Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1835-01-24
FOR IIIE EyV(2 UIRER.


In my former Number, stated that would examine
particularly the allegations Of the Norfolk Memorial
the subject Of extended 'baukinr prvilcocs;" bu
ought to have said 'the Preamble and Resolutions Oft the
Norfolk meeting the Memorial have not seen In
performing this duty, hope it will be understood that
actuated by hostility the interests of Norfolk or
the other pctitioning towns On the contrary feel the
deepest concern for their prosperity and If believed
that the grazing OF their prayers would permanently be-
ncneht them although to the sgM injury Of other parts
of the State, do not think could find il i'm my heart 10
oppose them But my confirmed conviction is that
extended banking privileges will not relieve their dis
tresses rel or imaginary and will njurously and gToat
~ affect the general prosperity of the State TO all the
towns in which ii is proposed to carry them
The meeting considers that the great and essential
advantage Of the proposed extension will be- to make
actual capital available to twice thrice its nominal
amount thereby rendering credit available security
answering all the purposes Of trade and commerce as
perfectly capital In other words the meeting re-
&c doctrine Taught by Thornton and a few others.
ice exploded and almost forgotten, that artificial
used upon artificial capital is equal in I'll respects
Pr sustained by actual specie capital The meet
-, not seem to have considered what effect their
credit system would have upon the currency and how
the state OF the currency might react upon their credit
system " is true that Banks may to certain extent
limited by Che national demand for circulating medium,
advance capital available for the time; but il ought TO be
rccoccted that this capital consists Of their own
payable demand, and is made yaiiahlc only by throw
inc those notes into circulation Hence those be-
come like real money Instruments ofyauaiion and their
increase decrease quantity has the same effect on
prices the increase decrease of Qold and silver in
countries having pure metallic medium. In such
currency is liable TO very little varation-to 50 little,
that Say the French economist already cited cones 10
the conclusion that there has been hardly any yaria
ton IN the vauo Of silver IN the last two centuries and
although for eight ten years previous 1919 the sup
ply ofmctals from the mines Of South America is sup.
posed 10 have fallen short half yet The annual pro-
duct At any time is so small n proportion to the whole
quantity IN the market Of the world, ESTIMATED by Mr..
Gailatn to be between four and five thousand millions
that the falling off did not sensiby affect tic value Of
the metals In circulation But whore paper The prnci-
pal medium Of circulation, rise Of prices always follows
an expansion Of Bank credit, depression follows
traction ~ prices could be kept continually rising, il
would stimulate industry and excite enterprise; but this
could only be done By Issues which the circu-
ation would not As banks when they furnish ca
ptal TO individuals. become debtors we'll creditors
and must redeem their notes when presented for pay
ment, they compelled to watch the progress Of poll
teal and commercial events and govern Themselves