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

" ,d ,h.: the on, t:y tx plusoii5 o.. lie cuIreh
CIV occurred during these periods But, without 'tit
on these disastrous occurrences we have see" ets
to satisfy the most nceduous, that there are grea w
radical effects in our bank circulation, which 10 ree"
heretofore applied has been able to remove IL os
mates in The of paper, compared 10 spec'e u
the only effective TO increase The niief' a'
reduce The former; and this the substitute Ilse i"'peu,
" acknowledges, by proposing remedy that "ou'u
nroye wholly imperative. !, proposes that, at;er Ger
tain period mentioned none OF the banks 10 oe seesI
should issue under len dollars The eiiects "ou
clearly be- not dininulion oil the circulation oil shah
notes but new division of the banking business, IN
which the issue OF large notes would tall 10 Inc ot VI
the selected banks and The small TO the Others Without
restricting, in ihe least The aggregate uou"t u P'P
circulation. can. - IL, ,d
cectuay remedy, None doubt but the separation IRON!
the banks would greatly increase the proportonoi specie
20 paprr; but the Senator from PgnIn hr f1iVes) ap'
prehends that ls operation would be too POWERFUL So
much So in fact as 10 destroy the banks. HIS argu,
mon, is that specie would be always at premium anu
that il would be impossible for the banks 10 do business
so long as that was the His fears are ground!es
What he breads would be but q temporary eVi ne
very fact that specie would bear premium woeia nave
the double effect diminish paper circulation, ana IN
cr.ose the Importation OF SPECIE till an equilibrium BE-
tween the would be restored, when they would De al
mar AT what point this would be effected 10 little I'M
cpraiD but the ears that with our decreasing revenue,
;,s,J of the spscie being increased excess it would
not he increased sufficiently give the desired STABILITY
the currency. ;.
In this connection, the Senator urged an objection
nunns the BILL which regard III wholly groundless-
H.. SAID tha, the psymcnt of The dues Of the Govern
mrnl in SPECIE would create double demanu uohes-
iic well as oregni The effects OF "hch would oe 10
increase greatly its fluctuations; ana 30 deeply was ne
IMPRESSED with the idea, that he drew VIVID picture OF
its alternate flow from the coast TO the interior, and from
North South aud back again All Tins Inc Work OF
Imagination. The effect would be directly The reverse.
The the demands me less The iluctuaon
80 much So that the greatest stability would be where
exclusively performed the FUNCTION vi circulation, and
where each individual must keep portion to meet his
daily demands. This is obvious, that shall not I'M.
6ertuke TO illustrate it,
Blu, The superiority Of the bill over the substitute would
mol be limited only to favorable proportion be.
specie and paper. 1t would have another import
ant advantage that cannot be we'll over estimated: II
would make a practical distinction between currency
and circulation between the currency OF the country and
private and local circulation under which head bank pa
per would be comprrhended. The ELECTS would be, to
render general plosDn of the circulation anos! I'M
possible. Whatever arrangements mg ht occur. would
be local and confined TO particular commercial
sphere and within its limits, tle:c would be Il
sound currency to fall back on, not partakng OF The
shock and which would greatly diminish The intensity
and duration OF the distress In the mean time, the ge-
neral business and finances OF the country would pro.
coed, almost without feeling the arrangement.
With few remarks The comparative effects Of the
the industry and business oil the coun-
try shall conclude their comparison. What has been
enid on their relative effects the currency goes far 10
decide the question Of their relative ELECTS business
and industry
hold Il sound and stable currency 10 be among the
greatest encuura genens industry and business gene
rally; and an unspund aud lucualng one, expand.
inu and contracting, that no honest man can tell
what 10 do among the greatest scourageWen!s The
dollar and the the measure oil value ms the yard
and the busheI are OF quantity; and what would we think
of the incorporation Vi companies 10 regulate The latter
TO expand or contract shorten or lengthcn them ut
prasue with the privilege to sell by the contracted or
shortened, and buy by the expanded or lcnghened:--
Is II not seen that wonll place the whole industry and
business Of the country under The control Of such com.
panrs: But il would certainly effect it, than
similar control possessed by the money institutions OF
the country the measure of value Bot go fur
Their aud assert confidently la the ezccSS u paper CIR
rcncy ,ceR its nnSieadineSs is unfavorabe TO The
industry and business OF the country 1t raises the price
Of every thing and consequently increases The price OF
production and consumption; and 49, IN The end hostile
lu every banch of industry.
hold that specie and paper have each their proper
sphere the latter for large and distant Transactions and
the former for all others; and that the nearer our cIrcu
laon approaches gold and silver, consistently with con-
vruicncc, the better for the industry md the business OF
The country. The specie the better Till that point
is reached. When attained, it would combine IN the
greatest possible degree soundness and facility, and
would be favorable the productive classes universally
mean Of business, planters, merchants and manu-
fnclurers we'll as operatives would be particularly
favorable the South Our great staples cash arli
css everywhere; and il well remarked by The Sc
naor from Mississippi DIR. Walkcr,) al the extra
son that sold at cash prices, and bought al paper
rrices--lha u.s. sold low and bought high. The manu-
incturing commercial, md navigating interests would
also feel It's beneficial effects. 1t would cheaper pro-
ducliuns and he manufacturers IN lieu Of protective
tariff lis effects would be 10 rnabIe them meet for
rign competition, by raising prices by high duties
but by enabling them TO sell cheap or cheaper than
the foreigner which would harmonise every interest,
and place manufactures on the most solid basis II
is the oay mode by which the foreign market ever be
commanded and commanded II would he, with sound
and moderately expanded currency Our ingenuity, in
yennn und industry equal 10 any people; and oil
our manufacturers want, is a sound currency and an
even chance, competition with success any
where, home abroad. But with bloated and Huc-
tuatIng paper circulation, this will be impossible
Among It's many drawbacks, 1t levles an enormous tax
The community.
| have already stated, hat The community is estima
ted have indebted to the banks $40 O000O al
the suspension Of specie payments The interest on this
SUN, estimated at six per cent. Ut ought TO be hgher)
would annual income TO those institutions of up
wards OF thirty EIons aad this Is the sum yearly paid
b. The community for bank accommodations, TO The eI.
cess Of which blOated and unstable circul-
ton. Never n circulation worthless furnished at
so dear n How much Of this vast income may be
consde red interest real capital IL is difficult 10 esll.
mate; but it would suppose be ample TO Set down ten
millions that head which would leave upwards OF TWEEN.
ty millions annually, the profits derived from bank
ing privileges and above fair compensation for
| the capital invested, which somebody must pay, and
which must ultimately fall the industry and business
Of the country. But this enormous expansion Of the
system is not astonishing great is the stimulus applied
10 lis CROWN. ingenious men OF olher ages oeFoteu
themselves vain discover the art of converting the
baser metals into gold and silver but we have conferred
portion of the community, art still higher-ot
converting paper, to all inenls and purposes, into the
precious metals; and ought TO be surprised, that
article cheap to the manufacturers and dear TO the
rest of the community should be 30 greatly over sup.
Piled and without any reference the interest 10 the
wants of the community?
II we are 10 believe The Senator from Virginia, and
Others the side, almost oil our improve
and prosperity TO the banking system; and If II
should fall the age of barbarism would again rcturn.-
had supposed that the bases OF prosperity
free institutions; the wide spread and fertile region