Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1839-01-31
Erf. R.inh;:nr EEEi,ri


III. article shows the experience n'a tI' F!'con"i lie
,r,b,r II - scarcely tcrssaIy 10 men ton is uRme
Iiis obi ct Gus a,s,st the system Z" Ff'" bdNiTg IS
,nnIicale .n Virginia, are Hc thhN l'"Cst cho!"sv"
Wp law. IN, Rs l., a,igp Of his own propositions For
ourselves ha:" had no tme |" ""'! ''''' r"A'iI'
ter aud pass upon their Guns G!' ''a'S,
We shall submit in cur next paper P'''! y" It'r
received from New York which conltni> Tue present
Banking schrme "f virginia. aud c"har"''s ''r re"
system ug New York We solicit continuation ~ Tie
authors iavors. enlico writes 10 lie rrrr"se "iG lie
wiies precisely the topic which "e all want mick.
In:rinn-this Free Banking System.
Michigan the first 10 commence i'--and II would
oppear from the following Resolution unanimously
.dp,cd BY her House ot Representatives 90 the ilh
inst tina! she has begun 10 pause and To po"deF ~ 10
Consequences:
p,.oirsG That the Committee Banks ard ircn!
nora,Ios be instructed to inquire into the pf"r"y Of
r.pa or further suspension or amendment {" the G-.
neral Banking Law of the State. and The act acts
ompndalory thereto, with leave 10 report ty h! OF
o'"''"''' FOR THE EHQC!gEN.
THE BANKING SISTEI
The attention Of the Legislature hl- trrn particularly
drawn at its present session, 10 The subject q" Banking
vhe seyers! political parties, however they mry differ
on matters of naona policy, seem to met On the com
man ground Of the cxpeGienCy ul aHgmeming the DauH
ing capital of the State, and the "ny d"i1"'i lies IA
the manner OF accomplishing the desired "hrcl
judging from the signs Of the times: ".a' IS termed
Free Barking" has grown into !a'"r no" ia' inst
svs,cm may be adapted 10 the circumstances g; !rg.
MA before there has been an actual experiment ci -
effects in The great commercial Stale ~ "hra M.
gnated may be q matter OI reasonable doubt. Tie
most that l's system promises rs the seriir o.! tie
rircuiaiiJa Of the Banks Gaming under i. HE deposit
oS and ordinary dealers haze no other security than
tit: faithful conduct OF those Banks Way such Banks
should not equally be bound I" give security Tor al Their
obllgatinns well their c;rcua;ion Is not 80 ubyou
In A larre commercial city, the circulation constitutes
but small proportion Of the liabilities 81 Bank. The
great mass Of business Transacted without the "'
Of Bank notes b. teposi,es and check. aaa
Bank thus situated may lend mhonS OF dollars. without
tie circulation Of than hunGrcdS IN Bank nors N
ohrr words security given for very heavy Trans.
actions, hII. ncOnsGerablc debt - GI1cc sure ias
is reversing the usual course Of such things, and mar
be irauGht with danger the Banks. In ID" event Il
au adverse Of trade with foreign corn'rcs. crGn
sors. knowing that The nctchOIdcrS are s'rur" under
any circumstances, viii be induced 10 press tof"afI
with their demands and thus maze run upon lac
Banks, " hen they might have nbstansd but tor the
preference given To the other class U creditors Co0H
deuce shaken, the note holders Wal then com" i
ward with their CLAIMS and such amount OF sccHSo'
lands be suddenly brought into maSet, rs serious:
affect lLc.r value.
Bat, in whateyer manner this system ma" w0.i
in large commercial cities, it may NJ" suit The t"msn.
tion of VrginIa, where the banking Operations are
chiefly carried through the insrrne naiIy 81 CHau'
lanc notes which must propoonabiy Increase the to-
Cuse amount Of and III" nor" enJlnIf me
OrrFstocking the market with the Piled ed suhlrc!s "a
tier lands public stock At all events, there can h'
no great evil in awaiting the results OF ehpi'rutr N
other States whir premature false step here may
be dicI Of recovery. Again: II may not he +" easy
matter establish Banks under tGs new system W 70
GINA Public stocks commensurate to IL" che"''1
circulation required may not readily be procured 10 ~"
interior of the country. and few discreet !dHGH',-r'i
u eucuurr their lands permanently l." become stock
holders in Banks Farmers and planters, and even 'r
prnpr!e:ors of town lots may Occasionally obtain hn'
rary loans pledges OF such property hnl c;u'.li
lrIl Will not generally ndsnt their estates Tor w" per
of n Bar q word, IL
u law Gulhorsng t., system OF free banking would y-
dead letter the statute book OF Virginia cxc'ii 50
far it may be put IN practice IN orc or iw" 81 81;
larger towns by OF the great banking institutions
established 10 other S0.eS which Eght deem II come
MEET 10 have agencies IN tbs.
Additional banking capital is UNIQUE sonThly require!
in NrgTla bat, instead Of ?cdgnG stocks ana '''.'
TO! the security OF bank circulation lei shhScHH'' ne
opened tor banks payable in coin or ~ public Srg
IiIrs TIE proportion of ih OF the i,rmcr aai
tuurllhs OF the latter There can b. no better onn,'
ton for banking operations than productive aud coyi
ubc stocks, with moderate quota OF specie. - "'!
rs the banks thus established shall hold The siochs '
will draw the interest them ard Mt the %osi coh''
nieGt season, they may dispose OF them eI'her u" r
or abroad. on terms more advantageous IMAM 'E' ''
rlonwcah herself There can BE- no Eecrss'! vt
large hOes of specie in the vaults OF bank. whrn
holds stocks at all tines convertible into the means
paying dents What judicuuS merchant keeps 70" nara
money yielding proh'l than !" h"d> ''f"1' !
for bis smaller daily charges, when be has product "
cCritIPs IN shape other. which lie can fiE A
meLiae!y. either directly OF indirectly. To the m'"mn'
Of his engagements: When The Bank Of the | : 50
established, small proportion of the capital was ri
gold and silver CON. ard lie larger proportion IN he
stocks Of the L s That mode of subscription gave !"'
mediate activity and increased value - those stocks
anrdIng wider range and TIE" channel ir ih' 's
rosal OF them. similar c!,ct would Gc Pfod0C'.
Virginia b. augmcn,rg III" banking capital and ts' 3
ccIvIng State stocks in payment OF suHscip'i"r' O
the Common wealth des gns To extend her u:rlH. 'G
,ernal improvements she mus! create more st"ct' 80.
hFy bat f,rt Ia vol q
it. in part the basis for banks that vii ~ 'IG' 1 "a
the for other profitable improvements Thus 8"
there be geomet:ical progression ~ the IrpTo"rm
and wealth Of the State The powerful impulse 'bi'ai
will be given 10 the mining and manufacturing ~ d
rests BY the completion 0: the James River CD" n 10
nawha line. should surely he sustained by the in.as
CT more nctlre pecunIary means than nov east -
beds Of bituminous coal IN the vicinity # II
mond either lying dormant are 80 iceby "'' ~
ed from The want Of funds. 10 yI~!d little or 80 co
The mountains o! Boetourt sud Rockbdg" are. ~ " 80
language OF able geoogist, but rock OF iron, %
scarcely invaded, from the want Of market ~! TN
WEN. Of means. The great water power nj Rchm't co
the proximity Of the coal seams-the facility OF "l IN
porting the iron by the great canal, now ~ sut
ndvancing-a all invite TO the establishment Of TcE ri 70
res OF every description, IN addition to those si'
erected and in progress. Such works hav" atv'' W
most incredibly 10 the wealth Of Great Bula@-A
must iorego these great advantages from Tie Oh ~
want Of the facilities to promote them; Shall We III se
that the land and the ocean are stTeakcd with r1h
and seam-vesses, and we be unable 10 conlftpNE ~
their construction, derive any benefit from sGrlt h
those materials which are nt our very door: Ac''" ~
pi,nl want--aud cannot obtain il without TIE HoI
of The Legislature in granting the privilege NJ 90
banking, liberal and encouraging terms We ~
no large individual capitalists 10 undertake. and ca"f %
such works Our laws opinions and habits, or" Of y
agains, the accumulation Of vast fortunes few I h
and we have no resource for gathering md c"m.'
capital for great and useful purposes but in the ~ ~
ton Of nint stock compnnlesnnt 1t is worsr than r.
TO invcgh agains, the only practicable scheme -
ar,s M,nv Of The dogma,o Of the noltico ccorrn. ~
are, in fact, flacous in the extreme wien ar"' A.
young and cntcrprsing country. Tie yn' 3
Hercules cannot be longer bound BY the tmsy i'Ir p
European maxims. We cannot gave up the brnr"' =
boun,iru nature, merely because have compa'a r.
but little individual wealth In union We sAiJ a
k,,,,L LII L-rLa