Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1839-04-09
VOLUME XXxV.---No. Id4l1

By eighth From 1913 10 1875 the increase of bs nix
notes exceeded the increase Of discounts 81 900 000,
whist The specie IN The vaults diminished 000,
Zoo Circulation increased from lSi3 10 Isi5 in the
proportion OF so 10 6 without corresponding increase
IN discounts This produced very rapid depreciation,
winch was not little fastened By the sale OF British
Government bills, the payment for which was in the
precious metals and these taken 10 Canada meet the
expenses Of the enemy Before of specie
payments in 1914, these bills sold discount OF from
10 10 20 per cent. after it, tney rapidly rose 10 prem.
of 20 per Taking this as HE measure OF the
deprecison perhaps no, bad one and will be appa
rent that it had reached most woeful extent Such,
however, was not the uniform deprscst:on this varied
very much and It's extent unsafe evidence of
The support given the Government, bad indication
| OF the latitude and longitude Of places
WIN tbs PLAIN staten Of facts, is il evident
that any canh that would have lent The aid TO Co.
vernmen', must have increased its issues Of sl pro-
portion to its discounts in violation % al tAp sse prin-
cpies of banking, and would, FAR from being able To-
restrain Others from su5Pentng specie payments, have
yieaed Ike them, TO the necessity Bank Of
the nlled States neving branches spread al over the
country and bound TO redeem its notes SO many and
at such distant points, would under such circumstances
have felt the necessity least as fofcbIy as ndepen-
dent banks who redeem their notes only AZ their
counters To me, II very certain that the embar.
easements would have been felt sooner and more severe.
ly by il than by the State institutions. Unless it
be shown that it would have had powe:to resist
the evil consequences Of highly inudIcous and runous'
banking, the inference irresistible that could neither
have prevented the arrangement OF the currency, nor
have been better prepared Than otherS,;o !eso-e 4 TO
sound state We lind strong corroboraton OF the
correctness of this conclusion in the experience of
England There, National Bank, possessing great
wealth, with the full and unbounded confidence and sup
port no. only of the GoYernmen bu, Of all the
traed wealth OF that very rich county, driven by
| similar advances to its Government, INFO a suspension
OF more than twenty years duration. II then, Nationoh
Bank, Lending hearty support to the county, could not
have sustained itself, surely evidence be found
IN the experience OF lhn period OF its being necessary
But this surprising that the institution would have
been willing 10 give hearty support to the Had
its ncnatons and feelings taken different direction;
if II had proven 10 be JEALOUS partisan o. the other
side, then doubt, tho, unless put down by
violence, II would have done incacuiable mischief. He
must BE- bi.d to what has recently passed before
yes who can doubt that such power ably and mali.
ciously directed during the late war, would have fallen
very little if at all short Of the ability TO dictate the ermr
# peace. No who looks at the strong probability
hat bank would then have grroyed itself aguns, the
can feel much regret that there none then in
'xls,ence
A tier the war; the currency continued 10 become
md more yIclons: Every felt DESTROYS Of applying
some rffecual remedy Unfor unaely, the impression
;ouk possession Of most memo. minds, without dnlC
weighing the facts, that bank would have prevented
he evils, and was the only remedy deep anIe-.
", almost panic, prevailed and th,t was resored TO
a necessary and proper remedy, which proved 10 DO
! aggrayation Of the disease.
AID examination Of the Of the late Bank Of his
United States will present series Of violent pausons
ina conractons beginning win the disastrous one OF
~, 20, and ending with The famous one OF 1884 The
cuntractlon with view TO the preciptate resYmp
ion of specie payments, reduced the entire circulation
rom 00000 600, its estimated amount in 1915, 10
$4,000 600 at the close Of 1919; rapdiiy of reduc-
ion that perhaps is without example. IL inflicted the
-everest injury large potion Of the Sorth aud
West, and entaed the latter broken banks and aide.
precaed paper money which lasted during large part Of
he Banks existence. P-rsevering industry and rich
ol brought relief from degree o! distress and embsr
assmrn that population less vigorous and enjoying
ever advantages would not have recovered from half
century. How mach ess distress has beea recently
experienced in resuming specie payments withou, the
gency nf bank than then felt with it, evidences
little It then necessary for that purpose The
asy transition from much general suspension to
vastly more general resumption, ought to remove az
loubs to The uer wGTlh!essness Of such an agent
Another striking differences III iae two events 10, that
he degree of the distress then much
sections than in others, whilst in The last The ine-
quality has not been strongly marked DO the
sequences where the evils greatest promise be
lasting From tins it would seem fairly deduciole thc,,
without such powerful artificial agency, the natural,
course Of things restored the currency to healthy
dItion quite surely and more safely II this be so, it
must be evident that the supporters Of bank in rs,
committed a great error, doubt honest one in sup.
posing necessary for the restoration Of asouud
cency.
Is il necessary keep The currency sound2 The re.
cent vuson and consequent suspension il s alleged,
would have been avoided had possessed National!
Bank To me- is evident! il would have proven in
Efficient safeguard it would have tsen ou.d during,
The The firm conviction Of many, that the want OF
such institution the leading of the distress,
rests, il has seemed 10 me- the assumption that the
had produced corresponding effects during
the war have endravoied TO show how entirely gra.
luous has been that assumption. Divested OF that
pre- which has been handed down from those tner
and received credit, The mind will be better prepared
To reach sound conclusion as 10 The late revuIson.
The disasters Of 1887 preceded by the extrava-
uancies tha, followed the violent and unnecessary
pnfih a Qaylu nj q Tia
pressure ascrbed to The necessity the bank
der place herself II condition TO wind up, in constr
quence Of the removal of The deposes. The sudden
change the policy of the bank before the close OF the
year less than subsequent decisive Indications
show that winding up was never IN contemplation AID
that the violent contraction induced by far different
views Although / have never doubled that political
objects induced that move i, has no, been my OPT
Mon that the subsequent expiration was recommended
by the same consideration. IL has seemed 10 me 10
follow naturally from the then existing state OF things
The restrictions had been forced and artificial for The
attainment Of particular purpose; which having failed.
viz Id, perhaps literally 10 the increasing busl
ness wants oftbs country. great expansion prevail
ID in England, which, from the conDexion between
he two cou Hlres stimulated enterprise a. speculation
here All the banks felt lis influence and tolawed the
lead of The U S. Bank. a long prace, the longest the
world ever saw Me great updiy and security OF inter-
course through the powerful agency OF sleam added very
much 10 the effects Of the simultaneous expansion IN t~ o.
countries having such intimate and extensive business
relations conuncture of many conspiring causes
produced the widest and most exirapagsnt
No aemp, was made on the part Of The United States
Bank 10 control las headong course on the contrary,
she yielded free and Ioefa! support 10 it as any
,,her institution The first check was from the other
AIDE Of the water Some time in 1886 The Bank Of
ENGLAND manifested her dlspieasure at the state OF
Ih,nys and made effort to arrest il by gradually
rsislng the of interest to, think, per cent
All tbs-lhe violent expansions, the wild specula-
ton-,ook place, in great degree, BEFORE and the ef
forts ON The part Of the foreign institution oaly few
months subsequent to, the termination Of the charter
So little impression had passing here, indlca.
ions from abroad made that institution, that 49, SO
confidently relied on great regulator, that the
President of it declared towards The close Of 1885, that
there was over,rudpg, the meaning o! which he
even expressed some difficulty in understanding But
IN its CONDITION. the best evidence is found, OF h0w little
!, ,orssaw the coming storm Like others il fell benea
I'D deaire Oh ability q