Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1838-12-07

n New Orleans WAS the less gurinus Iie merit
u him who conducted il. and u his associates III arms
les mspcuuus btcause the last " an event
iul war nor shall the triumph of The Jackson has IN
Tennessee he the less er'u;nus and honorable 10 hiT
bears and his patriots IL the struggle, shnud
he the browning victory the present wara'e o m
tsgry against corruption, OF truth against ioisrhocd OF
law against anarchy, OF liberty against money or, all IN
4 word of Democracy ngainst Federalism.
beg the favor Of you 10 prcsen, Ia the company The
iucuscd toast.
With high considerations
Your ubedient servant
AMOS Kendall.
DR. FELIX ROBERTSON and others, COmmasf.
GENERAL AspREw JACksoN-May he 1--we 10 see
"the flag ::ich he so long and gloronsly up!rld.
again wave in triumph tie heads of his brave, de-
voted, enthusiastic and beloved Tennesseans
(FrOm The Chari,sln PniriotJ
FREE BANKING.
An article published IN lhs puier recently on the sub
ect Of Free Banking has attracted considerable notice IN
the public journals. The papers Georgia aud Abba
MA particularly have copied remarks with comments,
The subject Of Free Banking he New York Pian
will ii appears probable be- shortly brought before the
Legislatures vi those States. We wish 10 illustrate our
views rather more IN deai! Than We have had "PpoHu
perceive The New York Plan certain remedy for
thr evils OF the banking system
The "Genrga Journal IN short rep our reihatks
seems 10 think that a remedy exists IN the New iork
law against the evils vi instability and huciuatun in
the barking institution formed under that law may
qurr The officer who holds securities stocks and mort
cages sell out Tor the purpose ut redermnE their CIR
cuiaun. This, the Journal, is simple remedy tor
Tie evil. We say rCmcdy brcaus- there can be n"
py,re0ttre" Now, here is the point OF difference be-
tween us: We lhlnk that tie excellence O! banking
system consists It's JGnsGi1l but in rs PT'rt"re
checks The very necessity IS hch requires the admin
islralion o remedy. inn lies that evil has occurred
which requires The gr at purpose OF s"cnd
banking I" prevent the hnppeuing OF the evil or
r,nredtI checks perhaps the New York law among the
best that could be devised ltpovIdes for the quick
Of assets, to diminish liabilities with rs 1T.
Tie disturbance the of remedial system admits
In giving unlimited scupe. howevtI IL cnmpri:ii"n IN
the formation vi banks IL mpairs the prtrHhre, III pro-
portion it Improves the rrmCdtnl checks against ex'
cessivs bunkng This we shall endeaYor presently TO
establish We still differ IN opinion with those who
think the remedy perfect 80 II is simple, III selling
stocks and bonds for redecmng the circulation of banks
The operation Of selling must take place during e"n.
traction G the currency, The apprehension OF such an
event. and will not be easily accomplished or effected
without heavy sacrifices.
The Editor ci the Mobile Re gs sr thinks. 'ihat our
objections 90 TO Banking gsnrrGlly aud not to free
banking Our objections 81 10 the rxcrssivr employ
of capital in banking, Of which the New York
Plan norts great facilities, and TO Lankmg scH7Hi
iy We have affirmed that Banks of DepoSile unlike
Banks "i Issue. cOntoin within themselves self re-.
s,raIniug principle. The Editor Of The r. gser says,
1T is certainly very easy for Depose Bank 10 eS
coed It's proper issues when the speculative demand
lgud and strong, and The stamped paper lies before
them, ready 10 be issued IN quantities, "niy limited nv
pruGsucc Banks of DrpusIie may qrrsiionaUIy
uveriIude well Banks vi Issue but the distinction
lies here: the former give little scope 10 speculation
that 1t is necessarily limited ia durnlIon and degree,
while the lairr and extend II by constant Access
sions Of credit. Let Us endeavor To illustrate this differ
by short exposition OF principles. Speculation.
however originating, whether from naiural ar artificial
sraiciy expires It has not materials Tor sustain
ing and extending III The expansion OF credit II has
been demonstrated in the real history VI th
which occasionally ~ all countries that,
without c0iHctGen circumstances In favor sprcnaon,
must soon terminate. Among ihnsr cOTcldent clIcun-
stances is the abundance OF money the facility of pro
curing ii, accompanlr by low rate Of Interest When
these circumstances coincide with spirit Ul specu
alion will dilusr itself gradually every class of
commodities objects OF purchase When money is dif
hcut 10 be obtained and the rate Of borrowing is high,
overading soon reaches It's termination. In 1885, very
class u cnnnudlies advanced III Eng land upwurcs
Of 100 per cent, " hie the circulation was IN very
contracted state, and al subsequent period prices tell
during lis enlargement demonstrating that speculation,
with Of prices, 10 considerable rStrrt, may
cur. and Revision, IN certain degree. with tall 1T
prices may Occur, unconnecled with the state nt the cir
culaon. II money had been abundant easily pro.
cured in that year. there would have been. no doubt
crisis similar /" that oil lc23 But the speculation
nursed by credit, IL expired tm the want
Of material This ~ The Whole rattonnte Of ;he course
Of speculation.
Let US now apply these principles Let Us suppose
that, previous the adoption Of the late free banking
law IN New York, from actual or anticipated dricl
fncy in The stocks OF merchandise speculation had bt
excited and that A Is. aud &, having large sums on de-
pos,e bank they had Withdrawn them for The purpose
Of engaging in such speculation, lending imse
TO borrowers whn were thus engaged that investments
bank and other stocks had been changed for specrG
TONS in rcsndze b is evident, there berry this
suppastIlon iGcreose OF bark copalsn additional
issues that specua,lon in this case would quickly
10 an end and would not extend itself generally Tie
level Of profit would he restored and correct 80
partial disturbance Of prices The check against pc
cuaton would be internal II is in this sense that Banks
Of DePosIe have within themselves seii-res'rsn'"g
principle II the parties, 10 meet any actual or pre-.
sumed demand FOR money, wished 10 employ their bank
drposes other capital in the formation OF new banks,
the restriction existed Of the necessity Of applying for
onr or more chsrtcrs Tie Legislature might no, be
in session. ii in session. delay in r'ocnrng charters
would probably and before any opposition that
,ght conclIaled. the speculation would rr"
badly expire from the want OF material to noufsh aEd
extend H.
Now let us pursue the illustra and mae specu.
lation of kind similar that already supposed, 10
cur shortly in New York, there being restraint
but the self interest Of capitalists to check the aggre
caon Of capital into banks, and A, b, and T., having
Investments in public stocks or private bonds. or un.
pIoyed deposiirs in bank unite then INTO bank capt
tai, meet demand for money for speculative pur
poses II capital Of ten millions Is united into one
or more banks with the night. IS under the New
York law. On dsposiiing the securities IN stocks aud
bonds with the Comptroller OF the State, Ia demand
an equal amount notes for issue and circulation there
is Of once ten millions credit emitted in The form Of
paper money, such speculation Il will inrv
ta6y extend itself the principle That, in proportion
TO the actual abundance OF money the facility Of
uling il, viii speculation be arrested in lis infancy ar
spread itself all classes Of commodities rcis Of
purchase.
Without increased employ ment of cap'al in banks,
there could have been basis Tor increase e" cifcu.
aling CREDIT and without unrestricted privilege TO IN
crease such ca pila banks speculative drmand
for money would have no alternative but 10 augms mt
theissurs surprising the Legislature To REUSE The grant
OF nc charters The restraints then against the undue
rmpl"ymrnt cHpsl in banking 90 not IrqHir rraxa.
ton but ncr. asrd rgidi,y The late facility Of obtain