Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1836-11-18

VIII IN WHOSE tIty Issutu,
make such arrangements with the banks on which the
orders drawn shall be most for the convenience
aia interest OF all parties concerned This is matter
WIN which the Secretary Of the Treasury has, OF right,
nothing IL do He is bound to according to the in
variable usage Of the department.; and if The Opposition
directors OF distant bank choose demand specie of
New York bank for the purpose of embarrassing the in
stuon gripping lis means of accommodating its
toners, and thus spread confusion and panic through the
community, We know Of no way in which MIR. Woodbu
y can interfere 10 prevent the result. He but obeys the
provisions of law which clearly prcscribcs the mode in
which he is to act That ne has every disposition
80 to discharge. his imperative duties as to Mitigate
mech possible the hardship OF their necessary
effect on the mercantile community, no man can en-
tertain reasonable doubt. lie has expressed him.
SELF stated in the Journal Of Commerce of
this morning, ready to arrange the distribution of the
surplus revenue H. manner consistent with the law,
which shall best suLserve the interests of trade, and pro-
mote stability IN the money market. That paper says,
no i're dIs will be issued at present, aud some al
ready issued and transmitted to distant places, will be
contaminated. ltdevolvcs on the deposc banks here,
to point to the Secretary The manner by which in
their opinion, the objects of the law be
nicntly Accomplished. But the immediate Of
the financial cmbarassmen,s is in the law itself and the
Secretary OF the Treasury, execute lis provisions in
what mode a MAJ cannot prevent commercial distress
In the while, the condition into which the
nifty thrown by few drafts upon our banks for Specie
OrCUir illustration: added To tie many which had
been previously afforded Of The Beauties Of that bank
Ing system CT exclusive privileges by which the people
Iaye 81 long suffered themselves 10 be oppressed
But the tSt, great al!-lportalt cause OF Tie
cuniary distress lies much deeper than any which the
Opp"sIon papers assign II neither the Treasury order
in relation to the public lands tie Treasury orders
drposte banks. These last have, at the very worst, but
prccipuled evil, which, he'd such orders been
sued transfers in any way made, could by no pos
sbiilty have been long arertCd. 1t would have come
next winter, and with pressure greatly augmented by
the delay. IL would have ta;lcn, like avalanche, at
the very when revu!sIon Is more ata, because
ieE the largest amounts o! payments are 10 be made
The distribution !aw takes effect in January, and had
the necessity of compl wing with the conditions OF the
supplementary bill! given the present harsh but salulary
check To- speculation, the amount o! credit now 80 pro-
dpusy Inflated would have been still further extended,
and tie shock Of Sudden explosion would have Oeen
| lar fearful and disastrous.
Without the distribution bill, even, dreadful CONNER
cal regGIsion could not long have been avoided We
were rushing madiy, at rate which could not long DC
continued. TEE first obstacle must have thrown usirom
our course and dashed to pieces. Look at the pre-
sent state the country When did 1t ever before pre-
such So 'ctacle OF prod:gously distended crcuC-
WllCn did such fever OF speculation madden the Drains
of whole communities: When did all sorts OF comne
dtcs bear such rnormOus prices: And when, at the
SAME time was there such vast coasumpton-such
prodigaIly wastruucss and ualhinking proius!on: Is
the Treasury order the cause OF this: Alas! 1t is one
of its remote consequences. What filled your trea-
slry sacA orc!!u~Ing, that some cunning poil-
tIcin prompted By consideration OF The exuner-
ancr devise the scheme Of rbullon: Speculation.
Whist cxcitcd that spirit Of speculation: The sudden
and rrrlnuus increase Of bank capital, and Inc cor
responding imitation Of bank currency, IN tne last
eui.lrcm months alone ncaHg one h"hdTca mt'0"S "
h,nk cgpiin have been added TO the previous amount
Examine the following bank statistics, derived from
sources believed be accurate and see how prodlgous
" a, RAPIDLY system Of bank credit has been swollen
Aggregate capital of the banks IN the Onltea staeeS'
IN the year 1911, the total AMOUNT was S22 00o,Wo
! 1915 S2200O00
ISIS $1,000, 900
| I>I0 102 900
ESQ llO200,000
l-35 l9G250,0O0
'S'G, (Augusp ~ .2oo'OO0
Increase IL nac y'ars preceding 1890 $iy 2O9 OO0
d., sjr yars 1886, Isl ,O50,Go0
VINO can look nj this statement, and not ecl coh'nc'
ed that The a" the present financial distress lies
dcry"r than Treasury orders: whether in relation 10 pup
lie lands public drfoscs: This enormous increase
o bank capital in the last years has been accompa.
MED ~ corresponding expansion OF bank issues, aud
hy commensurate extension OF private credits The
business of the country has been stimulated into most
TN ~ no!esome aud fatal activity. Circumstances, I'M
unooked.ior have occurred to cggraVnte 'he epuemc
tIyuxv The government has obtained the payment OF
we'd in;rmnitlcs from foreign powers anC new
fnrd ruoraiiIs have contracted large loans ABROAD
These added 10 the products OF our saPes' nave
been exhausted by the excessive imporatlons. 10
: mystic speculation IN me Ptouuc's VI
home consumption in land in town lots IN houses,
in stock enterprises in every thing, has kept pace,
step for step, with the inordlnate increase OF io'e'S
trade What is TO pay all this vast accumulation OF
debt, Ii mns al last out q; labor IL mus COME
,rp,n In. pro,,rs of industry We have been borrow
inc largely Of the future aud have nj last arrived al hc
MONT where pause and wait Tor TIE FARMER "c
mechanic, ana patient brwcr oi "ooa ana drawer VI W.
ter 10 relieve IS from difficulties.
Reader take home your bosom this truth, and pom
der wr!l upon it, it Is the bank system OF tins country;
our wrec!ed, unequal, undsmHcratc system o spcca'
privcgrs which occasions the difhculy we no" o'sh
10 ,e It is not pretended thai under the Tree TRADE sy-
trm Of credit, under any system, colnhielcial
srus would not sometimes, and to some eH'ent ,""e
MACE They incident to the nature OF man us
r bcucis ennfdrncr; confidence leads TO raslncss;
Inc xamoc Of one is inflated BY another; and the de-
nn sprrnds Until is suddenly dissIpated oy some OF
those rude collisions, which are the unavo'dhoe penal
,s 81 violation OF the laws of trade But such fear
f and fatal evusoas mark the eras OF The CONNER
cial history of this country woud not couid NOT aN'
|. MACE under free trade system of banking.
I, is when ignorant legislators pretend 10 dehne ny
ay the limits of credit, and shaking at one Time WIN
unnecessary lrpdaon refuse to enlarge the'n 10 I
wants Of trade, while at another they eH'e'u .e "
beyond nj! reasonable scopc-it IS when snch
.rs with the CURRENCY attempt to control what 10 LIB
u,,ur uneonroIabh and should be as free as ar mat
l. rcvuson pnnc and commercial proslrnon necessarily
, ensur-Whle have restraining laws ana spccia,'y
hanks we shall have periodical distress In the
Nancy market more less severe, the period has
bo.r FASTENED or della yed by accidental causes farty
writer's may at one TING ray every dlsorde1 10 te 'eoY
al of tie dpr,si!es and at another TO treasury oruef'
lat yha,.yrr orders the Treasury may Issue, the AMER
na,c mutations and conlTactions OF the paper currency
incident, 10 such pcrnicous system as ours wil conI
nu, TO produce their Inevitable consequence, un"ho
L activity oi business, io"'"eu ~ P'"'
We have exhausted our space for the present but sna
have more 10 say this subjec. another dsy
q some 2ror,;,elic passages III the speech OF l Ee
nc on the distribution bill Of last winter, to winch we
shall take an early occasion to ask the attention Oh 'us
!. readers,
r NV Izn.ry-it viii be seen by the proceedings OF
the Lygc tina" rsmon DcH1i5 n his nns GTea
e. prntatiye in Congress. bill has passed both
anescs Of Inc legislature authorizing the election OF
lc m Jj,oHaG Representative in Congress 10 M the va
.,,r np oF yOy n,