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

through society; multitudes become bankrupt, and
few successful spectators get possession of the
earnings and savings of many of their frugal and
industrious neighborS
By the reduction of the amount'of Bank me-
dium the prices of things are lowered, the impor-
ta,ion of some kinds of foreign goods is dimin-
iShed, and specie isbrought back. Then the con
fdencc OF the Banks is renewed, and they re-
commence their issues of paper Prices are
raised again, and speculation is excited anew. But
prices soon undergo another fall, and the Temporal
ry ana ar!hciai prosperity is followed by real and
severe adversely. Such is the circle which u
mixed currency is always describing
D." Tue rise oil prices that follows an expansion of
Bank medium, and the fail that follows n contrac-
ton, do not affect ak descriptions of labor and
commodities mt the same time, ia equal degree.
The usual effect of an increase of issues appears
to be- raise still higher, those articles which are
rising from some natural cause. As Nautilus has
Observed the tendency ofpnper money is, in some
instances, to sink prices to their lowest point and
raise them in others to their highest
line natural value no longer regulates Exchanges
wages appear 10 he among tie last things that are
raised by increase of Bank medium. The toorking
man finds all the articles he uses in his family rs-
ing i'm price, while the money rate of his own wa
ges remains unchanged La the year 1881, which
was year Of great expansion, rose enormous
iy-n many parts of the town, philadelphia store
goods advanced in price, and such fresh provisions
as are sold IN the market were higher than they
had been at any time since the resumption of spe-
che payments 6nl The money rate Of tcages hard
" affected" might multiply extracts almost with
out end, but, for the present will close with an
extract which he gives from the able aud elou,,cut
letter of Publicoa, to MIR. Galatin, in 1851 atn
not of those who imaginr, that Banks, ncorpo-
rated with liberal capital will ever endnnger
their solvency by extending their loans; nor Of
those who believe that Banks controlled by specie
payment can circulate permanent excess Of pa
per."-Nir Chairman, would you desire more or
,hooox Bank man But to rethrn.-The writer con-
Inn unfI l..,,I.
tous potrer Mdi hey erercisc commercial enter
prize am of opinion, that they circulate a
temporary excess of paper, which, from time to
time, finds corrective, in run upon the Banks
Tor specie that this temporary excess is succeeded
by temporary deficiency, extreme invariably
tending To another; that the consequence of this
alternate excess and deficiency, are, i'm the former
case, 30 npart an undue excitement, and i'm the
latter, an undue depression TO commercial enter
prizes that the effect of the former is to create an
unnatural facility iii procuring money, and to en-
nance unnaturally the price of commodities while
that OF the latter is TO produce artificial scarcity
ana to cheaper prices articially that the victims
of these vibrations the great body of merchants
whose capital and average deposites cannot always
command discounts; that The gamers are u f,o
intelligent and shretod capitalists the magnitude of
whose deposltes commands enormous discounts al
all times, and icho being behind the curtain 6no,y
schen to buy and ichen 10 sell. i am of opinion.
that these vibrations inflict evils which close nor
with the mercantile speculation; that they tend TO
unhinge and disorder the regular routine of com
| merce, and introduce at one moment a shirt of
,cia and daring speculation and al another, pros
ndtiom o. confidence, and stagnation of business ;
that these feelings transferred from Me counting
house TO the Preside; that The visionary profits Of
one day stimulate TO extravaganza, and The posifire
losses ofdnother, engender spleen, irritation restless
ness, a Sparh Of gambling and domestic INQUIEr-
uDE. appeal" he continues, TO the commercial
history OF our country, and to the aching hearts of
many OF our fcllow-ctizens, for the truth of these
rnH Dn bona d.,
fled that 1t is not very desirable that paper money!
lbank noies,) the money which Banks make, should
be plenty. If prices should all continue pernla-
nently high, we shall be just where we were before:
a days labor, barrel of corn, hogshead of to-
bacco bale of cotton, beef horse, or a hog will
obtain 40 more broad cloth, wine, spirits, tea, sugar
or coffee, than it will present. But the high pri-
ces oil these articles cannot continue. The high
prices OF our corn cotton, and tobacco will prevent
our merchants from shipping those articles, and TO-
reign merchants from buying them. Specie mast
he exported 10 obtain such articles as we require
from abroad. The demaud for specie, will cause
the Banks TO curta- This will produce, as we have
before seen, scarcity of money and its attendant
ruin.
The second reason, which thought it probable,
the polite gentleman with whom YOU were arguing
this question would urge, was that Banks do great
good by lending money to individuals. If,hey lend
money lmprudenty, IL is evident That they will not
only not benefit the individual to whom the loan is
made, but that they must iDjure themselves, and
even If their loans made with some degree of
cautIon ms regards the character of the persons TO
whom they are made, yet if they are made to that
extent which mikes money plenty, then will follow
all the mscheis we have described. But it is con-
venience, nny 1t is often absolutely necessary that
man should borrow money. This is true; bur il
may be replied, that all the good without any of the
eUnS OF the present system would be Produced if
the owners of the money TO lend it themselves
There would always be sufficient supply for eve-
~ nseiul and proper purpose. The stockholders
would then have to loan the money which they now
have in Bank, or which they believe they have
there, for it is often more than matter of faith.
With regard TO Banks the report of our
committees will shew that if the Banks were TO set
tie up their business tomorrow, the stockholders
would he minus some tens of thousands of dollars:
perhaps, with the stockholders ofthe IT, s. Bank il
would DE millions. IT there were Banks, these
stockholders would know exactly no W much money
they have, and TO whom il is onned. Mr. Chair
man, there has always been, and there will always
be, sufficient surplus capital loan 10 those who
really require il.
The third argument is, that oil commercial
countries have some system OF Banks. IL is
true, most modern nations have Banks but not
Banks which manufacture money, and it is only TO
such Banks hat object 1t is against Bank notes
paper money, that contend, and not against Banks
have no objection Banks of deposit and trans
nuke paper money; they may be useful TO the mer-
chant, for augbt that know. But the only kind of
Bank we know in America, is the Bank of Discount
and circulation, which is always understood when
we speak of Banks-and deny that all commercial
countries have such Banks. Without pretending to
any very accurate knowledge on the subject think
II may he safely affirmed, that there are moi half