Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1830-05-07


Their OF cru~l,y and caprice. than OF justice aud Wis
dom, as regards the present stockholders II h
light matter to depreciae the property OF in6iv iua
honestly obtained, AMI urfuly e,ni,yrd TO the extent
OF five millions six hundred thou 'aai dollars and IN,
prop ry OF the Government, TO he sxtent o. mil.
lion four hundrrd thousand dolr purely for the sake
Of change. II would indicate a fonlne.. TO- -xpe,-
men, which wise Government viii not in ul,e upon
slight consdera hons.
But. the great injury which wonlL result from the
refusal OF Congress to renew the Charter Of thu pre-
sent Bank would, he yond all question, be that W hch
w09Iu result 70 the Community a. large IL would be
difficult 10 estimate the extent Of the distress, which
would naturally AMI necessarily result from the sudden
withdrawal OF more than forty million. Of credit, which
the Community enjoys from the Bank. But this
would not he The full extern, OF tie operation The
Bank OF the United States in winding up its conc .rns
would oot only Withdraw its paper from circuls-
ton, and call in its debts but would unavoiabiy make
such heavy dat' on the local in.tituons for specie.
very greatly to cur,ail their Gcounts. The pres.
sure upon the active, iou., and enterprsng
classes, who depend most on the facilities of Bank
cred, wouli he r>meni,"s. A vat amount OF
property, would change hand. at half its value pass.
ing under the hummer, from the m-rchan :, msnu-
factrers and farmer, TO the large monied cap lists
who always stand ready to avail themselves of the Pc
cunary endorsements OF the community. The large
s'0cknolders ot the present bank the very persons
whose present lawful gaias 1t would be the object Of
some to oil, having large surplus money capital
,hro upon their ha ds would be the very FIRST spe
culatsu the dstresses of the community and build I'M
nicely fortunes upon the ruins of the industrious and
active classes. On the other hand the females and mi
nors, and persons in moderate crcum Stances, who hold
",
degree mugated by the general distress of the commu-
nifty.
very grave and solemn question will be pre- srnted
TO Congress when they come to decide upon the expe-
dlency OF renewing the charter OF the present bank
That Institution has succeeded in carving the country
through the painful process necessary cure deep
seated lease in the national currency. The nation
alter having suffered the almost convusve agonics OF
this necessary remedy is restored TO perfect
health In this state of thngs it will he for Congress
10 decide whether II is the part of wisdom to expose
the country TO degree OF suffering almost equal to
that which il has already suffered for the purpose of
bringing back that very arrangement of the currency
whch mas been remedied by process, necessary
ii was distressing.
II the Bank of the United States were DESTROYED
and the local institutions left without restraining in
iiuence, the currency would almost certainly relapse
into state OF unseundness. The very pressure which
the present bank in winding up its concerns would
make upon the local institutions. would compel them
either TO curta their discounts when most needed or
to suspend specie payments. 1t difficult TO pre-
dict which OF these alternatives they would adopt I'M
der the circumstances in which they would be placed
me imperous wants of a suffering community would
call for discounts in language which could not be disre-
garled The public necessity would demand, and pub
lie opinion would sanction the suspension or at least
an evasion OF specie payments.
But even II this desperate resort could be avoided in
aperod OF peace and general prosperity, neither
son nor experience will permit doubt, that state
oil war would speedily bring about all the evils which
sofaaly affected the credit of the Government and the
national currency, during the late war with Great Br-
tam We should be again driven the miserable
round OF financial expedcnts, which, in little more than
two years. brought a wealthy commune y almost 10 the
very brink OF declared national bankruptcy, and pac-
ed the Government completely at the mercy of specu
lating stockholders
The committee feel warranted, by the past experience
OF the country in expressing it their deliberate o.
pnion, that in period of war, the financial resources
OF the country could he drawn into efficient opera
hon without the aid of national bank and that the To-
cal banks would certainly resort suspension of spe
Gle payments. The maxim is emneny true i'm mod
ern times that money is the snew of military power.
In this view of the subject it does appear the
that Of tn o.,
excepting he army or navy OF more vitaiimportance
than national bank. Ii has this decided advantage
over The army and navy while they of scarcely
any value except in war, the bank not less useful
than either OF them in war, AMI is also emneny use
tul IN peace Ii has another advantage, still greater
IT, Ike the army navy, ii should the nation mil
lions annually to sustain it, the expediency of the ex
pendlture might be doubted But, when il actually
saves TO the Government and to the country, the
mittee have heretofore attempted to show, more mil
lions annually than expended in supporting both the
army and navy, il would that, if there any
one measure OF national policy, upon which all the po
dca parties of the country should he brought unite
by the Impressive lessons of experience, il is that of
maintaining national bank
Iii due 10 the persons who for the last ten years
have been concerned in the administration of the bank
10 STATE mat they have performed the delicate and diff
cult trust committed TO Them in such a manner, as, at
the same time, TO accomplish the great national ends
for which i, established and promote the ne nen
interest OF the stockholders with the least practicable
pressure upon the local banks As far the committee
are enabled to form opinion from careful inquiry the
lOefal ana lnnuIGent dealings with
these institutions, and, with scarcely exception
now stands in the most amcable relation tothem Some
oil those institutions have borne the disiner sed
and unequivoca testimony in favor OF the bank.
1t is but strict justice also to remark that the direc
ton OF the mother bank appears to have absaned with
scrupulous care from bringing the power and influence
oil the bank to bear upon political questions have
selected Tor the direction of the various branches bu
sness men in no way connected with party politics
The committees advert TO this part of the conduct the
directors not only with view to its commentators but
or he purpose OF expressing their strong and decided
CONVICTION that the usefulness stability of such an
lnstluion may materially depend upon steady and
deviauns adherence 10 the policy of excluding party
politics and political Parzans from all participation i'm
It's management Ii il gratifying conclude this branch
OF The subject 10y stating, that the affairs of the present
bank under the able efficient, and faithful guidance of
It's two last presidents and their associates have been
brought from state OF great enbarras me ut into con-
d'ton OF the highest property Having succeeded in
restoring the paper OF the local banks to sound state
It's resources are now such to Justify the directors
IN extending the issue and circulation Of its paper so as
10 satisfy the wants OF the community both as il re gards
bank accommodations and circulating me dunn. Up
on The soundest principles of bunking the very ample
resources oil the institution would Justify the director
IN granting accommodations TO much greater extent
than they have yet donc and though they have ncreas
Ell the circulation OF their paper from four and half
to fourteen millions, since January, 1928 they are rea-
ny and willing to increase it still further by discount
ing bills oil exchange and other business paper IL is
believed that the discounts and issues of the institu-
ton arc now actually limited by the want of applica-
lions resting upon these the only substantial and safe