agriculture, If
there was no bank :" and that this injury
could only be rcmedied by granting To the
agricultural stockhoder :" an accommo-
datlon a least 20 the amount of his sub
scrlption, which he would not accept, if
the profits OF agriculture were less than
per cent"
TO these suggestions, have two au-
swcrS:
LIST. IF the profits of agriculture are less
| titan 9 per centum, those farmers, under
standing their own interest, iasf,ad Of so
employing their momey, would lend it at in
terest, or vest it in some public stock,
which would produce per cent
end. They would feel no hesitation in
borrowing from The Bank the amount of
their subscriptions because, If the divi-
| bends equalled 6 per cenium, as stock
holders they would receive as much as
| they would have TO pay as borrowers; *
would, moreover, have the chance of re-
ceivlng any additional profit, which the
bank might divide over 6percent. whilst
| (under any circumstances they could on
| ~ lose their proportion of tie expense of
managing the institution.
With respect TO the Boston Banks,
| think there may possibly exist mistake
| as TO the balance of trade being in their
| favor during; the late war III knew the "a
mount oispccie in their vaults at the COM
| nencement and conclusion of the war,
| the question might be decided Massa-
! chusets, however, was herself a consul
mer of European Manufactures, and UNI
| less her favorable balance oftrade with
her sister States, equaled the unfavora-
bic balance with Europe, and her hostile
| nelghhOrs, she must also have experien-
ced a drain of her specie. But had the
balance been ever so unfavorable. the
| Boston Banks being those, which, more
than any others. have confined their dis
counts TO business paper, they had only
| to limit tine amount of those discounts 10
| the amount of their capitals, aud they
were perfectly safe from the necessity of
distonoring single note, although the
untavorablc trade might have drained the
country of every dollar of lis specie.
Avery erroneous opinion appears to be
current, which is, that ''ifce had no banks,
| specie moatd be abundant; that it would
| flow INTO the country so rapidly as TO sup
| ply al our Wallis. Let " he remember
ed, however, that this specie must come
| from foreign countries, and that the
whole annual importation, cannot exceed
the favorable annual balance which NAV
be due us i'll our trade with those coun-
trleS. How many years would eapse, be-
fore we could obtain by importation,
| specie equal 10 our wants, would deDend
upon the extent of the deficiency, and
the amount of our favorable balance of
trade. With an untavorabie balance,
banks or no banks, the quantity of specie
| must continne to diminish.
There IS one view Ofthe subject of banks
and suspension of speciepayments, which
although not called for by the essay OF
your correspondent, appears to ne not
| unworthy some consideration
For their conduct in suspendng specie
| payments daring our late difficulties, the
banks have been exposed 10 tie harshest
censure, expressed, according to tie chr
'dcter Of the Censor, sometimes, in lam
guage decorOus and gentlemanly at o.
| theirs with all the coarseness of vugarity
Moreover, recurrence of such state of
things Is to be guaded against by legisla-
cnactments, iorietureS and penalties,
heretofore unknown TO our Code
| Butwhat, let me ask, would have been the
situation OF the Country during the late
war, ii there had been no banks i'll the u
nlted Statesl IalIude net to any real or
supposed aid they may have afforded TO
tlle fiscal operations of the General or
| St"te governments. Had there been no
A aN. - u.