Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1841-05-28
From the money article Ct he ": y. Herald.l

The project OF "regulaung the currency oil ms
country through the medium of National Bank, is TO
create one of the greatest convulssns that ever
took commercial community. Seven hundred banks
and one hundred and lhrtynine branches are now IN
existence, with aggregate capital OF S36O 600
OF these 46S banks with capital ell SIo,ooo,oUo are
in suspended state daily issuing deprecated cur.
rency The cause of the suspension, they allege to
be- of debt not due by themselves but by the
people Of the sections of the country where they
situated The evidence Of the existence OF the debt,
they state, is the high rate of exchange at the same
time that they offer bills for specie at par and charge 10
per cent. prem. for their own bills show
ing concusively that not only has the arrangement
been brought about by redundancy OF bank capital,
but that that redundance still exists to an alarming
tent.
Too much capital has been withdrawn from trade
and embarked in banking speculations Five hundred
banks, with capital Of S2O0,000,00O, would do tho
whole business regularly. But eight hundred and
thirty banks and branches exist, with capital of
$500, 900. The remedy is to start another bank,
with capital Of $500OO,O00. This vast amount is to
be created for the express purpose of controlling and
regulating the 1860 900 900 The result must inc vita
bly, be that 5000 900 900 must go out Of existence In
the long and desperate struggle that must ensue be-
tween these opposing interests the mercantile commu
nifty may vain look for any thing like repose and stea.
dlness. On the contrary, under MODIFICATION OF the
present SubTeasury SYSTEM to admit Of the pre-acton
Of the Federal Government and gradual enforcement
of specie payments by the State authorities, or to
sure uniform action by bankrupt law, including GER
poations, the currency would be steady and trade in
crease healthily with prices governed only by the law
Of supply and demand. The gradual extinguishment
of the redundant capital would be the necessary eff
feet of enforcing specie payments without disturbing
the commercial world by the warning of vast rival in
terests
In many sections Of the country the banks exist only
under the cloak ofsuspenson. Dependent upon them,
of fictitious business extends through the Union,
conflicting with The interests of the honest trader, and
compelling the 10 suffer under peeuniary grey-
ances against which they can obtain no redress.
The division of the proceeds of the lands among the
States means of relief of the greatest absur
des of the present day, disconnected from the views
and secret motives ohe spectators with whom the pre-
ect originates. The Federal Constitution wisely gave
10 Congress the exclusive power raising money by du
ties imports At the time that prohibited the
ofrasing money by taxaton doubtless considering that
if the States borrowed money they would accompany the
loan by tax to meet it. This would have been suf
cien check upon borrowing, if adhered to- and would
have prevented the difficulties that now exist. I'm
mense were, however, borrowed, and far beyond
the means Of payment The nstigators Of this extrava
ganse seek to evade the consequences by using
the Federal Government mere sponge to raise
money by import duties, which the States are cons.
tutonsly prohibited from doing This is to be done
by emptylng the Treasury and Incorporating the
funds belonging to the Federal Government. The
spectators in their mad haste to get at the plumber
overlooked the fact that and the same people have
pay the debts both Of the States and of the Federal
Government. The people of each State have 10 pay
their proportion towards the Federal expenses surely