Daily Richmond Whig. [volume] (Richmond, Va.) 1840-1842, 1841-06-01

ms one advantage its evils cure themselves The
idea that banking be carried on without captal
has been pretty fairly exploded under the expert
ment-
The great and difficult problem in a currency Of
bank paper, Is the prevention OF those luctustions
to which experience shows such currency IS liable
IN lar greater degree than currency onmpos, q
wholly OF the precious metals. This problem has
not been solved The attention of the British Par.
lament has been for some time drawn TO it. A
committee have published vo.umnous report 81
evidence taken at the last session, which certainly
does not shed much light upon the matter. Thoii
Inquiries are still going on. The writer has thought
good deal on the subject, and is of opinion that nc
better remedy can be devised against a redundant OF
excessive circulation, than the levyng tax, by the
State, on the privilege or right OF circulation, very
near the amount Of benefit or prof., dorivablc from
II. Nearly all the States require something in the
nature OF bonus or tax for the privilege of bank
charter. but on principles wholly caprcious or us
settled; whilst in Others the granting them is made
matter of avoritism, under the odious character Of
monopoly. Many advantages would arise from
establishing the principle that every bank charter
ed with the right Of circulation should pay fixed
tax on the amount pcrmitted.- The right to regu.
late the currency OF bank notes properly TO be-
long TO the State, and to be a legitimate source o
revenue.
The State of Massachusetts levies fixed tax OF
one per cent per annum upon bank capital. This
tax Is excessive IN amounts levied upon false
principle, and produces some evils. tax OF three
per cent per annum on circulation, would produce
nearly the same amount of revenue, and be wholly
unopleetionable in principle. The advantage Of q
TAX upon circulation would be, that it would take
| away the inducement of profit, which every bank
now mas, TO increase its circulation TO the utmost
until the expansion Of the currency shows itself in
the export of coin-which can only be checked by
a suspension Of discounts, and a pressure on the
money market. The bank, to be sure has no diff
nculty Itself IN this case, IL well managed. The
whole pressure is thrown upon the mercantile CON-
munity.
But these alterations of bank EXPANSION and
nominal prosperity, followed by bank contractons
disappointment, and perhaps failures, very much
10 oe deprecated ~ tax upon circulation m Chit do
much an checking undue expansion. fixed mini.
| mum capl'al, and fixed rate Of tax upon circula.
ton, would take away the character OF monopoly
rom oahk ies'slaton--as charters might then be
granted TO all who would Ia ke them sufficient care
\ being had 10 see the capital actually Maid in
Some of the States have gone into the business
OIL banking on their own account. IL REQUIRES no
great spirit OF prophecy toresee that their banks
VII! DC bad y managed, and the States become los
ers by the business. Banks, to be useful, must be
| founded on real capital, and to be well mannred.
must 6e under the eye of the owners of the c1pi-
! tai.
The law oflS3i, by which such valuation was
put upon gold rs makes II the essential basis of Our
circulation, is Calculated 10 have highly favorable
effect IN giving steadlness TO the currency nv en-
IarS'hs thAt h1ss It being necessary for the banks
10 m'lntain on hand greater quantity of coin on
account OF the facility Of transfer attaching TO that
metal as compared TO silver This effect will hc
increased, should an error apparently inndveTtcnt
IN that OIL be corrected by which too high yeIu
atom IS put upon ioTeign gold, comtared 10 our own
CON- The consequence Of this error Is that there il;
positNe loss OF about one fifth OF one per cent i'm
sending foreign gold TO the mint, whereas The law
should have been framed as TO mike !, Cor IL
interest OF the holders OF such coin to do il. The
reduction OF the valuation Of Sovereisns and Mao.
cons, ABOUT one half OF one per cent, would remedy
Ine e'',, and give us an actual currency of eagles
and halt eagles rs the payment which banks ,yond
md II Tor their interest TO make for ,Jen,,nds o
thenl' The effect canno, be doubted-it would add
materially to the specie in the country
Aho'her MODE OF giving additional security 10 the
currency, would be the establishment of a system
oil more frequent and rigid settlement of balances
between the banks themselves The s,G. ami 49,,
Gent banks should use the power which they nos
sess 10 Keep IN check the bOlder and we,ke,' -
oy Gazing Tor their balances weekly, If not daily in
ae,uaI com; l. tie system which has grown up of
euns bank balances lie until a foreisn demand for
com appears, should be abandoned IL i IobI, -
ABUSE and 1t is the duty of the strong banks 10 INIT
an end TO il. ~ Pu'
tmid Apprehension of weakness on tho mar, os
ee''aIn oahHs IN Boston, with cautious endeayor
70 AVOID losses IN case OF explosion, led TO much
oil the expansion III 1886. A different pohcv n,;ah,
nave prevented the panic and suspension of Is37
NO expectation OF fOrbearance or INDULGENCE
should be encouraged. Favor and beneyoIenee
Sfrir ,rs
lice and the rigid performance OF contracts are ;,s
proper foundation. "'' Hs
repeal OF the usury laws so far as rela,es N
notes OF hand and bills of exchange, similar IN tbo
Nneh LOOK place IN England in 1882, would undoubt
ediy have highly beneficial eff,ct in Icss.nn, 81
'Uie"ce OF monled pressure, as there is abundant
evidence II has done in that country. The ncr,ina.
city with which all the States cling tn Tho u,nr,,
laws, the remnant of the old feuda oninion ,b,t liz
cannot DC trusted to take care Of their own
interests, IS remarkabe-especally after the eY,r,
pie mas been set by England. In the late ,.no,,
made TO Parliament on banks Of issue. we find m.
testimony OF MeSsrs. Norman, Tooke and lovd
uniform 10 favor OF the effect of the nodif-,,,on
made IN the aw, in relieving the violence of reyn.
SION IN the money market.
bankrupt law applicable to banks would nm
ooahtedly be the most eficicnt of measures for mo
venting suspensions of specie payments and ksen-
ing banks within reasonable limits. Such law IN
go INTO eject IN twelve months, would be the mos,
,o OF measures Tor restoring and regulating
me currcncy-to apply 10 a continued suspensio5
OF ymeht Tor thirty days. constitutional obiec
lions nave been suggested, but without much a.
parent force. Apparently nothing in the poWer .,
Congress would be so decidedly eiTsctual as the g.
adjustment Of such law
The author was a member oftbe 2lJ Co,--..-
when passed the bill renewing the charter Of H.
Ehiteu states Bank, vetoed by President J,ckson
re was desrous OF making some amendment, IN
- ,.''' '"G Win lhat view, the 18th of
april iS5I' iaid on the table the following viii
ne intended 10 move when the bill came bf,,o ~
house S''o'' we
AMENDMENTS TO THE BILL, TO MODIFY AND GOV.
rlSUE AN ACT TO INCORPORATE rHE sUDsrs,.
bEEs TO rue BASK or rHE UNITED S1Arrs.
SECTION :. lie Il further enacted. That H..
amount OF notes, drafts or checks. lnsued no ,Lo
sa! DhnH or It's branches for the purpose ofcitcI.
ton as currency, shall no. exceed The ,,,o,,,, r
! time. at any one
SIC. >. find be Il further snarisd. Tina, f., ron
suerauoh 81 the benefit ofsuch circulation tbs 49,,
I1S"t' directors, and company Of said Lapk sb,l
~ - "e United states, oct OF the corporate fund.-
~. on lhe ihrd day Of March, one thousand
80 INJURED ana thiry.sevcn, and on the same
uSy o' each yeir thereafter during the Continuance
OF the charter, the sum Of five hu5trsd adj ,a'.
nEs thousand doIlirs-bcng equal TO three and an.
nan per cent per annum on the amount ~ e,,a.'i'I
ton authorized VI CHeuIa'
SIC. 10. .lnd Be Il 0HtIer ,no,l,J III, .r
goies issued by said bank or any Of re Lr,,.Ls.
Shali De receivable at said bank or apv Of re L,,L
e. 10 payment Of debts due to said BANK q, ,,s
SIC. u. ind be Il GriLey ,ual,,J Tho, 81.
amount OF oil debts due to the said bank sb,lT n, NJ
time exceed the amount Of m,ii,,os n ~ do ,o
lars. 'OhS " uol-
Owing to the .osg debate in the hons. n, h,n
rft, the bank bill was Grst taken aad ,,J "a.
The senate. IL only came TO The hone ~ "
day OF june, with the cholera raging In NJ "a
~ was settled point that the bill would lie lost On
mouse hhouid go INTO committee Of the whole ,ron
- WIN discussion on amendments The at,eI,n,
70 ahend u was therefore reluctantly ab,ndon,J
~ was one O lhe consequences Of General Jsckso,ts