Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1841-07-30

aa,k ,i,s.v e.. lei j: bs !oeatei IL. Se.s Yc:K.
The idea G! establishing Sat.nIa. Bank IN the oty
Of Washington, with view OF regulating the curren
~ and business OF The country, seems 10 be truly ao
surd The location of such Bank ought 10 Ee IN
commercial CITY, where lis directors wond have the op
portuuity Of observing carefully the state, both OF on
ors,yn and domestic trade. After long experience
sound practical men in England have arrived ut thu
conclusion that the issues OF a National Bank ough
y, e regulated by the state Of the foreign exchanges
Vixen tn, directors find that these exchanges eitne
are or proLaby will be against the country
se,ueuce of a redundancy III the circulating medium
then The ISSUES OF Bank paper ough 20 be contracted Il
such degree to arrest or correct the EVIL, and L
prevent the expectation OF specie. This linportan
dniy can alone &c safely dcvolred upon men Of ability
and skill who are practically acquainted with our 10
reign trade who able 10 anticipate It's fluctuations
and who are placed suitable theatre OF obscrva
lion. such as Philadelphia or New York. Your nine sa
ared directors in tins city will be politicians and no
merchants bankers, or other practical men and ever
# they were this is spot from whence they con
watch the current Of foreign trade, or where The.
could obtain tie necessary information In regard Il
the clgues Of spectators III Wall street and Chestnu
street. of which have heard, bad as they are, thnl
that clique of trading politicians in Washington citl
would make still directors of National Bank
MIR Benton. We will have both
i now GENE TO speak very briefly oi some of the ad
yantages which the committee believe that this Bank
will yield to the people Of the country And hrs they
say III will give the people SOUND currency OF uni
form value throughout the Union. If by this, the
Senator merely means that man can put lis paper N
his pocket IN Georgia. and it any where on the
road in travelling 10 Maine, | have no doubt tina
such will be the fact, And why Because the Go
vernment Of the L. S, by agreeing every where te
accept the Bank paper IN payment Of It's dues, gives
II every where circulation and credit 1hcy couil
thus give painted pasteboards the currency
II is not the credit OF the Bank, bu, that Of the Go
yernment which will produce this effect. The drafts
OF the Treasury Bank, which the Senator formerly Sc
much dreaded would have answered the same purpose
still better, and would have been Of much greater IN
trnsic value, because they would have represented
rod and silver dollar for dollar. Besides, The Bank
which the Senator's fancy created out OF the indie
pc ndcnt Treasury law, would have been only Bank
of issue, and Of discount and deposite such as
he advocates.
But the committee further allege, that this Bank
evil reduce domestic exchanges from the enormous
premiums and discounts now frequently paid to the
moderate standard growing out OF the mere cost and
on the RISK OF transporting specie from one
TO another part ofthe Union"
This argument has been every where urged, and
often successfully, in favor OF creating Bank OF the
United States and yet, the word OF the Senator
from Missouri, Mr.. Benton, II IS the most 'banboo-
cling" argument that ever resoredto. On Change,
in Philadelphia or New York. there nobody soft
as not TO smile At lis aLsurdy Why, SIR, the rates OF
Exchange between money and money III the different
Senator desires they should be. In New Orleans,
GOLD ana silver Will, at this very day, bag bill on
New York al premium Of from one-laii TO one per
cent. Who does not perceive that II IS the depreci-
alton CT suspended Bank paper, aud not the real
difference Vi exchange, which you see quoted ~ al
The papers and bazoned forth 10 the world as II IN
tended for the express purpose Of imposing on the
public In Philadelphia, the notes, Tor example, OIL
the Bank Of Pennsy wanna, are worth about three
and a half per cent less than specie therefore, at
New York, the Exchange on Philadelphia - quoted al
tbree and halt per cent. discount; but IS 1t not
selevident that thus the rate OF exchange, not be-
tween money and money, but between gid aud SILVER
IN New YORK and deprecated bank paper III Philade-
pa: From the nature Of trade, unless under very en-
traordmary circumstances the difference OF exchange
between two places III the same country, can never
vary much from the cost OF transporting specie from
the one TO the other. Some years ago, the bills OF the
Common wealth. Bank VI Kentucky were al discount
Of fifty per cent bclow par But tins vas The deprec-
alton Of The bank paper and not The difference III value
wcen moncYin New York and nancy AT lexington
which be much greater than Tie expense Of
transporting 1t from the one place 10 the other
lfbanns were every where good credit, and were
redeenins TIER notes IN specie, then tLese notes would
he equal gold and silver ut the place where they
issued and the great apparent inequaiy IN the
rates OF exchange would Immediately disappear he
quotations would longer consist OF the contrast be-
tween the value of specie IL New York and deprecated
uan! paper al home but would be the difference be-
tween the value o specie and Specie a, different places
This inequality IN tine nominal rates OF exchange,
would at disappear, u you coud restore specie
pay lnents throughout the Union.
But Il the banks slond all pay specie tomorrow,
VIZ have no security whatever that they would not, or
gained they are al present. s'oa again suspend
There are tmo restrictions, which, VI imposed upon
them, ouid always nsnre Il sound bank note curfen.
cy TO Tie people the United States and prevent iu-
tGre suspensions FIRST, # you would render them Ina.
bic at all puy ."r, must require that they
shall at all tunes Keep on hand al least one dollar ul
gold and silver ior every three dollars OF their deposies
and circulation combined. But TINS alone might not
prove sufficient They NIGH, possess the ability 10 pay,
without the will 10 secure tins, YOU must impose
another restriction, which viii prove to be an niaLie
preventive of SUSPENSION. Declare III The charter o.
each Bank, By 4 sesxecuting provision, winch nothing
can arrest that the moment It suspends specie pay
ants II shall .die the death ain the day that thou
eatcst thereof thou shalt surely die Render II the IRE
sisbe organic law, bleach bank existence, that Sus
pension specie payments shall produce ITS civ deal
aud The instinct Of seeservatlon will then compel u
perform its duties III such manner as TO preserve us
life Upon this principle bankrupt law applied TO
banks would do more securing sound currency Tor
the people Of the IT, s., than twenty National Banks
scattered over the whole country could accomplish,
even II they disposed 10 exert all their power
When first proposed 10 apply bankrupt law 10
banks felt strongly inclined 10 oppose II. Gut ! ani
no, one Of those who pride themselves IN their UNIFORM
consistency throughout life Live and learn IS my
r,axiin trust AIN wiser this year than | was the
last and that II llye shall be wiser next year,
or twenty hence than am al present ! ne man
who prdes himself upon having changed an OPT
Mon procalrIs himself 10 have been niail'alc from
ike beginning, aud thus announces himself block
head Any Senator, therefore, has my entire pernIs
sion to ransac the old journals and prove that voted
many years ago any subject differently from what
should do at present. | have changed my opinion
IN regard to bankrupt law applied TO banks and
tins because solemny believe that II IS the only
remedy which reach the root OF the evil and Sc
the people, al all times and IN all places, pa
per currency convertible into gold and silver
But the committee say that this bank "wlll power
fully contribute to the resumption Of specie payments
How wall produce such effect 1t is not sufficient
that declaration OF tins kind shall be made q eahc
dra in order to command faith. Will 1t be By
producing a end greatly increased demand for spe
Gle in order to furnish capital for the bank Ask Mr.
Cheves, who is believe the avowed author OF those
able numbers which have appeared IN the Charleston
Mercury, above the signature oil jay, whether the
late Bank Of the IT, S contributed essentially To The