Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1837-01-31

evils Of an unchecked pp r system, liz" management OF INC te'et
several OF tn" st Is H",. ni,..hy eona."ncsd il r"!.fA 10 ~ suis
preston % %snn:ihit, Hi s"'' as "hg IL 's j1Sssa "y 'r q" ;ns
ettsnt re pared Er "a .crlr1g. ii t' tG'r""'", 10 "a" r"n&ti"t"""in s
susce pis,- oil d .nsr.css ru sasie ~a! coa M Akin, The state Sanks
will not be ,ernl,rJ, "~T " i'll ;hey fn'e ':e iowts w"i.h We i,avs
a. OF tho G3r:ra "cn:. Inc >"3l,r III ""d CUSTODY 81 the r-rehre
hsia:, Ga e., H. 1 a. a source .: ;f';' h =, 's|" s, w.u y aS's .; : ,M III
trusts, by multiplying t"c s'r%;t"i"Eto "'Erh 'E' = sle!;a;ons ''
the oilg ,ioas of their c.anrr-, i: ca .a DC double! ;hu; such COZ
di:iaas Ns CGn,.cis MY So. ii; - -I"pi :rsprciin. the 1rro>i'.s 81 -
bills, will be chsr:f ;ny Coz pied with; and thu, we 'hall econ sm;n,
in place Of the D .nk O. ,hs t.itsd S:t.i's,a practical rE0'@ nnt."
whole paper system O. tie country. l., by !hi' poiiry, we ~ ~ M ~.
M ltelf witness the sa.7ics>io o. all nlaE bill. 6aNT t|rn's a""mss
1t ~isapp-rcn;t Ina, gi AMI silver will take ''oi' il'se, "I ,% SsI i,.
the priacip:l cirtai ting mcaiIm ia The pI'nI"n business "" ht rn-
ne's and mechanics OF the county. The att ,nans"' o -; = n :" t~
I l!s % nnS 5O'm mi ah S StI N 'n ne e S!tv'; Era "s f %i' OF ~ Is Is IiosHy uni in.
dependence. # will Es!ira the s:cat tax wien" ~ r'"n s!" - r'
vve and peIp:tuat. those la his ofrc"aomy an si'i ',G'iy wE!sh are
30 con :eaal to the chtrictcT O! Ttpa2heaas, III ~ Ia s'''''''
which has vet 5ecn attempted
Here we have u complete delincalinn OF the pulley O!
the administration on this great question OF NE curfeh-
cy, Neither the President. nor The body OF his triehuS,
have proposed a total suppression vi ti:ik paper, or an
exclusive metallic currency; bnt, to use lis own words,
they have desired to see a'praciul rJ"rn, IN the banking
system, by the ultimate suppression "i az ban" "il's oe-
low t,centy doiiars; so CHAT gold and SILVER t.'ght take
their ulace. and become the prlHCipdt circulating iheui'
nm in The common business OF The farmers and mrciia.
MICS Of the curn,ry.f This, he expressly declares,
would be "a practical return, To the extent rtqnf'd jrr
the security Of the currency, to the constitutional nled!-
un;" md the attainment Uf which, ae adds, "wlilo riD
en- era in the history ofour Country, which viii b. dwclt
upon gith delight by every true Trend oi IT'S iiorrty ana
independence. There is nothing IN the Treasury Cir
cular inconsistent with this Interpretation ut The policy
Of the administration. That measure, as have AREA
DIV said, was an occasional and temp rary act. Ersorttd
to under q peculiar emergency, I'LL tue power Ut Gun
gress could be inter p"Svt /" apply u ni"re Systematic
remedy, and cannot Ia" considered as u departure lr"tn IL
settled and general lac eF pUi;cy. On The contrary, tue
President. i'm his mesSaye al HE CulGIucIceu rEt TT The
present session, expressly rraars to The suppression oi
the lower denominations Of bank NOTES, ny The concur
rent legisi atom Of the General aud Stale G"vernmcn!s,
us forming "the true policy Of the county, by which
only "a larger portion vi The precious luetuls can be ID
fused into our circulating medium No olher plan can
be tfsctual for tie accomplishment u! sac' d rrsrl'; ana,
until II shall h adopted, ull that may BE- Sd'u' h""Sftf
glow .ng and fascinating, of Tie advantages ot Il m"aHtc
CIRCULATION, will prove bat barren theory, aud G,l"sife
and Improbable generality. ioa may bring gold and
silver into the country, and pile them mountains h'Sn
in your banks; but, without The suppression VI sle Small
notes, they will never circulate III The business I'll "oci-
ETY., and will always be exposed 10 Ge dra wi Ok ny l!r
absorbing currents OF foreign trade. 'iflc o'J'ct 81 il ra-
tional policy is, to bring them into daily ana active usr,
invi.oraling and sustaining the pursuits at Industry, and
not to have them, like tie ancIcnt t:ouSsl!"lI rr!!ca '@'s-
crtted by the pnct, ';wi.e!y kept / r show.
III. s..on, invu, is, ~ Wait means ~ our p'"";
this great object of the SUPPRESS On cl the s'liali ho'eS i'&y
be promoted or accomplished. 1t Is thr'nsh TIE S"''
lection aud management OF the pubic revenue ui';
that the agency OF this Government can. al present, Ue
uselully iu,er posed. BY refusing 10 receive, III pay men!
OF the public dues, the notes Of all banks which shall Is
sue bills OF the lower denominations. as Is proposed o.
the resolution have had Tie honor To submit, d SlrohS
inducemenl Of interest will be- held cut - the leading
State banks to discontinue their smaller issues. Iae
consideration Of the credit and more genera! currency
given to their paper by Il receivability in payment o. 'hc
revenue, would, duubll, So, induce more Or less al them
10 conform TO the standard which shall be- established in
this respect by the legislation Of Congress. But my re-
lance is not SO much upon The "p"Tn'i"n oi th;s measure
per Sc, as upon the moral Influence 1t is calculated to
exert upon tie policy OF the States. They lave the con-
plete power TO prohibit, by law, the emission and CIR
culation Of the smaller mules; and ] cannot doubt: If Tins
Government shall hold up TO them 4 standard d"rm'd
Indispensable to lie publication mud reform oi the cur.
rency, that that power vi! in process Of time be excrlrd
SO as TO second and render etitclual the policy OF our ie-
eislation here. Have we not every encouragement, IN
what he's already taken place, to hope for such a IesulE
1t is only q few years ago that but three oil Tie states,
according to Mr.. Gallltiu, pennsylvania, Maryland,
and Virginia had prohibited tie issue Of notes under
five dollars. But, since that time, it has been the policy
of the General Government, in The collection and man
agemcnt of the public revenues, To- dIscoun!enance bank
notes under that denomination. And what has been The
result: We have seen the States, ore by one, successive
ly confirming to the example, Til now a mnJ"'hy Of
them have prohibited all hauk notes under the dcnoml-
nation Of five dollars. The confidence | feel III the en-
lighlened patriotism Of the Stale Governments, and III
the popular intelligence and riTtae which CONTROL !hcm,
gives me every assurance that an appeal 10 their CT ope.
ration in SO great and nuble 4 work will not be in vain.
especially Wtleu lney S!ltlI navy UtlOi tlelH u WV aHe
practical exhibition Of Tue probable results vi tile poll
cy in which tlrjr concurrence IS invited.
Let Us then inquire what is likely to be the e1tcat OF
the effect which Will be produced on the currency by The
successive prohibition oil ali noes under i've, ten, und
twenty dollars, respectively. Mr.. Galla,in, whose skill
in questions OF this sort Is universally admitted. IN his
able pamphlet on ,lr currency, w Tittcn i'll lc30, rs!irna-
ted the reduction in Tie amoIint vi Tie paper circulation
which would arise, at That time from The suppression o!
all notes under i've dollars, at SIC mlHiUas and that
likely to be produced by Il suppression OF The notes un-
der ten dollars, al about Strtn aalHt"nS making az
aggregate of thirteen millions Of dollars. aid equal 10
one. filth Of the " hole paper circulation "a! HE cuGntry.
Another highly respectable authority Oh American bank
ing, (GougeJ estimates, in 1851, the amount Of notes
under five dollars then in circulation at seem mtHtHnS;
and Of notes under ten G"iiars, ut ten mtHt""S: making an
aggregate of sercat:en millions. But lie; US take :!r.
Gallalin'a estimate, ard suppose that the suppression oil
the notes under five and ten collars, would, together.
operate d reduction Of onc.Gla in the whole amount ri
bank paper in circulation. Let us then suppose. (Which,
/ presume, would not BIZ ~ .ravagant) that the suppress
sion of all notes under twrnty dollars, and above ten,
would produce, in amount, u Giminuil"n OF one'iI''h
more nf The .. per circulation. BY the ultimate supprrs-
sion Of all notes under twenty d"I!ars, we should then
gain an aggregate reduction of twu.!illhs in the whole
paper circulation OF tie country. According to the RI.
cent report of The Secretary III the Treasury, the who"
paper circulation If he country amounts at this time 10
100 MILL ous, two.hilhs OF which would be forty eight
millions Of dollars. But, III urGrr To he within sure H.
lnits, We will suppose That tsf amount "l hauk paper
which would be withdrawn fran circulation 10y The
suppression of all notes undrr l"rMiy Lpiis.s, would be
only 40 millions. That. Of course, @rm.d br replaced by
un equal amount OF go!u and silver. How, ilrn, would
stand The accpun, i'll the final result: F"r;y millions:
TAX IN from the I20 millions oi paper circulation, would
leave 80 millions q F"p'r: ans = lied It" tie - millions
Of gold and silver aire:dr in circulation, according ls
the estimate Of the Secretary Of tie Treasury, would
give US IS millions; or, ('r the sake III round numbers,
and to compensate liberal dcd actions mnGc uho,r) ~
millions IF gold mil Sitrtr in 0ctirs c;rcM!cti"n-E". drm.
med up and stagnatirg in the Golfers of the banks, bni
spread over the land, iTriTatInT, rclrte!;InT, aRd trrtI.LG