Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1838-03-03


1er: which, !o The sake Of brevi.y, bni with no per-
sona drsr-spec /" the distinguished individual al us
head. shall call Mr.. Bidde's bank. That at leas VIII
be of The winners-one of the twenty-five 10 "hu.n
the prize will be assigned Its vast resources its wealth.
and influential connections, both at home ana aO'oau
the skill and ability of the officer al its head ano' "n
is less honorable, the great resource Il holds IN Tue i
OF the late u S. Bank Of which more than SIX Hili'ons
have been nut into circulation in violation, In say Inc
least, of trust constituting than hve-sSlhs VI W
its circulation, and which il is not bnnno 10 Ply
the still greater amount on hand, making IN ''e "."'s
more than twenty six Millions and which may oe "So
in the same way If not pevented-w ouia P'aee ~ o'
yond all doubt among the vic'ors 90. -,
He starts without proper weights, and Will lead lhe
way from the fist. Who the others may Oe IS mhcef
Tain. this will depend mainly upon his good VIII aho
uleusure IL may be put down certain, whoever hey
may be- that they will Ire powerful and huentlai anu
moi favorable 10 his interest or agSranoZement. bu
the mchievous effect Will not De meu 10 .'''s uea.n
like s,rurpe in which many must full and be crnshea
mat mint otherwise weather the storm. The iorced
resumption for such il will be in effect, would be follow
ed bv wide spead desolaion II is easy 10 sink TO sus
penson but hard to to resumption. Under 'ne
most circumstances, and when conducted nost
lpisnrpy and cautiously the pressure must NC se'e'e'
but il coerced precipnied by bankrupt laws or Temp
talions such as this, it will be rulnous 10 make sue
and easy must be the work Of time. Government Gun
do I'm, little The disease originates in excessive IN
deb,edness and the only remedyis payment OF Ieuuc
ton of debts II is estimated that when 'he eanhs sus'
pended payments, the community was inueoe' " 's.
within ,hr nreprr limits not the work OF lew Gays
and can be but little aided BY u.s. The industry, and
the vast resources of the country, With me are tne
only remedies to be relied for the reduction; end to
these with The State legislature and the public opnlon
the resumption must be left To understand the subject
fully we must look little more ino the real cause oi
the dtficuIty.
This enormous debt was incurred in prosperous times
The abundant means Of the banks from the surplus re-
venue and combination Of other causes induced them
TO discount freely This increased The crcuiaiIon and
with its increase tie vaue deprecated, and prices rose
prupor,ionaby. With this rise, enterprise ond sPecua.
ton seizrd the whole Community and every one expect
ed 10 make fortune al once; aud this IN turn gave
ne impulse to discounts and circulation, u the swelling
tide bustpd its barriers and dlnged the land Ihen be-
pan the uupusite process Of absorbing the excess IL II
had been possible return it bnck to The banks, 'hr
sources from which it flowed through It's oehnrs Tue
specializing enerprslng and business p"fuon OF e eo
luity, The mischief would have been IN giea measure
avoided But circulation had flowed o into other rsrr-
yuirs those of the InnpyPd and bankers, VINO hnard
when specie Ire high and buy when they are low ne
portion thus drawn Oft and held IN depnse, ether IN
banks the chests OF individuals was rs ehecuaiIy Iost
far the debtors Of the banks were eoncerned as
il had been burnt. The means OF payment were mus
diminished prices fell in p'opnrlion, and The pressure
increased they fell Though The amount IN clrcua'
ton be greatly reduced yet the banks are AFRAID to dis
count lest resumption, the h"arded tnass OF deo'
sites held by ndvduns other banks, should be lei
loose and in addition 10 what might be put unto ccu.
aiivn should discounts be mnde, would cnuse another
nnndalion 10 be followed BY another suspension. How
is this difficulty bc safely surmouned but by unlock.
ing the hoarded means, And how is tins 10 be dune,
without deciding the currency question: This is The first
md necessary step That done, oil vii! be able ~ cal
culae, and determine what 10 Dc" The period oiInac'Ion
mud tany would ceuse and that OF business re-
vve Funds That are Tucked up, woold be brought
again into operaliu and the channels Of circulation be
repenscd in the only mode that can be done with sale.
ty. Thus thinking am now and have been from the
first in favor of nn early decision and averse to all cocr-
cun or holding out temptation 10 resume: leaving the
disease The gradual and safe oforuon oil time, with
as little ,nmpernr as possible. in the mean time hold
i: Le To dscounng, and TO adopt an in.
discriminate system Of cnriaIen It's effects are ru-
nous 10 the business Of The country, and calculated to
relatd rather Than 10 accelerate resumption The true
svsem would say, would be TO discount with business
paper freely usual, and curin gradually on per.
nanrnt debts The fomer would revive business, and
would increase the debts the banks less Than il would
increase The ability ot the community 10 pay them.
Having now shown hoH this league, or combination
Of banks is TO be formed and revived with The difficult
lies in the way. It remains to determine what will he
the true character and nature of the combination when
formed Il will consist Of Slate banks retaining their
original peser. that Of dsconnling and all, without be-
ing in the slightest degree impaired 10 these the sub
sule propnsrs TO add important additions 10 receive
their notes gold and silver in the public dues nnd to
give them the use of the public dVpvs,es and TO orga
ize and blend the whole into one, as the fiscal agent oil
the Government, be placed under the Immediate su-
pervsnn and control of the Secretary OF the Treasury
all
word-be not startled 4 BANK-a Government bank
the most extensive powerful and dangerous, that ever
existed. This substitute would De the act oil lncorpora
ton and the privileges ii coniers, so much additional
banking capital increasing Immensely It's powers, and
giving II unlimited control over the business anu eH-
changes Of The country.
The Senator from Virginia (Alr. Rives) right in
surprising that this trial Of the experiment would he
made under very different circumstances from The hrs''
and would have different termination That, too, like
this was Il bank-a Government bank, as distinguished
from the late bank which it set up as rival and
was al the time constantly designated in debate But
the circumstances indeed dilerenl-very dIi'
feren and so would be the result of the experiment.
This bank would be the rickr: concern as the
former. hat ended i'll anarchy, aud this would IN des.
polism. will explain.
The former failed not much in consequence Of the
adverse circumstances of the times any essential de-
feet in the system. from the want OF head-n CON-
mon sensorium-to think, to will, and decide. for the
whole. which was indispensaby necessary to ensure
cnncert ard give unity of design and execution a
head will not b. wanting Mir. Biddlcs bank will
supply the defect His would be not only one of the
resumng banks, have shown, hnt would also be one
Of the lwen be selected II there should be the
t,rnpriiy To omit it, The present prnec would share the
fate of i,s predecessor MIR BidJes bank nj the head
Of those excluded would be orerna'c fur the select
ed in skill, capital and power; and the whole league
would inc vitality be nvrrrown; but ii selected, the po
snn of his bank in the league would be certain. lis
vast caplal it's extensive connections lis superior all
thorily, aud his skill, abilities aud influence, would
plnce it nj the head n think and act tor the whole
The others would BIZ dependent his, as the branches
Of the late bank The mother institution. The
viii ole wnnId form entire machine: impeed by sin
gle mpluse md making prrfrc, c"ntrast with It's pre-
decessor in the unity aud energy of its operations.
Nor would lis fate be less dissimiiur. Anarchy was
inscribed on the first from the beginning. It's deficiency
in the gtea, and essential element To ensure concert,
was radical and could not be remedied. lis union with
The Government could not supply it, nor avert lis desIi
ny. But very different would be the case Of the present
Add its intimate union with The Government for which
the substitute provides TO lis other sources Of power,
und it would become irresistible. The Two, Govern
mrnt and bank, would unite and constitute single pow.
or; but witch would gain the neutrality-suspicious. the
Government would become the bank, or the bank the
Government neither certain material; for which.
eyer il muht be- il would form q de spntc mnneYcrncY.