Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1838-01-11

academies that reported 10 the Regents last year, was
nearly S70O,000 and the amount paid Tor salaries ahu
compensation of teachers exceeded S93,OOU.
For several years past The nature and character OF oui
currency, and, as connected with il, our banking ihs"'
tutions and credit system, have occupied a large sPaoe
IN the Executive messages TO The Legislature J stn NJ
terrain The opinions therein expressed, sliHhiiy "' tntI
by subsequent reflection and experience; ana l SUI i,
not, OH this OCCASION. revert TO these suhJec's' 7 ~
not for the new interest that recent events nave s"e"
to them.
hold it to be the imperative duty Of The Lcs,siu."de
10 guard the public ugainst. the evils Of n spurious of VI
tinted currency. Ours has hitherto been coinPosru
mostly of The paper issues Of Sale BANKS ~" n' ~
tutions having been very generally Fes"roeu - ""5 hr
useful, but as indispensable to our prosperity II was NC
| object of past legislation 10 prevent the ABUSES i"''ue"'
10 them, and TO increase their usefulness. nc IA" Nv u.
atinr the Su;eiy Fund is the fruit OF this wise Po.ty' ~
provisions are admirably calculated 10 couh'e'dct w P'.
verse tendencies of seif.in,erest in the management VI
banks. TO check their escpsses, and sustain Il SOUND cir,
cula,inr medium. This law has hitherto received asH
Justly deserved, the general npp1"batI"n OF the Prope;
and | trust no seruus intention IS any where en'es'aIneu
of wiihdra wing from our banks lis salutary influence
and supervision. ...,
While the Legislature has been engaged in giving 10
these institutions The attributes OF PetWhnency anu u'I
fulness, an increasing unirie ndllncss has Oeeh eA"io':eu
towards them, principally on account Of their exclusive
privileges. Alonopolies are undoubtedly 'ncomP"''o'e
with that equality of civil rights, when !, Is me s'sa'
object of Il tree government to secure 'o Il 81 Us ciI-e"s'
Although the banks of This State are NOT s't'c.'y no'
nnp,Iies. vet they possess privileges wIlhne'd nom
diyiduaIs, and in consequence thereon nave ni'herro
shared. and will probably continue 10 share, IN Inc OIL
business with which monopol'es are Justly fre'usu'-
Tn obyia,e this objection, il is desirable To discontinue
the preseut mode Of granting charters, and To open Tile
business of banking to n full and free competitions under
ouch general restrictions and regulations as are heces'
sary 10 ensure 10 the public at large u sound currency.
This can be done, either by passing n general banking
law, or BY an entire repeal Of the restraln'ng act
Doubts have been entertained as to the constitutional
competency Of the Legislature 10 pass a General BANK
=. -. .rD,r,I an,,ur tkthnt1f Pnpr-
inc into the argument on this question, 1 will only say,
that | am inclined 10 the opinion that The Legislature
have the power 10 pass such n law but the spirit OF 'he
Constitution requires that It should be passed as a Two
thirds bill. Ii is proper that should also say, That ,his
opinion is entertained with much d~ifhdence, and is not
expressed without duly considering the respectful defer
ence Justly due 10 the high authority BY which II IS OPP
pnsed. If, however, you should conclude that the Con
slitu,ion inlerposes an insurmountabc obstacle 10 The
uassare of such an act, then it is suggested that you
should regulate and limit, by n general law, partnerships
which may be formed 10 conduct the business OF bank.
ing. in such a manner as 10 secure tn them The essential
advantages now conferred by special charters, and sub.
iect them to such restrictions and regulations as the pub
lie good may require.
In r]ecommendng 10 The last Legislature q repeal of
the restraining law, felt it 10 be my duty 10 urge them
TO retain that part Of it which prohibits the issue of notes
or other evidences of debt 10 be put in circulation as
money. The objections then entertained 10 an I'M
qualified repeal still have great insce with me. Tear
the injurious consequences to our currency that would
result from granting to individuals and associations The
unrestrained license to issue paper, and putt in common
use as a circulating medium: but if this permission could
be made 10 depend on an ample fund to be provided f"r
The redemption Of the paper which might be put IN cir.
culalion; if The issues could be graduated by The amount
OF this fund; and il il could be certainly and immediate.
ly available whenever required for the purpose of redemp'
ton, the objections to an unqualified repeal oil the res
training law would be removed.
II is now more than a year since we began TO feel the
effects Of a pecuniary pressure unprecedented in extent
and severity. Though timely warnings were given OF
its approach, they were no, needed, and the causes that
couspired 10 produce ii were left to operate With und!-
unfinished force. lis intensity increased with lis progress,
and il has nj length pervaded all sections Of the country,
and all interests have felt its whitening power.
Upon this Stale, containing the great commercial EN-
Poriuni Of The nation, the centre Of domestic as well as
fnreign trade, and Of the monetary transactions Of the
Union, it fell with crushing weight
A restless spirit of adventure and daring enterprise, is
a prominent Characteristic of the American people
Under is impulse. their conduct, tor some Time previous
TO our present difficulties, tended 10 overac,ion in all
branches Of business. With scarcely substantial capital
enough in the country, aided by the prudent use Of cred.
its, to WELD our ordinary busintss concerns, n greatly
increased demand fur il was created by all kinds OF over.
trading, by extTuvagant spccula,lons, md enormous IN
vestments in unproduc,lve property. Our credit system
was resorted to in this emergency TO sustain this over.
action in trade. and 10 carry out these enterprises tor
The sudden acquisition Of wealth; in this manner it be.
came burdened, oppressed, and was finally o]verborne.
The open credits which it is now known were ex.
tended by certain houses in Europe 10 merchants and
bankers IN tnlS country, hdu Il pu"eIiui uHH ptlhiCI'"S
agency in causing our present rInbarrassments. The
facilities thus literally given on the one side, and NEST
improvidentlv used on The other, led TO an excessive i'm
porlatinn o! foreign goods, and the consequent accumu-
lalion of a very large foreign debt, which the eVais III
our exports did not furnish the means of paying. Over.
trading at home, is the almost inevitable effect OF ex.
cessive nporlulions from abroad. The same fruitful
source Of evils has also produced what was anticipated
MS a blessing, but has in fact proved TO be 4 public Gala
mity-the accumulation Of a large surplus revenue.
From the organization Of the federal government dpwn
TO The present pecunary crisis, It's funds have been dePo.
sited in banking institutions, and in this situation have
contributed 10 increase their ability 10 accommodate
their customers. While the nation owed n public debt,
and the surplus of its revenues was rigidly applied 10
its reduction, this mode Of using The public money, had
but a slight effect upon the ordinary currents OF bust
ness but after the debt was ex!inguishrd, the accumu.
lations Of surplus revenue were Immediately and Who'll.
ly turned into the channels OF trade, and in this manner
q new impulse was given 10 The prevailing tendency to
oyertradinr and reckless speculation. The public to-
main was seized on with the greatest ayidiiy the i'm.
mense sun received at The land Offices, were poured
into the national treasury, and 4 fearful energy was
thereby added To one Of the many CAUSES which co."pe.
rated To reduce The business of the country IL n jeplora-
be condlIinn.
Looking back to the period Immediately preceding the
present revuisinn, and carefully examining it with Parti.
GUAR reference 10 the vie VS. aud feelings that prevailed
here and else where, II would seem that a strange delu.
sion had spread far md wide, filling the minds Of many
with cxiravagant hopes. and leading thers on TO the
widest adventures. IL VAS scarcely reasonable To ex-
pect that ,his de'usion would long continue, or that II
cnuld suddenly pass off without producing a disastrous
change in our business Transactions. The course Pur.
sued by the General Government. to arrest the ennrmous
speculations in the public lands, had doubtless some
agency in accrlrraliDg the anticipated change; but 10
the suddenness and violence with which it was brought
about By other causes. are to be ascrlbcd the calanilous
consequences that have attended il. The lavish pecu.
mary accommodations gIpea To our citizens in Europe
were Unexpectedly withheld; The payment Of on euor.
nous debt due from our merchants, was urgently de-
manded; the prices of our staple products haviag de.
clined, and the balance Of trade being asaiHs! US, the
precious metals were required for e1portalion. This de.
mand pressed heavily oil The banks, and, as q means OF
relief, they were compelled to reduce the amount Of their
discounts, ne eomm DaG,,;o con' mum =, mus "nts oepr,yf "a