Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1835-04-03
3,55l,O46


Do LIST Nov, 1884, i5,SG5,73l
Increase of circulation in months 1851, O46
balance due State Banks lst
Do LIST Nov, 1884, 9l3Ys2
Increase of balance due Banks in four
months, ls3GIG5
This furnishes an outline of the operations of ,reat
institution for four months whose charter will expire in
less than twelve months; which declared by its friends
TO oe already dead and which, if its declarations
ad those OF ITS supporters TO be relied upon
nave been employed since July 1882 calling in it's
loans and winding up its business independent of the
curuilncnts it declared il was forced To- make bv The
removal of the Deposcs
Ne ,tore'carn tie public Of their danger! The Bank
never WIZ yield without another struggle TO obtain
reeharter 1t is not dead. 1t is not even asleep IL
never was more powerful active than at this mo-
men The declarations of the Bank made through it's
friends that is to all intens now dead are but sra
tagem OF its willy managers TO lu the peonle into
state of delusive security.
intends to produce another season of distress and u
ring mat season trU he found ia The field contonding for
continual existence. On the hand it will produce
distress and ruin; on the other it will pour out millions
country from its centre To its boiders yea will move
heaven and earth before it will yield in despair Why
arc hundreds of thousands of the reports of Mr. TYLER
tras of the Bank gazetes such as the National Gazette
ana ln'egencer previous to its renewed application for
The Bank knows by experience, what all know in
theory that an excessive expansion followed by
more excessive contraction The more rapid the x
pansion, the the aximum TO which can o will
be reached the more rapid and the destructive will
be the contraction which must inevitably follow
Unnatural expansions of the currency of country
reduces the value of money-gives artificial value to
Proper-causes excessive importaons of foreign COM
nOuiues-ior time leads 10 eXtravagance-and en-
courages Wild and visionary speculations When CON
traction follows, the changes Real estate falls
suddenly below IFS real value that value which is ound
~ uPnr permanent and necessary amount OF circuat-
ing medium Every foreign production comes TO n min
U.s. poverty succeeds extravaganza; the ina gil
nary fortunes winch thousands fanced they had accu-
muiaed vanish like the dew before the morning sun and
ruin fills up the scene ' ''
In such state of things, the suffering are ready To
ny to any thing, or to advocate and support any thing
whch holds out glimmering prospect of afordng re-
1t is in the existence of scenes of distress only which
such state OF things would produce that the Bank can
now indulge hope Of succeeding in being re-chartered
Such state, we believe the Bank wishes to see Such
sceic, the course pursued by the Bank of late if fol-
lowed up few months longer must inevitably produce
unless Tie copHFy takes the alarm and through the IN
Of puohc opinion aided by the prudence of the
o'ae BANKS nierposes an carly and efecual check
TWELVE MILLIONS Of dollars increase of accom-
m0ddtionS an toa'r months by tbs Banki 1t is without
precedent 1t is unheard-of before 1t is monstrous
90 rapid has been the pace of the Bank in this expan
SION that 1t has the State banks nearly out of ibt
and fallen in their debt nearly two millions of doIIors in
that short period '"' al
In October $780, the total of Bank loans ,vos ~ 5z
2S3 In April, 1882, they were 500 03OG93%Making
the expansion then, during eighteen months of nrcnt
ne tonS four Aundrcd and three thousand one ku,drSd
ana serenity dollars at the of about 81 600 O0 ne
month; while the late expansion has been twelve
n,Il2hs IN Tour months, or at the of THREE
MILLIONS A MONTH
BY seeing the effect of the expansion nv the Rant
commenced in 1880, shall be enabled TO JUDGE of The
erect OF the expansion commenced in 1894 in nearly
Fortunately, have the evidence. from Mr. b;dJIo
hmsei IN letter dated the 10th OLA r 1892 conlmn
draw from it largely. He says:
For eighteen months, the of employment for
CAPITAL and the arrangement of industry arising from,
political and other causes rendered money verv ab1
dant IN France and England the two countries ,rboso
situation much influences our own md nrodncnJ
lge an lnlpn NV
occasioned, during the past twelve months an unusual
importation OF foreign merchandise"
III must be borne in mind that these eighteen months
OF which Mr.. Bidde speaks were the identical c;gb
teen months during which the Bank extended nearly
thirty millions of dollars. 10y
MIR. Biddle proceeds:
"While the treatment of this temporary commercial
disease was IN progress the sufferers very naturally
looked Tor the cause Of every where except in them
selves, and tie Bank reproaehed 7eth hay;no cont
J"ted to occasion these ippoTiat;oms"
"Witlout having contributed to produce Them tho
Dank found, about nine months ago. large mporalions
requiring Tor their diffusion through the country in
creased facilities connected with banking. bnvncr tho
means of giving them--t gave them"
lie speaks OF there existing at that time state Of
hngs requiring great ioTbearance towards the debt
ors And that if the bank had chosen to have adoptcd
different course ''it would have hcen easy bv am inn
cua'c dmnution Of its loans to place itself out of
inc reach OF al inconvenience but it would at the me
lie continues: "y'
These exerons of mere power have no attractions
and It was deemed far wiser policy to deal with the MT
most gcntlcness TO the commercial com nunitv to nid
all shocks, 10 abstain from countenancinc ali evoor
ohs ana alarms, but to stand quietly by and assist if
necessary INC operations of nature, and the laws of
trade, winch can always correct their own transient OK
cesses he point where these importations occrrcd
SrI w'Ie ne revenue was payable, New York
ne whole force of the institution was therefore direct
ca TO strengthen that place" The Bank out of lis own
accunul9ons and its credits in Europe supped since
inc Ist oil September last, the means of remittance in its
own Gs, to the amount Of S5S2)5,74G 81 and parted
lars" - 'V"'o'V u"i-
" This has given time for the operations Of the Laws
~ u"ue; ne country IS recovering from the temporary
inconvenience the ovcrstocked market by denresso
prices, has checked further mporations; The
expectations Of specie has ceased; the imporfatons r
specie, ostponedb by the troubles Of Mexico are
ca anu IN short time, the whole operation will rectfy
iNet an this has been accomplished with more Of
anxiety than real DISTRESS the dread of evil bein tc
best preventative Of il" ~
THERE CAN, HOWEVER RE NO por.r -,,.- 800
OTHER COURSE ON THE PARr THE BASR, woutp
HAVE LID TO VERY GHEAT CALAMITY TO rug Copyrpy
III on TIC eve OF great danger, it had Welded 10 the
alarms which surrounded it, fit had oiyeu yav 10 tbo
leas oil others; ii had at ali spared itself when lie com
munity might have been relieved ~ IT HAD NOT orr,
hILf, bVf cENTLY AND Firmly roHrH ALL IRIS |
'ibN"fH TO ALLEVIATE ASD PRESERVE, THERE MfGurr
HAVE BEEH MCcu CALAMITY"
we nave here given, in Mr.. Biddles own words the
winch the expansion, commenced in Octo-
per- IoD led TO- In less than one year reaction was
created, which required the whole force of the Bank H.
IeSt 'tc~Psed Itself 10 Danger Inexperienced iucon
Fcnence itad " not done dcop rounds ,eod 6oye
Oo'" "Jcfeo "p0n c community mn Offor c0yee (rycn
passive one) "'wdhare tel 10 eery Preat anaitgf 10 he
IN an old and universally admitted axi that Jk,
INf ~