Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1819-11-19

pd>iSiS oniN 10 Ne fOuhu where the MINOR cltdu-
heis soi c'trnlatiOn are filled by the precious
metals. Just IN the degree That paper credits
are Introduced, COINS are bduShed, and the
smaller tie denominations ot the bauk notes,
the less specie viii circulate. The use ofiick-
els anu small notes during the Insolvency ut
our banks, droNttiom circulation eN en- the sill
Ner fractions of a dollar, s"d had II not been
tor legislative prohibition. we might still at
this day. have our pockets loaded With the
TRASH Ii general principles of reasoning
nave been supported by facts well known TO
ns AL. how clear is il thai any approximation
10 the lowest denomination OF notes, has AN
Injurious tensenc>f The Bank OF France,
winch is conducted upon enlightened princi-
pies, issues no note for less than 500 Francs
dnd IN consequence of this. the circulation for
tbe ietail transactions OF trade as bat slightly
affected by ITS emissions. The bank of Eng
rama until OF late years, issued no uUte for less
than 81. sterling, and the consequence was,
tnat no deficiency of .uineas, or OF the minor
CONS, WAS experienced. IL no note for less
IMAM tUshty dollars were permitted in the Unit
z" Std,es, our circulating medium wsuid COM
prise an amount of specie that would serve as
"A solid base tor sound paper fabric to rest
upon. and the introduction OF eagles and their
it"rtional parts would be more convenient than
paper In such case, the explosion OF paper
system would not cOnvulse the nation, and the
labor,lg classes would always hold their pro-
perty IN commodity not liable 10 daily hnc-
luaiion If the coamittee, in recommending
this measure, had stated. that il would he
" important to The bdak" instead of its being
" important 10 the commuuity," they would
have been nearer The truth. The committee can
not he benefited b. having the precious metals
expelled irom the country in order TO make
room Tor hSe and ten dollar notes but the
hauk would no doubt derive great advantage
from leading their credit in the form of small
pieces OF paper, 10 the public, at six per cent.
ner anuum, the same rate al which individuals
are Wii',iiy TO leud their money. We hope that,
1t amy alteration OF the charter be made in re-
iaiion TO small notes Il viii he to prohibit their
emission altogether, at least of those Of de-
nomination less fh0R ten dollars.
The Recommendation of the committee to
diminish the number of branches of the bank
aud 10 prohibit cashiers aud subordinate off,
GERS from traiicking upon or Specializing in
the stock. is wise, bat If the latter provision
would have been more so. Had il not been
tor the erasping avarce of these latter gentry,
The number of subordinate defdulters could
never have been so great.
The compliment paid by the committee TO
the bank, Tor having" in order to support the
credit OF the country, purchased great qnanti-
TIES or specie al considerable eXpence, is
wholly misplaced The measure of sending
W.T. Sergeant TO Europe 10 purchase specie,
which we suppose is alluded to. was an act of
The most consummate folly that could have
been committed; and although il was atteud-
eG ny an enormous expense, II was productive
OF good neither TO the bank nor 10 the country
Inc hank, ny It's emissions, had assisted TO de-
preciate The currency. This depr. citation oc-
casiohed a rise in the prices ofChiua and India
goods, which created demand for dollars and
as ne notes OF the bank were profeSsedly con-
NertIDo into coin, at the pleasure of the held
er, thCy were presented for payment This
dram upon the banks SIouid hare been st0pped by
an earty reduction ~ discounts. instead of an atr
tempt 10 meet il by the importation of c.in
The tOtmGr would lave effected radical
cure; the latter could only protract lie dis
ease IL, however, reduction of loduS ceaId
not nave been made with sufficient rapidiiy TO
al Afslt. "A
tlous mode than importation presented itself
which was the drawing of bills for the amount
OF the credit obtained in Londou selling then,
tor cash, aud thereby absorbing the circulating
medium, The redundancy OF (WHICH Was the cause
oil embarrassment. AS TO the measures having
been undertaken with the view OF &" support
ing The credit OF the country" the public is too
wei acquainted with the facts wyich attended
that mission, 10 believe that any other motive
prevailed than self preservation, and sordid
individual interest.
The euogium passed by the committee upon
the president OF the bank, and which occupies
fuli share of the report, may, tor ought we
know, he merited by that gentleman Tho we
are disposed 10 believe that he is more entitled
TO he admir- for his vivacity aud de cisou than
Tor sound Judgment upon barking, orany other
branch OF political economy. TiIat he has per-
formed essential services to the institution we
are willing 10 admit. That the oppressive policy
recommended by him in the rapid reduction of
loans was the means OF saving the bank from
high authority for believing, but we are far
from granting that the coarse pursued by him
was the wiseSt which presented itself, either
Tor Tie interest OF the bank or OF the commune
~. The rapid reduction of loans has OCCASION
cd the bankruptcy of hundreds, nav, probably
OF thousands, who, had the measure been cha
racterIz0d by that forbearasce and discreet
foresight, which has been manifested nv the
British Parliament in allowing four years TO the
bank OF England 10 resume its cash payments.
would have This day stood in the community
with fair credit and ample capitals. The loss,
es of the bank would have been comparative
iy trlVial-the restoration of the currency by
being slow and gradual could not have produc.
Ct! general pane, total suspension OF in
dustry, SubvcfsOn of values, a failure of con-
tdence, aud with il, a withholding of the ca
r'iai Of individuals, and must Of The caitiDiifies
Hhch hare bcen inflicted upon me peoDIe wonM
hare been dUt'tcd. But how, il may he asked.
reuid The bank have avoided Tie measure
which IS Thus denounced? We answer, bv the
timely nesocIat'on OF loan, similar TO that
which has been effected in England TO m, |
a'nonnt Sut1lcient 10 meet the probable demands |
for specie. This would have obviated The me- |
ceSsity ofhnrried reductions, aud have enabled |
TIE bank 10 have afforded TO its debtors A |
longer time Tor The gradual discharge of their
engagements. twill, however, be said that |
by tie course pursued the bank has collected |
a considerable proportion Gifts debts. True. |
bnt The i'eans aud resources OF its debtors TO |
pay the balance, are prOpOitionably diminish. |
ed, and we think, there can scarcel, bea |
douhi, bur that The blows which have been |
5 iInck, brt rbch hare not yt prored fatui, will
Shrw at no distant day, the wlldness of !
scheme, which has well nigh ruined the |
country. The din:inutiou of discounts made in |
alone, we believe, has been IN |
wards VI seven miiiIr"s OF dollars, and the CO. !
lci"rotaneous reductions, OF the state banks. |
have probably added TWO or three more 10 the |
number. IL the performance of an object in !
orc. gfGr, attended 10y a wide spread ruin.
which conld have been better accomplished in
thrtt, HifhOWt public distress, be mark of yyis.
dom, then does the conduct Of the bank merit
Tue aPpf0balion Of the public, and the presi-