Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1840-06-09

to establish and set apart fund TO the pay
ments of interest upon the money borrowed. This
safe policy prevailed for series Of years and until de.
leterious examples proceeding not from the States OF
The n0n bu, from interpretations, tie creations of the
State and Federal Governments, produced The chunge
the consequences of which we consider so fearful and
alarming.
The Bank ofthe United States was the first TO make
the standard Of lis credit in London the Of It's
business in the United Sates-Other leading State in
stitutions followed this practice of evil tendency and
none Of the interpretations which once adopted this
standard, failed to make their interests conform to it
Thus change in the value of money in foreign
tries would become the OF bank expansions and
conrartons in the United States far the business
o III" Bank OF the United States, and of many Of the
LARGER State banking institutions, were concerned
A long period of general peace and Of great prnspe-
rity IN all the branches of trade and industry rendered
expansions, graduated by this STANDARD, .nlch more
prevalent than contracton and thus, from the known
excessive profits OF BARKING in the country, engcnder
ed an appetite fer tie multiplication Of bank charters,
before unknown 10 MS. Hencc the number of banks
in the country least doubled, in the OF
some three four ycars and the banking capital was
enlarged IN sta greater proportion.
THIS nul, y'ication of banks and banking capital in
50 >hot; period could fail produce proportions
atc ,Apansion 81 paper circulation Such the
effect Wh the further consequences of increased prices
OF pf0urrtv, and almost universal passion for specu
latom The multiplied banks found customers because
almost the entire community were stimulated to be.
come borrowers, and the great mass borrowed not to
expend the avals of their loans in aid OF productive
dusry, but purchase to-day, for high price, pro-
perry, which it is believed siiier borrower would
purchase tomorrow at still higher. In process Of
this sort, employing hundreds Of millions of credit in
the shape of bank paper and bank discounts, the amount
of interest annually a;erung in favor of the banks wa:
enormous, while the property upon which the money
expended was actually producing nothing
Influences OF this powerful character, communicated
to the great body Of the citizens of country, could
not fail to be felt in the Legislatures of the States Of
the Union. They felt the impulson and acted under
IT. Large loans proposed, and it soon appeared
that the increase of banks and other demands, had alb
sorhed too much Of the American capital to enable them
to md ready or cheap market in own country
Inc markets OF Europe were naturally sought as moi
the FEDERAL Government, and not the Governments o.
the States Alone but local corporations
ca cities had there found such market for large loans
upon their credit. For u time the State stocks Of al
descriptions geedy taken; but as in all cases Of
overtasked credit the supply became more than equa
| to the demand, and the market fell The consequence
was electric throughout country, and the deprcs
sions we now feel in commercial transactions in every
branch of trade the prices of property domes
tic industry, in the wages of labor flow from these ex
cessye uses of credit at home, and these attempts
oversock the foreign markets with credits abroad
We are aware that these plain suggestions, bu