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


tyfcates that corresponding sun had been
deposited IN the bank, an coin, whicl,
were always subject 10 the demand of
the holders. The only objection agains
the establishment of bank Of this ,Ies..
cripiion u, thai IL could not be supported
without small contribution from each
deposit and transfer. aud such az expense
would u II perhaps be willingly borne by
our citizens al The present day. The
State. indeed, might make an appropria.
ton for such purpose. but tie present,
IS nor possibly a period when such
measure is required.
a bank of discount is an institution es.
| tablshed hy an individual, Oh a nun bei
| oil capitalists, who hare money TO loan. aud
who associate the mselves together Tor the
purpose Il finding a more ready marke,
for their capital, or of saving themselves
the irenble Of looking cui Tor borrow ers.
As the leans It such . hank are liniied
I" the actual amount Of its capital, lis ope-
ratiOus are enirelN favorable 10 tic iuts-
rests ct the coinriuniiy. As il makes no
| addition 10 The circulating medium ky
the emission Of It's notes or credit, il la.
No tendency 10 denreciaie tho currrucy
and "a ii keeps IN constant activity a
considerable amount OF capital which,
would otherwise lie unempl yed in The
hands of ITS owners, II NAV be consider
ed az instrumental i'll the promotion of
| national wealth
If the operations ofthe banks in Penn
| sylvania aud in the other states of Tie
| Union, were limited 10 those above DIES,
crbed-if they would afford facilities ia
the depositlng, safe.keepng aud trans
ierripg OF money "a 6Gnhs Of deposit, and
as banks of discount mine the!, loans 10
| Their absolute capital, without III either
| case issuing any mote but what should
| be The true representative OF gold aud sill
yer III Their vaults, tnrn your committee
would unite in regarding them "a nation.
| al blessings. worthy OF legislative proiec-
| ton, and entitled 10 The support aud cun.
| tidence OF the pubic. BliunIortunaie-
iy tie .moiumrnts resulting from mere
| loan OF their capitals, de- noi CONSTITUTE in
nur country sufficient inducemeni Tor
| the establishment o. banks. The expen-
ses OF management consume portion o!
| their profits. and resort is had to The
| expedieni of creating a revenue .,oin The
iending of credit, al The same annual In
| trresi as IL derived from The ioaling IF
capital. This gives rise 10 the Mira 5pe-
cies 0i bank which ia> been enumerated.
a bank Of circulation IS one, which in
ad'il'Irn 10 It's capital, undertakes To iuar,
H. crfdit, either ~ the fOfnl oi credits
on It's books or Of bank notes. witch are
promises To pay on demand, Ger ain guam
! 'itIes o. gold and silver. All the banks in
the United States are Of this description,
| AID 1t Is iliiS particular branch OF their
| operations WHICH has occasiuued all the
cslaWitIes whicb have been ascnbe,l 10
the banding system. Your committee do
no! wish 10 be understood az declaring
that the pow"r o. lending it's credit may
I.aa a
advantage 10 the public. II bank be
established ia community where coin
alone had before constituted HE curren~
cy, The credit given TO lis notes NAV ena-
bic them 10 supply the place OF part OF
The coin, which may then be sent abroad
as commercial capital, and he thus rem
der9d productive OF profits, instead of
belDg retained al home in the unpro fita-
BILE employment of circulation. If The
paper credits emitted by the banks, do
not exceed Tie quantity OF coin displaced
by them, or IN other words, if the GUAM
iIiy OF coin aud convertible paper united.
does not exceed tile quantity OF coin
which would circulate, II there was 10
paper, then there is no evil resulting from
ihe exercise OF the power 10 lOau credit.
But so strong are The temptations 10
| overiradc, grounded in q sire 10 elevate
the price OF stock by declaring exorbi-
TAM dividends, aud so pernicious The
consequences which result 10 The com
muniiy, from the existence, IN Tie hands
OF aay set of men, of a power 10 contract
or expand tie currency a pleasure, ,chich
IS pirtuGfiy the power of Altering at ,CiH the
value Of every citizens property, that the
most approved Wit RS on public ecODo-
my uhite III the declaration. thai The evils
attendant upon banks of circulation 40 far
| outweigh all their advantages, that that
nalloD VIII be the most happy aud pres
porous which has the least TO do with
them. t. render this position more i'm
| telligeut your committee subloln the fol
loving remarks.
| The total quantity of gold and silver in
! the trading world, in tue course OF d
| peaceful intercourse between nations,
becomes distributed amongst them all,
III the proportions called for by their p0-
| pulaiIoD, commerce aud other relative
cireumsiances.-Ea Each nation, which pos
sesses the means of paying for IT., will
have Its share, and neither government
! or people need be under any apprehen-
sion, least they may mol receive that
| quantity which will place their currency
upon level with tie average currencies
OF other countries. When the currency
of country is composed entirely of coin,
II IS then The most sound and invarihbir,
| OF which the nature Of thugs will admit.
1t Is then subject TO 10 fluctuations but
those which arise from the increase or
dIminuiiOn OF the quantity OF the preei-
Gus metals throughout the world, which
can never be rapid, and upon those &c
neral laws of supply and demand, winch
are the sure regulators OF value. The
prices ct property and cOmmOdlnes un'
der such circumstances, remain steady