Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1830-05-04

by the most absolute government In such state OF
things. every man in the community, holds his properly
at the mercy Of money. makitg corporations which
have a decided interest TO abuse their power.
Bya course of liberal discounts and excessive is
fer few years. followed by sudden calling in Of
their debts and traction Of their they would
have the power OF transferring the property Of their
debtors TO themselves, almost without limit. Deb's
contracted when their discounts were liberal and the
currency OF course depre ciated, would lie collected
when their discounts were almos, Suspended, aud the
currency OF course uDnauraly appreciated; and in this
way, the property OF the community might pass under
the hammer, from its righttul the banks, for
less than one half its intrinsic value. If the commit
tee have not greatly mistaken the matter, thci more
OF history than Of speculation in what they have here
| presented to the consideration oil the House.
IL Is impossible to form any thing like an accurate
estimate OF tn. injuries and lossess sustained by the
community, in various ways, by the disocers and Hue
tuatons OF the currency, in the period which interview
ed between the expiration of the old bank charter and
the establishment OF the present bank But some toll
cradle notion may be formed OF the losses sustained by
the Government, in its fiscal operations during he
| war.
The committee have given this part Of the subject
attentive aud careful examination, and they canot
estimate the pecunary losses OF the Government, sus
tanned exc lively for the want Of a sound currency,
aud efficient system Of finance, at sum less than
forty-six millions OF dollars. Ii they shall make this
apparent, the House will have something like stand
ard for eimaing the individual losses OF the commu-
nifty.
| "hc Government borrowed during the short period
OF the eighty millions fdclars at an average dis
count OF fifteen per CEN, giving cer'ihca'e'oi stock,
amounting TO eighty millions OF dollars, in exchange Tor
sixty. light millions Of dollars, in such bank paper as
could be obtained In this statement, Treasury notes
are considered stock, attwenty per cent discount.
Upon the very face OF the transaction therefore, there
was loss OF twelve millions Of dollars which would,
in all probability, have been saved If the Treasury
had been aided by such an institution as the Bank OF
the United States. Bat the of sixty eight mil
lions OF dollars, received by the Government was in
a deprecia ed currency, more than half valua-
bic "a that in which the stock given i'm exchange Tor H.
has been AMI will he redeemed Here, then, is ano-
ther loss al thirt -four millions, resulting incontestiby
AMI exclusively, from the depreciation OF the currency
an aking, with tbs sum lost by tho discount, forty
six millions OF doltrs While, then, the Government
sustained this great pecunarv loss in less than three
years oil war, amounting annually 10 more than tn. cur
rent expenses OF the Government in time Of peace IL
is worth while to inquire who were persons who pro-
hted by this enormous amount by the arrangement If
the currency? Ii will be found that the whole ben iii
OF this speculation upon tn, necessities Of the Govern
ment was realized by stock obbers and none y-broker,
the very same ella of persons who profited so large
ly by the business Of commercial exchanges, in cou-
sequence OF the disorders of the currency. and who
have the same interest in the OF those dis
orders IA lawyers have in litigation, physicians in
the diseases of the human frame. Having presented
these general views OF the evils which existed previous
to The establishment of the Bank of the United States
II remains Tor the committee to inquire how far this in
stitu u ion has effected remedy Of those evils
The hrN great question which arises under this
branch oil the inquiry is, whether no the hank has
corrected the dsordsss Of the circulating medium, by
at the pleasure OF the holder and OF equal value with
specie al all roinis Of the Union'
The Chief Magistrate, in that pa,t OF his first
sage which relates TO the Bank of the United States
expresses IN. opinion that " it has iarl in the great
end OF establishing uniform and sound currency"
Alter giving to this o. nion all the consideration 10
which Il Is so justly entitled from the emn station
and high character of the citizen By whom it enter
tanned, the committee constrained TO express their
respectful but decided dissent from il. Ii is true
that the bank does no. in all cases, re ee4 the bills
it, hiram india rinnat a
all The o:her branches; aud is in reference this ac
as the committee presume that the President expresses
the opinion that the institution has failed to establish
uniform and sound currency"
tits confidently believed hat no one OF the person,
who werH principally instrumental in establishing the
bank, ever entertained an idea that il would attempt
to redeem its bills a, any Of its Offices, other than those
by which they should DO issued The cha
ter certainly contains such requirement, and il
would have been highly nexpedent IL it had, say
nothing OF It's obvious injustice. The inevitable eff
tect oil such requirement, would have been to COM
pei the bank 10 perform the whole of he commercial
exchanges of the country. without any compensation.
IL wouc not be more unjust TO require Rail Road
Company TO transport all the productions Of the conn
try without compensation. No institution could stand
suci an operations; and il the njudcious attempt
oil The hrst direction of the bank do it, that princi.
pdly contributed TO the endorsements Of 1919.
COMM tee was appointed by the House Of Represen.
tVes IN that year, 10 investigate the of the
oank; and In the report of that committee as well as
IN the discussions to which il gave rise in the House
this attempt OF the direction redeem the bills of The
in titntion, unfortunately at all its branches was in
dIcated az one OF the causes Of the existing embarrass
men'. No one who participated in the debate, pre-
tended 10 allege that the bank bound redee m
bills nd''crimnaev, that il was expedert that il
should do The most that any one did, was to apollo
glse TOR the unwse attempt.
But II yet remains for the committee 70 show tina
this inicrminatc red"cmaby of the bills of all the
branches oil the bank Is necessary 10 e" the esab
llshment oil uniform and sound currency"
Human wisdom has never effected. in any other
country, nearer approach TO uniformity in the cur.
rency, than that which is made by the of the pre-
coas metals II, therefore, il can be- shown that the
bills Of the United States Bank. are of equal value
with silver at all points OF Tie Union il would seem
that The proposition is clearly made out, that the ba nix
has accomplished "the great end of establishing uni
form and sound currency" II is not denied that the
bills OF the mother bank, and OF all its branches are
invariably and promptly redeemed in specie, when
ever presented at the offices by which they have hsen
respectively issued. and at which upon their face they
pu-por to be payable. Nor i. it denied that the bills
oil the bank, and OF all the branches, equal pe
Gle in their respective spheres OF circulation. Bills
Tor example, issued by the mother bank are admitted
to bs equal TO silver in Pennsylvania and all those
par's OF the adjacent States OF which PhIadeI-
phia is ths market. But il is contended that thsse
bills not being redeemable at Charleston and New-Or-
leans, are not Of equal value with silver TO The mer
chants who wishes 10 purchase cotton with them, in
those cities. Now, il the Philadelphia mercha had sill
YER, instead OF Bank bills he certainly could eHe
his prcbascs with il in Charleston or New-Or-
leans, without having the silver conveyed 10 those
place; and II IL equally ceftin that he could not
have 1t conveyed there, without paying for
It's trhnspo titiou and insurance. These expenses
constitute the natural rate of exchange between
those CT les, and iDdicae the exact sum which the
merchant would give az premium for bill of ex.
change, 10 avoid froubIe Ielav of