Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1820-03-21

| mtEciy negative Dut III brings With u
calamity ANA misfortune.
The theorists who are TO blame toi
these thugs, drew surb enchanting pic
lures OF The prospect before us, that even
the ser,O,s and sober minded part at The
community, daZzlrs With The brillauc,
| Of their ct!or>-yivided reluctant
assent 10 The cxpcri,.cn;s proposed
| ihe ADVOCATES OF paper tyetiH were in
| dulged in their wishes al an early period.
They gradually increased in numbers :
extending, m "a greater ratio, the scale OF
| their OPERATIONS. In the Year 1913, we
find tie bank capital employed in the u.
States, amounted 10 % millions. In 1917,
| II had increased to The enormous amou.i
at l2o GIG 900. This amount Is esiinla-
ted To have been IN operation during the
year iSl9.-Ihe circulation oil 1913 ~
stated In have been ~ millions lldi of
1910, ITO miliions, AMT that oi 1879, 10
miliions.-So that the money of the cuun
Try, or that which passed for II, was M
fUo years increased f0,ty millions aud,
then, III the space Of three wears diHiniSh-
Ell 60 millions In amount. The cOnse-
quences Of these sudden and violent
changes will be long remembered and
dcplored. The redu. ton OF Tie circu!a-
ton, 10 certain extent, was IA measure
OF ne essiiy The specie basis, upon
which, The greater part of il rested, had
been Withdrawn Tor other pwrposes-as
Nigh, have been expected. For, il YOU
assign that nhich has no value ia Itself,
10 perform .he fune iious Of Tia, which is
realty ralUa6ie. the latter " II! fluid lis way
To som' other country, where 1t viii be
employed
II is universally admitted that money
Is The representative or measure of va
Tue. Ii this be the fact, how iMport3nt
Is II 10 every interest in society, that great
and sudden changes IN the qnauium oI
circulating medium, should he avoided.
l lie price of iabour and commodities
must, III gencrai,svary in proportion to
The amount OF money by which they
arc represented. or which is in the maj ket
ready TO purchase them.
Paper Credit, when used to facilitate
the operations OF commerce, and the cx-
changes which take place in society, will
be found beneficial TO Il nation. Ii must,
however, be Emitted by the actual CAPITAL,
which - always held in readiness 10 te-
6eemi'. Whenever IL is empioye ed hey ond
this limI', III Tie character OF capital, in
stead OF the representative OF capital il
becomes SYSTEM oi spo!iation OF the
public, dcranging the established rela-
iinns ut ihings-aHd carrSi ing NiiI,ii evils
INFINITELY greater than the good " hiulI il
coniers OH q fcW.
In illustration Of this remark, let us re-
fer 10 facts iurusbecl by The report. Not
wiihsiandlng the heavy rur,ailnenis OF
1918, the amount of bank discounts in
1919 was S I57 600, 900 so that we NAV.
fairly, infer, that IN lSI6-l7 the discounts
amounted 10 200 millions. II this inter
ence be correct, The people of the Uaiied
SiateS were paying an annual interest 10
banks OF IL millions Even during the
last year, hard aud ditiic ut as il was. they
could not have paid less than Oh millions
Add TO this sum, the heavy curlailmenis
paid to the banks, the immense losses
which followed rs tho inevitable couse-
quences OF every engagement previously
entered INTO, amt you have the principal
causes OF the present embarrassmeuIs.~
These are the happy results Of The system
Of paper credits. A, one time YOU have a
currency thrown Into circulation amount
ing to ITO millions the country at that
period exhibited delusive appearance of
wealth. ana prosperity property Of every
description rose TO the most eXiravayant
prices every one Thought himself rich
many abandoned their frugal and indus
''''"S 'Nc'", HH' III tUIcltSS,
osteniatiOn and luxury thousands, tempt
ed by the abundance of money and he
facilities of credit, entered into contracts
aud specuatiODs, under the expectation
that this food tide Of atfiuence was u.yer
10 ebb. Produce was run I'D TO an euor.
nous height; the merchant mol having
duly considered the changes in the affairs
OF The world, growing out of The peace in
Europe, which not only reduced the
prices OF our produce ill., foreign markets,
but diminished the operations of our com
merce In all lis departments. But, alas !
lie bubble has burst Twas bul a bril- -.
liant iliusiOH. In three years the circula,
non is reduced from 10 Ia 45 millions.
IL were Idle to advert 10 the effects OF this
reduction upon tue enterprise, ACTIVITY or
property OF The nation.
What other proof could be desired TO
shew, that banking, wheu carried beyond
its legitimate sphere, becomes system of
ruin aud devastation
Alter such sad experience as this, we
ought io be particularly jealous of every
attempt either on The part ofthe state or
national government To- interfere in mat,
tcrs affecting the private interests of the
people. IL was the business OF legislators
TO foresee Tie evils which have grown ont
OF excessive banking, and to have turned
suspicious ear Ia every application
winch was made 10 them. All corporate
bodies, and particularly those which are
licensed 10 exact contributions from Tic
public, are not only Objectionable in them.
selves, on account 1T tile temptation
which IS constantly held out, TO 20 6ey ord
The object OF their original creation; but
because the exclusive privileges with
which they are clothed, are encroach
menis upon the common rights of the
people, and contrary 10 The avowed prin
cIpies OF republican government We
would nGtbc understood as condenBimg