Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1819-02-09

"H'ci htiifah ingenuity can devise. OF human
| power execute, short of Wrestling from iudiyd
uai- the possession OF IL. As . eneral Principle
u may he safely asserted. that tie state which
imports mel cliandise TO greater amount than
u exports, nustpay the balance in the precious
metals. In tree states. where public credit is
hrin'y established, ard monied institutions
founded niUn Jnst principles, aRd wisel, adnii-
mSicicd, it H. admitted that balances MAY he
iorsonietime adjusted withont the aid ofspecie,
ny transferring TO the creditor interest Ia aiil
s.cus lilies, snch as fnuded de bt aud bank STOCK
IL ncsus, however, no effort OF reason To dei,r J.
'ninc that ihis means OF adjusting balance :,
must not cnis DC limited itilts eNte9t, bat inju-
t'oiis 10 the party which resorts TO it. il hal.
iormiy tends 10 increase aud perpetuaie lLc
balance 10 the extent of the interest which is
annually payable To the creditor.
Eut It may possibly be ccutended, that how.
ever ineuici'nt the measure may be, AS "A
permanent regulation, yet there are couiunc-
TIRES IN the affairs of cry state lich not cny
justify, 'n't in'perionsly require its temporary
adoption.
Ii cannot be denied that the history of onr
own government strongly csuntena.ees This
diStnctiOn. During the el.bargs Of lS0!-S
ana thdt Oi 1872, the expectation OF specie, oi
every description was rigidy prohibited by
Ian. Admitting, for the puI poses OF this en-
curry, the cor,ec o. his decisioil il NAV be
proper TO determine whether oar political or
commercial relations with foreign states, on
oar Internal dfidits present "a case, which calls
| tor the temporary adop,:an.ot the measnre.
Accordins TO general appearances, ii is believ-
cd thatonr relations vial, foreign states have,
at no period ofo1' u;;ionai exist snce furnished
less cause OF iuqueiude.
The veNations 10 which cnr commences WAS
subjected by the principal beiiigerent nations
ptlor 10 the commencement OF The :aie war:
It's almost total suspension during the war and
TIE irregularities and yicisstudes incident 10
Its resumption, on the return of peace have
doubtless prodnced the most serious embar-
rassnents and lasses. At this time no a ever
there is Just reason To believe that these
len toe 81
has resumed its customary channels: and that
the euterprishg and prudest merchant will
hereafter enjoy fair and reasonable profits
me rate OF exchange between this ceuniry
and the comncTcial states of Europe is a
suthcient security against the expectation of
the gold aBd silver coins on the Unitei States
to Those states. The expcrtatiou of specie 10
Tue East Inolcs Is tue only circumstances con-
nected with CTR commercial intercourse with
other states, which can be supposed 10 reunire
the temporary prohibition OF the eXporta-
ion OF the cGirout coiu of the United Siaies
III Is believed that this trade has been prosecu-
Ted more extensively by the merchants of the
United States, since tue late war, than anterior
10 that period. Tie cXteut to which il wt
be prosecuted in succeeding years, will
depend upon tie extent 10 which sales eau be
ptoili''biy made OF The articles imported, and
the practicabi:ity OF obtaining the necessary
amount o'specie FORTS prosecution. Shoul, tie
ciy.i war whics1 has Tor some time existed be.
tween spSin4S Tie independent govern ments in
-
for any considerable time longer, it is probable
that there viii DE a general appreciation Of
the precious metals 81 tie cis iliZed world
aud that he drain OF the East Indies NAV
net only be greatly diminished, but that they
may be imported from thence into Europe aud
the United States But there is no rational
probability that IN either event, the pressure
upon the community which has produced This
enquiry, will be temporary in its nature, or
that Il will yield to any temporary legislative
eNpe diepi. IL will be reno, ed only when our |
imPOrtations shall be reduced below our |
eNpOi iaiions ef merchandise TO greater extent !
than TIE amount OF specie exported 10 tue |
East Indies. Until this should be the case |
the pressure will continue, even should tie 1
quantity OF the precious metals IN general |
circulation be greatly increased. Whether the
quantity he great or small, no part of il will
permanently remain In state against which
there IL AN annual balance of trade unless The
CON of such state sbonld be so adu!terated as
10 destroy its currency If these views be !
correct, we must look TO The STATE OF our int.
nal affairs Tor circumstances which nIay Justify
temporary prohibition of the expectation of
the gold aud silver coin ef the United States |
That the currency is dis0rdered aud thai |
actions of the government, has been stated in
the animal report OF tile Treasury. In lie
spripg of 1917. the principal banks in the
commercial cities, in conjunction with tlie
Bank of the Uuitcd States resumed specie
payment Their example was osieIIsibiy fol. |
lowed by The immense number of local banks |
established In the interior of the Atlantic
states. Ia the western states specie pavments
were also resumed by the hanks established
before the refusal 10 pay specie, in 1871.
In making the effort TO restore the currency
TO AN equality with gold aud silver, The banks |
were seconded by the community which mani. |
tested ldudable 10 bcarance to demand specie
tor The bank notes which formed the general
circulation. This forbearamce, however, could
not be expected TO continue after the banks
had had time to reg ulata their paper in cjrcl.
"a ~ uf IN
iheIr vaults. In the moan time, the Bank OF
the United States, aud some ofihe state Banks
made considerable efforts 10 import specie.
The Expectation Of IL, during the same period
has, II is believed, been equal, if not areaIer
than the importation by the banks and ". indi-
vdnais. Its presumed that tbs banks viii not
continue their eXeTttons TO import specie, hut
leave that tn he effected bV the commercial
Interest, which alone can bear the expeuse -
bat which will certainly not do it, so lone As IL
shall he done by the banks, When the hanks
cease to import, they must withdraw their
paper from circulation to a very great extent
or stop payment. The demand fora ci;cnIatiue
currency must he made imperous before II
will be imported TO any considerable extent
by the comm ercial interest. 1t is only When
gold and silver shall form a large prOportinn
of the circulating medium Of the nation that
The currency eau be said 10 be sound Since
the resumption OF specie payments in The
sprns ot 1917, this has not been tie case
What specie there WAS in the country has
remained in the wants Of the banks untiIit has
been drawn Ivy the brokers, TO he sold 10 lie
exporting merchant. has not entered into
The general cifeulaion; and there is Just rsa.
son 10 fear that much time will elaDSe no fore
II does What was The result of forbearance
~ tie first instance has been effected since by
the operations OF interest OF Of fear: ifsnrcie
cnnd be freely drawn by the exporting nief.
chamt from the vaults OF the banks. al mar
be would not pay the brokers ) OF 10 Pc, cent.
premium.
Btnk stock, especially in The eastern. middle.
aud some OF the weziern states, forms SO great
pOriiOn OF the property Of the wriIihy and
influential cIns.rs of sncIefv thai Lie irfnl..t