Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1839-09-20
from he 81. C'airsritie (O.) Ga=ete)
RANK REEnRa

(From he 81. Clairsriue (O.) Ga=eue)
BANK REFORM.
While the Federal pnpsrs denUupcng, in no gen.
lie terms the Democratic Bank reform 1t may
be unintcesng IL quote from those political ccono
mats VIII, favor the Banking system
Prof Wnynnd, (whose views we gave on The banking
ysrm last week. speaking Of the agency of govern
ment in respect 10 paper circulation, says
/ They Uhe egisnlure) have right 10 take such
viii be likely to give all reasonable security 10
paper currency These means have respect, 10 gene
raj! 10 the liability Of directors and stockholders TO
deem their bills In what manner this security can be
best effected, it must he left TO practical men 10 decide.
In some cases nH HE property RI all The Stockholders is
rendered liable for The debts Of line bank. This would
commonly be perfect guarantee $50 proved in the
/ late banking system Of Scotland which has wllhstood
pnnics, preSsurrs aud mmercial disorders In other
cases the property only Of the directors is held liable
In what way security be best and most equ
tabIy effected, think government [legslalureJ has
| right 10 effect IT,
I'll has a right 10 take all reasonable 10 dim
nish he 1uetuations oi paper currency We have seen
that nasmuch the banks promise TO redeem their bills
in specie, III" amount OF paper which they may safely
issue must always depend upon the amount OF specie IN
the country. Fluctuations in the amount Of paper must
follow fluctuations III the amount Of specie. This Hue
tuaon will always be less. when The proportion OF spe
paper is great, and rice The best method,
therefore, of preventing lh,s evil Isl so TO construct the
currency, that The proportion of specie 10 paper shall
be great 10 be affected by any Thing but large and
long continued expectations oil The precious metals
fErs RESULT MAY Re EASILY EFFECTED BY THE PRO-
niRiTioS ISSUE SMALL BILLS This WILL
by necessity place the hands OF individual spe-
for every amount which he may hold of less value
than The lowest note issued Were bank IN this coun
try 10 issue mates o less denomination than rs dollars
most lie held hy individuals, in notes OF one,
two and three dollars uoud ts IN siirer If every in
dvidual Of the l2 0000UO in the U OOOOOO'l
possessed dol in specie than OF present. this
would amount 10 twenty Tour millions ia OUOOUO pro-
badly more of specie 'hun now possess That IS
at ie time Professor w. wrote-in 1898. This would,
Of ITSELF be sufficient 10 prevent The evil arising rom any
ordinary fuc'ua,ion.
The above views are given by political economist,
who iavors the ranking system and yet we are told
by The Federal press that the mad schemes Of the Loco
Foco Bank rNformers will ruin The country!
One ord to the ultra Federal and Conservative press.
fhey will not listen 10 the mad schemes of The Lo-
CO Fucos probably they will learn something OF their
leaders We quote from those who are called the great
lunlnarPs Of their respective parties. Ia May, 1882,
Daniei Wehsfer said
"nhy have We so small an amount of specie in circu-
alion? Certainly the only ls because we do not
require We have but 10 nsk lis presence and It
will return; Tut voluntarily tanish by The great
amount Of Sm0i tank notes In most Of the States the
banks issue Of low denominations, dozen 10
SIMPLE dollar. How is il possible, under such crcum-
stances, 10 retain specie in circulation? All experience
shows 10 be impossible The paper will take The place
OF gold and silver. The erii then is The issuing
of small notrs by State banks or these notes that
say, OF under fire dollars The amount in cir
culaLon is doubtless eight ten millions Of dollars =
Can these notes be Withdrawn? they their place
will be imme duely supplied by Gle circulation of
equal amount The subject is great one, il is
necled with the safety and stability of the currency and
may we'll Justify serious reflection the means of
accomplishing it Ii is but for other States TO
follow the good example of those which have prohibited
hen and the work is done We must hope that all
notes under FIVE dollars may be entirely Withdrawn from
circulation by the Of the States and the State
banks-and when that shall be done their place will be
Immediately supplied with specie.
Mr.. Rirss in 1884, said
"Of all reforms, social, political or economical,
9ured by the great interests Of The country that which
is most urgently demanded, and which promises in lis
accomplishment the largest results of utility security
and public benefit, is, beyond comparison The reslora
ton Of The Government 10 what il intended by the
trainers of the Constitution 10 be, hard money GOuern-
rnent We too much in the habit of regarding The
evils Of a paper system ns necessary and Incurabe
| coniure gentlemen, them TO bring forward
their powerful aid enrt 10 restore the Government
its constitutional character and destnalionhat
c( simple, soiid, hard m0nry Government
QUESTION and Anssoer.-Why have small IN
amount Of specie in circulation Burke has answered
the Question forty two years ago Tell Mr. Ply, said
he iii lie consent 10 the issuing of pound notes,
he must never expec, 10 see guinea again.
New York, September l6-The pressure in the mo.
npy mnke, intensely felt las, Saturday than il
has been al any time previous The general embaass
ment takes degrees of severity, the U s. Bank,
from lime TO Time makes new and enormous issues oil
post notes. That great institution has become compe-
t:or with individuals for the accommodations and faclli-
ties of credit which have hitherto been given, not 10
banks but 10 their customers, the mercantile commune
ty. The bank, of course carries the day Since it has
become coltnn merchant, il absobs the credit which
granted 10 individuals il swallows up the
and resources by which they enabled TO do
business lis immense capital enabling il 10 defy all ri
very. new Issue Of post notes was thrown into The
make, at the end Of last week. and Of The
that frightened the pressure.
IL is only repeating what is the common declaration
Change in ihe counting houses, 10 say, that the al
most universal opinion Of the mercantile community de.
mands some check upon The caprices of the United
No refinement of cruelty used in The application Of tor.
turs in those days, when the rack and the thumb
were in fashun excel the process by which that in
suton, from day TO day. aggrava,es The pressure by
issues Of post mites, dimnuIions of the fund
formerly supplied The Sub Treasury plan begins
to be spoken Of by many who formerly its most
determined enemies, as expedient which by the
of The Philadelphia banks has been rendered ne
cessary.
In The mean time the New York banks, we hope, are
not insensbe TO the duties which The times and their
relation TO their customers demand oil them Whatever
they do tn protect the merchants OF this city from
being crushed by The operations OF The mprchantbank
which has taken The field against them, certain
they will readily do.-Sume,hng. friendly and judi.
cous course on their part may doubtless effect break
ing the violence Of the blow aimed at commerce.
RI. Post