Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1829-05-15
FOR THE EsvQUIRER.

dressed to them, will make the smallest in,pr..s
SION. IL IL diincuit 10 Combat this class OF the
Community with success; but, il this portion Of
| The Community alone, had to be contended with
! triumph would, in general, be had; because there
are to be found, at the time, majority who
| are willing to yield 10 the influence of sound ar
gument There 10 anothes description, however,
oil men, which form, in this country SO large pro-
portion In relation to Banks, hat tritrmph over
tnen' becomes much more difficult; for it is said
that man will die by his interest.-Ex perirne n,s
IN Banking, are unlike all others; for in most 9TH
er things, experiments may be made land If IL be
iound that their tendencies are bad, the Co,nmu.
ni'y are always ready to retrace their steps; for
there is no motive in continuing the thing, which
experiment has proven TO be bad. Not so how
ever, IN relation to Banks; for the moment Won
plant them, they begin TO operate upon all pecu-
mary things, until, like whirl- pool thew draw
within themselves the wealth, the power. and the
governing principles Of the land. They clinch
with their unyieding fangs, the fortunes and the
prospects oil men; and the hold is never broken
uniii poverty, misery, and sometimes death, are
stamped upon the victim. They act like a focus
which, by witchery and enchantment, draws to lie
own point, every thing connected with the currep
cy oil the land; until, in short Time, every thing
within the orbit Of each, is seen in motion. maxim
It's way TO the Bank; and, in the end, the whole
community becomes infected with their pes,ilen-
tial principles. Almost every man becomes more
or less, dependant upon the Banks for some favor
| or other; and thus, it becomes the common inter
es' oil ALI 10 give them aid and support But the
y, m
peis them onward, and they dare not exercise
that choice which Judgment dictates;--they move
| like willing slaves, tho they writhe under the bur
den imposed upon them by the Banks; but thew
know that the days of their credit may be number.
ed by the Banks at any moment; and they. there
lore, fear to give them ofience-This is the Class
oil our Community, which il is hard to overcome
and to which | shall return in the progress Of
| these Essays.
In order TO establish metallic currency in tho
Country, il must be obvious, that paper currency
must first be expelled; for, when the government
iegalzes the payment Of all the revenue in paper,
IT'S perfectly certain, that no gold or silver will
circulate. Let this proposition be illustrated-
Suppose the State Of Virginia required for all ts
internal operations, the sum of five millions of
dollars, and there Is, at the same time, a. much
gold and silver In the country as will equal this
sum-Suppose, al the same time, the Legislature
create two Banks, with capital of two millions of
dollars each, with power to issue paper 10 the ex-
Rent Of six millions each; does any man believe,
that - such state Of things, the specie would not
soon disappear from general circulate Ii Ger
tainly would; and ths tn05u9 operGa5t IS ulain
and paiDabe.--In tl.e tisst place the Baul. Char,
tiers would require, perhaps, one anu halt or two
millions oil the Bank Stock to be paid in specie
which would, at one sweep, draw into the vaults
oil the Banks this large sum, leaving but three &
| a half millions in the State; and in less than IL
months, the outstanding debt OF the two Banks to-
gether, in the form of accommodation, would not
be less than eight millions OF dollars the interest
| upon which, for twelve months at six per cent
would be S4S9,000; which sum would be PAYABLE
at the end OF each sixty days, in the 'orm OF dis.
| counts, and viii give the sum Of $50 zoo TO be
paid into the Banks, the end of every sixty DAVIS
thus 1t will be seen, that if these discounts were
required to be paid in specie, the whole remaining
balance, OF three and half millions would be
drawn INTO the Banks, leaving nothing but paper
In Its stead. am prepared, however, to meet an
argument, which l know will be urged here
and it is, that these payments of discounts would
always be taken by the Banks in their own paper;
| which would, OF course, be paid.-This is grant
ed OUT, then 1t must be recollected, that this sum
oil ssh 900, for each sixty days, would be so wide.
~ scattered, and the sums small that il is high
| ly probable, that much more than half would be
require ed to be paid 10 discounts Of less than So
and IN all such cases, specie must be paid: lei IL
| also be remembered, that there ia always existing
| natural and uncomfortable cutie; for large sums
OF SPECIE and that there no return of it. 10 state
that receives and toerates paper currency
These things, wien all taken into The estimate
would prove, in the absence Of all experience.
that Banks have natural tendency TO possess and
expel all metallic currency. But we are not LEI,
10 conjecture upon this point; because such, we
know. have been the effects OF the Banks 10 Virpi
ha'-Having demonstrated, as trust have that
paper currency will expel the metallic now pro-
coed TO shew, that specie may be again recover
ed, and that all classes Of our Community will be
oehentted by it.-Create no new Banks, and ex-
tend no more Charters This must be the first
stepfowaTds restoration of specis Give the ex- |
isting Banks reasonable time TO close their affairs
without pressing too hard upon those who are the
debtors OF these institutions; but limit them to
some particular time, beyond which they siouh HI |
not exist, for any purpose.
But, II Will be said, how debts to be paid |
and how can produce be sold? In relation TO the |
paymentoi debts, no man can pay what he owes I
unless he has property TO pay with; and his pro-
perry, II 1t be wanted, may always be sold; for
demand and supply go together. until either the
demand becomes too great for the supply, or the
supply too great for the demand-in which sup
posed cases, the first would cause an active SALE
and eood prices in the article wanted; and the last
would cause the article to become dull and low
priced.-in neither of these cases, is there any
ground Tor reasonable complaint In the first, all |
would have cause 10 rejoice; in the last, il would
De ungenerous to complain, that article could
not be sold, when portion Of the world wanted
y! Every State can spare its surplus produce, and
'his Is all that 1t can spare. If this surplus be
wanted at all, IL must be wanted by those, who
are foreign TO the State which has It, Suupose
Tor instance, that Virginia had 500 900 barrels of
hour 10 spare, and that the article was scarce and
nigh IN England; the consequences would be, that
this 500 900 barrels Of -four would find lis way TO
England, either by shipments made by the mer-
chants in Virginia, on their own account or bv
vessels sent here from England for il. These are
the only probable modes, by which the article
would getto England; and in both, or either
think II is easy 10 show, that no aid from Banks
would be needed. II the article should be shin |
ped on American account, the shipper would have
nothing to do but draw, soon as bills of IaJino
were signed for three-iour,hs Of the cargo. and
these bills can always be sold in Northern mar
kets Tor specie, which specie can easily be broughtI
TO virginia. Ii the flour be sent for from I'm
gland ard shipped on British account, then the or
der Tor The article, would be accompanied with the
means oil paying Tor il; and these means would be
either specie, or bills which could be converted in
fha al all. 4