Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1838-08-14


INNS, dptes,aion of heart dteorcc oil hose encer
and sffrc,ionale ties which bind together IN common
desliny husband and wife IL Is 10 oi'o!ce Of s
character think the proposed divorce may " more
" and apprnpr:aiely assi:!acd IS IN eii'ct, pro
,s;,;op m divorce this Government from, aud render II
indie nc ndent of the institutions Of tie States end he IN
,ercs, and prosperity U !r people, 10 Whcn u shone
n. ;nIis.oluhly united The true question involved. Is
~ h,m.., rho Government nd the be aks, but between
the Government and he op!c because the institutions
Of the people are sirnch ~ . r., :. :
ReG,e entering upnn tlr discussion Of the merits OF
,i;x biII il will be proper from The course O argument
which has been pursued 10 nqre, what are ihete banks
Fran whence did tlirr derive their existence: What
are their attributes srd What have been Their effects
E,o.n the manner in c this snhjec, has been treated
yc should suppose that The banking institutions at the
States ere irdcpc cSscncrs not authorized
BY law u:d beyond thu c"miri {" iaw-taaI liry were
some third power ia sncciy, sell created, self existent
self conrued, and srtwi:'rd Bus, III, they are iEe
institutions OF the rrthey were creaIcdhy tie pee
ps through their rpres6 natives and with their appT"'a
lion they were ciCu!rG by law within the pale OF lie
admitted constitutional powers o The states ana :te re-
sponsble law. and upon every pf!ncie {" our system
should to proper extent b. iav"Iab!y regarded and not
Subjected 10 The hostile action of this Government But
il is said bv that they Grstucta;ic co!porsons
corrupt in their tendency and dangerous 10 liberty Ills
they corporations; i"r WITHOUT hting
.i-y could not rxst.-tIey would have no legal authority
to crforu, ;acir functions bat what Of this; il this be
insupctae Chlpc!:on !! would destroy The Government
itself; tot III. Government IS put great cnrpoa'I"n
created by the people; the Constitution being ne charter
of It's powers It has also evil tendehcifs and is armed
with dangerous powers; yet the goud tendencies over
balance The evil end tn dangerous powers impaired are
Indispensable To the security OF lie, liberty and nap
pness. Would il be conlended that because there were
some evil tendencies and some dangerous powers OF Inc
Government that should BIZ ovcrthrown and entirely
anni!ated? Certainly ngt; because there IS m system
that may br abused Railroad and canal companies
and universities and colleges are but 81 many corpora
lions with powers impaired adapted 10 the peculiar oh.
Ufi hrirc
necessary enable them 10 enforce the performance OF
all obligations DIE to them and TO be liable TO the enforce
mrnl e all obligations due from them; without u, They
could neither incur nor Iuire any liabilities In" end
TO be accomplished by oil interpretations is 10 effect tina!
hv united strength and associated capital, which cannot
he accompshcd by individual strength or individual CAPT
tai vi The evils which have grown out OF the existence
Of corpGraiOs have not been the result OF any Inherent
vice in the system but of false and imperfect legislation
Legislative restrictions may always prevent the vcinGs
action Of corporations iudcinusy applied, and such ~
may escape the sagaciiy Of Iegisation will aiw'"s he
detected and Corrected by experience. The great arso
tendencies of corporations IS The unlimited HCfI
slion Of eso;e aud the perpeluiy of their existence
In The United States, The laws OF distribution percent
the rcrpetuy Of esales bat upon the perpptnrl rzl.!
ence Of a cor 5nraiion they could operate; tis, how
ever may he avoided by limited duration and proper re-
s,rictinns upon the acquisitions of real estate.
Eut II is said hat BaRhS Cdi0Us mOn0pcrS. This
s trae monopoly is the right 10 e,'y particular
privilege pursue particular business 10 The exclusion
Of all others Banks are principally instituted i'T The
purpose o; leaning money and circulating their credit -
Trey a,e created by power which CRATE many
others as it ri, asses; individual may take i-r STICK
banks lend money, every individual w:in has
it 10 lend; they may circulate ir credit 10 limited
amount beyond their specie capital: may indy dias
extend theirs any amount they without regard 10
capital They take interest, can individuals 10 the
same extent The great advantage which backs have
over individuals arises from their superior capital and
greater safety by which they can circulate their mates
cash. Bat this is an odvTnog" arising from c"'P
,iiuu between associated ard Individual capital aid rot
from monopoly. The banks their capital for PROFIT
do railroad and canal complniCs do farmers and
planters and do merchants; all, though in dsrr Mt
ways their capital for profit But II there was no
coTcsa"nGDr public bCni: 10 be accunp ised by the
Incorporation n these institutions rgis!ann would be
vanly and falsely applied in their es!aJsncG bat is
this the case: Certainty not In the construction Of
railroads and canals, the public bPn" derived IS from
the facility Of rrrcnurS" bet" t''r sca,i"Es of
the country increased safety and rapidly # iraasIorta
lun and reduced freight rprn the productions Of ihe
soil In the charter 81 banks, the public benefits d'Tiv
ed are the facilities OF transfer convenience o! ,Iagr
equality Of exchange. a"d the enlargement Of t"p cicu-
alin- medium 10 81 Tie demands 81 iada and cen
nicrcr which none deny they have done.
The operation by .h:r, :e banks extend their crcu
;rion far bcynd their aclua SPECIE capital very PLAIN
an ciirp": Their circulation IS based IN pat Upon sFc
Gle capital and in part upon the notes which they dS-
count by this operation. hen there IS proper degree
of confidence in their ru1ctuay and saundGcs' 'hrir
notes perform The Office cash. and L. The extent OF their
issues enlarge the active capital Of tie country. ny
this combination Of capits aud credit, medium may
be always kept in active circulation, equal 10 the de.
mand, Of trade and commerce. and surely There can be
no rational objection TO system by which medium
peif,:mng all iNe functions Of money can be kept n
active lion the absence of a sufficient quantity
nf specie particularly in country whose power com.
tnfIce agriculture and manufactures rapidly IN
creasinn aud will likely do So for great period OF time
To come. But, notwithstanding our experience upon
this subject, not n understand how gwen
amount Of specie redeem three times It's amount OF
paper circulation. There is not the slightest Gi!culy
in The matter; for every dmiar which the banks Issue,
they take responsible obligation When their notes
arc returned upon i!rm. in The ordinary ol Gu
.ness at least two thirds returned In discharge ni
lirse ohgalinns 70 that, keeping on land one lhrd OF
their Circuatlon in specie they always prepared 10
redeem such Of their notes necessary 10 be re-
dermcd in specie. Thls is The true stale Of the case
and is not involved in The slightest degree Of sicy
Mr. ChairIIsn, the infinite relation the symIahetc
connection and mutual dependence ct agriculture, ml
nufac;urrs and upon each other has been al
frmrd and reiterated ulicn by all most dIslin'
CuiShcd statesmen, that need nothing 10 prove H.
mdrrd Sir, every mans observation will convince lIm
OF the fact 10 the persecution oil successful commerce
! nothing is mare important ihan sonnd, conveDrn'
al, GIa'r and unvaryinG currency; without IL, com
mrrce is embarrassed. retarded and finally destroyed
The precious metals although The standard of value, by
the consent Of nations, have. from ber search
and thu cast and Inconvenience OF their poail"n
been found totally inadequate 10 The demands nj CON
in those nations whrr2 it is extensively rr"sccut
ed Great Britain, the most powerful and most COM
mcrcia patton in the world 10 supply currency ate
Guale 10 the demands Of her commerce, resor!Pd Il
tn present credit system; and what has beer the
suit: Her ~h;'ens every habor; her ag a,s
in every breeze; and although girl island, but lit.
tie larger than the State Of Virginia holds portion
OF every continent in colonial suhjuga,ion 10 ex'c
that the sells upon. Ninety millions OF pro
pie acknowledge her SWAY She has, tunes, sustained
herself in against almost the world conbinrd-ai
Others she has sustained the armies Of combined Europe
against thu colossal of France and still mnins!ns
her ascendancy. What has effected all this: The spi
Ri and enterprise Of her peope-her extensive md
tending buuyed ~ and sustained by her ere
dt system Look at her-sre what she isand then say
whether her "cret system has cursed and blgh;sd her
The honorable gentleman from South Carolina, Mr.