Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1820-04-18
FOR THE ENQUIRER
Hints az Relation To a General Reform 81
ON Banking SyStem.

H'dS az Relation 10 a General Reform IF
ON Banking System.
The opinion at present prevailing through
ont The United States appears 10 be, that
banking is an evil of tie first magnitude; but
WIS OPINION IS no; mere prevalent than the
nehei, maj II will be utterly impossible. even
10 fetuInto metallic currency, without pro-
duCimg scene Of widespread ruin and dis.
treSS, suthciept 10 appel the SiOutest champion
OF reform ~ onr circulating medium. Taking
IL Tor granted that II wonld he ul:wiSe 10 at
tempt entirely to eradicate the whole thanking
system, my ann will be TO throw out some
hints, IN the hope Of elicilng the attention of
our statesmen to the adoption OF some course
calculated Ia lessen o. mitigate the Siruleuce
oI inns cancer IN The body polite which it lett
t. itself Is likely in The course. ct time f. cor
rode tile very ritdiS OF This once heaithy iepuD.
II is admitted on al hands that hanks pro-
perry administer eli are calculated 20 afford
@rFht I"cuiii"S. Both 10 the general AID state
goNfrnmeulS,n the collection and diSjriEuiinn
81 men revenue. ana 10 all persons engaged in
Trade either foreign or domestic Sc long AS
hankS are permitted 10 exist incur country, il
should be orr aim 20 guard them against mis-
management by every possible means within
te"iSidilNe COntIOt. There is TO power
however beneficial that is not liable 10 abuse
Even COVE rlmentitS IL bccomes Il curse when
administered 10 The detrimeut OF the pcople
governed. With the lights derived from eX
peiience, is II possible so TO organize the
banking system throughout the United States,
as 10 P'oGncc greater Responsibility in It's
management, ana 10 limit aud cIrCumSCrIbe
lhe tLectS OF ITS abuse, If IL should occur
HE plan winch shall prop,se VIII tend 10
pIoElote such Il rcsnit. although II may not
be the best that cau he offered
4 ne great objection 30 the United States
Dduk arises from its concentrating ia a dueC-
tory composed OF twenty fgc individuals d.
isige majority OF whom are ic:'atpd III IA pas
uCular spOi) patronage 90 extensive with
Tue limits OF the Union, and power of en-
larelrg or diminishing al their pleasure the
circulating medium otthi' vast empire. The
patronage ard power possessed hv the slate
banks are considerable but they are much
more limited in their extent ard harmless in
eli, CT, that If welded by National Iustiiu-
toh. ne most important objection 10 the
state Banks arises fTOta heir exemption from
reSPOnNib,litN, TO Sc ne general controlling
rowef, calculated to produce uniformity in
tAeir ACTON, AID coEhdFHCe in their issues :;
ingredients iudlspeusaby necessary 10 give
circulation 10 any medium intended as Il ma
iiohdl CUR encS This was tnliy eXemplieh
daring ihe late war, and produced the estab-
laLment OF u National Bank
~ cannon have been forgotten, that, during
mat crisis, most. 10 not all, OF the state banks
south OF HE Hudson, CiUsed their Vaul $ from
an unwiillisHtSs or Inability To redeem their
mates IN specie, at tl4.Sefy time they wcIc in
creaSin" thcir discounts. aUI i0Odiuc the
country with drpTCciated aud dcprcciatiug
hac no conir0l over these institutions athO'
'Gay afforded the only circulating medium tor
maintaining contest, which had been forced
Hl'en MS IN defence of our dearest rights Ii
VIA ne fnitheT rtcOileCied. that no state "a
cept Virginia made any attempt even alter
The teTminaiioH OF the war, TO coeTce their
banks TO redeem their notes in specie aud
she was induced to suspend hers, from the
taliure OF CO operation On the part OF her sis
ter states Specie paymt miS were not resume d
ny Tie stale banks uutii illey we've COMPELLED
10 " by the operation Of the Omitted States
Bank nor II IL believed that they would have
Oeen resumed. even now, BAT toI The agency
OF some general cOnbolliug power. Having
brought 20 ilte view of the public, the Objec-
OILS 10 the CNi.iiHg ORGANIZATION Of the nation
al and loral banks 1 shalt eHdeayor TO show
now tht. may ia great degree he ObViated.
/ r0pOSe 10 substitute tor ibP present system.
brrkN viii h shall be tocaI as TO the extent 1t
theIf patronage aHd power. but nafi0nM rs IN
their responsibility. Let The constitution Of
the United states be SO explained or amended
as 10 inhibit ;be states from creating hereafter
ans computations with banking powers, ard to
anihotise the general government 10 eSiabli, II
Az iudt psudeBt bank IN each state with the
assent Of such state Of the CAPITA! stock Of
such bank, Onsshfih 10 be subscribed by the
I United States. ne.fith by the state where
the same shall be located, S-d tic remaining
thTee-biths Us The citizens of such the
directory 10 consist Of fifteen stock holders
bci"z cttzens # such stale Of whOsu three
10 be appointed by the general government.
Three by such state, aud the renairiug nine
! 10y the other stockholders. The objection 10
! the United States Bank, az At present OF
ganized. would not apply to q bank established
upon the principles herein proposed The
patronage OF the directory, aud It's power Ovef
/ The circulating medium, would be confined 10
! the tate where 70 should be located. Nothing
! has tended so much TO render the National
| Bank unpopular, aud Justly 80, az the control
exercised by tie mother bank over the differ
eni branches IT, Consequence Of the impfO
! vident or untathlul mauag cement of the mOthe
/ bank or some Of her braRChes she has com
: piled other 81 her branches 10 cHTtail their
! issues IN u suddeu aud Unprecedented manner
| thereby producing great embarrassment aud
I distress, where neither The situation OF the
| branches, nor The course Of trade, teuuircd a.
/ An iudcI eudent bank would be enabled 10
pursue course re- ulated only by its own busi.
us. ard The balance Of trade for or againsttiie
| state where it sbouId be located. The nbirc.
| ton 90 the state banks, arising from their ire
! sporslhility 10 some general controlling pow
\ er, would not apply 10 independent banks
! incorporated by tie general government.
| The charters by which these independent
! banks should be- Incorporated. would be mt
| form Throughout tie United States, ard con
/ tain ample provisions 10 insure the payment
/ Of specie, aud the performance OF such OtheI
| supuIaiious as might bc drFmeG expedient u
/ reqUlte Ot them. II cannot b. doubted thai
! institutions that are relied on 10 afford a MA
| tlOnal currency, should he nudur national coR-
| ttol II wOnid he equally asunwise 10 depend
on state institutions tor medium OF exchange