Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1824-04-20

no; venture Ia Incorporate more thanbne bank upon
this dangerous pr'ncipc of exemption aud find.
,''r" difficult. IN controlling That one. The u. s. aud
80. ydudl states together have Hdvcniured to moor
pora,c upon this principle of exemption believe,
bov' four hundred hanks. The Bank OF England
subject the control of oaiy one head, which will
"ats he inipellrd Nv an unity vi motive ard acion,
md this head, the Parliament, rs said he omnipo-
tent in its powers. The multitude o hanks in the u.
D arc surcio the control ofiwcniy ,ive heads, inn
pellcd 10y discJrdanf views and interests. Each OF
tesr heads, is also composed OF manifold individual
II ads how well qualified TO create aud manage
h'nIs, ei the multitude created, and the distracted
STATE OF the currency determine. When the Blush
government determined TO extend the issues of paper
bills. IL fins contracted with the bank for leave TO
permit the increase OF the number OF members in
The private banking companies from six, tl,,ry-
six, upon the Scotch model. These private banks
we'r perniurdto isspc their bills and the Bank nf
England pledged itself TO the government TO receive
the bills issued by the private or unchariered banks
~ payment. For this pledge and for relaxation Of
The monopoly upon The numbers &C persons con,pus-
ING the private banking companies, the bank de
inHrded - bonus, which was given 10y the govern
meni. he new paper issues, are botiomed upon
the whole private property of every member of The
issuing banking companies aud also upon the
plcdg" of the Bank of England support their ere
dit. In this arrnngcm will be seen the extreme
caution Of the British govci nmeni, in relation TO the
paper credit Of that country. IN this coupry, the
bank schemcrs, and most unfortunately the bank
makers. have in many instances created hanks aud
authorised them issue paper bills for the purposes
OF currency, which depended solely for their cre,
upon the hank stock and when, the bank stock it.
self WAS not worth ceut. What could have
ed, or been expected to have ensued Int the utter
disgrace and confusion Of such acurrency? What
hut speculaons, tricks, frauds, losses aud dsreses
OF all sorts Are not all these consequences now
practically before US Have they not arisen from
The cunning devices, or the thoughtess ignorance OF
bank schemers!
Credit, aud monopoly, are the great principles OF
bmkng. These accrue TO the banks from the GO
vernnen,ai acts Of Incorporation. The government
authorizes the hank TO issue bills for The purposes OF
a currency upon This legaEed credit. IL also auho-
rises the bank TO issue its bills Of credit TO three
times the amount OF its specie capital of course,
the bank, when in full business receives three
as much interest, upon its credit il does upon it.
money. Individuals can only receive interest upon
heir money. Hence great injustice, IA The i1,r,
against individuals and profitable paitualy in ia
vor OF banks. Bank credit consists, in written pr o.
misses upon paper, 10 the holder of it, that the bank
will pay specie discharge OF such promise when
ever the paper shall he presented the bank for that
purpose. These written promissory notes called
bank bills. Whenever the bank can obtain the be-
lief OF the holder that the promise made in the face
at the hank bil will be strictly complied with, the
credit OF the bill and consequently Of the bank be-
comes consuumaied. If the hank could not obtain
this belief Of The holder of its bill, would he with
out credit and having intrinsic value in ITSELF Of
course, vaueless. Solvent tnks always enabled
10 obtain This belief in consequence of their Iegaz
ed charters OF incorporation. There is funda-
mental and essential difference I'm a currency Of
paper bills, aud of gold and silver. The paper bills
have M intrinsic value in themselves. Their value
only representative, and arises altogether from the
written impressions on the face OF them Gold and
silver possess Intrinsic value. Erase the impression
from the face oil bank hill, and the paper left would
not-be worth a cent. Erase the stamp, impress
Sion from IN eagle or dollar, and It w, he worth
prerseiy as much as II was before except far,
the actual weight might be diminished by The era.
sure The value of the one, in the idea impressed
upon u. The value of the other, is in the thing.
The principal advantage 10 the bank, aud mischief 10
the community. arises from the authority given by
li'Y to- the bank 10 receive six per ct upoE its credit
in exchange for the credit OF Individuals Every
sue Of bank bills is founded upon AN exchange OF
| credit with Individuals
Let The illustration OF this principle he made, 10y
taking view of practical transaction al the bank
The usual operation is per formed by an exchange of
credit between the bank, and the individual dealer
with The bank. The individual dealer, offers his bill
oil credit 10 the bank for discountng. The bank
gives IFS bill of credit in exchange; but upon very
unequal terms The bank deducIs from the dealer
b, oil credit, al the rate of six per per annuu
Tor every sixty days and make this deduction loo aI
the time of this exchange of credit, and not ut The
lime at the completion OF the ieIms Of the exchange
lhis still further enhances the value of the exchange
to The bank. When the dealer pus these bank hills
OF credit into circulation they must necessarily go
INTO cIrcuiation, changed with this compound pcr
ceninge; and must necessarily act as an indirect lax
upon the contributors of this per ceniage Ir this
most unjns', and unequal traffic continue long /; and
thehaD% should he honestly and Iulciously conduct
ell, will not the inevitable tendency and feet he
to make the Stockholders rich (; and tie contributors
poor
i NC ~ iOT eSIdUHebi01 the brs Bank Ot the
United States passed the 25ih February 1871
Without stopping, At This time. 10 enquire into the
wisdom, or policy OF this political scheme, AZ the
me, and under the circumstances Of its adoption
conceive, u has certainly bees mosi unfortunate
and pernIcous IN It's practical operations. lis 6rsi
indirect effect was, 10 lay The foundation for above
Tour hundred Other banks. The commencement Of
Tue french revolution preceded its adoption. And
from the movements Of the legjiimaies in conse-
quence OF that event. there every reason 10 anti
cipaIe BLOODY and exterminaiing war IN Europe
has anticipation was realised in the war which
oliowed and which, IL is believed, was resolved
upon by the leg'timaes, assembled AZ Pnilz July 81
I'9i. The United States not only furnished al
enormously high prices the articles Of the first NO.
cessny, but soon became the principal carriers for
sii the bellgerenis " in this proptious stale CT
things they had been favored with the gooJ (ortuoe
10 have escaped this banking scheme, they would
have been overfiowed with gold and silver These
were m a great degree kept out Of The u S. nv the
substitution Of the hank cuTeacy in their stead In
stead OF this bank currency WITHOUT Intrinsic value
an abundant currency OF Intrinsic value would have
bowed into the u. s. Even the position thai ,Ie Gold
ADD SILVER, Ii unImpeded, would have assumed in de
u. 3, would Save been attended with the most be-
nlhcia effects They weuId, upon every pripcipIs
of free circulation have found their wav po svs,v
place, where they most wanted 10 the western
as well ms TO The eastern frontiers They wou have
Decome generay divided INTO small sums for oIdina-
" uses and they would have been fee TO the use
OF every holder, unIncmnibered with taxes or cor
uinuIons, ~ any way 20 The stockholders Instead
OF these obvious, natural, and beneficial results The
hrst elect OF The bank currency was 10 ueveut tIe
introduction oil so much Of The gold and silver into
The U. ,. us The merchants could find emplovmept
Tor abroad. Tue next was, that the portion. which
h'd inrce ITS way into hem immediately Collect
ed, ~ Large sums into The vaults OF the banks The
most important OF these were seated in ,ha laruo
commercia towns. This artificial npsi,inn oC H.
g"id ana SILVER, WAS the most oonvcneni that could
have been devised for its ezpu,taiion 10 The East
imsles "IisI us natural position would have afforded
all the ssluaTy checks 10 IL. The e,csss therefore
OF his ruinous traffic Is attributable solely TO the cr
culaOn ol The artificial currency Political arill,-
mcIlo would he IncOmpelent 90 lie cnl-t,iinn ~ ia