Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1840-01-07


institutions as possible: for the greater the number,
the better their chance of playing oft their tricks upon
the banks and the community. SO general, indeed,
have observed this to be- that when hear any man
especially vocerons about the increase OF banking ca.
ptal set him down to be without capital himself,
and will venture that in ont of ten, am
right I certainly have no wish, that honest worm
without money should not be permitted to enter the
lists as purchasers in MARKET but such are rarely
canorous, and can generally procure 'le requisite Gu
dorscment to procure Bank aid whether there are many
or few and it qpe reasonable to trust the safety
of the hard earning or honest industry, the WIDOW
ptancc or the resources OF the State TO the sac-kcep
mo of men who cannot procure backing, but by men
of ms dcspcrate fortunes themselves. These argyll
ments them do constitute inst objection to the Po'
sition that the amount OF banking capital should De
rather below than above the estimate that is wanting
fir LAYING aside the liability to overestlate from the
camors above alluded to, will 90 to say that when
the amount of banking capital is rather below than
above the inst demand the banks will be able TO make
better selection of customers and to enforce their
rules consraning punctuaty, thereby enabling them
to be better prepared to guard against DISASTER than
when there is portion; nor need there be any
pnrchenson that rightly severity will be used by
the banks towards responsible customers the bankers
know their value too we'll to deal harshy WIN thcm
and in forming the estimate oi what amount may DC
wanting so approach to truth may be arrived
at from the various data connected WIN our proauc-
tions and consumrons that when there IS fair COM
petition amongst the banks themselves BY having two
or three, there can be danger OF mstreatment to
the responsible fair dealing merchant On the other
hand, if YOU establish too much capital, and divide
that into too many banks, from the natural desire that
each would fail to make good profits upon their capt.
tai customers Of doubtful character would DC encour
aged specuations spring up, losses ensue
follow; and then money shavngs, hardsps disasters
and variations in the value Of the circulating medium,
which ever have and ever will attend on overtradns
in all countries Limiting the notes OF our banks TO a
higher denomination, will operate as an increase OF
banking capital for, people will employ materially
more money than is requisite TO make their exchanges
if they have more, it will be sent abroad IN quest OF
profit, If then that portion OF our currency Which
consists of small notes, substituted by SPECIE anu IN.
banks have still the power to issue the same amount OF
money that they have, it must follow that .efe Is
an increase of money in State IN the ratio OF Inc
whole amount of small notes withdrawn ana Tue larger
portion of this increase will operate as an increase o.
banking capital for those whose pecunary TRANSACTIONS
are done in small notes, neither the dealers pro
duce or merchandise the customers OF our panhs
but take the currency they find it. Consequently
more would be left for the accommodation OF inc Gus
toners of the banks, when the amount OF the smai
notes was supplied by the precious metals. Inc on
fusion Of these too, would be security TO our "io
State; and the banks well the people derive aaai
tionnl security in the event of foreign war OF any o
circumstance calculated enhance the value OF specie
amongs, US |, would tend to steady the value OF gu