Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1841-10-19

long since been exploded, ana are no
to the altered social aud political condition OF the ccun
Try. The States longer what the colonies were.
They have proved themselves apabe of realizing what
anticipated by the trainers Of our Federal compact
| They the pillars which the Union may safely
rest, and the only danger IS in the erection OF un
wrldy, overshadownG supersirnc'ure which viii find
its own ultimate ruin III their weakness. They
pable OF mpartng vitality and strength to the Federal
Government, bu, II IS a. constituent body imparls 10
its representative, and not mental 10 sovereign
| We are then compo He'd by necessity over Which
We have control, to meet these questions, as they
have been met, questions of power, involving the
Just purposes aud legitimate designs OF the Federal CO.
vernment We now hear, was SAID III l19l that be-
SIDES the other accessions to the credit OF the States
from federal legislation, il for Congress 10
create National Bank not aid as Inc re fiscal agent
IN establishing the credit Of tie Federal Government,
but 10 give currency 10 the States. The credit OF the
Federal Government IS now better than that Of any
Bank Ii could not now as il did in 81 derive credit
from its association wi,h individuals On the contrary
| II has the power land il is invoked 20 it, u
besow credit on a corporation and individuals.
There many causes consp.ring 10 render the sub
jet of the currency Of Tie most complex in our
system OF government and 10 conceal from observation
The true o. embarrassments All the ef.
of State and Federal legislation with all the evils
resulting from the plumbers Of seven and twenty Co
vernmens, and much of The disappointment Of private
lndscIcton, all IS ascrbed 10 Grrangrd currency.
An exc ted fancy is too apt to depict Bank the
great moral and political panacea While these idea!
benefits are 80 much exaggerated, they who
ture 10 call pubic attention 10 what they consider
4 the true causes and the true OF dcranged
currency are denounced enemies Of the credit sys
tenn At the hazard of mourning this remuneration,
| must invite your attention 10 this subject
Of more practical importance 10 yon than Presi-
dental election nearly four years advance. | aver
fcn as the result 81 some reelection, that the whole
difficulty this subject proceeds from the radical
itcts Of our banking system. II tie State hanks
what they should b., there would be necessity for
the agency Of the Federal Government 10 be invoked
10 protect the people against The incompeency. he
frauds or the decisions Of their local banks. Con-
cc,.iag (what am no. satisfied IS the iac) that Ma
tional Bank could be created and So managed 10 al
ford relief against The evils 81 the State bank system,
such relief the nature Of hngs must be only tempo
rary aud would fall far short II The inherent evis Of the
system itself. There is Danger, a?prehend,
that the State banks, they are now constituted and
tor the most part administered, would override M
tona Bank ier evil, than that Il wGnld override ti"m
Tor good. Tue chef good anticipated rom 4 States
Bank is the caution and restriction IL would impose
the issues OF the State banks May tile State Co
yrInmcnts do this: is il admitted that bank oncs
cre aed is beyond the reach CT the Government
ating III Our State banks in many instances (it IS
anly in Virgna) part and parcel Of the Govern.
meni By errors Of Legislation, as conceive they have
become so identified NTH the operations Of the Govern
ment Gtsef bankerl that tie representatives Of the
people dare not require the banks 10 obey the laws
Tacy have attained 10 species o exemption from laws
They us end the payments oi their debts at pleasure,
and not only with mpnniy but vita signal advantage.
This results from The banks beng part of the Govern
rGen its Treasury and III nlany instances lis President
and Directors The State IS Their citi stochhn!eT,
The principal OF the bank ITSELF and mast snrr IT. fail
share the bank is made 10 obey The laws. Yet the
State partner III this corpoalion Ike the other stock
holders is not bound for the debts contracted -"
notes issued b. the corpora,,"n although these no'rs
NE permitted pass as money. The only responsible
I,Ir in hank lion
other creditor, is in the corporate iund and effects
Each sochloller may be worth milton and yet the
corporation be unable 10 pas a five dollar promIss"ry
note. The consequence IS that we find negligence III
the cement IT the corporation, and want OF con-
ftcncc in lis al lity 10 meet its engagements.
When We consider that Tie BANKS are not only cx
empt great extent from obedience To the laws, but
that Lcy are entitled 10 privileges and advantages
which other corporations aud no individuals ENJOY, II
would not b. unjust 10 them it certainly wonld not
he 10 the public require that the credit o. institutions
which are authorised 10 furnish circulating medium,
should he based Oh solid, substantial foundation.
This can lie done by limiting their issues, 50 that
the bank note shall really represent the gold and sill
yer which il purports 10 represent, or, by rendering
those who own and derive the profit OF bank stocks
liable in some manner for tho debts Of The corporation
The debts Of bank different from other debts
It's promisSory notes fare evidences OF debt against u
These are permitted under laws 10 pass money o.
currency The holder who exchanges for them his Ia
Dor or his property the creditor ot the bank While
his property and his person are liable 10 the bank or
what he may it, as the borrower Of ITS obligations
To nav only the corporate funds OF The bank are bound
10 INN for its debts and this while their whole bust
ness consists IN lending to others al The usual interest
their own promssory notes. The system is thus based
on principle Of fictitious credit, and there IS not that
real substantial responsibility about IL which alohc
can Justify the confluence which Indispensable 10 Gre
dit Iftbe State banks organized as to furnish
n rational assurance that their notes were really what
they are known not TO he but what they profess 10 be,
the representatives OF the precious metals or II there
was any such responsibility on the part Of he stock
holders afford guaranty for the same discretion
and caution which is found III the management o! other
business transactions the pnblc would not hesitate Ut
any distance bank notes rs safe and con-
vcncnt substitute Tor specie believe that no busi-
society sconducted with less responsibility and
with more loosencss than Is often found IN banks
These are some Of the which Affect the credit
Of the barking system organized Can they be
corrected by the creation Of more banks the same de-
rctve principles: BIT Il may be sad that inconve-
nience would result from reform, which, while II m
creascs the responsibility Of banks, and gives more
credit their issues, reduces the number Of banks
and dimnshes the inducements for capitalists To ves
their funds in bauk stock. IL may be answered, tad
without radical change either IN The organization
or oil banks the same results VIII more sure
H. and mere speedily follow. The Inducements either 81
nro(t or security ire lame naby few already for invest
ments in hank stocks This owing partly 10 Tie num-
Der of banks, the competition beng, rs OFTEN haPpe"s
in other business, too great TO afford adequate employ
men 10 all the capital invested: but chfy 10 Tue
want of reliable responsibility IN the business OF bank.
ing; and it may be assumed tia, if banks were con
duc,cd on sounder basis, the same confidence winch
warrants investments in other business transactions,
would ensure sufficient amount Of capital Tor all the
barking necessities Of the country. !. IS hch,'on'
system Of profits fictitious bass Of credit, wch
has induced the excessive banking winch now calls 50
loudly for remedy against lis evs, and he less en-
pital would be employed under sound system It
would lie more substantial capital, and ITS Proh's would
be certain and greater to the capas'' a"u '''
safer n society as the hnlders Of bank notes.
/, is said, however, whenever any attempt IS mace
TO correct lie defects Of the banking system that 1t -
so delicate not to be touched without danger. In
what does this tclcacy consist bat IN The very detects
bch have been noticed and how are they to De cured
unless BY the gradual application of legislative REFORM
rhey are the true enemies Of the credit system, who
aver ,a, banks lie placed as solid and dura-
Me responsibility az any other fair business; that 1t IS
possible to legsaie confidence and credit into exist
ence, without first supplying lie actual elements on