Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1834-03-11

lion on The Remouat otthe Deposites. -[CoScLUpEp.
Let us now examine, or rather glance at-for can
do no more than merely glancc--a few of the NJ
gumens by which they supported. The first
and greatest is, that cannot DO cihout them This
Is indeed n most comprehensive aud conclusive ar
gument, and supersedes if it does NOT embrace
every other. But sir, if you ask, why can't we do
without them? you will be stared at with n mixed
mir of ineffabc wonderment and pity 1t is evident
the person, the "learncd Thcban," to whom the I'M
expected "interrogatory was propounded," is not
thinking OF your question: but endeaS orng to de-
eide whether he shall pronounce YOU II fool or n
madman and is only restrained by great effort of
poiteness from pronouncing iba, sou are both. If
you repeat the questionable will eXclainI why sir,
you be nloon-struck to believe it possible,
we can do without Banks and Bank notes J! Ii you
reply, we have done without them--oiher nations
have done without them, and still doing without
them, and that they are modern inrcntion and that
you have always thought what has once been done,
may be done again. He will say, can't do with
out them no,o. Ifyou ask, why? He will reply we
are commercial nation, manufacturing ration, an
agricultural nation, great nation, and must have
banks and bank notes. If you obstinately repeat,
achy? 1t is fifty to if he does not reply-you
arc fool. But will suppose you are speaking TO
very polite gentleman, although he will he some
what veXed your not being satisfied with the very
strong and striking reason which he has often re-
Peaed, he will probably tell you: LIST. That Banks
make money plenty. I'd. That they do great good
by lending money TO individuals. 3d. That all COM
mercia'countres have some system of Banks and
Lastly, that they are of,he utmost importance in this
country IN saving the trouble and expense of trans-
porting specie, and i'm equaizing exchange between
the different parts of the country among the diff.
ferent States. These the arguments which are
most generally used. L know there are others, but
these are the principal: LIST. They make money
plenty. Yes, sir, that they often do, with ven
geance. But, sir, is it desirable? All writers on
this subject, common sense, and very little refec-
ton viii inform us that every country, with or with
out Banks, will have as much money, as well us every
commodity, ms ire md t,,,
quantity is exceeded, advantage is gained by the
possessor. Every one knows if twice as much corn.
cotton or tobacco is carried to market, rs usually
supplies II, the price of those articles will instantly
TALL unless there is new demand. Ii is precisely
the same with money. If certain quantity Of mo-
ney (god silver, any thing representing gold or
silver, answers all the purposes of exchange or the
transfer of commodities between the Individuals of
nation, and that quantity is doubled Ievery thing
else continuing the snme,) the value Of the money
falls; in other words, it win require more money az
ter the increase of the quantity to obtain partcl-
Ias article, than it would before that increase. be-
lieve this is pretty well understood; and yet strange
TO tell, there is always desire to high prices As
price and value convertible terms, and us money
is exchanged for every thing else, it be evident
that the money is given for every other article
the less the money is worth-in other words the
higher the prices of all commodities, the less is
the value of money. In fact, it is of no importance
how high, or how low prices are, provided they are
permanent and uuvarying. 1t is the sudden rise and
fall which produces wretchedness and ruin {; and
this runous ucuation in prices all banks hive the
power 10 produce in greater less degree. THIS
is well illustrated by Gouge and will read his OBJ
servalions, Am. Banking, p 2i) every man de-
{ sires money, because he can herewith procure
whatever else lie desires. If paper can procure for
'him the objects of his desires readily as gold and
SILVER paper is rs desirable 10 him gold and sill
'ver The Bank, therefore, finds borrowers for all
'the coin ii has to lend, and all the paper it deems
1T saie to issue. This addition ofnoes to the amount
of metallic money previously in circulation. raises
first the price of some articles and then of others
'The borrower from the Bank having more money
'at command, can offer additional price for the
object of his desire, perhaps procure some des-
rable object that was before unattanable" Here
we see the beginning of extravaganza: but to my au-
tbor:-"I He from whom the borrower has bought
'haying made speedier sale, or perhaps received
'higber price than would otherwise haVe been pos
'slble-he also has ii in his power TO obtain some
object of desire that not before within his
reach. A third, fourth, &c. ench in his turn, de-
rives like advantage from this increase of circu-
ating medium. Speculation is excited, private Gre
dit is strained and the representatives. of private
credit are multiplied Every body is active, and
all the branches of business appear to be prospe-
'rous. Nothing could he prcer than this, if prices
'coUld be kept continually rising. But il is unfor-
'tnnately, only while the Of Bank issues is
actually increasing or for short time after they
have attained their maximum that society derives
tins benefit from paper money. But in due time
1t affects all articles in nearly equal proportions:
and men then discover that for an object for which
'they bad formerly to give one dollar, they have
'Dow TO give one dollar twenty-five cents, or one
'doar and fifty cents and that ii is not more easy
to get one dollar and fifty 10 make the pur-
'chase with, than it formerly 10 get one dollar.
'The UaLue Of land, labor, and commodities as COM
pared with one another, is the same as il was be-
fore. 1t is only the money price that is enhanced
The effect this has public prosperity is much
the same as that which would be produced by
changing accounts from pounds shiIlings and pence
to federal money. The sum total Of dollars icould
'erceed that Of pounds, but The articles wod he ueol-
tered an number and in qualiig" Let us now look
at the reverse OF the picture. Qb., y. 25) ain To-
reign countries the paper of the Banks will mo,
'pass current The holders of IT, therefore ureson,
IL for payment The Banks finding their MINER
returned, fear they will he drained of coin. md
call upon their debtors TO repay win, Inns been
advanced to them In TWO ways, tIicn is the o,nn
tity Of circulating medium diminished first, by the
species being exported. Secondly, by the PAPERS
being Withdrawn from circulatOn--prices fall ms
rapidly as they had before risen. The traders find
that goods IN their stores cannot he disposed Of
unless at loss. The different members of So
ciey had entered into obligations proporonafe TO
the amount of circulating medium in the days of
Banking prosperity. The quantity of circulating
medium is diminished, and they have not tbe
means of discbarging their oligniions The rner-
chanhize, the farms, the houses, for which tbev
contracted debts, may be still in their possession,
but the product of the farm will not bring perbons
half ms much as will pay the interest of the orig
nal purchase money; the houses will not rent for ne
much as will pay the interest on the mortgages:
and The store goods must, If sold all, be sold be-.