Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1831-10-04

distant sections Of the pnior-By Importing than
seven millions Of specie sni by free issue o, notes
immediately after It's establishment the Bank with great
sacrifices succeeded Tor time in attaining these objects
but to have been afterwards considered that its
powers were exhausted by the effort, aud that the
unuance OF IL would be entIely inpraciicabe. The
essential difficulty presumed lie In the provision
OF the charter making the notes universally receivable
for debts TO the Government, which by oblging the
Bank TO provide payment tor the note variou,
places would require il to retain greater amount OF
specie than 1t could issue OF notes. thus diminishing
her than increasing the sound circulation. The conse
uuence a., that the Bank ssuedits own note. Sharing
"; es eciay in The Southern and Western States
where II oeu preferred the reissue OF the notes Of the
State Banks, being unwilling to issue freely its nois.
which il might be compelled to paw al some one nj ma
places remote from the point Of issuing them How
ever imperions The necessity which enforced this sys
TEN, was apparent that its continuance would tend to
defeat the object OF establishing the Bank since by do
clnng the issue OF its notes could not furnish the cir
euistng medium expected from il and by e-issuing the
notes OF state Hanks il surrendered its most ecen,
means OF control the currency. IT,, whole ci,cn
aiion on the LIST of January 1923, only $50 900
dollars. -'N'
Having. in eOnp'aNea with the dir, c,io,s ri I, +.
Stockholders 10 1872 Applied without ,u.c.s, % Co,
stss Tor mojinrs,"n Of this dssoiu. provision in the
charr tbreame peee:-ary for IL, Board Of Dire or.
70 t''eN.,''n7 tie e;nettunoD Of IA Bark, in order TO
discover whether there was really any organic d.fee
watch prevented from pc'icrmipE the iuc ion, 10
which II destined, whether sone iii IT nj com
bnA'ioh OF lis powers might not overcome it's diff cu
Nas.
Tae experiment was interesting aud hsz ,rdous.-I
was - Wy how lar the Institution could ed i'm d.
rig that ~hisn had never YET succeeded else where, in
dlHIs'ns ovsr so vide su,isse OF country sureLey
at large snount and OF uniform value all places and
nrdtr oil Circumstance; and also Wheeler i, seult
brinR down 20 exre me limit III. nceessary expepse
Il eOmmeoeia intercourse bs,ween distant section. Of
oouniry, whose e1chars.ahi4 p. ojutiion, were OF
cue h various and unequal values
T. accomplish iheSe two objects iwo hing, ,,em.a
Necessary.
1t Ts make all 'hs local -nci.s squiva,sn, 10
specie at 'e place Of their emission. This nv render
ina them competent for local purposes would r.our.
less amount Of general currency, and At she same .
tend 10 rsdusn the exchanges bawee di.,sn, IN
Ne real commercial eIPsDse Of transferring equal va.
lu"s Of COLO.
81. To NIKE IRE Bank itself ,bs great ,b,rn., -,
those coMmsI cial exchange,
IN Bank ~ bonnd 'oIsnst-r tho whale public rave.
nue. throughout He Un'sn, aud 10 furnish a currency
P@Yabl- III various and distant places II mus. obv on L
Pove funds In those p'ac' and the Of eour,. b
oh'H'd 0n'y by pu'cha'ng bills ofex payah- RI
the poDt' 10 which the courss Of trad, s,ursv al
Ieeis the noes. Th-te these bill, having reach al
their ms'ur await he somins OF hat po,tion ,f H.
notes whi H. having performed Tor zine the function
CT circulating medium, carried by the AMI In.
duties oni Ot the imme dais sphere of i,sua r..
Erester proportion os funds b- eore viii Oh IN,
eSn employ ia these operations, The readily can
suS'sin tho notes Issued in The course OF them n
iudssd 'hos and thus alone that circle O, sound b,nk
rug opefauon., ounted on sound CONNIE eal
eoh'an' within Itself the means OF lite own defnes At
nome, and oil providing for h, notes which the S.mand
ior uu'us may cafry 10 distance. These one, sons
ioo' are fortunately OF ihs hshe., ben.ft 10 IN. .on
huniy; they Civ. The most direct announcement, 40
iEuusny oy Facilitating the purchase and
OF all Us produsi' they bring the producers and con-
'uheIs in'o more iGnedaie sonhciby diminishing the
obstacles which separate 'hem ADD they specially ad
e bns to the wants and interest OF ea.h section of
the Uniop, by making it alternately lsrx, putcba..,
smoIs ms sellers OF bills, aud large seller among The
purchasers. h '
participation also 10 tho foreign ex,bapsc, firm, an
e'seahai pst' OF the system merely a, auxiliary IN
a "su',et OF unds by which the circulating med um
s accompanied md protected hat the he,i defence nj
'hs surreney from ernal Influences the DE Gull
army vi our moni=d ,ysem, that in many parts OF ill.,
country me PrSsious metals excluded om the minor
shannsis oil srcuia'Cn by small papes curr.ncv i'm
consequence OF which the greater portion of tb..s M
'l' accumulate 10 al he points OF mos, son
vsnien' expectation. Now. with widely d,ffp.ed me.
tac currency, the occasional de sDds Tor
are mors gradually felt the porti,n exported bearing
small relation 10 the WHOLE occasions less Ipeonv,oi
ehce, ara me excuses Of exploration Gan he more
fsaOy sorFscied without Jury. Bat when the urea,
mass OF The precious msal. OF The community lie thu.
accessible 10 the Banks OF he Atlantis CT les liable 10
De immsdiateiy demanded on notes prev ousy issued
IN Tie Sonbdeoee OF continuance OF tho same state OF
hosS whch caused ,hs abundant issue Of them at she
hrst urn in the tide OF the foreign exehangss-whep
Toe supply OF foreign exchange is unequal 10 the daily
demand, ths vaults Ut he Bank, mEy be exb6uned be
fore any precautions can prevent H. These y.ry nr.-
sauion' too cou'is'ing they do almost exclusively
OF cue'smen's IN their loans, m abe sudden y-mo,y
without concert, and always u1der the influence o
hoNisty II not alarm, may fa with oppressive weigh
on he community, by The pressure on which alone
can he produced The necessary re-sc ion. This re-
hcHOhI moreover, Is necessd lily slo
rom Europe mskes il less easy to restore the alil
hfium than bswr adjoining countries 10 The came
hemisphere. As this defect in our mon!ed sysem de.
Ponds on the Legislature he Bank has power TO re-
move IL. aud oily strive guard against is dan
gsrs lite tendency is 10 produce abr up ons and
violent shocks injurious TO pnvsie credit, aud whish
might prove sUbVefsivo OF tho currency Is belongs
then TO the conservative powsr over the creul ting
medium wb'sh devoIves the Bisk, not 10 be pas
sve observer OF heie movements bat TO take an am
q al thal A
II may thu' oresee, and either avert or diminish an
approaching dsDgerit can thus break the loi ce OF
sudden shock, and supplying from its aceumula.
mons or Is own srsdi's in Europe, the more pressing
dsmand', ensbls hs ate Inst,ulio to provide Tor
hrr owl safety, aud ihu' produce the necessary ae.
r.on IN The state OF The txehanges with The least pos
sib'e pressure upon the nks or the community.
To be concluded in our nert.1