Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1838-04-17
VOLUME XxYEY.---No, Iis.

years Congress applied CT! lis power 10 induce to per.
tade, aud to asss: the Banks their Efforts to resume.
They passed The resolution of 1916 authorizing the re.
cert of the mites OF speciruyug Banks Bu, this alonc
was insufficient and nj the same time they established
the B,nk nG the H. Is with capital Of 35 millions
That Eank called Convention Of State Banks, and
agreed That II they would resnne specie payments, i,
w"Gld
j. Assume ali their debts 10 the Government Of the
u States
Discount, 10 toee who had payments 10 make 20 the
Govcrnmrat, the whole amount Of their bonds and in
addition,
Discount Ia ihnss indebted to the Government,
two millions in N York millions in Philadelphia
one aud half million in Baltimore, and half million
in R'chmard--and
Would sustain the rcsuming Banks in case the
resumption brought them into difficulty.
The BaHhs al The time imported at expense OF
more than hall million the Of millions Of
specie; md tso months after the resumption its dis.
counts reached twenty rnilliuns Compare with this
slasmrui our condition
hen The Govei nment sGr"ed to receive for all dues
the notes of the Bank Of the Snow all Bank notes
are refused and dlscredi'rd Then the Government en-
deGVored TO sustain the Ranksnow is striving to des
troy them. Then il established new nd vigorous Bank
cnpal-now 1t refuses create ne W Bank and seeks
to cripple those in existence. Then we had go Banks
now we have nearly 900
IN short, what reliance have the Banks now with the
Executive hostile 10 them? What protection like that os
the late Bank OF tn United States hare they to sustain
them, None whatever.
The only circumstances wholly rnfavorable in the
comparison is the low rate Of exchange with England
But nothing general permanent can be inferred from
this circumstance, which frequently occurs, and the
present ocrasIon i, wholly accidental in New York, from
the unnatural condition winch her Of ex
ircms rigor have driven every thing. II under ortina
~ circumstances, while other things underwent de-
preston exchange England should d-cln-. it might
BE- inferred that Eng land Owes 10 the United States more
than have vet drawn from her But il il exchange
aIon" that Inns aIlen-Excha"ge on England has not
fallen IN New York much the internal exchanges
Stoke r"nI estate house rent have fallen This
TACT seems decisive ae 10 The But can tins de-
preston continue; Certainly rot These rigorous res.
understood 10 BE- Only prrimnary-only pre-
partitions for expansion by the Banks Of New York;
which is TO restore AMI confidence. WELL the mo-
this and confidence return all things will rise,
and exchange 81 course among the number. Besides
This unnatural condition will work its remedy, cs
all irregularities cured b. their own excuses. To
sell every thing and 10 buy nothing Is mPFactcabe, and
when the English have brought NIL the produce have
10 spare must Of bug from them what manu-.
features they have In spare As The proceeds OF
industry realized in EugIand-whrIe we have
gradually exhausted our supply of English gocds-our
merchants will convert l"ir property fresh sup
ply 10 lie brought over if this process he too slow,
The English manufacturers themselves will send their
own grods for sale. In either the exchange will
recover lis rQuhrium and Of co"r.e will rise here; for,
BET wern two such counties America and England,
permanent inequality of exchange, basis OF The me-
taic currency of either, is impossible.
" PPrceving nothing in the conduct OF The Govern
ment Justify early resumption, let if there
be any thing in the state Of The country which recon-
rnends it. Now, what is the condition Of our affairs
The suspension found with hen1y debt TO the banks
not less probably than five hundred mors-Tith large
haancps from the Southern and Western States To the
Atlantic cities, snd with very considerable debt TO
Europe. All parties we're willing TO pay; almost al!
able pay; but great fnbparance and great ndul.
gence necessary from The creditor and above all,
after such convus:on. the great res,orer was time;
n
debtors crops market; time 10 dispose o his property
with the lcnst slcrfcr; time 10 bring oct his resources
to pay his debts In all the large movements of huran
affairs in the operations o.! Nature the great law Is
NEUTRALITY-SUSPICIOUS. is The last resource OF weakness
The disease OF the country overstrained and dts.
tempered energy. The remedy was repose. The ques.
ton of the currency, though important, was only Sc.
condarv. The FIRST concern to pay debts, and
especially not 10 dsPrfcate the value Of cur Deans OF
paying them Accordingly, seemed To me, that after
the suspension the true Of this country was TO
begin gentle and gradual dlmluution ot loans suf
cent 10 prevent the hazards Of expansion while the
restraint Of specie pay nenis removed and 10
epare for tie rpsumpiinn but with rash co1pc.
tinn as 10 the amount which the several banks could
curtail-to make violent changes in the standard OF
value and give lime for settlement with foreigners,
and among Ourselves. q The same nearly the same
basis upon which hese mutual engagements were Con.
,sced-lettng the crops go their destined markets
without nc preca;np their Price Atler this the TetumP
,nn, with the aid Of Congress, would have been easy
ard spnn aneOus Ii IN Ills spirit that the Bank OF
the has not diminished ten per cent OF lis loans
while it added about three millions to IFS sFecie-and
will have given The necessary facilities for shipping the
crops Of the South and West to the amount probably OF
fifteen or twenty milous Of dusrs placing lis
fdp nal agent IN England to protect the greu CONNER
cr and pecunisy inerests of the country This seem.
ed 10 he its proper function. 1t thus that 1t hoped
10 discharge its duty 10 the whole Union 1t was thus,
too il could show its fidelity 10 Pennsylvania ny aiding
its public improvementshy keeping its business and
its people in comparative and by not suffering the
prosperity of its Commercial capital 10 he pros'raed-
objects these a' more important than whether specie
~, vnsnts he resumed few months sooner or later
The injurious effects Of Contrary course are seen IN
all the relations Of business Ike for instance the debts
TO banks and 10 individuals. The debts were manly
contracted when the currency was abundant Ihey
must be paid in very altered state OF The curfen
cyund it is necessary 10 proceed With extreme caution
when the relation Of the debtor To bis creditor changed
hv events which! neither could CONTROL because this
change be not made very gradually SOFAS to bring al Inc
Time all the other relation OF HE ~ lie same saho'
ard ron inhc, injustice perhaps ruin on the debi0r
was thus that England continued her suspension for
twenty-five years and By &C, Of Parliament gave several
years notice of the progressive resumption IN order that
all the business Of lie country should adjust itself To The
approachng change OF the effect Of any sudden move
ment we have before striking instance. IL appears
nv the published statements Of the banks OF the city OF
New York that since the suspension 10 March |, 1915,
thew hay reduced their oan and discounts from forty
six millions thirty millions and their circulation from
nine millions to two mllions-an aggregate dminui"n
from (ty FIVE millions u thirty ahree millions lf this,
or any thing this be the reduction what the CON
Sequence A man who contracted debt 10 the Banks
in New York before the suspension. finds his ability 10
proyide means FIR the Of tina, debt reduced one.
third or nearly onea-lhat ~ In say the dollar he n"w
paws equivalent 70 and half amos, two dollars
when he borrowed il. besides The interest Such pro-
cess Of reduction would have been wholly Inolerabe
the citizens had escaped from II and sought aeTa
ton BIZ loans else where But if the other cities had oi
lowed the example of New York, and made similar re-
duc,ions the whole country would haze sunk uhoe' It
or vulted against il.
These inequalities between members oil ,he same
community became more striking when applied to en-
a,gsmen,s between Jistan, parts of the Union The
Atlantic cities for instance creditors of the South.
a,n nd Western States for goods sold to them, 10 be