Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1836-12-13

At all these periods, except the LIST of January last
iwenty millions OF paper have been computed issued
but not IN active circulation among the people being held
by other banks, and far considered equivalent 10
deduction Of like amount from lkes own circulation
liable to be redeemed in specie. On The list of January
last, the amount so held was about thirty two millions
and IN July last the active uotien pro-
butly some millions larger than it is This exhibit
makes the whole active circulation of both paper and sue
Gle, about So 30 per head of our whole estimated popua
ton in Oct, 1888; about Sc so in January 1884 about
81 in January, 1885; about IS SO in January 1885, and
near $40 at the present time. Though this less pro
portion of circulating medium Than now usual in the
countries OF Europe, which are most commercial, and
where specie is used than bills vet il is larger
ratio than has been supposed TO be necessary in the
United States considering the character OF two or three
millions of our Southern population. Tie average here
has usually been about 50 per head Nor has the amount
ever before ISL been supposed much to exceed S. and
at no time since has exceeded about 81 per head except
under the excessive paper issues towards the close of the
late war, by which, in 1876 it estimated TO have
reached Sll per head.
While our country has, of late years, become more
commercial and wealthy, and has larger portion Of
specie in use, which circumstances would somewhat in
crease the necessary and proper Of circulation
per head mas as counleractng TO these great
ly increased in the aud quckness OF commuuica.
zion, whether by mail or otherwise and in the use of bills
Of exchange and drafts instead of money for distant
operations Hence circulation, during ahe past IL
months " oo and lU per head is deeDed excessive,
and as III 1876 one great cause Of the exsNant prices
which have prevailed i'll relation 10 almost every article
as well us of the extraordinary propensity to OVERHEAD.
1ng and speculation which has pervaded almost every
section OF the country. 1t is true, that Iariup few
mouths past the paper portion of our circulation has as
before suggested been considerably reduced; but till
that with present large amount of specie in c!rcua
hon added falls as low as about doals per head
or the bank notes, to about eighty million o. dollars. in
stead of one hundred and twenty million hhe currency
may be considered too redundant and ia an unnatural
and inflated condition The credit system has no, only
Snaerg1ne an unusual expansi among individuals and
Inv nf
Sues penetrated more deeply than is safe into The whule
currency OF the country and rendered that which, as
money. Is and should be deemed the substitute or anago
nst VI .et, oepehdent too much credit itself and
suoeSt W Hy VI Tie dangers and fluctuations ia value
!nsepaiaole from mere credit rather than possessing the
Mrinslc aho UNIFORM value attached to specie,
inns condition Is believed to have been produced chief
y by numerous interpretations Of new banks yy;Ij,nn,
suitable legal restrictions, in many States on Tho nnn,
either Of discounts or Of paper issued in n-non,;
the specie ON hand; and by the excessive dnoni c
money, thus tempted and stimulated TO mid -, .o
number OF cxrayagant adventures n lands s,ocI and
trade "' '"u
These, acting together, and in some degree inD,su
eng and exciting each other have ndHced aany Lauk
to hazard unreasonable and ndiscreet issues as well M
ioans to supply the wants of such extraordinary cr
ss, and which there good believe however
large proportion Of specie fortunately exists in the
country, ana which may tend sooner avert The usual
EVIL consequences trom TIE above state of llipus will
produce much distress, embarrassment and min bnr.
this specie can be duly equaze the excuses Of PAGER
sufficiently cur,aed, and the cxorhitant discounts Ora
dualy essened to their safe and proper limits This in
crease OF about forty millions third of the panrr
circulation IN year and haif, is ssdden and preal
ductunton, which never could occur in eurrencv en-
t'rey metallic, and which woad probably during the pas,
year, as IN ISL have been much greater had not The
larger proportion Of specie in The country and the
increasing dsuse of small bills operated strongly as pre-
ventve checks. - r'
But even now the excess has been sufficient 70 con-
stne the chief cause for the artificial nta.ion in
prices, an unnatural stimulus to speculation, and ra
Pa vac'iiaon in the regular modes Of doing business
"hich cannot, under sound views Of political economy
De Too greatly deprecated their recurrence too care