Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1829-05-05
To tAe Editors Of tAe .Enquwer.

-
| To tae Editors Of the Enquirer.
BANKS-No. 6.
mar no Just and prudent calculation, upon the
course or principles Of Commerce, before the
| Bank oil Virginia was ushered into existence
made It necessary to establish these Institutions
the proposition, which propose now to discuss:
and 1t can establish its truth, then think that,
every intelligent mind, will agree in saying they
ought now TO he abolished, with all convenient
speed in order that Society may bo restored to its
natural condition and Legitimate principles of trade,
without the aid Of artificial means.
| IL banks were ever necessary in Virginia, they
were necessary only, for the purposes of Com.
merce; ior, to every other Class of our great
Community, believe il has never been denied.
that they were evils. II these Institutions were
required as facilities to Commerce, these facilities
could only be claimed for the purpose of making
| remittances abroad, or 10 some remote point al
nome. Let US examine these views, which ne
cesssrily grow out of the general proposition.
Before the creation Of the Bank Of Virginia,
me commerce OF Virginia was chiefly with TO-
reign countries. Her imports were not only
large enough for the supply of all State demands.
put n. Carolina, Kentucky and Tennessee, OBJ
tanned much OF their supplies from Virginia.
ne regular course was, to make rcmittances to
done in the Summer or Fall, and consisted Of
shipments OF Tobacco, Naval Stores, &c. to Eng
land No difficulty existed in procuring the pro.
duce to he shipped; because the Merchant, who
received his hrst supply of goods in the fall with
| seasonabe addition in the spring. had nearly one
year, with the aid of both importatons, to prepare
ior ms remittance, in payment for his fall goods,
and credit and cash sales together, arising from
double importation, seldom failed, when prudent
iy managed, Of placing i'm the hands of the Mer-
cnant, as much produce as he had occasion to ship
abroad Such state of things produced reci-
nrocai accommodation between the Merchant and
armer; for, whilst the farmer was accommodated
WIN twelve months credit, upon the goods
lnh in. IN e. Al
that twelve months, he was, in general not only
aoie TO pay oil his account, but TO deposit with the
merchant something more than he owed him. So
iar' therefore, as foreign Commerce was concern
su' here was no manner OF occasion for the intro
duction OF Banks into our Country.
but, perhaps, / shall be met here by some who
VIII urge the advantages to the Country of a cash
system, and punetuality in the course of mercan.
VIE business. This may be true, and, perhaps, is
30; but then,I will ask where lies the difference he
tween mutual accommodation between the MGR
chant and planter, by credit system and mutual
accommodation between the Banks and their cus-
toners, by the same system! Or will il DO pre-.
tended,th fmiIIions be due by Merchants 10 the
BANKS us not the same thing to the Countryas il
three millions were due by the planters and farm
ers 10 tho merchants? Every man who reasons
iberaiy,will admit these premises to be true: and
SO, II Is idle to talk of breaking up all accommo.
dating credit TO the cultivators Of the land whilst
at The same time, much larger debt is created by
traders with Banks.
1t this reasoning be just, then think it will be
easy to shew, that since the Country is to have a
credit system, II Is much better for the Country
and the people, that the good old fashioned credit
should prevail, than that the Bank credit with its
deaers.should. In the old-fashioned way of cred
II, lew mon were enabled to go so much in debt,
as that they would not be detected in time to save
Their creditors; Almost any man in the Country,
can ieii what his neighbour is doing, in the way
OF making Or spending his estate; and information
Is soon spread, which reaches the ears of those
who are interested, in time to save their debts:
or II any thing be lost, it could not in former
unes be much; too little, at any rate, to produce
serious mischief But there exists a very diffe-
rent state of things, in relation the consequent
ces arising from the extensive credits, given by
the Banks TO its dealers. A man obtains from Bank
an accommodation of twenty thousand dollars,
with which he soon makes figure in society and
establishes such credit for himself, upon fhe
jam o. this ftnenfy thousand dollars ,ciich, tho
all may see. feto tciH k,i0to tchere IL came from
as will enable him TO engage in perilous purchases
ana specuiations lie uses this credit in purchas-
ing from planter twenty thousand dollars worth
OF Tobacco, and then fails. The planter applies
to him for as much Of his debt, either in goods
money or bonds,as the can pay, or as any other
creditor will get; but the poor unsuspecting plant
er Is answered. no; tor that he, (the man who has
failed) has just conveyed his whole effects of ev
cry kind, 10 secure his endorsers Bank and that
the Bank must get fully paid, tho he, (the plant
cry gets nothing.
ask, if this is not the present state of things1
And If it be, can there be but one opinion, about
tho choice which the people ought to make be.
tween the two credit systems? II seems to me-
that none can doubt upon the subject 1t NAV be
asked, how has il happened, that this application
for the establishment of Banks, has succeeded
against all the powerful arguments, which seem
now to be urged against the system! The answer
Is easy. At the time that the first application for
Bank was made in Virginia, very fe w men knew
enough about their principles, 10 make any argu.
ment upon the subject. In and about Richmond.
there were found few, who had money to use In
some way oil speculation; and others, who had
looked to the establishment Of Bank, with =
view to some OF the various Offices which il would
have TO bestow. Those men, and their friends
besieged the Legislature and the members, so res.
olutcy and calamity, that they carried the ques-
ton by storm. The favor which thew were ask
ing, was from men who. however resne ctabIe and
talented upon other subjects, were, in fact totally
ignorant OF the principles involved in Banking on
eratlons. Nor would the Community be more
enlightened now, than they were then, but for
the ruinous and lasting effects, which the whole
people, more or less, have seen and felt, in the
practical operation Of these Institutions One of
the chief arguments which was successfully used
in the Legislature by the friends OF the Virginia
Bank, has already been noticed; and another " as
that as there were Banks in other States, we in
virginia, were liable to all their mischefs, with
out sharing any Of their benefits; and, therefore
we ought TO have Banks oil our own. This idea
is handsomely turned; and, at FIRST view would
seem plausibe;-but ii flincbes from scrutiny
withers al the touch, and will not bear investigs.
ton. Let us examine il. Those who take hi
ground, admit in the very language that they use
That Banks are an evil; and I have, therefore. no
further occasion here, to attempt demonstration
Of the trcth OF this proposition. But they saw al
the same time, that whilst we are enduring this
sscknowiedgcd evil, we ought to share in its bene
hts Now, II Banks were an evil in MARYLAND. il
must be admitted. that fhev xy;ii aI.n r. Ill.