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

10 proved so rulDOus IN tnelr tendency.
A URGsUsPENsIoN oFsPECIE PAY.
MENTS, EITHER THROUGH DESIGN OR
MiScoNDUCT, MUST BE RENDERED
IMPoSSIBLE, aud with such principle
wisely and resolulely adhered 10 by the
legislature, The evils resulting from the
system will be greatly diminished. Your
committee would recommend as absolute.
ly essential TO the public welfare, that no
charter be granted or renewed, without
embracing The following provisions, some
OF which already exist IN some oil The acts
OF inc0rporaiinu.
Fust.-That a penalty of 10 per cent.
per annum be i@,pnsed upon The amount
OF all notes aud deposits not redeemed
or paid on demand. In gold or silver
coin: that the chatter be forfeited, cx-
cept for The mcre purposes ofwindiDg az,
and that during amy suspension of pay
ment, no diviieuds shall be made.
Secondly. -Tha, 40 note of "a less deno-
mnalion than So shall be issued.
Ihrdty.-Thai no baak shall purchase
i,s owD notes or the notes of any other
bank or receive them in deposit, for a
less sum ilau their par value.
EOuuthy. That no bank shall hold any
stock or securities OF the funded debt of
the u. States, or its own stock, or the
except co mpanles incorporated for pur-
poses of internal Improvement, to uAick
they mag hare subscribed or shall ksreafte,
subscribe.
Fythiy.-That no director or cashier of
bank, shall be entitled 10 loans directly
or indirectly beyond a limited amount, or
shall be a member Of either branch of
the legislature.
BY The adoption OF the first of The fore
going sipulaiious, banks will be com
PEELED 10 coniine their issues 10 a limited
scale, Tor should they improvidcnily over
step The bounds OF prudence, their notes
cannot fail 10 return upon them tor paw
meni, aud without The most waichul
attention they will prrpeiuaiy be liable To
the penalties of the law. The grea, de-
sire 10 make extraordinary dividends and
TO elevate thereby The price of their stock,
Is ever holding forth temptation 10 over
trade, and although under present cir
| cunstances, there may no danger appear
| To be unprecedented from the imprudence
OF banks, yet without sufficient reslric-
ton, The public can have no security
| against their mlsmanagement.
With regard tn the second condition.
your committee urge lis propriely az
means OF diminishing the Temptation 10
| forgery, but more particularly or the fol-
| lowing grounds. Ii has been already
/ observed, that the stability OF currency
10 oil vital importance 10 the interests OF
The country, aud that no such stability
can exist, unless The minor channels OF
circulation are filled with coin. just i'm
lhe proportion that paper is substituted
| Tor go!u aud silver, the latter are banlsIied
| not only from circulation, but from the
| country. Small notes produce this ef
| feet III grraier degree than large ones.
for II is chiefly in The retail transactions
! OF business that specie is EMPLOYED. II,
IA therefore evident, that if the precious
metals are eradicaied from circulation.
| there is no solid foundation upon which
| a paper currency can resi-, aud if auv
CONFUSION takes place in public or pris
! vale credit, arising from war or any
o'her event, there Is no standard or sub
s'antal medium possessing O positive or
hAo'sn VatHe, on which ibe confidence OF
the community may repose. The char
ter OF Tie first bank of the United States
| prohibited the emlS>l Of notes of less
| denomination Than ten dollars, and had
the example been followed in The charter
OF the second, aud by The legislatures OF
| all The states, In their incorporation of
banks, lie nation would have fel, The be-
neni5 OF 80 wise regulation. II no note
tor less than ten dollars could lawfully
be issued in the United States, gold coins
| OF small denominations would suppIy
! lheir place, and we should al all times
have IN circulation at least five or ten
millions oi specie more han al present.
| Al II should be argued that small notes
are convenient, II may be replied, that
lhis is true, but surely no individual
would refuse 10 submit to the hardship
OF carrying half or quarter eagle i'm lis
| pocket, when he was told thai that incou-
veDence was The price he paid 10 main
tam The prosperity of his country, and
The stability its property. By The char
ttrS OF The tortyriwO banks authorised by
HE ACT OF 1914, II WIS prohibited 10 is.
sne notes of less denomination Than fre
dollars The same prohibition was ex-
! tended TO one OF tbe old city banks, and
OF The Three which were not thus restrict
ed, ftgo have vO(untGriiy and with an no
hoFaDle regard to The public wishes, reA
solved 10 suspend The exercise of their
right, and are now earn silv endpayorinp
10 withdraw all their small notes from
circulation. II a measure similar 10 In
one here recommended were 10 he adop,-
ed by our sister siales, pariicularlyibose
winch are adjacent, il would prevent the
necessity Of resOriing 10 a Law, 10 prohi.
bii ~ the general, Tie circulation within
nusy'vania, of all notes OF less de
ncminailon than Gge dollars, which would
seem 10 be expsdieOt, whilst our own
banks are not allowed TO exercise That
power.
The third restriction is intended 10
guard against The practice which is well
known 10 exist, amongst some of the
country banks, OF Specializing upon The
notes 1T ether institutions, and Of buying
up their owu notes in The CITY at dis9
count, instead Of making such arrange
On nts, as would place their notes at par.