Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1838-01-02

allowed 10 witness the good or evil tendency Of the pc.
Icy, the Farmers Bank was established. subsequently,
the North. Western Bank aud the Bank OF The Valley,
aud at u late period, the Merchants and Mechanics
Bank Of Wheeling were incorporated. In instances
yet more numerous, arising from the renewal OF bank
charters which were about 10 expire, The General As
sembly, has, by decisive votes, given expression
TO the sense Of the community in favor of the
banking policy. Is il wise Ut polite. suddenly 10
abandon u policy so long and fondly cherished, and
commit the property, business and welfare OF the
community upon the issue Of an untried expert
ment: If il could be si!ewn, that the sources Of pi.
yate and national prosperity would have been better de-
veloped under a different system, still the consIiera-
ton that the habits Of the community are adapted TO The
existing order of things, and that revolutions therein
would unsel,le public confidence and involve %unaVolda.
ble sacrifices, might well be sci of against the demand
for thcorelic perfection: But the reverse OF that suppo'
siuon is believed TO be true; and tina, we are in no slight
degree indebted to our liberal system Of credit and ex-
changes for the hitherto unexampled growth ana pros
perily of our country. Without much actual capital,
our country was mugniticently endowed with all the ele-
mcnts from which wealth might be securely derived; Its
position, therefore, was that oil all others III winch the
facilities of i generous credit were most needed, anu
could with the most safety be dispensed.-Among other
instances OF great aud permanent advantage, may NC
mentioned the works Of Internal improvement, Canals,
Railroads and Turnpikes. These must have been de-
layed 10 a remote period, if the spare capital necessary
for their construction had first 10 he accumulated; ana
in the interim, the whole country would have suffered
Tor TIE want VI Inc requisite CLdnHeIS VI
cation, and The industry of those parts of it more remote
from the seaboard have been 10 q great degree p~aralyzed.
Indeed, the fostering influence Of The credit system hlth-
erto upheld, is altogether too visible III our past history,
on the development of the rich resources OF our country,
the re wards Of industry, and the growth of population,
not to satisfy US that lis agency has been extensively aud
signully useful. | respectfully submit, that a policy re-
peatedly approved by The deliberate sanction OF The Lee
gisiature and the community, and that so lar has oeen
found in friendly connection with the great interests OF
the Commonwealth, should not be so lightly nor so has
tily departed from,
1t is objected to banks, thu. they foster a spirit of reck-
less speculation, create artificial values, and expose The
currency 10 dangerous commissions. The proof is said
10 be found in the sad vicissitude which we have lately
experienced, and from which we have not yet recovered.
Until the suspension OF specie payments, the State
Banks enjoyed the confidence of the people and the Co
vernmeut, and their agency was generally conceded 10
be useful, it not indispensable. They had been not long
before selected as the repositories of the General Go
vcrnnent; and under that arrangement, u large addition
was made 10 the money which they held on %dePosIle'
The question occurs, whether the suspension Of specie
payments he not referable TO causes which the banks had
no necessary agency in creating and whether il be moi
in the reach Of prudent legislation TO guard against the
recurrence Of the evil, without imparng the capacity oil
banks 10 be useful; aud after all, whether it be not bet
Ter TO incur the risk Of occasional incon yeniencel from
mismanagement or indiscretion OIL the part Of the banks
than submit TO the greater and inevitable inconveniences
that must attend their overthrow. II Is by no means
peculiar 10 banks, but on the contrary is a property com
mon II all Tue lHSpillIUiSO VI man, ioi IOhti UNIV "h'SA
are in the main beneficial, TO be now and then the occo'
sion of mischief or coniusion; and it is the part of Wis
dom not to abandon such as are generally useful, but 10
apply Itself 10 the work Of judicious improvement.
1t is Of the nature Of credit, as implied in the objection,
to present temptations to speculation, and 10 encourage
demands for, and hence 10 raise The price Of whaieyer. is
coveted as an object of property. But. are these regard,
ed as evils TO warrant an attempt 10 a%nnihilate all credit:
it is the characteristic Of man, and Of no people more
than our own, and, regulated by a prudent forecast, no
disposition is more commendable, 10 anticipate coming
events, and risk the present upon the realization Of their
hopes. This is speculation; and the American people
will have lost their energy and enterprise when IL ceases
to be a predicate Of them. Speculation will exist as well
without banks as with them, and in either case the issue
will be sometimes unfortunate; and then those who de.
eide upon an enterprise by the event, will arraign the pru.
dence Of the adyenturer. But, what is nure 10 the point
to remark, is, that rs without banks there will be specu-
lation, and speculation in which large numbers will be
embarked; so, when the result is unpropitious, there will
be complaints OF artificial prices and disturbed currency,
as well in i ommunily in which there are no banks as
where they exist. II is not in The power Of Legislation
to guard effectively against pecuniary vicissltudes; and 10
attempt 10 prevent their occurrence by shutting up the
banks, would add immensely 10 the burlLsns Of all pro.
fitable industry without the recompense proposed in Sc.
curly against reverses.
Among the causes of the recent CONFUSION, certuin
measures of the General Government must be regarded
as not the least influential. The measures alluded 10
were doubtless expected TO answer valuable and import.
ant ends, and their disturbing influence in other respects
was not designed or anticipated. The Executive order.
commonly known as the Specie Circular, however sau.
tary, considered IN reference to lis immediate objects,
had tbe effect 10 transfer specie from points where it had
accumulated BY The ordinary course or tIa,i., to puin,s
where it was not wanted for The current 5usiness Of tho
country. This is one instance OF disturbance TO the cur
rency, resulting from the indirect influence of the mea.
sures Of the General Government. Another instance
is 10 be found in the distribution Of the Surplus Revenue
among the States, performing the operation too sudden
ly, instead OF making 1t as gradual as possible. Here
again the act Of the Governnentcame in conflict with the
operations Of trade, and had the effect Of disturbing the
equilibrium which had resulted from the general course o
business. If 10 these be added the Inducements held GU,
10 such of The banks as were selected as repositories, 10
exercise the power Of discounling literally, we shall
scarcely, in view Of these ex,rinsic and p0tent causes
feel ourselves justified in imputing the evil in question
TO the ordinary and natural operation OF the banking
system.
The large funds which The Commonwealth has dcdi.
Gated TO the invaluable objects of Education and Inter
nal Improvement, arc invested in The stocks Of our
banks. The notes of these institutions have long per-
formed amongst us the functions Of money, and consli'
tuted, and yet constitute, 4 large portion Of our curren'
cy. Until recently, with q single exception, the banks
have met their engagements with punctuahly, and theil
notes have been convertible al will into coin. For the
suspension Of payments in 1914, the excepted instance
an excuse was admitted to exist in the embarrassment
resulting from Il war in which our country was engaged,
whilst the valuable services rendered to the Government,
by the liberal use Of their credit, conciliated friends
The ready sale Of our produce, al prices which remu'
ne.alc the labor employed in their production, has been,
and still continues to be, effected through The agency oil
banks. The value Of property, the wages of industry,
the profits Of every occupation whatsoever, are adjusted
under the influence of the banking policy, and It's innu'
ences are alike beneicial. 10 all. 10 renounce this policy,
and attempt 10 attain 4 currency exclusively metallic,
would be attended by consequences extensively, JataNy
mischievous. Observe lis operation upon debtors. The
reduction Of the circulating medium, would OF course
reduce the price of property; the effect OF which would
be, relatively, 10 augment the debt to be paid. And thus,
adebtor, whose engagements were considered light when
they were contracted, might find his whole means had
become inadequate, by a revolution in the currency, to
the payment Of his debts. The citizen, in the case sup,
posed, might well arraign the justice Of his Government
that by its Inconsistency had produced his ruin. This is
but one instance of The mischiets of the innovation. NJ
mcrous others will occur to every considcratc mind.
Deeply impressed with these views, | cannot but re.
gard with anxi v. any prnposilion proceeding from an