Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1841-05-28

This table shows that remarkable sradncss winch
the New England currency preserves when left entire
y to its operations, guided by specie and the eX
changes and uninfuenced by the fictitious movements
of National Bank. The banks Of New England were
drawn into the Immense bubble created by the late Ma
tona Bank, commencing with its expansions in ISIS,
which, like the mysterious phenomenon Of n water
spout, sucks all surrounding objects into its fatal circle,
raising the waters of the to immense height,
until il longer support the load. The whole the
bursts destroying every thing within its reach. In the
Spring of 1889, when the grand bubble exploded the
Connecticut circulation was near S4O0O,OO0, and in
the next year fell off half In 1889, expansion
again took place under the expiring influence of the u
S. Bank. Since then the currency has been remarku-
bly, steady and uniform, and will always continue if
uninfuenccd by overshadowng monopoly.
The governing power in New England, simply COM
peing prompt payments, and the instant closing mp
Of any Bank that hesitates in its settlements The diff
fcues and arrangement Of the South arise only
from the constant attempts 10 evade this principle and
to settle debts without paying them. Pennsylvania is
the head quarters of this financial quackery. One Of
the greatest absurdtes committed in that State since
they fell into the power Of the Bank, has been their
passage of the bill. So contradictory and alb
surd its provisions that neither the banks the
capitalists who advocated it, have yet been able 10
make up their minds what its operation will be- The
IT, S. Bank has pied merely because it will nger
out its existence. The National Gazette of Friday has
long article advocating the law, without seeming to
have any very clear ideas upon the subject. 1t
up the operation of the notes as follows:
AT present moment there extensive circle Of nebt
eness. The State its contractosthe
soekeepers and s,oekeepcr the
the citythc merchants the banks-tlc banks
those The nciebung States and these latter the people
Of this State for the notes in circulation among them.
The last statement is assumption merely. Tho
city banks the eastern banks directly some 49,
000,0 600; the bills in circulation in Philadelphia flow
in from all quarters, to amount probably Of not
over Sl0O0,000, certainly not equal to the floating
Philadelphia paper elsewhere. The circle of ind bt.
edness described s TO be paid by the State to the
tractors in bills received from the banks. The
medium settles the debts of The contractors to the
storekeeper, and on, until the merchants pay them
into the banks which hold claim upon the State
for them but they furnish no means Of paying the
debts Of the City Banks to the East. Here the
circle Of payment is incomplete and the cause for
deprecated currency remains active as ever The
State cannot pay the Banks except by new loan,
which must be increased by the atendan in.
ercst, &c. The currency thus furnished will lie un.
available for the payment of debts the purchase of
goods abroad, unless at a heavy and increasing dis
count The for the issue, on the part Of the
State that they must pay their contractors with the
notes. This is swindling Lansactisa-the State
owes the people for work done, and instead of pa
them the cash, gives them notes not redeemable and
bearing interest, and only convertible in sums OF
500, into stock bearing per cent interest when
such stock is at discount Of 90 per cent If the
State paid the contractors cash. they could 90 and get
this stock for 80 cents the dollar and so receive in
terest Immediately The State pays them in paper
which they can convert into this stock at par ONLY on
certain conditions thus deaudng them of % per cent
of their pay, depending upon the good will Of the
community that the paper shall be available at that,
This operation they call ssusaining the honor OF the
State The ultimate effect of the law can only be to
crush all the Banks and have them in condition as bad
as that OF the United States Bank