Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1836-12-10
FOX TIE ENC CIRER.
HANKS IN VIRGINIA.

The credit system springs from the very nature OF man,
which leads hin, coridc in his fellow man, and makes
i, necessary that he should do So IL 50 interviewer
witt; all our habits and relations, and exists III 50 many
forms that are susceptible OF enlargement that any al
tempt to abolish il would hc mprhcticabe, even II II
were desirable 1t is aud contrary to all en-
pericnce to assume that II there were no BANKS heTe
would not be equal extension OF credit IN some other
farm One remarkable instance Of this in
history: At tie close of the Revolution, when The PoPu
lation Of Virginia but 1p0,OO her citizens owed
about ~ millions OF dollars in Great BRITAIN winch had
existed for several generations: IN the form oil loan Inc
,uost nnprcssyc and niuriOus and notwithstanding the
ndulrent terms of payment rs afterwards regulated ny
law believe that lis collection carried very extensive
ruin The Banking system is in"nIhcalion Oh ctedit'
calculated when wisely administered, to promote
he,hfuI condition in the trade and finances of The
trv by correcting the abuse OF credit and making the use
of more sale. beneficial and efficient IL inc cheapest
and safest medium both tor borrower anu iendeI ana
canube of best subscribing the general interest By The
scrutiny which the Banks have the means OF making IN
10 the affairs of applicants and Their power OF enforcing
payment at very short notice. under the severe penalty
of loss of credit loans may be prevented 10 improper
prrsons and for improper objects. They prevent uSury
and make interest uniform the lowest rate, by esta
blislinq known source OF supply. They augment the
resources of the country by making that available which
would otherwise be dormant Their stocks afford safe
investment and moderate interest tor money that would
otherwise Law idle fiom the unwngness of its owners
TO incur the risk and trouble OF private loan J. lie
money reserved by its owners to meet contingent te'
m,ndS beirr deposited in Banks for safe Keeping, It's
varore amount NAV be lent out. And so tar as any
community can safety substitute The notes OF its own
Banks for ro!d and silver circulating medium there
is rain OF the interest on such amount lnasnucn as
the costs comparatively nothing 10 create II; where
&c tho metals to obtain them, will cost Their amount OIL
labor or property Of that community, or II withdrawn
from it. will procure addition OF their amount to ITS
capital in property labor In all these respects does
the Banking system operate as t"0or-mrR9 "Hch"c'
bv addipg 10 the capital Of the country without COST
limit
bcfrp as il does in another though rss important one
bv aifolding> for large payments nedium cap!ole ~
cheaper safer and more expeditions lranspnra'on irp'
Mace TO place To US, the Banks have the aoa!lioha
,dv,utoue uf offering the inducement TO attract hther
norton Of the redundant capital of Europe IN way the
!nost desirable: to be permanently invested IN their
stocks and be lent out among us so as 70
industry and enterprise, and increase prouuclioh'
EYmrcncc shows that there has been TOO eztendeA
substitution of paper as circulating medium ny our
Banks Ii will be found, upon exani!nation t'a ts
abuse is the fruitful parent of most OF The evis result
inp from Banks and that they should be furthcr re-
strained in this respect, they may be BY Leg'sla'
tive proyi:ons. One Of the chic! dangers OF 100 eA
tended use Of the paper medium IS lis l'aoi!y 10 uc
tualiuns As the profits of Bank arise chiefly rom
jhe difference between the amount OF Its n9les IN
circulation and the Gold and Silver kept ldle ~ us
vaults; it, therefore, keeps more OF the lalteT van
NAV be necessary 10 meet any pro6ahe occas'oha eS
for the payment of its noles And tue place u nc
co;n beinn occupied in the circulation OF the country oy
Bank notes il will find its way abroad in some shape or
other for employment except the sum reserved IN Inc
Bank as before mentioned. Surprising an unusual &C.
fciency in our exports to pay for imports to occur
the difference must be paid in money but as BANK notes
are no, current abroad the merchant takes them 10 w
Bank TO be redeemed in gold and silver which are ana
the Bank to preserve the safe proportion between Inc
amount Of these in its vaults and its notes in circuaton
cutails lis loans and pecunary pressure ensues mere
nm annhation of capital takes place, to the extent VI
the return of its notes upon the Bank for coln because
the notes will neither the purposes OF circulation
in paving the foreign debt replace the coin II Inc
vaults of the Bank that they have Withdrawn. mere re
INV excess of curtament the amount OF Inc com
Withdrawn, which may be necessary to reduce Inc CIR
cnation of the Bank to safe proportion to the goa
and silver in its vaults. :, . .L ,.ou,d
remain cold and silver enough in circulation to Teeve
from any probable calls this knd-and the coin in 60
inc. out of the country in this instance would pay e
foT pn debt without subtracting beyond us a'oo''