Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1838-03-10

tanned by confidence alone. That confidence is no" ue
stroyed. If few banks only had suspended specie Py
ments from bad management confidence IN otht ,"
tutions might have been continued Or II, as !" W.
Government had deemed il expedIenl 10 polio"
credit aud sanction lis abuse it might have revived WIN
the return Of peace, and the restoration OF sPec'e
ments. But ii never has occurred before, 'hal ~ - =
of peace and amidst general prosperity, lhe oa"
nation have simultaneously susPehdeo speo.e r. G,n,s
and what is fnr important as IL re5hrus Tue
the wishes of the trading community ah'ic'pa"' NV
action of the Bnnhs, the suspension was ha'e" ts
measure of commercial relief, our Legislature sac,
ed il, and The public were Completed ~
effects of the Suspension were 'llle understood py ose
vim deemed it a measure of relief The trade "i no
country can I've relieved by sudden rtdnc'lon '' ,'s
cnrrencv We had been for twelve months under Tue
harsh onera,ion of dmiuunH OF cumInsTcia and oahK
credits They had nearly, if not quite, rencrd mat
minimum from which, after a temporary stagha'ioh OF
trade they would naturally have risen again when Tue
suspension (for all commercu! purposes at home SUI
denIy converted eighty millions OF currency lho me-
oh, ndgs md il was Withdrawn from CIRCULATION. NC
comnouud standard of specie and paper, by winch le
proppr,y of the Unon had been measured was aoruPy
reduced from about hundred aud ninety ni''is "
one hundred and ten millions of varnusly oTP'ec'"'u
currency; or, if consider specie as the ohiy
standard fr n, hundred and ninPy 10 eighty m'''o"s
Foreign exchanges rose notwithstanding inns eS'ra"e
binary reduction, and all the senguhe ahic'Pa"o"S VI
n revival Of confidence and credit were Disappointed
Ou reduced currency still further Diminished, Tue
,o,m of our commercial enbarrassments was prolonged
and the revival OF trade postponed 10 uncertain per"o
These were The Consequences OF that measure WHICH u
,y,s supposed would relieve The country.
But, however may suffer by the recent suspension
we must anticipate similar event at every Revision
(, cannot be avoided in this age of speculation, anu
with our system If banking. In periods OF alarm those
who are Threatened with bankruptcy will seek !ret IN
any measure regardless Of consequences. ihe banks
will certainly yield the demands OF trade IN some
carts Of the Union and the recoec"ns Of the run upon
them in 1887 will produce panic which must eonPei
most if not ALL other banks 10 follow their example
Some portions of the Union possibly escape; Dut We
NAV certainly anticipate embarrassment ~ sone sec'inhs
and we should accordingly prepare :'r il The banking
system Of this country must be thoroughly rfofheu W.
fore confidence in the cvnrrriloly ol pahN noes 60"
be permanently revived. No such rctofm can al lh's
Time be anticipated. a few more disastrous 'e'"s'n'
ina compel u.s. at future period, TO correct the
vices of cur syseE but for The present. II Is evident
,ha, our local currencirs TO be still further vated
by Stale legislation With recent experience, ana
with such prospect before u.s. just and patriotic re-
gurd for the public interest urgently requires that the
Treasury of the u S. should not he hereafter eInosea 10
embarrassment bankruptcy by being connected win
system Liable a, all times 10 explosion, and that II
should never again be made dependent upon every VI
cssi,ude in the commercial system Of The world.
The Federal Government is also bound 10 preserve
for the States the only Of value recognised oy
the Constitution, that the taxes and disbursements OF
our Coniedpracy may be collected and PAID out IN
common medium IF the proposed measure be reject.
ed we cannot hereafter anticipate any uniformity in
our taxes or any such thing Federal currency
With our complicated banking system, the Immense en-
largemenl Of commercial credit the rapid growth OF Inc
commerce of the Southwestern Stntes aud 1T the settle
menl Of the States generally we cann"l preserve
eouay in exchanges or local cnrrencies Our exchan
grs were as much Geranged in lS2o, while we hnd Ma
l"nal Bank they were in lc1 and our pap system
would have exploded then, had not that Revision ons
mated in Great Bsitniu The history of our conn trade
exhibits fluctuations which defy control The price peri
odcay gives way; the South western States drpriv
ed of large Of their funds Tor remittance aud our
exports suddenly suspended Such vicssitudrs Eus
continue with The rapid growth ct The culture and ma
nuac;urc Of cotton, and with The enlargement Of the
paper systems OF Great Britain ard the United States
II il obvious that the power and The miscneis OF our
banking system about to become still more inrda.
bic aud there is rpuch reason 20 npprehcnd IN rw
years posion mre disastrous to all branches ct In.
duslry than any have hitherto felt While the States
continue to multiply banks authorized 10 supply the
country with a currency, Effort OF tn: Federal Gn
vernmpnt, whether by Incorporating NaliGpal BANK,
or by perpetual issue Of Treasury notes, could prevent
suspension of specie payments, while either Of these
would but increase speculation and the violence
Of revulsion The only alternative let tor Inc Govern
nen is to guard permanently against The effect OF sucli
spislalion and Of such explosions upon the common
MEDIUM Of our Confederacv. Should we restore
the agency Of banks permanently invest our revenue
in bank notes. shall BE- cnm7red every suspens"n
TO issue Treasury substitute Tor conn., or 10 col
lscl our revenues and make disbursements, in the
vaiiousy appreciated bank piper OF the Staes contrary
to every rule Of ns,ce and to the express provisions OF
the Constitution Should such become our policy,
it would end the entire destruction of The only uni.
FORM permanent, and universal measure ct value, and
of the only wholesome regulator OF the trade and credit
Of the world. IT, on the contrary, we wisely separate
our Treasury from the credit OF our banks we shall Sc.
cure through all the vlcssitndrs OF trade and The tuc.
tualons Of local currencirs, common medium for
our taxes and disbursements uniform measure o value
for the Staes and standard which would tend to ad
lust more speedily, after every revulsion the temporary
arrangements in exchanges and cuIrencles
The public mind is satisfied that some plan should he
adup.ed TO relieve trade from any connection with our
revenues and TO render Treasury pendent oil all
explosions Numerous plans have been proposed for
making partial Of banks, Tor the mere purpose OF
keeping The public money uader some special depoSl,e
system with obligation not 10 employ II in loans Ia
trade. No such dppuste be etrctua but which
secures to The Treasury the control over the money spe
ciay deposited aud leaves The daily receipts aud pay
menis TO be made by public officers. Such system
would merely the Of the vaults Of the
banks as places Ut safety. and would be unnecessary
where our public Offices supplied. they oil
must be-, with vaults safes both, for the p;esrr
vatun of the public archives and treasure. If the
banks have control over The public money deposited
with them all the spulanns and obligations which can
be conrved will never prevent them from discuunnL
upon H. directly indirectly; and all Tie guards
can provide will 10 the Treasury lis specie
fund in Of suspension. The various rrgula.
tions which have been proposed would be, in rrac
tice, utilities. The obligation 10 credit The re-.
collected, specie, has always existed, and
would be more binding hereafter than it has hcen here
toiore and special drp0site exclusively Centralized by
the bank would be unavailable in Of suspen.
sion as any Other, which il would he equally bound in
law 10 pay in specie. stipulation that the bank shall
pay the Treasury warrants in specie would be abnr,ive
as that be determined by the Government creditor
Whether lhr deposites in specie or in bank NOTES.
will pay its mites and increase its discounts
cordnaly. Periodical settlements with banks having
control over the deposes before and after The settle
msnt would be a mere fUrnaty. Banks might be EN-.
ployed under system OF j"n management and control
Special collections drposites, and disbursements might
be made under the of two sells of officers, 20 he
appointed by Government the other by the banks; but
such plan would require much greater number Of Of
fcers than is proposed; aud would at the time
enable the banks employed by the Treasury to substitute