Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1841-04-09

FOR TIE INQUIRER.
The Banks of Richmond, after deliberate confer
euce with each other have at length, TO the de-
termination not TO redeem their notes with specie for
the present. Notwithstanding the suspension Of specie
payments BY the Banks North and South Of Virginia,
our Banks resolved to persist in the attempt TO main
tain the redemption of their ocn notes with com, until
the experiment fairly made TO the effects of that
measure They deserve credit for that effort and they
might have continued it successfully had it not been
for the heavy pressure produced their customers
They no doubt imagined by making their notes scarce
they could nearly e9ualize the exchanges with New
York, at least reduce them to the minimum OF the
expense and hazard of transporting specie thther but
upon trial of several weeks continuance, the only ef
fects produced the entire withdrawal ofther
from circulation and the substitution Of the notes OF
other places common currency Their own notes
being convertible into coin on the spot, (whe notes
issued and redeemabe at distant places not con.
Vertble here) collected and hnarded by brokers
with the object Of drawing specie TO be sent TO the
Northern cities, and thus ceased TO be circulating
dun, upon the well known principle in political eco
nomy that two currcncies of unequal value cannot be
maintained al the time, The less valuable al
ways continuing circulation and the more valuable
becoming ilselfan art Gle of traffic The return Of the
notes Of the Banks for specie is no evidence OF re-
dundancy of Them has been supposed for however
small may be the amount of them afoat, they will be
bought up in the Northern towns the most convent
ent mode Of procuring specie, long the balance OF
trade against In proof OF this the amount OF the
issued by the Banks in Richmond has, IS said
been reduced within the last few months between SIX
and seven hundred thousand dollars, and yet they
brought back weekly for redemption. The Banks
here were, it is believed, ahundantly able TO with
stand the whole host OF such demands until the tide
of commerce, which turns periodically, should cease
to be against them-but cui bono'-After suffering
their coin TO be considerably reduced they might
recover it favorable season; but them from
the suspension OF the banks IN Baltimore and Philade
phia that recovery would be more difficult and ut
greater cost In the time, the process OF neces-
contraction would be oppressive TO every class OF
commercial Dealers except that of the large capitalists,
who draw their OF investment from abroad with
the advantage of high rates Of exchange. Ii would
have been sufficient that the Banks here should keep
their outstanding debts at the present amount but they
must have resor.ed to coutracons the evils OF
which would have fallen chiefly the moderate deal
who rely in a considerable degree Bank facili
ties to enable then to conduct their operations, and
without them, much of the industry Of this City would
be lost, and many sorts of business would anguish
perhaps perish Besides, would the planters and far
Of the country be satisfied to be entirely at the
mercy Of the great capitalists the sale of their crops
Do the ufacturers of tobacco and the moderate
shippers OF that commodity, constitute in the aggregate
wholesome competition with the large Dealers that is
highly beneficial to the planter; And do they not rely
on assistance from the Banks to carry their business
with SUGGEST DO not the millers who grind up the
wheat of the farmer, and the commission houses who
receive and sell his gran -four, &c, require temporary
aid from the Banks, And liz it not with the Me-
chanics, and those of various cangs, in Town !;
Would be reasonable, in the present age, to strike off
the useful pursuits Of the many for the benefit of the
few In short, 10 paralze the cxertions of the most
ndustr Gus portion OF the community, who, in a
sure depend their credit and good conduct for the
prosperity of themselves and their families 1t is the
fashion Of the day to dccry the credit SYSTEM because
it has been pushed too far. But is it fair to argue
against the use from the abuse Of any system? We
must all admit that extravaganza and speculation have
been carried to great excess in this country within
few years past But is that to nterdct all industry
and enterprise II would be just as reasonable to re-
sort once more iron money and black broth.-Wis.
DOM like truth slies between" We have had
tu lesson of the evils Of excess but there no sense
in falling back into the other extreme Cfra,sm, tunes
in TO- wrong in politics. and is not less TO be condemned
in other pursuits of life. Even our good old Common
wealth has gone too fast and used her credit pro-
fusely and mprovdenty on too many and often con-
cting schemes but is that good reason Tor not aid
ing and encouraging, in moderate degree, WORKS ma
nesy useful and already IN progress and nearly conf
pete' The Banks have done injury to themselves, and
to the community, the over extension OF credit put
they, therefore, to crush all credit ana re-
duce the value of almost every species OF properly IN
the country: Both the Commonwealth ana the banks
possess ample resources, by judlclous management,
gradually to direct things into the former channels OF
prosperity. Dear bought experience is most valuable
where affairs not desperate-and neither nave any
cause Of alarm on that Hereafter the state
should never contract loan without providing spee.a
" Tor The interest, and creating s,n6,ng Jua 'of m
ex,ingusfmen of the debt This would enable her to
borrow much better than by mere pledge Of
the "aith of the Commonwealth; and it will be io1nds
en- calculation, that sinking fund of one and nan
per centum, regularly invested, will discharge .ne
whole principal in twenty seven years, provided the
several investments can be made at per centum per
annum. Nor should the Banks ever grant loans nut
for limited period, at the expiration of which, pay
ment should be rigdy enacted. 1t would be safer boh
for the borrower and the lender Setting out on cor
rect principle, and firmly adherng to it, both Bank and
State would arrive safely at their places of destination
We can hardly estimate the treasures of Virginia.
when they shall be fully developed but we must not at
tempt, like the gambler and the Spectator, to become
rich too rapidly. A gradual advance in wealth contr
bu,es more to the stability and happiness of any coun
try than sudden STARTS which are invariably followed
the political and social system Such the brief
views of the writer, and they will probably be cons
dered by the over-sanguine as the cold saws" Of