Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1839-01-12
Esichnnomd, Saturday, Jan. i@
rAE EREE KaNKLNG SISTEM.

Delegates OF Thursday last mat t1e pail opehfoj anu
that this system has been preached for the consdera
lion of the Gen Assembly resolution has been adopt
ed for printing the laws Of Michigan. oTk and Gsor
ga 1--WE the States in the order IN which they were
passcd) Three, if not four OF The netnccts Tor WHOSE
opinons great respect, have innaed some pre-
objection for TN. Innovation we express our opinions
on SO complicated subject always with much dithdence
and much Difference 10 the sentiments OF ohers-but we
think due 10 ourselves as well as 10 The slate al large
10 EXPRESS our own doubts Of the correctness OF The pro-
posi,ion We have indeed G0ubis-We ought rather
10 saw that these doubts Tpenng into convictions
No doubt The Whole subject is eminenty worthy OF The
consideration Of the L"gsatnre-and os 1t Is now INTRO
duced into l., we trust il will be submitted 10 iu and
able Committee Of the House. for full dscusslon and
detailed Repaf-Let them collect all The materials
which are within their rrach. Let them summon the
Presidents of The Banks, and The merchants, neioEe
them TO give evidence and elicit information upon TIE
subject lie, them collect statements Of The operation
Of the machine from the State OF Michigan, whe!c IL
was first tried Let there be no PreciPallon bnl n"
delay The Legislature has taken up The subject III me
first week Of lis sessnn-and 1t has time enough before
Ia gather facts draw conclusions reflect determine,
and act We ask for this great caution and profound de-
liberation in the Of the Staie-n the name OF al
future Legislatures in the name OF rosserity itse IL
the Free Banking schemes be indeed The true desuealu
u,on the subject will economic the time OF all coming
sessons-for petitions will be hereafter submitted ,"r
Bank interpretations, and the action OF nture Leg'sia'
lures will be TO great degree superseded. "A system
will be put into operation which will maintain lis own
action and propagate its results, through the whole
Commonwealth, ard for all time 10 come.-fut II The
system be liable ngupcrable objeclions-if 1t indeed
threaten Geugc the whole State with superhu1 OF
papcr money! 10 introduce still more uctuatIng stand
ard of value 10 involve the community more and more
in the expansions and con,racons of lis circulating me-
diuu; 10 conduct again TO suspension OF specie
pa yments the subject becomes still more entitled 10 lie
serious consideration of the General Assembly.
We are as much the friends Of Free Trade as any
man We 90 for the doctrine Of the LaisSc- fare,
us,far rs Turgoi, Adam Smith hImse!t-IndeeG i"F'
cher than the last for we are opposed to general Ia"
against usury We for allowing each man to promote
his own interests employ his capital and labor as
he may think bes,-We neither for encouraging ny
boun,ics prohibiting by penalties, any particular in
yeslment Of eherbu we would let each lncViGuai pur
sue his business where and how he thinks best when
he docs no, affect the rights, disturb the just interests
of others. Hence opposed 10 the Tariif-and
hence with all desire 10 tie prosperity Of The
silk culture, we are opposed TO bounty upon IL. bnt
the time, there must be certain standards IN
society for determining transactions between and
man-for instance, weights and measures and monry-h
seems essential that they should be regulated by The re
neral will for the general good. Who would permit
every man to introduce his own weighs,, his own
measures: Who would suffer or Is, and so on TO
the end u Tie Alphabet TO coin gold and silver or 10 Is
sue shin plaisrrs: One of the greatest objections 10
Bank paper is that it dsturbs the standard OF value ny
the introduction Of paper medIum-and nothing could
have recuncicd Society this Fictitious standard, but
that the system Of credit which the Banks Introduce
is calculated to enlarge the productive capital 1t the
community and the hac,uaton Of the standard IL to
great degree counleracicd BY such regulations o' The
Bank US nav compel il n great degree 10 make lis
per all times convertible into coin, and as near rs may
lie an equivalent for the metallic measure OF value
The only question is which answers this purpose best
Chartered corporations vigorously guarded and sub
ieced TO all the restrictions which wise legislation and
seepless surveillance can impose? Or is il this sys
tom Of Free Banking which permits every man or set
Of TO bank upon his own capital or upon the assn
cated wealth of others, under all the restrictions, which
the Legislature may devise?
There is objection 10 Free Banks of discount and
misunderstanding any associated company 10 receive
on drposilc the money Of others, and paying certain
interest on tie Of il; and lending out lis own
pal or the deposes Of Others by dsCountng the notes
of its customers at higher rate-embracng too per
haps the purchase and sale Of bills of Exchange under
certain regulations But there is very great doubt whe
ther the Legislature Should permit any number CT men
to establish also Bank Of Circulation; thai is 10 say,
to issue Notes payable 10 Bearer.-What, though the
notes may he supposed 10 be secured by deP"se OF
public stocks. or by bonds and mortgages on unncum
bored lands and buildings, or as the act OF Georgia pro-
vides, by bonds and mortgages on negroes-docs Ms
precision secure the community against the dangers of
Banking Suppose The mania for free Banking should
rage around us-suppose The community 10 be inundated
by paper money-suppose panic should arise run
upon the Banks aud their pitlance Of specie TO be
housled It's notes may be ultimately sa!e and this very
Of security may for time diminish The panic but
the serious objection remains, that the more you throw
open the door the Banks we will haye-tlc more
paper-the create reliance Of danger in this rcspecand
when serious does take place, The greater lhe dan
ger of suspension Of specie payments, and Of disturb
ing all The mouicd transactions OF society.
This system of Free Banking better adapted To rich
and popuous cities here The capital of the Bank may
be employed without the necessity Of issuing so much
paper where credits the books Of The Bank and checks
upon depostes, may be substituted for the floating notes.
and where, If there he upon them for specie, the
specie may be supplied by rich and active mar
ke,, than in interior States, in limited cities We re-
peat, however the whole subject is emineniy entitled
to considerations and trust that ii may receive full
and active investigation from the General Assembly.
The Free Banking system is the very which the
Philadelphia Bank Of the U. S. most desires 70 esta
bIished She will thus extend her Brarian arms again
throughout the Union Wherever the door is opened
there she will be 10 enter Wherever there is any
chance of obtaining ioothold, there will she be sure To
plant her foot. Does any doubt il? Look at The
Branch she had established in New York-l is said she is
also about to establish another Office in Bufalo-and,
my lie upon H. she vii! soon have Branch in Georgia
and it will be in Virgina.-The eccentric Editor q
the York Herald, has lately been visit 10 Phila.
dephia and gives an account of his interview with Mr.
Biddlc He does not retail his conversation with the
distinguished money kiug-but he concludes by saying,
that Mr.. Bdde is not anxious for National Bank
and among other reasons, because the facilities Of es
abshng branches in the several Statss by the expand
ng system Of free Banking, will enable him to extend
his Offices, without The virtue of national charter. We
confess that this prospects, recommendation 10
the scheme.
In the mean time, seizs the opportunity Of laying
before readers the extracts which promised from
the inaugural Address Of Governor Shannon TO the Ls
gislalurs Of Ohio-Thcy well worthy Of our most
rous conside ration
EXTRACTS.
"Thcre is subject which absorbs go great portion
Of public consideration at the present time, that Of
The currency. combination Of circumstances has con-
buted TO render this the most important and interest
ing political question, upon which you will be called
upon 10 act. II is delicate question, which affects all
The various interests Of the community; and you WILL
no Doubt give 10 it that cool and deliberate cnnsdera
ton, Invested Of all party feeling, which its magnitude
and Importance. in connection with the public interest,"
demand.
"a sound and healthy currency, adapted 10 the wants
and interests Of the people, is object Of the frs, i'm
porlance in every community, and more especially in
one like our own, of rapid and growing prosperity
Previous 10 May, 1887 most Of the banks Of the Union
carried away by the prevailing monn for speculation
and stimulated by desire for gain, had extended their
vnnd Tie limits Of nrndence