Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1840-10-15
Similar effects Of a National Bank IN '"e o'0

Similar effects Of National Ban6 IN "e ga
Iadisputabie Proofs ,,r
r.. Han David Hubbard of Alabama, IN c 'rcua
,o,elv addressed to his constituents makes oo of
tracts from the report of the Chamber f us c;rcu
Manchester England We nnnfN p'. pa - e. trn,b
lar Lee; not lis length Pre'ehl any '"i"
from giving il an attentive peF"sa ~ ,,h,,obor If
t.I Raw. lust obtained the report 0! the Im'hoe, -
f,nrce Of Manchester, England, made IN DeceHoei'
1889 (after giving the subject moS tioiou3" ' ~
,;n con the effects Of the administrator OF the BANK
uncn the commercial and manufacturing m
teres,s of the country. az;
This report, made long after addressed you on ths
srhecf and made BY the best informed inetch,n.s "
world in relation TO the subject, not only estaoses
,h ,rnth of eyery position took before you last sum
NOR hut goes long way further than any 'h'iiS '"i
adAnced in shedding light upon the enoTn,les u W.
banking system, particularly Nat'oia. ara non,a-
Quoted by selfish, irresponsible men, having 'ic.
over human beings, their interests, cohi1oi, ""u
means of subsistence, than every m1haasn "aa
could have without the aid OF such conti an u,
as the paper system-a system uhoei WIZ" ~ -.
world is made to groan, that inc f'.n i", -
made richer, and to give more poh hewn robs chill.
erf,l-a system which it IS here shown r""s oi'i-
dren of their bread and mothers OF the suilciehcy
r God n sustan furnished and helpless INFANCY,
whilst the cormorants who are lea oy y are e".ea
vor;np 10 divert the sympahies oil natoh rom even
looking upon the suffering, misery ruin and
49,; ;Sac,ed upon their own people, and TO Greet u
70 some supposed injustice done to the African race
by the liberation Of slavery IN some OF our SUITS
when in fact and in truth, if the sum OF the suffering
misery and degradation of every slave IN the Union
80 ..lloe,ea together and exhibited, the whole amount
which could by possibility be attributed to the slave
system would be but molehil compared TO the con
dition Of the white men in single town IN hhsiana
and is proved by this body OF intelligent merchants 10
have been produced in few months by the banking
system or rather by single pressure TO regain SIX mi
lions of specie BY the Bank of Eng land The GfEa
REGULATOR of the system.
After setting forth the manner OF conducting the
oh err Ilar In mi n
late Bank Of the United States by making paper mo-
new plenty and lending it freely, and then suddenly
calling upon its debtors enable it TO take up its own
paper and thus derangng all business the report states
that
"Haying thus taken review of the principal events
illustrating the course pursued by the Bank Of England
from 1885, down to the present times, the ooard af'
DESTROYS Of directing the attention OF the members
the losses which these forced conractions and expa
sons of the currency nlict upon the manuiactur
inc and mercantile community evil, the magnitude
of which has not been sufficiently approached by those
who have investigated the questions of banking and
currency.
innate of the amount Of the sacrifices incurred snth
cien proof NAV be adduced to show the extent of the
pecunary loss and the still serious nature OF the
moral mischief inflicted upon the manufacturing and
trading world.
alt may he estimated that in the manufacture OF cot
tons, woolens silks, linens, and hardwares, capital, Tx
ed and floating, employed amounting to an hundred
millions sterling.
"The depreciation caused BY the late panic, upon
all of those great articles OF productions may De sa'ne
ed without difficulty, from the current OF the spring
and summer Of 1887 They fell in price variousy from
90 to so per cent
sTo estimate the amount of loss upon these ma
nufactures they must also be followed INTO the han1:
of wholesale and retail dealers whose losses upon stock
consequent upon The operations Of Tie BANK Or
ENGLAND the currency, incurred slmutane
orsly with those of the first producers J. Scarcely ont
of these escaped in 1887, achou sacrifice ot ne who'
of the ordinary profits of the near ade and many lOs
in the ralue Of tier stock tie ooe gtheir eapitaialso
In proof Of the latter fact, 1t may be stated that ~
fats in bankruptcy were issued in 1857 the average O.
the four previous years amounting 10 6b only while
proport,onate increase occurred IN the number OF Pr
vate compositions
here beg my constituents who merchants, anC
particularly Wing merchants. TO look at the foregoing
item and longer charge your Government with Civ
ing this fatal blow to prosperity, when you here
have proof which cannot be disputed, that it the
Banks of England and the Banks Of the United States
combined that produced these mischcis, and from the
disasters of which we have yet begun 20 recover
The report continues
"At moderate computation, from twenty TO thirty
millions of capital may be estimated TO be employed by
the wholesale and retail traders engaged il the dIstr
button of the five great enumerated above
alt has been shown how the policy of the Bank o
England affects the foreign trader, by compelling hin
TO import, at heavy sacrifices, the bullion required
replensh its exhausted Golfers.
Of all our produce and manufactures consumed IL
foreign countries the greatest portion IS sent abroad by
British capitalists the whole of our exports L
India and China, at least seven Fights Of the amount
shipped to South America, and one third o! the exports
TO the Continent of Europe with the whole Of our co
lonal trade, are forwarded by British merchants From
thirty to forty millions of British capital probably
employed in the foreign commerce Of the country,
The amounts of the British capital thus enumerated
are follows:
oEmployed in the production of the five
great articles of cotton wolen, silk,
linen and hardware flOOOOo,OO(
"ln the wholesale and retail distribution
Of ditto 2),O000O
"In the whole of the foreign commerce Of
the country 35,OOO,O 90,
fl6O,O0O OO
Lowest estimate of loss thereon 81 per
cent. 100000, OO
Equal to near two hundred millions of dollars y
The report goes on "Wi,hou, embracing the promi
nent branches of our domestic manufactures mcludn!
the trade in thousand articles Of daily consumption
and emitting the traffic in agricultural productions al
of which were more or less affected by the evIlsion
prices; reference has been made to capital tone hun
dred and sixty Millions upon which we may trace tan
gibe loss varying from 20 to 30 per cent by the orcc
depreciation of value in 1887.
"Ths sacrifice of forty millions, at the least anc
which constitutes fraction only Of the losses smulta
neously sustained by the entire commercial world
land might regain possession Of sir millions q
Specie 'cheh had previously orced ont IF The eountr.
6y the undue expansion Of the currency
at has been shown that the Bank no sooner found
itself in safe position than it recommended in lS's
system of expansion and exported part Of its stock
gold.
Prices OF the great staples before enumerated con
sequently advanced during the year S3S, and part
:hc year 1889, until as we have seen, the restrictive
policy N,ss resumed the motion of the screw was re-
yersed and down the present moment prices hay
again fallen from 20 to - cent thus infictng upon
the already PROSTATE trading and manufacturing lnte
rest repetition Of the sacrifices Of 1887.
"By these forced expansions and contrsG.ions &c
currency, during the last three years. Of the
prudent and wealthy of merchants and manufacture
ers, have incurred that ruin which, in whole
some and natural state OF the circulating medium
could beall only the reckless adrenturcr gambler
"Under such slate Of things has been described
calculations based upon the most enlarged experience
afford security against loss and failure The trader
learns the fate of his undertaking not in the markets Of
the world Influenced by the law of supply and de-
mand, but in the ACTS of twenty six Irresponsible in
d'viduals, conducting JOINT STOCK BANKING
ASSOCIATION in the civ of London