Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1835-01-10
FOR YIIE ENC UiRER.
RANKSi RANKSlNnI

BANKS BANKS!NNo /. 'V'''1"'
After the experience of many years and the deyelope
mcnts which have taken place within the last few
might reasonably have been expected that the Bank
mania had subsidized in our country and been succeeded
by more correct principles of political economy At
comparatively recent period III the history of Virginia
the State had nearly suffered the inlicon of litter OF
Banks; from which was fortunately saved by the wis
dom and frmness of small majority the Legislature
Whatever differences ct opinion existed them in relation
to that decision, had supposed that its justice and poll
cy were now questioned by who had attended to
inc eiecis oil similar measures adopted about the
time in ether States had thought that it was sub
jcct of universal rejoicing that had escaped heavy
calanites brought the western and middle States by
excessive banking, and that looked back upon those
disasters solemn warnings to direct future
But find am mistaken. Memorials before the Lee
gislaturc for largely increasing the Banking capital
of the State Meetings have been held in Portsmouth
and Norfolk, with the view of inducing the representa-
tves of the people 10 extend the system; and all
the towns OF Virginia invited to hold similar
ngs TO establish Banks devise an increase of their
capital The FIRST resolution of the Norfolk meeting
declares that the prosperity of other States admonsh
es us OF the great Importance of enlarging now and
from t'ac TO ae the amount -four Banking capital and
OF multiplying the number of our banking Institutions
Thus, tangible limit assigned TO this system
and the reasoning of The preamble is intended to shew
that ought be assigned; il assumes 0tha the
mere addition TO capital of single Bank with re-
spectacle amount of capita will only give temporary
relief, unless add another and GnCfhor from time TO
time, as the increase of our business may require Ii
appears by subsequent proceedings, that the memorial
lists only ask al present. addition to their banking
ptai oil one million oil dollars. According TO the
ertoEobserved the other parts of the State would be
equally entitled TO addition of five millions in order
to enable them Ito prosecute the of commercial COM
petition Already our banking capital is six mil
lions, and the Norfolk mcmoralists would make il twelve
If 1T be true, that it be made available to twice or
thrice its nominal amount, should have circulating
medium, in the shape of bank facilities of "a 81 mil
lions, which shall hereafter show is than three
times as much really require, upon any sound prn-
ciples of political economy. And if this is gong
the whole in favor of the most unjust partial, and as
verify believe dabolcal of legislation that free
people submitted to- am at loss TO conceive what
other proposition will be considered.
Is 1t not little remarkable that in this country we
often take up the systems of European Governments af
ter they have been fairly tried and their errors and
demonstrated by all their wsest statesmen? So il Jared
with the protective system We adopted and cherished
1t as our own, when that country which had favored it
most had; under the guidance of its distinguished po-
tca economists, gradually relaxed its severity and adj
united its impocy. Now, when the statesmen familiar
with all the arguments usually adduced in favor of the
papersyste in the country which has used tso long
soexensivey hosc persons who consider pa
per money excellent thing be established in
country tie most dangerous OF all heretcs, and when
have our experience of its unntgated evils some
among would TO it the panacea for all evils
real or imaginary; and this, too, time when every bo
dy Is talking OF "a REFORM in the oUrc' What let me
ASK has deranged the currency but redundancy of pa
per money, and deficiency of metallic? The increase
Of Banks Will only aggravate the evil. If really
sire reform; if we to have safe, and sound
and unJorm currency, the Virginia Legislature OUGHT
IN my humble opinion, instead of adding Banking
caPtai 10 pass law at ITS prescntssesson prohibiting
hereafter the circulation of all foreign in this State
under twenty dollars, and another law to 90 into effect
on the Ist OF June, 1S42, when the charters of all
our Banks expire; prohibiting, after that day. the cir
culation OF any note under that sum- This would
soon diminish our paper one fourth of its present
amount and Tepiace with gold and silver. Ii might
then be safe and prudent the charters of our
present Banks, when they about expire for some
time longer. Indeed, know that il would be difficult
TO resist their united applications, and the combination
OF interests that would be enlisted in their favor Nor
II II was practicable, do affirm that il would be des
rabe 1t is easy TO establish Banking SYSTEM but to
get rid of suddenly after it has been in operation for
many years, is hazardous and difficult The descent
into the Internal regions easy but to etrocc your stems
forms the difficulty and the labor This consideration
alone ought to weigh powerfully with the legislator be-
fore he consents to make second plunge into that
naelstrom, from which nothing energies that is not
shattered and broken. Sound currency. sound credit
public morals and private happiness, have all been
wrecked IN ITS unsuitable vortex, and nothing but the
elastic energies OF young and thriving people has ena-
bled them to repair the damages.
Unless some such measures as have suggested, are
adopted and pcrsevered in it is in vain to think of
metallic currency and when use this term mean
such Il currency France even England enjoys.
twenty millions of dollars have been imported. and
upwards of three millions of gold been coined at
our mint within the last twelve months which must
be driven away, If the States do not prevent it by
their legislation, the General Government by re-
curing all payments to be made in specie, measure
1t will not probably adopt. Eagles and half eagles
cannot withstand the competition of small Me
talc money has an intrinsic value because il can be
Poyed IN the arts and is the representative of the abour
necessary to its production Paper money has only an
ideal value, which is ever huctuang. benk note NAV
be converted into many silver dollars as it expresses
on It's face, to-day; but there is security that it will
command the number Tomorrow much less year
hence Therefore, gold and silver is preferred by all
those who do not to part with the paper in short
time, and Is nrnscaly valuable But nothing is
better established than that where there two kinds
currency III circulation authorized by law sanctioned
by custnthat which has the least value will dspacc
the other 1t has happened uniformly, that the intro
duction OF paper drives specie ont Of circulation whilst
its withdrawal brings it back again and experience
has demonstrated that if this withdrawal is graduoI no
evils cnsuc. In Pennsylvania well in Virginia,
the act prohibiting the circulation Of notes under 50
was warmly opposed. because " it would make money
circulation immense quantity oflrash and supply lis
place with silver caige, without producing the slight
est inconvenience. la England il was found that one
pound notes and soveregns could circulate together
and that the paper had driven away the qold In le2G,
The issue OF notes OF less denomination than s. sterling
was prohibited after lo2J In 1923, vigorous effort
ives made to repeal the law, the same grounds taken
IN Pcnnsy vania; but tho ministers were rn-the one
pound notes were called in--gold took their place in
the circulation, and the "scarcity Of money" was no
longer heard OF
In l74J, proposition made in Massachusetts TO
redeem the bills of credit which had been previously
sued by that colony and establish stable currency
OF gold and silver The measure excited the most vio-
lent opposition the part of the advocates Of paper mo-
ncy who declared that the circulating medium would be
so much reduced as 90 give fatal shock trade and
credit, and 1t was only carried into execution by
statute Of the British Parliament. Hutchinson, who ia
MS history OF Massachusetts gives this accountgoes
further TO state, that the approximations Of shock 10
trade proved Qoundess The bills being dispersed through
every part Of the province the silver took place instead
OF thcma good currency ins.nsbly substituted for
bad one, and every branch Of business was carried
to greater advantage than before The other govern
menis especially Connecticut aud Rhode Island who re-