Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1837-01-14
cDV.ifE.iTc.3?I.D.
Z ".'
r. Me Leris'ciure of Iirg'nia.

oil; &c him ~ noticing This fact!
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C0VNI.iTC5?ID
r. The Lsris'ciure IF FWsmia.
The p7ston Of Virginia, in relation 10 TIE oahHH:
ten csnrray, has not changed since hr' own y'I"
nnov opposed the adoption ct me htS' n'E. ,n
Rank; bit in this in llny other thngS hst interests
ard ;r;cos have been sacrificed upon Inc altar o! pa
tro;ism when she SAW it was necessary 10 susaih our
national existence In this sF'i't she acGnrsccd IN 'hal
S,.s hfphts apioa whi!l ASSUMED ana acea upon
h. her sister States in d1ncs of the constitutional pro-
hbi;jon which says: no State shall coin money or
,.u bi! Of credit; and srw her own territory field
for the sp,cGa,ns Of bankers laca OUT Of her limits
II must b. recall; c'ed TIA. INK notes were a. Premium
uu,ars, U.s. some 81 % years since: and the same
,,r,-o.ss in ouT S2scultng community OF talt date,
,-:pr len acd, proclaimed ruin 70 OK! Virginia, If We
did not establish banks -: our own And, as they were
Established in many contiguous situations the simple
e."s,ian presented '*r!! between domestic nsu ons
81 TIA, kind Inch the people, through the rgls.
l!ur" could exercise c"7o-and foreign banks, located
ont of la!l$. wEc *e could not inspect or control
Virginia. when reduced 10 this alternative very proper
/; determined 10 establish her banks, defensive
measure ard lew years afterwards, influenced by very
much the same cianGi Of spectators which
have about blak ilvo!!tes, the want Of competitlon
wan, Of capital greater barking facilities Of other States
and consequent wealth. &c, second bank was charter
ed AID by Of tickling the palate of the planters. it
was called the Farmers Bank of Virginia. excellent
management OF the mother banks and mos! OF the branch
Is Of these Institutions enabled them TO sustain the value
o. IN! cl!cuIiInI ieG!un, Wilsn WluS Spfeh
ed tie pursued many Of our sister States, where
less caution observed, (and especially in
daughter Kentucky; where for the time being, the Yam
ke Srill ~ speculation nccG!sed upon tie ardent
temperament Of Virginia, and she having nothing Of the
cunning u! JONATHAN, her losses we:e inrase) So great
has been the injury done by the banking mania, in
pieces, By The frequent insolvency Of lhe small lndepsn
den: banks that prudence dictated The safety fund sys
ten. Consisting blieve, Of the mutual of
such banks could furnish evidence 10 their cobaakS
o. sound condition-and the rest Of course swept
ny the board-whch was in effect, making the whole
banking system Of that State unit. II may be further
remarked, that speculation in lis various phases has
generally commenced q, the Nor,--and when any
ct lis forms has there Gune It's office Of benrfii,!ng
few and I'M urmg vas! nur,Uer, 10 the South have
taken il NJ, and no, only it at 10 The runous
extent, bnt have been pretty TO in for hea-
ver loss than fairly own-ias,ance tue old pa
Fer system Of the Revolution, &c &c. The clanlor
most heard on all occasions like the present. is from, spe
cu!aors. who have very little capital Of their own, but
possessing Ie confidence of solvent friend,
eager 10 rush into speculation in The full determination
OF making large fortune in few years. most of whom,
however by thei7 np7udence bring rTerevablc ruin
themselves, great injury 10 their friends and heavy losses
IL the community. Tn" sudden changes in The value Of the
circulating medium, from, full bank issues aud subsequent
cuan"als, result mainly frnE1 the spirit Of excessive
secuatoa and must more fully follow the existence of
anunber o! sl and independent banks located in the
Nicinagr, than in we.regulated institution,
possessing tie oi guarding against This spirit OF
excessive speculation. The means, however ample in
i" co nmrnccment o! the course Of small independent
banks must necessarily be weakened by The frequent
c'!i:sions whc! a7c incident ~ the existence Of HUME
Us small banks in The StatC-as tor instance, let
"n? amount q! brnkng capital be assumed, say six mil
!'S /; these six millions were dIvlGcd into six in
dependent banks, the competition between them would
tend |" weaken each iii degree (and rnder
sly ior heavy cuai!ment cer!a ruin Of tleu:)
whereas The whole sum vested in institution with
u'acieS would escape injury, by concentration of its
f"r5eS |" meet pressure from abroad Exchanges and
'Mllancc5 would Be more regular and certain, between
hfa"c!cs o The sane Dank, than distant institutions and
h' circulating medium bri,er at home because useful.
j acceptable IN every part Of the State. and especially
So a. Gsant positions cat vi lius; for, the know
'o&e OF large institution capable of rcdcciug lis pa.
pr IA specie and meeting all lawful demands eanst it,
"ouu necessarily io3% lin: good mana of such
i" institution, whilst Tie reputation Of the six little
n'ihS would be necessarily very circumscrihcd, and the
intervention OF broker the consequence OF any o5ga-
"'h 10 pay money at distant point. Competition, it
sr'i'S, however, is lh"nght necessary: and from The
man cement ct til" few banks VIC have being of that
CAUTIOUS character which has enabled them to avoid ma.
ny m The injuries incident to competition when pushed
100 iar '!e demand OF the public would he best met By
continuing The banks in existence as the CONNECT.
"'h would Certainly be sufficient enable any iabour-
i"- business merchant /" procure much uccpmnoda-
''n rs he was fairly entitled TO from his habits and ca
Pa ana II The das"g, daring advcutu,er were restrain.
muniy. " WA
The tnrrest OF the State in The Bank Of Virginia. and
erS Bank Of Virginia, The fair character Of the cir.
I"'ing medium, and the facilities Of keeping it in
ra'n'n condition b. rigid and frequent examination
mo The affairs Of the banks present irresistible clpi,ns
"C0AHiucra"n IL new banks be instituted at 4 dis.
'NS' l." "hch The State takes stock, inequality in
''."n WIN her own citizens is the consequence II
It, "ie Legislature cannot guard her interest in
'"". institutions we'll as u those near 4, hand and
I'l''acl'r OF The circulating medium requires This
t!ic pubic credit Of these institutions being
;',"a'cy connected with Tie annual Legislative
,,,i; IN" Their Affairs; and although these exami.
frm vet !, |" os most frequently mere matters of
very E,,l u'oc'shHGd that acknowledgement would be
crr, Il, detection, and this belief gives additional
the 'ahN notes, and is mutually scrviccab. 70
va!u. Of ,I S people, in continuing uniformity in the
constitute ,,o lal'hg medium; for, bank notes still
irv Win ;s s portion OF the moncy Of our coun
nencr r. a. view, however, of giving greater perma-
sen, se 'a!ue OF the circulating medium, the pre-
circulate n , should limit all bank notes admitted to
af,r- ~ ~ ~ !ae State, TO ten dollars which mcbt here
,''' oe limited 10 twenty dol,rs ~ ,' Is ~ " N
The snail be sufficiently diiFuscJ TO per,nit H.
Mo, - w OF specie also COMFORTS with the opi.
tanknr OF The necessity of increasing the
may take Ibo IN The ratio Of the specie which
c.c,sc nS ,L pace OF The small notes. will be the in
rs the n; amount q" the circ ualius medium so long
p2iD, hsIs capital of our State is restricted to 4
iuon Tie 'x usna"a Of excessive and ruinous specu
h,r". me history Of several Euronean nations who
"'' raised The limit Of their Rt &C., ,a'. hs o;,ad
n,f,id a' even commerce itself has l:eeu rather be-
hi h.nn sh inquired by such limitation whilst incalcu
nurs mas resulted to the great body of those COM
ana tins will be found eraI,v verified in onr
case under ordinary circumstance and conspicu
c;y;nr .ne event of any other circumstance
caD,h7 e pecuniary demand against u.s. not
f 5v tho 'tins discharged by domestic produce;
n, me diffusion Of specie the yalue of lin, ba nix
would be Instantly tested in everv or f the comn
eve. producing mole caution in the Banks as 10
man 49, Uot rendering it perfectly evident to every
,on, al our specie could not he drained from, w
bnt run pom our Banks even of the NEST vo-
Iri pr3tir At