Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1840-10-06
"a, ~. A. Y. journal of Commerce,

RrcrI,TIoS- We are glad to find that so large
norton of the mercantile community have adopted the
sound principlc of political economy, that exchanges
or be regulated when left to the general laws of trade
Another large portion subscribe to the doctrine IN
the abstract, and only hesitate about It's adoption IN
our country because there many chartered banks
already in existence, and so many Stale Legislatures
reodr 10 make more. They think, that II free trade
could have clear field, il would manage all things
well: bnt since there many violations OF sound
principles necessity has perhaps been created Tor
great violation regulate the little ones THIS "hec.
ton we think generally be made on the ground
that there any system OF regulation operating
upon the State Banks But the fact is quite otherwise
The orbits of the State Banks quite within the field
Of attraction They are checked now, by laws winch
surround them ike the atmosphere, and rrProvc Them
for every wrong movement lhese laws are hiiaip!e
in wiSlnm They never act enormously. No system
Of regulation can crcated which Will not sometimes
act erroneoSv and nggravatc instead oil countcract
ing evils In speaking Ola great bank regulator 1t seems
commonly be taken for granted that the management
of the Banks very weak and child sh, but that the
MANAGEMENT Of the great regulator wonId n course be
very wise Such impression must be wholly ground
less There much wisdom, and as INTEL gent com
prphensiou Of probabilities, in the management "i The
Safety Fund Banks, there ever VIII be III e ndiaEr-
men, ola National Bank. II left to their own sagacy,
the local Banks will be likely to shape their course Hc
cord.nr TO the state Of trade: but il they subject TO
the physical control of great regulator they only
watch the Of their master power he art OF
hauklnr with them, VIII CONSIST CnltiIE III OUT
the temper and interest and hobby notions oil the drcc-
tors 10 whom their affairs are suhordnaed. They will
not enquire how exchanges stand, ana what Is Inc con"
don oil The crops they need only to know what - the
state oi balances with the regulator. They follow us
i,adnr and If should fall out that the blind are led
by the blind then they will all fall into the ditch to-
Ge,her While the local Banks act Independently
some Of them will be likely 10 act prudently, and these
Will be a check upon thos" which are too daring Bnt
II one master spirit to rule the whole, Tins advantage
p,lf,,t, lu,
opinions how great must be the damage We doubt
therefore whether taking affairs as they stand,
GREAT regulator would do any tang 10 ensure regularity
I'm these remarks have gone upon the ground that
4 National Bank would De managed always with liberal
intentions-a thing, by the way very unlikely 10 hal?
/ But there Is anotnrr Emporium, subcc,.
/ If we know what the true policy IS, should We not
make sacrifices to bring into full operation; II
have gone half way TO the truth, shall we turn back
because there is yet some error left When bad sys
TEN is half broken down. shall we build II up again
because there fragments left: proceed until the
rirhl system is established; When our hctiiiois svs
ten of State Banks, with great central regulator,
in full operation, wise man might well have he
STATED about disturbing the system. however thorough
IL convinced that it bad But the horrors of the
/ break down have been endured. There is ms
chief to be done: and the question now presented Is
whether will cndearor TO dtiuse right sentiments
among the States, and gradually bring about the
peal of all restrictions the of money or build up
the wrong system again, with good reason TO apprehcnd
that by doing entail upon our chi'drcna cpet-
| ton of the horrors have Just endured.
But there is still another view Of the matter, which is
of some Importance There is great danger OF the
indefinite multiplication OF incorporated Banks by the
State Legislatures MOI much that the Legislatures
will be too wise IL grant charters, but that moneyed
will be too wise subscribe for the stock. The
Bank stock OF the country taken in the aggregate, is
hardly worth half its cost. Loans on bond and
mortgage have produced better returns than Bank
stock for FIVE years past, any other series OF years
which may BIZ named In fact for five years past, we
presume, the earnings of all the Banks IN The country
taken together have been equal TO The aggregate n
losses. How many Of them have lost their capitals
eu,irc; and in the L. : Bank alone its present price
shows loss from par of thirteen millions of dol
lars Bank stock is out of favor generally through
out the country. There is hardly Bank any where
whose stock would sell for the actual par value of lis
assets. If the State Legislatures to enact meyer
so many Bank charters their stock would not now GER
tany be taken up. There is, for The present, there
FORE stopper placed upon the creation OF Banks,
cfNcacious than the influence Of National Bank
ever was, and this stopper is provided BY the quiet
operation of the laws of trade. 1t has strength
than ali the Legislatures Of all the States and is
this an efficient regulator The experience of this
country has proved that the existence of National
Bank is calculated to prevent the creation of State
Banks; for during the twenty years existence OF the
late Bank, the number of local Banks more than
doubled.
We say then, let adhere 10 our position and go
to render II simple and more safe, trusting TO
the wisdom which enacted the laws Of trade.