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

|"e WiiIioh vi uoldrs When currency
Is expanding. may be a plenty OF money,
whilst two Gilliuns. when the currency
IS contracting, will be scarcity, Ii il
however further asserted, that backs of
circulation aHCr6 facilities 10 borrowers
which could not exist without rhem.--
his Is admitted 10 be true, bul your COM
miiier will attempt TO shew, thai The iaci;r
HES alluded 10. 8se more injurious than
Beneficial 10 the public.
The capital OF a society, by which is
10 be understood, IA aforementioned, all
| It's valuable possessions, accumulaies by
a comparatively slow progression. The
ahnual consumption Of people goes sr-
rs tar 10 destroy all l,s ANNA! .rGdurs
ton, and The surplus - hch is lei, is eli
That Can be accumulated. IN every thriv-
ing community. therefore, il is of essen
iIai impor!auce that The greatest possible
proportion ri lis capital should be pro-
tfucfireiy employed, that IL, devoted 10
the support az pr ,ductivt labourers, who,
by iinir Industry aud enterprise are able
10 reproduce with piofii what they con-
sume IN their maintenance. Now IL
must he evident, under this view of The
subject, thai il makes great difference
70 a com nIupily as regards lis prosperity
aEd It's capaeIiy 10 cncresre III porn!a-
non. whether lis capital be loaued with
discretion or not. II mo5ey br loaned
10 The industrious, pruden, and frugal
clliZeb, TO assist him In extending his ag-
ricultur", Is manuaoiu lures, or his com,
MERGE, lac will add 10 ne wealth OF tie
nation by the 'ncreasS | ptodu, of lis
labour, and be able W. snppt 4 himself.
replace Tho borrowed Capital With interest,
an lay up Il hnd FIR himself Oh Vie
other hans, il mGueybe loared 10 The idir,
The unSkiitsi or he impruitnt protector,
he may sink it by mismauaae ment and
the want al proper kncwedgt al his IN.
sIness, or may vase il liy ilnprCvidence
or extravaganza. Evyry dollar thus cour
-u'ncd has tendency 10 rciar.l The pro-.
sr IS vi sociely and to cheek ITS pop.
rlalIou, whht must needs ever br limit
ed bS tie means Of subsistence. Nos, ii
must be tEStrvea, that u ihole we're 40
banking associations, all The funds be-
! nglnpto the Individuals vino compose
the mh,s of stockholders, mouid be iuihe
hands ~ these individuals, and Tie very
persons who DOw apply 10 banks, would
be able 10 borrow Of individuals There
would, indeed, he this difference, HAT
tp'se only would be able 10 borrow, III
whose prudent aud economical manage
thent OF ih' ir concerns, The lenders had
confidence, but Instead al borrowing Tor
"rty days they woula be ersLlsd tn pro-
rune money for a year. or fer as long a
fIme aS they cCniiuGeG 10 maintain tleir
'OuGriua,iiy, and Size ..,.ut;drure of ti,,,
| lender. Y "ur committee would Then ask.
whether IL is uoi man!fc7i that capital
would always be loaned With more it.dg.
,neIt and discretion hS its individual
%" Hers. than by dIZcn or more directors
OF bank between whom and The Dor.
rover explanations "a 10 tie object of
the loan are rarely n,aAc. +, fore the es-
Enlistment of hat!ks ia the interior, The
tdYnrr WHO possessed credit. and cha
racirr, experienced little difficulty in bor-
rowing, OF h4 simple bond for one or
more years, any sum which II was tlo't
could be prntehIly loaned 10 him. Ear
barraSsncuts and failures in ihoss DAYS
stirc''t known amongst our hus-
| bandmeO, aud society moved on by re-
| guitar, sure and happy maTch. Ih orr CT
| lirs, on i"c- ontrary where loans have
| been chiefly made by iReerpDrAted banks,
| we have sen a Continued succession Of
| baukruplc;e-, aud had il not been Tor The
| pTat ice SO universally pr yaleut amongst
merchants If securing The banks far The
sake cf e"aS,SerS, banking ong snce eunid
| have been abandoned as an unprcfIi-
able trade Ii is true that these ohiecs
| tons against ihe prsciIce OF leaning ulO'
| ncy IS boards of directors, many oi whom
| are veTt little, ~ not IT all interested in
| the sleek bona Jide holders, will anpiY
| as well o bank OF discount as 10 bank
Of circulation bu', there is This differ
ence between The two, lilat in the former,
| slrlcier attention would be paid TO the
| responsibility # The borrow ers, iuaSnruch
| ds from HE limited exirIh Of its discounts
which cannon exceed lis capital IL would
have greater choice amongst the APP
| plcants, aud from the imposslbliily Of
| making I'D lis losses from, any ufIer
| source, the Interests Of the prOprieturs
| would ompgl d more rigid system Of
caution. But u may he asked-cannoi a
bank discount up u L. deposits, and loan
The money which has been pun there for
safe Keeping, instead oi lis notes, wiihGBt
| aiding lo tie mass OF the CUR ncy =
! We answer ~ The negative. Tie right
4 10 draw check upoR bank pGgaJle OF
demand, Is ~ much parl OF the cHtTeid
cv a. a bank note. Ore j. Just as ataiia-
bic for all purposes OF money as lre
other, end Whatever iiflucnte the one
las IN depreCiaiing The currency il e.
qually Possessed by the Other, for there
can b. NO difference between hai knOie
in a mans pocket, and the right Of pro-
curiGg snch note by sending g.
bank. Now, where the sppcific money
Of dtpOsiiurs has been Eabcd hv
bank, il is clear that tn right If HE &c.
posiiors To demand their money az any
moment they please, is s,il renewed 10
hem. OF course, Tie amcuui which
stands a. their credit on the books Gf ihe
bank constitutes a part on the cUtr,nry !:
nasmucl, as IL can be applied 90 ~, pur-
pose 10 which bank notes cOhd be if
drawn ont by checks. Your committee
are ot opinion tlsithe Nsui Of ptOper