Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1838-06-26


{ arirson 10 Sayanna!, $50 900, TO Orleans Soo"
D00 and $500 900 10 the District OF Cn" ona, ,bs
hu, So 800 900 to The staple States ana -
ohersand that, too, at r'i'oa wasa ~. his ~ far
section was about equal The effect OF a.. ', H. tho
!, reIs,es 10 the subject under consideration was M m
Iundinr of the debt dspress, relatively, .ne IT,
of the sta ple States and advance hat OF Tue
substitution of so large portion IN the e''uenee " w
,dd abt added new value 10 it, and gave to Inc holders
increased means and still greater control over the 'n
dusry of the country The location oil lhe nnlher odnh
and the allotment of 80 large portion OF Tue
one portion of the country gave IL The compete c"h"o
over the commerce and exchanges OF the whole nion
both Of which regulated through the agency oil Inc
bank Hence, find that the exports OF New losk III
years from the passage OF the law creating ana Wheh
its influence began be felt had increased her exports
from So sos 4G5 1871 to $l03O4,oS in lI!1-rehn
svivan!a during the same period, from S54'oo'' !"
Sll5lS D92; while Virginia under its influence haa az
Vanced from SO, l3l $50 to So 490,04l win EaPo'y "
Ginning import trade. 49, .
In this connection and operating in like manner may
be placed the privilege conferred on the bahh' u
its notes in payment of the dues OF the
also the Treasury order oil l1o', wh'ch ma 800 49,
receivable in payment of public dues, an" WIZ. a
Them a. far as The fiscal of the was
concerned equal 10 specie. On 'onchng o. vas ''p'.,
it is proper to remark that our intention - MOI
any opinion on the questions "s s;,,nv to trace The
cspsss which have led 10 the present depression OF our
commerce and industry, without looking beyond the'
regardless Of the effects on political! partes w
he Stfp
and advantage to The places where banks existed both
in The paymsnt Of custom house bonds and other cues
TO the Government over those where mere was nohe-
and of course TO the commerce OF the iorer anu
divert il from the latter To illustrate: Suppose instead
of receiving bank notes in The public dues the Govern
npnt had ordered nothing but gold and SILVER 10 DC re-
csived in payment of its dues, except tooaeeo ana Tce
il is obvious that it would have added greatly 10 lhe
means of the States that produced those staples, anu
contributed 10 give great impulse 10 their industry ano
commerce the expense of the other States where they
were not produced.-No reason can De assignee why
an order receive bank notes. to The exclusion oil every
other product or they are but Produc' "ouu no. 'o
Ter similar and not less decisive advantages 70 he S
whore thew exclusively existed, and which OF course
could only furnish the article
To ascertain, then, how this privilege conferred on
Bank notes. acted the commerce OF the country 10
necessary to ascertain number and location 9" BANKS
md the amount of their capital particularly at The Gale
of the order and shortly after when It's reiave enectS
before commerce had its channels deeP woulu oe
greatest e,,Lo.,,L,
date of the order there but Banks III The Unon
Of which not one in the staple States VI these,
one was in Philadelphia with capital OF So oGu uDo-
another a, New York, of $3.50 Ooo and ihc other al pos
ton OF 81 600 OG9-nakng the whole 81 800 QUO In me
wear 1895 the banking capital including the bank OF
The o. S. was SIS 1853 900, OF which ONLY So94o,cVV
was in the staple States, and Sl94Oooo IN he DINERS
In 1905 the Bank capital had increased to Soo49Spoo
Of which SIG 100000 located IN the staple S'eles
and S34 793 900 IN The others. =,
In 1876 another Bank Of the U. s. was chartered with
capital Of S35 goo 00O which, in its location the dis
tribulion Of It's capital and The c"nro' "h'ch " gave
over the commerce and exchange ct The country pro-
Gpced in every respect effects similar with The hrs
But on no State in the Union did this policy OF the
Government bear more heavily than on i!gn'a lhere
was rooted and fixed opposition IN this Stale not
only 10 the Bank OF the 81 but 10 the system gene
rally which long resisted the examples by other States
of granting Bank charters. With the exception OF he
Bank Of Aexandris chartered IN wv win cap''a o.
$50 900, not charter was granted by Inc S'a'e n"i
1905 when the Bank OF Nirglnii was created win Ca
pl,a of 81 800 000 and in the face Of her opposition that
her banking capital is SMALL compared with mos. OF me
States of the Union. Dunng this long period OF 80
years from the commencement OF the Gorenmrnt oank
notes il may be almost literally said made no part q" The
products of Virginia and that she compelled TO pay
her custom house bonds and other public dues IN goIo
and silver whilst the citizens of other States which went
into the banking system mad the privilege OF paying IN
paner Her staple commodities consisting OF Tobacco,
Flour, Indian Corn and Lumber although furnishing
great amount Of the basis of our foreign exchange would
NOT nav custom house bonds any other due. until e1.
changed for the bank mates Of Pennsylvania New YORK
or soipe other Stae-and wonder that the ci,i
zens of other States, who had such great aciteS IN
commanding that which could command her staples,
should control her and industry, and turn her
trade from her own ports!
But this was not a-7o receive the notes Of banks in
psvmsnt of its dues was not the only privilege conferred
by the Federal Government on them. They were nad-
the repositories Of the public funds with The liberty OF
using them as part Of their capital to discount on or
loan out al Measure and which acted as devotion OF
go much additional capital free Of interest," accomplish.
ing the double object of increasing the facility OF com
nsrcal speculation and the profits and revenues OF The
place where the Banks were located-and, OF course,
comforting them great advantages over those where
there was no Understanding the commerce OF the
one while il depressed that OF the other IL may be
said substantially of this State that she participated for
the ong period Of 30 years in none ct these tavnrs Her
honest and rigid adherence to principle prohioed he'
e tIa ND ping y
condition which only the advantages could be er-
joyed.
less 60 remains 10 explained growing out of the col
lection and disbursement OF the ct the Federal
Government Ii is well known, that by far the greater
portion of it's has been collected from duties on
irpn,ts or in other words by tax on the foreign ex'
CHANGES Of the Union; md it has been shown that two
6l.hs of the population in the staple States, produce
three fourrs Of all the products given ~ exchange Tor
xha, we receive from the rest Of the world Now, we
rerard il az lundane nta principle in political economy,
that all taxes on exchanges however laid or by whom
sosver paid fall ultimately the producers and that,
of course far the producers of the domestic pro-
ducts are concerned, il is matter OF little Importance,
whether the tax is laid the articles given, those
which are received in exchunge-whether, in other
words the toll is paid going out, or coming IN; or
whether paid by intermediate agents, (the merchants
or by the producers themselves However laid or paid
the bur,hen falls then-and how unsquaIy HE tax
on foreign exchanges has operated TO he o'sndVan
tapp of the staple States may be estimated by compar-
ins their population and exports with those of the other
States.
But the unequal manner in which the reFenue has
been disbursed or in other words distributed, has, II
nossibe operated sill! more 10 their disadvantage We
have no data BY which the expenditures made IN the
r.rol States can be ascer,aned; bat, we hazard no.
thing in stating that unequal as the collection has
been the expenditures have been tar more so; ana 'ha
while 4,hs of the burhen Of The duties on exports
have fallen on the staple States less than thai proper
ton of the proceeds have fallen to their share IN the
expenditure or distribution. The difference has been
transferred to the other States ,hrough the oil
variety and FORM acting The commerce and prosPe'
s,y of The staple States precisely as if an equal amount
Lni,in ,ulich ilmRleY