Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1839-12-27

tar hanks, tina, their embarrassments have arisen
i .,r the same cause, ..,o
I'm This influence they cannot now entirely escape,
has its origin in the credit currencies OF Tue Two
Ha :, i strengthened by the current of trade
9f'T,cb,noe which centres in London, and IS rem
-" ,most irresistible by the large debts contracted
Ge' h. our merchants, our banks and our States
ns' hns that an introduction Of new bank into the
dstan; of our villages, places the business OF that
~. within the influence of the money power IN
rais,d 1t is thus that every new debt which we
IN that country, seriously affects onr own cur
and extends over the pursuits of our citizens its
shss ,;,I influence We cannot escape from this by
Wv new banks great small, State or NATIONAL
~s ,mc chains which bind those now existing to the
o:this system of paper credit, must equally feter
c'" rn,lar institution create. II rs only by the
eV , 70 rich this system has been pushed of late,
@ ~ have been made fully aware of its irresistible
i,ccr 10 subject our own banks and currency TO a
@ onrolling power in foreign land; and it adds
W. ,ynment TO those which illustrate their precarious
,.ton Endangered in the first place by their own
management and again BY the conduct of every in
,ion which connects them with the centre Of trade
mr. own country, they yet subjected, beyond all
~ !, The effect of whatever measures policy, necess-
~ c,nrcc may induce those who control the credits
r,,land to resort to- mean not TO comment upon
~ measures present or past, and much less 10 ois-
o the prosecution of fair commercial dealing be-
~ ,le Two countries, based on reciprocal benefits;
having now been made manifest that the power OF
acting these and similar injuries, Is, by the reSistless
of credit currency and credit trade equally capa-
~ of extending their consequences through all the
rScaons of our banking system, and by that means
I;rrr,lv obtaining, particularly when banks
"a a. repositories of the pnblic moneys, dangerous
.r,col influence in the U. S, have deemed it my
r 10 bring the subject to your notice, and ask for IT
o1r serious consideration.
Il an argument required beyond the exposition of
e facts to show the improperly of using our bank
10 IS he lie
an we venture not only to encounter the risk OF their
;vidual and mutual mismana cement but, at the same
-. 10 pace our foreign and domestic policy entirely
nSs, the control of foreign moneyed interest," 10
Ia o Is 10 impair the independence OF our Government,
: the presen, credit system has already impaired the
ndsnsndence of our banks 1t is to submit all its I'M
noan; operations whether of peace war; TO be con-
ocd or thwaI,ed at first BY own banks, and then
by power abroad greater than themselves. cannot
b,pg myself to depict the humiliation to which this
Government and people might be sooner or later reduc-
&C. if the means for defending their rights are to be
made dependent upon those who may have The most
powerful of motives to impair them
Nor IS only in reference the effect of this state OF
THINGS on the independence of Government or OF
cur banks that the subject presents itself tor
,on ii is to be viewed also in its relations to the general
trade Of our country. The time is not long past when
deficiency of foreign crops was thought TO afford
profitable market for the surplus of industry: but
English harvest. not so much from motives OF com
nendable sympathy, but fearful lest lis anticipated
failure should narrow the field of credit there Does
not this speak volumes TO the patriot Can system be
benehcen wise, Just, which creates greater anxiety
Tor interests dependent foreign credit, than for the
general prosperity of country, and the prota-
bic expectation of the surplus produce of labor:
The circumstances to which have thus adverted APP
pear TO afford weighty reasons, developed BY late
events to be added to those which have on former
casons offered, when submitting to your better know
ledge and discernment the proprety of separating the
custody Of the public money from banking insttu-
tons Nor has any thing occurred TO lessen, in my
opinion the force of what has been heretofore urged
The only ground which that custody can be de-
sired by the banks, the profitable which they may
make of the money. Such would be regarded in
individuals as breach of trust, crime of great
magnitude, and yet it may be reasonably doubted whc
,her first and last, 1t is not attended with more mis-
cheyous consequences, when permitted 10 the former
Than 10 the latter. The practice of permitting the pub
lie money be used by its keepers, as here s believed
70 peculiar to tins country and TO exist scarcely any
where else. To procure it here improper influences
appealed 70: unwiSe connections established be-
tween the Government and vast numbers of powerful
State institutions; other motives than the public good
brought to bear both the Executive and Legis-
la,iye departments, and selfish combinations, leading
20 special legislation, formed II is made the Inte
rest o: banking institutions and their stockholders
throug hout the Union their exertons for the
of taxation and the accumulation of surplus
revenue; and, while is afforded, the means
furnished for those excessive issues which lead to
eItravagant trading and speculation and the fore
Of vast debt abroad and suspension of the
banks al home.
Impressed, therefore, am, with the propricty Of
The funds Of the Government being withdrawn from
the private use of either banks individuals, and the
public money kept by duly appointed public agents;
and believing, do, that such also is the judgment
which discussion, reflection and experience have pro-
duced the public mind leave the subject with you.
1t all events essential to the interests of the com
munty and the business Of the Government, that a
decision should be made.
Most Of the arguments that dissuade us from en-
poying banks in the custody and disbursement Of the
public money, apply with equal force to the recept of
their notes for public dues The difference is only in
form In instance the Government is creditor
for lis deposes and in the other for the notes il holds
They afford the opportunity for using the public
moneys and equally lead all the evils attendant upon
II, since bank can as safely extend its discounts
deposite Of its notes in the hands Of public officer
one made in It's own vaults. On the other hand, 1t
would give TO the Government greater security for,
IN case Of failure the claim of the noe-holder would
be no better than that of depostor
am aware that the danger Of inconvenience to the
public, and unreasonable pressure upon sound banks,
have been urged objections requiring the payment
OF the revenue in gold and silver These objections
have been greatly exaggerated. From the best esti-
mates VIC may safely fix the amount of specie in the
country at eghtyve millions of dollars and the por
ton of that which would be employed at any one time
IN The receipts and disbursements of the Government
even u the proposed change made at once, would
no' 1t IS now after fuller investigation believed,
coed four or FIVE millions Ifthe change gradual
se'efa! years would elapse before that would be
required, with annual opportunities in the time
70 after the law, should experience prove it to be op
P'essve or inconvenent The portions of the commu-
MI! on whose business the change would immediately
operate are comparatively SMALL it believed that
them
In the payment of duties, which constitute by far the
greater portion OF the revenue, very large proportion
derived from foreign commission houses and agents
VI foreign manufacturers, who sell the goods consigned
em generally, at auction, and after paying the du-
ives out OF the avls remit the rest abroad specie
@ equivalent. That the amount of duties should, i'll
sch cases, be also retained in SPECIE hardly be
"iace matter of comp!ant Our own importing ,ner-
sah by whom the residue of the duties is pad, are
n'' only peculiarly interested in maintaining sound
currency which the measure in question will especially
promote but are, from the nature ofthcir dealings best
10 hnow when specie will be needed and to procure