Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1832-05-22


ChHries Bdde, without the sancios Of the Directors
are without oundaon and that there does exist any
ground Tor charging the President with having shown
manifested any disposition to show any psraly these
individuals. in their transactions with the bank
ihe report OF the majority advering to the Withdrawal
OF specie rom the southern and western branches the
substitution OF paper IN its stead suggests doubt
The operation not be highly injurious the southern
aud western States So fa from concurring i'm this doubt
the minority OF the opinion that there are no portion.
oil the Union moch benefited by the general
OF the bank as The south western and western States and
Unit The chonge produced by the bank in this system
p ne rae, oil domestic exchange, has been particu
kmy beneficial TO the whole OF the southern and
e', Connected with the exchange operations OF the
oank the Transmission OF specie from New Orleans the
northern Atlantic cities, is nothing more than natural
operation OF trade carrying the specie imported at N Or
leans TO its appropriate markets This Il c,rre
on by the bank instead OF being left TO individuals to the
unloubted advantage Of the community
WIN view TO connect itself more completely with the
commercial operations Of the country the bank has also
deemedit expedicnt TO deal Ire foreign exchange
obvious that this branch OF its business is important
TO the foreign commerce of the country as dealing i'm do
nestle EXCHANGE Is TO our internal commerce.
Having heretofore had large funds Europe and having
sun extensive credits there, 1t has been, and still is the
Pohcy oil INC bank TO afford 10 the mercantile community
every facility Tor carrying foreign commerce. AT IN,
soulh where the staples OF expectation produced il i,
constantly in the market as purchaser of hills on Erons
10 inc great bene oil the planter and the NORTH where
foreign merchandise is imported il constantly in the
market as seller to the like benefit the importing mer-
chant In this way the price of foreign bills kept uni
form and steady and those injurious are prc
vented, which would otherwise operate as heavy axcsup-
OH business classes oil the he
| oil private dealers in exchange.
me majority oil the committee have selected for COM
menary particular branch Of the foreign exchange b-
siness OF the bank-that which is connected with M.
OF India and South America. This subject has becn al
ready explained in another FORM and il will be sufficient o
remark mere that has almost entirely the direct
expectation of specie from this country 10 China and that i,
saves TO this branch oour trade the whole of the
on the entire amount oil every commercial for AT
least six months out OF twelve On the subject of TN,
general facilities which the bank has afforded TO the
try IN the operations of foreign commerce. the mnov nj
the committee will refer the House the perspicuous
position furnished by the president of the general
lions oil the institution which is herewith submitted and
ma rked A. w
1t will be from this document that during the 20.
cent pressure upon the commercial community produce ed by
the excessive impor,aons Of the last years the bank
urnished, since September last, "om own accumua-
IONS ana credits IN Europe, the of rcmances
own bills to the amount OF 5,295 49, and parted with its
surplus specie 10 the of five millions making an
aggregate contribution TO our commerce of 746
The extent to which these operations of the bank
have relieved the country, obvious TO require
meht without this temporary relief-and il was only
temporary relief the community reaured-thc greatest
commercial distress would have probably cnsned Tb
crisis is now nearly passed. The pressure on the money
market has, in great measure ceased commerce has
had ue TO correct its excuses; imporatons have
been diminished; the uniavoable state OF the foreign
changes no longer exists specie has ceased TO flow from
,ne country and has begun TO flow into it, Since March
'ast me specie IN tie bank has increased more than
million OF dollars, and every thing is rapidly assuming
sound and healthy condition.
Inc majority IN concluding part Of their report intimate
the opinion that the Bank by its impruent and
issues has had considerable agency i'm PRODUCING tho
overtradng and excessive impoatons of the last year
Whatever SHOW o. pausbiMy there may be in this opn-
tae demonstrate that tits entirely erroneous will
be from the statements herewith exhibited that The
domestic discounts OF the bank had increased pcrcep
bly, from March, 1929, TO March, 1881 but that thew
maintained an almost uniform level during the whole Of
the intervening period The excessive mporatoms how
ever commenced in March and April, 1881 and must
have had their origin in some months anterior n
is apparent therefore, that these excessive importaions
not produced by the excessive issues of the bank
am mn Ina nrtotn 1tnIi sNsI,u
the state OF Europe The correct view of the sub
Ject TO consider the excessive mporaons as producing
state Of things which rendered necessary for the bank
to extend its discounts, with view relieve the commu.
nifty from the temporary pressure TO which was thus ex-
posed
1t happened, that the very time the country stood
most in need ofbank accommodations bank had ncreas
ed means and inducements extend those accommoda
lions The government having paid OIL, within the last
eighteen months ten millions OF its stock which was held
by the bank the directors found that if they did not in
their discounts considerably millions of their
capital must be Idl and unproductve. thus happened
that the wants of the community the means of the bank
and, il he added the obligation of directors 10 the
stockholders and to the community all co-operaed call
tor that extension OF bank accommodations which, so far
from having produced ovcFtrddDg and excessive impoa
TONS has been the means OF correcting and mitigating the
temporary evils and embarrassents which these ire
gnartes OF trade would otherwise have unavodably pro-
duced.
The minority Of the committee deem IL to be oir in
dpensable duty to notice that part Of the eport the
majority, which institutes a comparison between the re-
OF the bank and the condition of the country in
1917 and at the present time. They but regard
the comparison thus presented by the report unfair and
PARTIAL and calculated to produce impressions the pub
lie mind as absolutely they would be posi-
lively pcrnicious
If had been the design of the majority 10 produce
Of general embarrassment and distress in the com
mercial community in the absence any natural causes
for such state OF things, they could have adopted
more effectua means OF accomplishing such object
than they have done in this part Of their report.
Fortunately, however for the country the commercial
community Of the United States have too much intei.
gencc TO be thrown into panic by the loose donted
and garbled statements the crude specuaions and the
random conectures, in which part of the committee have
thought il expedent TO indulge. IL general alarm has
not ensned producing upon the banks or curta-
nent OF discounts, and general of failure
tress particularly among the government debtors in our
understand the subject better than portion of the com
mtec and have placed proper estimate their state
mentS and specualions.
There periods of or commercial history so
utterly dissimar those which have been selected for
the comparison instituted by part of the committee In
1919 the bank engaged in the painful but necessary
office Of correcting redundant and deprecated curren-
cy produced by political causes and having scarcely any
connection with the state OF trade.
At this moment, whatever be said to the contrary
currency in sound that of any country
in the world and this is concusvey proved by the state
OF foreign exchanges and the relative value of bank
paper and in markets The foreign exchange
is iDfabe barometer to indicate the soundness or un
soundness Of currency. reference TO the state of
the exchange between this country and Great Britain al
this time, will furnish conclusive reply to the charge
brought against the bank Of having encouraged oyertra
ding by excessive issues, and deprecated currency In
fact, specie is flowing into the country by the natu-
raj of trade phenomenon which is utterly ncon-
sstcni with the alleged depreciation Of our currency.