Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1837-01-28
7;ichnuond, Saturday, aEaEa. @s.
BANKS

-, ~ =. - bs ,ie course of the present General Assembl,
:" r%i,;ion 10 the augmentation OF the Banking capita
nf,h, Stale. We understand, that various Opinions arc ell
a.,;,.I both as TO the amount OF capital, and the Torn
"L,L, !, may assume. Some are for limiting The aug
"",,,,;,u r. atou. the amount of the surplus I" be re
",i,.I from the General Government, VIZ: about tire
~;rr.os Some are for FIVE millions; and some ar" 10
.nrr;nr ~ the sum 10 seven or eight millions. we shou'
consider il most p!0o1o", ""' II VIZ =. -
tlur lu FIVE millions. :.,
u" rain. ,s 10 The mode in which this new capital Is t
l.. IniuscA.-Some are opposed TO any new, lnaePehueh
,-rE; and in favor UG throwing IL al inh tie eA'St!ns
mls Others, are ic one Independent Bank, w!tn
.r',,,,.S whose capital is TO be fixed and put beyond tie
u : n: ,hr ,ao;her Hank-Olhe. IS again are for more
.n"n am. ;,i,rpndest Bank. with branches TO each. we
"..,, ,,,in,, AXE 10 nronouHcr any thing like Il decisive
~ ..,, ,l,,u, the t:aal result. We doubt even, Whe'het
st ,Lfnr TX. = ,:ajoritr OF either House, has sutlcentiy
formed or coupsgcd opinions to JUSTLY any p'ooao'e ca'-
culatiun Gp"n lie su"J'ct' H., ,Lo ,,i,,js of
,uenth,srs have been more generally, bat not conclusive
iy cyncesscd-aGd that Is. that any aught''a''o" VI ~
jani,ni veil; hc accompanied with restrictions IL '"e
.prll!er cu.cs. 4 growing sense "i the 'HhoFta''ee Va
such a regulation beg'ns indeed 10 Prt'@ur' NV H.
1his, ia, the other States. The deepest interest heg'hS 10 DC
rel. I,v our w;scst friends 1t Washington M lii!s h'Allet'
". have one evidence OF the fact III i letter w"ic" Is
NOW before Us. The writer says: =,
:. tlaller myself, Virginia vii! have the hoio'0 Oh leaa'
emo in this great reform. as she has done III 50 hiah!
Others, 0p p.bUtDilInEV fOSptttftt"J e'
tn D,i!lrs. Pennsylvania, you are aware, mas already
sci the example, in the Charter OF The new BANK o. lux
United States; Of %rollIlitIrg notes under zen Lol''s-
1T viii Lc no objection 10 Virginia $ acting l'a! 0n"
States, surrounding her, permit The circu'at'o" u o"'
of smaller denominations. In Scotland. h"leS are cilcu'
lated as low rs El-but they arr kept uut OF England:
where The limit, as you know. is 81, by peha! l's's;a-
ton. \ law was passed By Parliament III 100, PROM
biting. under penalties. he circulation OF NE ,,Iow"
sna', notes in England. ! trIst 'ii' 'He g""u Hu - ~. y
=, -. r..;,,, lm.,rS lv uilcfuU herself at The
h,od of this rrrcuera,iug nIIrcnent: ana turnls! 4 sis-
ma! rc:utaiiol y. .i!r. Clay diSparIgeuienl OF line pa'ri-
o,is!I Of the Stab Councils.
We cordially concur III these sentiments ana "!SIies'
and sincerely hope, that the present Legislature may DIS
,nguis. Itself hy the energy and wisdom OF lis decision
on This i.urar.an, question. This single measure would
cn,i,is il To- Ike gratitude ot lis constituents, and OF like
whole country. With i view Of assisting in the goodly
work. We shall lay before OGr readers in our next paper,
the Interesting speech OF Mr.. ltiveS, on the Currency OF
the t. States. and Ike Collection of the Public Revenue,
d.!yrr i on the lUil inst. Fo. the present, We will
content; ourselves with making the following EXTRACTS
but Tie great cuuImerc ial cunvulson OF lc2j. which
swept banks, merchants, farmers, every thing before II,
with tiir destructive Jury OF i tornado, soon AFTER occur.
Ica, and iorcibly admonisiled British statesmen Of the
necessity ri seeking 4 rcmcdy-in part, al least-lR n
more solid constitution OF .!rir currency. Accordingly,
in the b Ginning Of 1876, Lord Liverpool and Mr.. Rob
insnm. the uic The First Lord Of the Treasury. the other
the Chancellor Of the EXcicGucr, Introduced and car.
1Fa Il btt IiO .sIue W ~ s'et .hI.'. $780, .
ctafi small notes under the denomination OF five pounds.
Tins law was s!out!y aud 2 alously opposed al the time
OF lis enactment. and repeated attempts were suJSc-
cucnl!v made to procure It's repeal. before the period fix.
ec f.: It's operatlun. But these ci;n:ts were happily I'm.
araiiHr. and the doctrine of Adam Smith, in regard To
the ;!vhllitlon OF all notes under the denomination If
five pounds, rccslabl!shed in lS29, alter experiencing
the bitter fruits of 4 temporary departure from it, may
TO-" DC considered as The final and settled policy vi the
British Government. II has received the sanction and
.,,,,, = hr .h1D.t -nf iltprDD1I- of Peel
o. Canning, Of iluSkisson, Of Brou.liam: OF NcllIng-
tca; all of whom, upon the iules, experience and con.
siIeration. have. from time to time, borne their tcst!rlo.
ny TO the value and Importance OF thlS essential res'fic'
ton upon a paper circulation.
"And wllal has been the result in practice' Why, to
eve 70 The people of England virtually u mct0Hfc cur
rencv; for, gold aud silver form there the daily, habitual
medium Of ali ordinary transactions. a bank note, ex:
cc,t on special occasions. - = o"'t "f P"o'"',e III Oh
,t!, ,yut we have precise Information 1t appears,
iioa. statistical returns referred to by The Chancellor Of
the ExchcGucr III the House Of Commons, a lew years
ago, l!ll The amount Of gold then IN circulation was
t22 np0 900, twenty-five millions OF pounds sterilIlg)
and of silver - G0, 900, (rigilt millions of pounds ster'
linz DO not speak oil gold and silver locked up IN
tie vaults Of banks; bit o! that which passes daily from
hand to hand in the ordinary transactions oil business.
:" |: is This abu1ant supply OF The precious metals, I'll
linz and saluratln- the ordIn,ry channels OF circulation,
which desire to see brouy!! about in our own country.
That IS the eai to be aimed at. What are the means by
which it is to be accomplished; We have seen that in
i.aellNd i has been accomplished b. the prohibition OF
Al. bank notes 0; 4 less Examination than Is. Similar
means will. doubtless, accomplish the same end here;
and. must add. nuMiug else tcHV. Ii is III vain 10 ex-
peel /, bling gold ana silver coins into circulation, with
GU! i previous suppression OF all notes VI corresponding
denominations. The reason is obvious. II there exist
IN any coualIy two distinct currencles, both OF them
answering equally we'll the purposes of domestic clrcu-
!a;i"n. but one u: them possessing only a local value,
coH!acd 10 the country OF It's emission, while The oli.er
MS a universal and equal value throughout the world,
lie latter Will necessarily % abroad into the commerce
O! iIs world. III guest Oi the riches and productions oil
ID! N nallp!S, leaving the former IL home to perform
an Ol!cc winch il dues equally as well, though It be
wholly without Use or value abroad. The total lncoIl-
~pailJ:l'y. therefore, Of a paper and metallic currency OF
W. same denominations has grown into an axiom
L.. Us then inquire what is likely TO be the crtcnt OF
The effect which viii b: Produced Oh the currency by The
successive prohibition oi all noes under five, ten, and
lweMy do.!lrS. respectively. MIR. Gallltin, whose skill
III questions OF iiS sort is universally Admitted: IN his
s'Ie pamphlet on the currency, " ritten in le30, est!ma-
ted The reduction IN lhe amoIlnt D! the paper circulation
WINCH would arise. al that time from the suppression OF
al NOTES uadrr five dollars, at SIR millions aud that
hAc!y to he produced uy 4 suppression of the notes un-
| c"f zen dollars, al about scctn millions making an
! aggregate u: thirteen millions OF dollars, and equal to
""s'tiih OF the whole paper circulation of the country.
another highly respectable authority on American bank
IA. iGnnge,l estimates, in le3l, the amount Of notes
under 1--we dollars then in circulation at scren millions
and Of n";es under ten dollars, n: ten millions: making an
aggregate ot ScreRtseA millions. But let US take Mr..
He"atn's estimate, aud suppose that the suppression oil
L. noes under five aud ten dollars, would, together,
operate q reduction Of one-6ith in the whole amount OF
e'n" paper i'll circulation. Let us then suppose, (Which
.P'e*unt, would not be extravagant) that the supprcs.
SON e! all notes under twenty dollars, and above ten,
%'G'4 Produce, in amount, q dininution Of une. filth
4 'H"'e OF the paper circulation. By the ultimate suppress
s"a "i all notes under twenty dollars, we should then
gan an aggregate reduction of two ,f!lhs in The whole
riTF circulation OF the country. According TO the re-
Cent report Of the Secretary of the Treasury, the whole
i E,per Circulation OF line country amounts at this time IL
Nv "'1s'"'S iwo-til!Is of which would be forty.eigh>
millions OF dollars. But, in order to be within sure Ii
"It>' VT WIZ suppose That the amount of hank paper
""en "oad he withdrawn from circulation by The
a"PpF, IS OF all NOTES under twenty dollars, would be
om5 ~ millions. That. "f course, would lie replaced by
~. 'EiH' a'"'0"' {! GOLD and silver. How, then, woul,
,3h" Tue accoun, IL tie iiaal result? Fnrtv millions
iA"Sh it|'' he l2j millions U! paper circulation, wou.,
nss' ~ Mt''G"S V paT~: and added 10 the 3 millions