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

DahkS, there would be neither more nor
less money IN HE community than there
was before. Such might even be The state
OF things II the circulating power pasex
ercised TO The extent sc have presrribeI 4;
bui only permit The boundary of pru-
dence 10 be passed, and there is an end
10 stability. Houses, lands, commodities
and produce are alike cast upon ilit
waves of speculation The price of tn /.
day Is no criterion for the price of TO-
morrow, aud the community Instead of
having solid ground 10 move upon, re-
semble travellers TRADING upon qcick
sands, which threaten every moment to
swallow them up.
SO soon as bank notes or credits are
issued beyond the point We hnve desisr
mated, the Currency becomes deprecia
ted from excess, below The currcuoies of
other countries, inasmuch as we then
have more coin and paper united, than
ihe proportion which is rtQureu 10
maintain II al lis proper i,vti. With tie
depreciation OF money, tie nominal prices
OF property aud commodities experience
rise, which having tie Appearance Of a
real enhancement OF vaiUe, decriyes the
community, and invites 10 NIL the specu-
la'ion. overirating * imprudrn c, " bich
he com, soon finding itself involved in
tie depreciation brough, Oh bv an excess
or paper, leaves The country, in order 10
seek abroad that value 10 which il Is
iairly entitled aud which i, can 10 longer
Command AT home. Expurt follows en-
pofl, and the INCREASING demand made
upon The banks by the returning of their
notes for payment. finally compels them
To make unexpected and urgent call up.
on their debtors, which are followed by
general fall prices 10 point below
What they originally stood AT. Lands
which before had been elevated To al
ARTIFICIAL height, are suddenly depressed
below their former price. Agricultural
produce, IDerchanilIse aad other commo-
dltIeS experience The sane reduction.
and sidgnailon of trade, susf,rnsion
or industry, ali ensritled slate in the
pursuits OF HE whole communitt, and the
ruin oil thousands are The inevitable con-
srqueucr. All these tti CTS NAV lake
place rom The oVer-trdding 81 banks
even whilst they shall be enabled 10 ~. al
lie payment Of their notes iii coin bui
'hFL VIII DC experienced ia their moss
destructive >iagcs, wnen a suspension o!
payment ls The result Of their inprudenct
a"d mlsmaDagemrnt. 14gainSt such suS
pension tie pubic has no guarantee, int in
fhe imposition ~ the most rigorous reStT1cs
lions
Having thus given an analysis OF the
barking system, your committee " Ill
proceed 10 consider how far the argu.
menis IN favor OF banks above aaducrd,
are III accordance with sound reason, for
w no OH criterion Is il possible 10
Judge OF their truth or ia,.dcy
In tie FIRST place, then, II is said tlin {
banks are useful t. The pubic, inasmut I,
as they afford facilities IN the sale-krep.
ing OF money, in the payment Of ia.ge
sums by checks or transfers on iht
books, III tie trans mission OF funds, IN
The furnishing of a convenient and pOIia-
bic currency, and in the ioanlug OF Go
nty 10 merchants, farmers aud others
Who have occasion to borrow. al THIS
as true, and your committee mosl brar.i
ly concur in the d rcldlaIion HAT as far
az banks pert rm these operations, they
merit me support OF The pubic and II
the legi 'lature.-But il will be recollcct
ed, that all these services are rrndpre,
~ the community, III their capacity of
banks ofdePOSit and discount, against Wilt |,
obJ' cIlons can st aiCeiy be raised, even
by HE most Caution, and mol in their
capacity of banks of circulation, Tie px
else ni the power OF which, is, as las
been before OBJ .erved, what produces Ill
tie eVil which banks are capable OF ere
atiDg
In the second place IL l. asserted. that
banks Increase the capital Of the commu-
nl,y by the emission uf these notes
This position yOar committee arc pre-
pared to SHOW, is in the highest degrrec
erroneous, and entirely at variance with
the acknowledged principles Of political
economy. The capital OF community
consists at The capitals, or in other OrdS,
OF The property, merchandise, products,
commodities, coin, and all articles POS.
SfSSIng Uaiue, which belong TO sil The ~.
divlu udl% who compose that communiiy.
A mere promise to deliver a given quantl
~ OF provisions, clothing or materials
on demand, is uOt capital, or otherwise
the whole wealth Of nation might he
doubled at pleasure, by The mere emission
OF written promises. Neither is tbc Gre
alton OF promise TO pay on demand a
certain qHanIly Of gold and silver, CAPT
tai. a bank note when il ia nat the ac
iual representative Of coin deposited in
the vaults OF d bank, is in fact nothing bui
the credit OF bank in visible negOcia'
bic and convenient form, to which the
public are willing 10 ascTibe the proper
lies OF money. But il is said, that mas
much as bank notes are considered a.
money, their plentiful emission, al lea {
makes money more plenty. Strange al
II may APPEAR, even This is bat partial
true. When notes are first issued 10 ex
cess, money, as II is called, is ulemtS
'oith thoSe to Whom 1t as loaned, but aft
the notes are once distributed througln
out the channels Of circulation, the Tist
which takes place ia the PRICES % pro
perry and commodities from, tie depyecia
tiOn Of tile money, is just in proportion {,
that rXctSs, so that It requires The whOl
quantity If medium to perform the fnnc