Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1821-02-01

me uuihOef OF turnpike roaOS, bridges,
inuses and barns which have oilate years
bern Constructed.
Had no banSs been established in the
country, il is reasonable 10 presume, that
the capital at the people, would. IN seek
ing employment. bave naturally found its
way inin the most profitable channels :.
Id!s will usually be The case, when men
are suffered 10 pursue their own Interests,
without the inter erence olgov-,nments or
thc enactment OF iujudiciOus laws. Now,
il the existence OF banks has not divert
ed capital from its natural course, aud
given il nee direction, il has merely
assisted in doing that which would have
been performed without IL, and is there
lore entitled 10 but little credit. But, if
on The other hand, The existence OF Banks,
hns diverted capital from lis most pro
duciivc pursuit. and washed or sunk il
III she way as that II is deprived of
tic power OK reproduction, then we say,
The system has been most perBicious...
Every house that has been built, winch
was not called tor by the encrcasc of 20.
pulation--every barn which haa been
Eaisei Without being required By the ac-
cumhiatng crops OF the iaTmer-every
turnpike road and bridge which has been
preniaiurely constructed, aud which does
moi save 10 The community in The re-
dacilonot The expenses OF transportation,
sum equal TO the revenue Thar could
nave been derived from the employment
OF Tie same funds III other pursuits, are
visible monuments OF the humiliation of
capital. As far as the banking system
has been instrumental in these results.
and your committee are constrained 10
say, shae in their iudgmentit is deeply i'm
phcated, SO tar has lis tendency been adj
verse 10 public prosperity and as banks
nave not the power OF producing The ne-
cessdrieS IF ife, the realccpitGi Which makes
turnpike roads, ii would appear that The
most they have accomplished, has been
TO induce by false allnfeneAts, some un-
vary people 10 embarrass Themselves by
subscribing their capital aud credit 10
unproducive turnpike roads and bridges.
and othcrs 10 lend their money and labor
20 corporations which can nrver repay
hem. Improvements thus forced aud
cxtorted, aud By no means resulting from
lie Ordinary course ni the employ lneni
81 capital, are not at all 10 be desired :;
aud when we reflect upon the power of
money To accumulate al compound in;er
rcsts AND estimate the difference betw cen
dnking capital, aud lis profitable en-
nloynebt 10 some productive industry,
we canuot but regret the cause which
has been Instrumental III Producing such
II vantUu destruction ofproperiy II any
confirmation were wanting of The truth
oi our assertions. II might be fOun,i in the
fact, that most OF tbs turnpike compaA
pies are deeply Involved IN debt, Much
Oi the amount ~ due to The contractors
and la5orers, and no snail sum 10 The
banks: and IL thus appears that they
nave been ia great degree constructed
with the capital OF those, who never Vo.
ri 70
investment.
Having thus shown, as your committee
conceive, that all ti.e benefits which The
community can experience from The ex-
iStence OF banks, are derived from them
M their capacity of banks of deposit and
discount. and not in their character of
banks OF circulation, il remains 10 be shown
IA What further particulars they are OBJ
.ieciiOnahle.
The very naiurc and essential charac-
'et OF moniPd institutions are hostile 10
he spirit of free government. TIE pow
&c and Influence which q combination OF!
Wealth Il capable OF begetiiug, are OF so
comm anding nature, as scarcely to ali.
nil OF beiug comlroled. The ~ant oi an
Individual moral responsibility on the
part OF the persons associated, often des-
troys oil The protection which lie pub
&c can possibly possess against abuses
and oppression. Men have been known.
rs component members OF corporate
cody, TO acquesce IN measures which
sonid have wlioily destroyed lIeir Tepu-
tation in society, had they given them
couniensnce in private life. Public OPT
MON is the most powerful shield of The
CITIZEN, again>s The encr9aciimenls oil
injustice, and whenever individuals are
Invested with Immunitles which screen
fr~N al.
ger TO be apprehend~d, as the certain
consequence of a divided responsibility.
Your committee are fully of opinion.
for The reasons here laid down, thai banks
Of circulation occasion Uuch more injury
10 The community than they produce OF
good. Sill, however, they are compelled
TO admit, that, considering the vast
amount of debls nov due by The public
20 the banke, II wouIl be highly iujudis
cious in The legislature. To refuse 10 all
i1w TO any of the banks such number
OF years after the expiration OF their char,
ters, 10 collect their debts, (strct!y prohib-
hing all new loans aud issues OF nOies)
a. "ouiJ render The operation as little
oppressive as possible 10 the great mass
OF debtors. Three or jUe years would al
iord ample tIme to any SoLceBt individual
30 meet debt iUhich he hed contracted to
pay tn s1sty dcys; aud when il is rccOlIect,
fd thai He capitals oftIle banks might be
directed by law 10 be divided amongst
ih9 siockhoidefo, after The payment of all
their debts, III insialmenis OF five or ten
per cent IA last "a collected, II will be
perceived, that the money thus paid 10
lne bank, would be Immediately in the
hands Of The individual Stockholders seek
ing employment "a before. The winding
up OF bank is, in liseIi, simple pro-
cess, and by no dIeans accompanied by