Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1834-04-04

importation enabled him 10 create credit and thus
very large amount OF capital was constantly In use
among those engaged In commercial pursuits
The law Of july 1882 considerably reduced the amount
duties while that Of 1885, operated s,ili further TO d.
minsh the capital Of the importer thus derived from go
vernnen credits, by admitting many new articles 10 the
free list, by shortening the bonds In aud by
substituting cash payments on many articles subject to
duty.
during the pas, year the bonds Of the preceding year
have been falling due, while the shortened bonds and
cash duties have created additional demand for money!
thus casting upon The importer the burihen Of repayng
the capital formerly loaned to him by the government
and also OF paying the cash duties required upon his re-
cent mporta,ons. Ii has been estimated that the effect
oil this law has been equivalent to the withdrawal from
commercial investments Of from twelve TO thirteen mil
| lions Of capital.
The depressed Of foreign exchange also although
indication favorable to the general condition OF the
country has 10 understood, prevented the drawing oil
Of money from Europe, the proceeds Of
| produce well as OF stocks sold abroad.
It's debt by the IT, States Bank between the FIRST days Of
Angus, and December amouating to nearly ten millions
dollars, aud operating upon state Of trade unusu.
ally and exravaRantly extended, supposed TO be sui
cen TO account Tor most Of the distress hitherto exPe.
| rienced.
The severity Of the pressure in New York. has unoubt
edy been very much msaed by placing the public do.
poes in the local banks, which have thereby been
abed to discount, and have actually discounted upwards
Of four millions more than they otherwise could have
| done.
And the charter expire, and the Bank had
actually commenced its cur,amen,s some time previous
to the action OF the gove<aent that action would
have been ndpensby necessary for the proe Of the
public far the funds Of the government would afford
the means. This measure, however, which as we have
seen, involved no necessary destruction oil individual
hdencc or credit, necessary arrangement of ordinary
commercial operations. much less any necessity for the
panic which has followed, has furnished 70 the Bank the
Pretext Tor placing itself in AID uenacing attitude
and TO Its Paraans the occasion Of wantony sporting with
the fears OF the md the standing Of the weak the sab
ty OF the currency aud the credit Of monsd nstu.
| tons.
This corporation, brought Into existence for the purpose
flta
pose) be bendag q It's prodgious
ergies towards compelling the people, by force Of pecup
| ter.
Our constituents have distinctly expressed their unbi.
ased Judgment upon the question Of re-charter; and
not doubt that they possess sufficient patriotism 10 meet
crisis, which the controversy may produce and that
in the maintenance Of principles Of vital importance
themselves and to poserity they will be ready endure
pecuniary privaon, rather than submit TO the die
| 'aton OF great monied power.
From recent debates in the National Legisature from
the tone Of the presses which advocate the cause of the
Bank; from the language Of public meetings; from the
organizations party and from other Indications plain
to be mistaken. che efforts the part Of the Bank
be directed especially against the monied institutions and
the business relations Of the State of New York. Under
such circumstances deem the imperative duty of the
Stae 10 put forth s energies to aid thrs institutions in
the Struggle and 10 protect its citizens from oppe sson-
Connected as these institutions with the industry and
prosperity Of the State, all classes of our constituents
whether agricultural, mercantile manufacturing, are
equally interested In their welfare.
am furnished by the Bank Commissioners, with
|
Pervon 1.-THE 4h Of March instant by which appc
that their circulation had been diminished since the frs,
day oil January last, than three millions dollars; and
that the country institutions, those located the
cities Of New York aud Albany, while they had reduced
their loans and discounts only about $780, reduce
ed their circuiao about two millions Of dollars The en-
tire Of the country banks the fourth March,
excluding the bank fund.- amounted to S2I 1854 OOO and
their entire liabilities to $i2. 1852 900. Notwithstanding
the redemption, between those dates, of about mil
OF their paper, the reduction of their specie
than $25 c0o and their immediate Of redemption
consisting ofsrecie at home and funds depose in Alba.
ny and New York, subject to be drawn eight amount
ed to more thaa thirty five cent OF their whole ccu
lation.
So far therefore, the banks themselves are concern.
ed. entertain not The slightest doubt, either OF their
present future ability 10 any crisis that occur;
but under state OF things which may be imagined.
proper regard for their safety many put hsr
power to AFFORD those accommodations the public which
its interests may require.
The Bank Of the United States has recently declared its
intention TO continue It's curtaiIments but in what
know not IL probably has due TO il in this State about
seven mcn and what portion of this amount our ci,i.
zens may be called upon TO pay before the of
the Legislature, canaot now be determined II this
amount snail be called in rapidly, banks
sarly strengthen themselves by calling in a portion of
their debt; and thus il will be in the power OF the Bank of
the United States II il should have the disposition,
cason serious embarrassment to all classes Of The
nifty, unless the Legislature make suitable provision
10 guard against such result.
IL has been suggested TO inc by several intelligent and
practical gentlemen from the city OF New York. for whom
and for whose opinion entertain the highest respect and
whO am sure, were governed by motives of indiy
dual interest IN the natter that the establishment large
banking institution lie that city called al the
time capital Of eight or ten millions was menlioned;
and il proposed that The State should take one half
and pay for by State stock bearing interest Of four
five per cent redeemabe the expiration OF the char.
the balance OF stock be distributed BY
TO be appointed by the Governor and Senate or in
such other should be thought best the State TO
appoint its share OF directors the OF discount TO be
fixed at six cent, and deemed proper the surplus
to the STATE Treasury the institution issue no notes n.
der twenty dollars, and in other to be made sub
ec TO The general laws of the STATE reservng TO the Lee
gsature the usual right to modify repeal the charter
II urged that the stock issued by the State mig nj
readily be disposed OF in Europe for specie, that such
charter would furnish sufficient to insure
the necessary subscriptions for the residue of the csptal
due the United States Bank in this STATE, whenever Il
should be called In; to furnish the requisite facilities 10
The commercial interests Of the city OF New York in the
discount and collection Of domestic exchanges; acquire
character in Europe which would enable IL to sustain
mercantile credit in times OF revulson in trade: and i'm
short, to exercise faithful influence all the diver.
sed interests Of that great city, AID over
every branch Of industry throughout the State.
Although many Of the advantages anticipated from an
institution OF such character might and probably would
be realized, there are, nevertheless, objections TO this
proposition, OF serious II not preponderatDg weight II
is deemed by many 10 be Objectionable in principle for
any government 10 engage in the ordinary pursuits of
pie powers the currency OF the State, which, pro-
Pery directed, might be productive Of salutary Effects
might also, by msdirL sion OF its efforts be equally
pable OF producing serious and extensive injury. II
might in its administration be subject 10 the fluctuations
Of political power and thereby be in danger of becoming
engine welded 10 subssrve the Interests of party
might by the acquisition Of political influence ralze
haa 81 =.