Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1838-06-26

Iu,aI altitude To the Government and the c"unl'y.
Mr. B,dde says in same paper, mat lhe sou.''e'h Pr
furnishes the greatest part OF the means 70 pay 'o
,bsos lamentations" into the Northern Atlantic elites
The sysem therefore. while 1t elevated Norinern ro"
gave to the Bank the profits from dealing IN these
hills to The amount, in u single year, OF SluO,oOVooo'
Who could expect this institution 10 foster our 'fa1e
w.n there was such reward for giving It another 81
rections For five years ending with ls the aggregate
imports Of Virginia were $3.50 OO0-whiie IN Inc sue
ceeding five years ending IN lhe year 'o'o 'hey "eI
ONLY So PAL 00O being reduced more than than m'i'
l;on and a half During the first mentioned p'fIndr
The domestic bills dealt in by the BANK IN Virginia
amounted IN S!l7.35o. In the second PERIOD they
amounted Sl114 424 These calculations are accurate
sn G,s as the official returns of that institution have been
nubIished The increase of 81 1927 600 Of bills OF eS'
change with declining trade OF 81 o3i OOO point "nl
by what agency trade wasiransered 10 other SHORES
p To ls20. the published returns OF Inc BANK 90 not
even mention domesi bills part OF their transac'
lions In that year they first noticed, and from mat
period is dated most marked decline IN imports
The vast operations of the Bank IN The South aud Nrs
were effected by the credit OF The Bank; Tor according
to its own statement the specie drawn from that section
IN phadplpha and New York from 1870 to 1881, was
500 523 BEL while the amount OF specie sent TO The
branches then located was only Sc9p,4'2-wh'Ie we
wp re iOg in Virginia each year on an average, S2oo
GOO for the use Of their p1Pe not ncuaIng Inc premium
benefit accrung the Bank OF the D, have tor some
time past gone extensively into IT, as ther resources
would permit The surplus revenue gave them ior
while great facilities. Being collected IN New YORK II
vos fund for them 10 draw as they had deposited
,bpre so much specie Without this aid they can never
carry on domestic exchange TO any extent whoGta pre-
MUM ruinous to the dealer in the staple Staes Inc
banks in one city must under this system become agents
far those in another aud receive and redeem their notes.
which last could be done by the branches OF lhe u
= Bank strong as she wasur, the attempt IN 1917,
proved nearly destructive 10 that ins,Iiuu"n ho'%ith'
standing the intimate knowledge each branch mao OF 'e
condition Of the other which can never he possessed ny
Id, SInIua nj H.,
inc them cnpetent TO The task, Is 1t their interest," or
that Of the community, that they should lend nearly
all their capital effect il: And how Is the operation
conducted A. being IN New YORK or boston, writes
10 g. in a Southern town, 10 purchase tor INN load
of cDrn cotton or -four, but sends no funds b goes
10 the Bank offers draft on ii Tor S2OouO, winch
is discounted and payable IN sixty or ninety days
B receives for his trouble and risk small commission
the bank gets interest and s placed IN possession OF
Northern funds by the acceptance OF the draft by
Northern bank The cargo sent round and S'd, with
the proceeds takes up his note and has iIaded on
$50 900 of Southern capital without using dollar o his
own But suppose lus, The Southern BANK or nier-
ian, bears the loss and this unfortunately is 100 Often
the case and one Northern failure out of 40 cases VIII
take away all the profit OF 30 successful issues How
much better 10 buy the produce ut home and 1t anything
is he made, make II ourselves: Now we have Inc Ger
ainty of losing and no prospect Of gain What Is our
aroe suspended debt bat this, Where are the colmIs-
sion merchants in cities who have engaged IN ms
business successfully Those who have best stood The
shocks Of trade the men engaged IN importing and
conce rned in shipping. A high rate OF exchange be
tween the North and South without any general paper
currency will bring the retail merchant to The Southern
wholesale dealer instead Of as heretofore, TO The North
prn Importer having the same effect when The rHchah!e
is against US ) per cent as il an additional duty OF
per cent was laid goods impaired crcuilousy, bul
from which goods imported directly into our cities were
exempt Trade Obey say ID like water, 1t Will hnd''s
level, aud it folly 10 attempt turning irnm lis course
Now as water is ;urued out OF lis Original Channel ny
do ut.H ht
combination and legislative ACTION as It's history IN Anne
rIca will conclusivry show. Our object Is 10 re-
move these artificial basins ana TO sail down lie oiigi'
nal stream Of commerce as 1t existed according 10 me
Ia VS. of Nature The frrrgn trade is saer In The Soulh'
ern merchant the confidence being mutual aud the r'S
equal The wholesale dealer it is true, sells on credit
To- the Southern retailer But when We analyZr me trans
action v fluid that the Northern importer has IN many
cases obtained this credit which he sells 10 Us on The faith
of his shipping in return saplesto Eur"Pe-So that
he al las; trades on products and with our banking
capital those very Northern finds which The bank
has laid no by the operation being used by the Northern
factor in the Southern town TO make his remittance
home. Our banks would do vast deal better business
bv loaning their funds to The importer and dealing IN
foreign instead of domestic exchanges his suhlect
is of great importance but the length o. tins address
forbds It's further discussion in this place. except 10 re-
mark that the present mode ri uansaciinS business
nk-s very class the staple States wholly dependent
on bank xpansions and conrac,"ns IN line other States
and our produce is not regulated IN price by The demand
by The cost Ut producuon ou' ny lhe co'h''h"o"s
and spPcuali0ns OF j"boers WHEN we caihol o'e
see or p!Pvcni .
In presenting our views in rea'ion 10 The operation
Of exchanges, and the advantage |" he derived oy Us
from their present irregular Stale. we by no means de-
sign to say tina; this OF things will be permanent
when trade resumes lis nataral course. The naurai
rate of exchange between the North mud The South IS
in our favur-but the liberal Of Government credit
ailo wed to the former through the Bank and 'he
Depnsite Banks either reducing these exchanges 10
thai extent as bounty 10 their trade
The effects in our sectiun OF the country from iie
restoration of its direct trade would be Ike magic or
cities would speedily become the seat o! the trade ana ou
sness nf the Sate-le residence of opuent merchants
enlerprzlng manufacturers, ingenious mechanics and
and industrious population, lnstsao OF otlhe
mete actOages where lhs agents OF distant capitalists
expedite the transit 10 and from OF lie p1"ouc'S
of the country and the merchandise received IN eH'
change How this is TO be accomplished, is the neat
object TO which the committee propose 10 direct their
attention.
The first indispensable step is, TO remove the causes
which have depressed our commerce. and turned hIfo
s former direct 10 ia present ccuit"us ROUTE an" u
take etfrc,ua against their recurrence mere
after. Fortunately the present moment IS pFop"us LOT
The accomplishment OF this great object Nluch 'hueeu'
has been already done towards it, and The e@'shS en-
barrassen, it properly used by u.s. viii prove eVenu
ally of infinite advantage. The public debt hoh Of 'ie
Revolution and late war; which was IN tact ll.'e more
than mortgage this and the other staple sla'es as
all such debis must be. long the revenue is
raised out Of the foreign exchanges OF the county, Is
discharged The protective system, which DID so lnch
to exhaust and impovers the State, and turn It's COM
merce from s natural channels, is already greatly re-
ducpd and the of regular reduction 10 Ills
final extinction. The Bank, which was the great agent
of controlling the currency and exchanges OF the coun.
Try and through them its commerce and business ana
Of attracting them TO common centre, has EXPIRED
Many of the great objects Of expenditure, (nnong
them the national debit which have kept up the reVe
/ do
our disadvantage have either ex pred in course
Of reduction. But it would be dangerous error to sup
pose because much has been DONE that nothing more
remains for 10 do-huch, very much is yet to be nc
compished which demands tie greatest energy and VT
gancf; and among the first prevent the renewal oil
all ur of these causes which have weighed SO heavily