Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1841-11-09

banks and stockholders, lol III gs5 !: !:
Nell circulation, = !2oSa,Io o''Voo''
Ii appears from this table that the whole number "ot
banks and branches in operation throughout the
country amounts 90i: the amount Of their "capai
paid in 1855 4i2 G92;" "the aggregate Of debts due
them, or of 'inrestments supposed to yield income,
$3.50 0S2712 Estimating the average rate OF interest
through the country at per cent, The profits real
lied by the banks at the rate upon this aggregate oil
debts due them, amount To $50 1898
This vast $3.50, 1889 largely exceeds the
whole amount of taxes paid by the people to defray the
expenses of the General Government and upon an ac-
cprate calculation, have doubt will be found TO eS-
coed the whole aggregate OF the taxes paid BY the PEG
pie to defray the expenses Of both the Generai a"u
State Governments.
The Yield ofproit upon "the capital paid in Ho
wit, S355 442 692 shows the rate Of interest actually
realized charged upon the country by the Drinks ~
be fraction within II per cent.
Now Sir, will any man deny that, under th's aspect
Of the subject the whole system OF bank machinery as
here exhibited is hostile TO the interests OF the pro-
ducns classes-of those who their bread and their
wealth by the sweat Of their face, in whatever calling
they may be engaged
In what branch Of honest industry and regular bust
ness can afford TO borrow and employ capital al
the rate of IL per cent per annum? Can the planter
or the farmer this rate afford TO borrow the capai
which he invests in his lands, stock, provisions and
implements? o the mechanic the capital which he IN
vests in his tools his lumber, his iron his cloth the
merchant the capital he invests in his trade: No,
sir. Who, then, can afford TO employ money at this
ratr' No one but gamblers at the faro bank or the
roulette table, other branch of their vocation
spectators and stock,jnbbers, money -shavers and
note. shavers, whose business grows out of The en-
barrassmen and suerings of their fellow nea brought
about by the seductire influences of this system.
Such is the tax levied by the banking system in all
the various forms of lis influence and operations upon
the country; or, rather upon the producing classes OF
the country upon whom all the burdens OF sncety rest
Its tendency is increase the number of gamblers OF
SPECTATORS and stock obbers; of yshovers and
-shavers, and of ilers and drones throughout
cety, wherever operaes 10 render the human heart
calious and Indifferent 10 human suffering, covetous
and avaricous; 10 distract the mind with sudden and
often runous changes Of fortune 10 breed dsccntent
and misery demoraze society," and counterfeit the holy
influences Of religion And pray what are the advan
iagcs claimed Tor society, in compe for the foul
suppuraons issuing from this fungus upon it's body:
Why, Sir, the poor, miserable-nav, | mistake
corong modern philosophy -the very great and in
appreciate advantage Of using the uncertain and iuc-
tuatng paper credits OF banks the currency OF The
country instead of the gold silver coins fthe Con-
situ,on, which woald rapidly fill up and occupy the
channels of circulation, if they not expelled and
kept out of the country by the circulation OF bank pa
per and the errors of bank fnanclcripg.
The last item in the statement before alluded 10
presents the net: circulation Of The bankswhch means,
suppose, the acnal amount Of paper circulating in the
hands OF the people-tob be $S0,lS0 Csc
To this We must nod the item Of de ostes,
which in all Of the commercial cities
constitutes the most effective part Of
bank circulation, being represented BY
checks and transfers of credit on the
books of banks 15,e96,s57
The whole amount of bank circulation
thus being 16l, So, 537
In addition TO this, there is estimated TO
be in the country partially circulating,
but manly boarded up, an amount of
the precious metals somewhere between
forty and fifty m'llions-say Si5,00O,G0l
Bat II is the paper part of the currency that am
now considering, and 10 which shall conhne my re-
marks.
From hasty examination of the document 10 which
have referred, I'M. H. came TO the conclusion
that something two thirds (600) of NIL the banks
in the Union, WELDING about the same proportion OF
The aggregate banking capital, are now in state u
suspension, and that something orer twothrds OF Tie
whole aggregate Of the bank currency of the country
consists their paper and credits. The proportion
theD of bank circulation not convertible INTO specie
and used by the people the major part OF then
currency, may be estimated at something near Sll0,
G00,U00. The different kinds and classes of pape
comprising this are varinusy deprecated below
specie par through the Union, varying from three
per cent, as the minimum, TO fifty per cent, as tht
maximum rates Of depreciation; and this, Sir-he pr
rege OF using the paper credits of banks currency
liable, in nkaterer form The system may f1iSt, with o.
without National Bank, 10 such depreciation, huctua
ton, and instability in value-s the great advantage
realized by the people in consideration of The heavy
fax annually levied upon them TO sustain the expensive
machinery and usurious profits of the banking system
And here, Sir beg TO call your attention TO mos
interesting part Of the subject, which constitutes TIT
ground of daily and unceasng complaint here ant
throughout the country allude 10 what s generally
termed ''the arrangement of the exchanges, growing
out this disordeed condition Of tho currency. Thu
evils growing ont of the inequalities in the value o
bank notes, and the consequent apparent difference il
the rates of exchange numerous and very rerpex
ing. But must further say that in reference 10 few
subjects within my knowledge docs greater degree o
misrepresentation and error pervade the public mind
and the minds Of many gentlemen here, whom have
heard speak upon the subject.
The depreciation Of bank paper, and the inegaa't,
Of that depreciation, oiteD and indeed generally
characterized sthe arrangement of the exchanges
and the degree of the depreciation oil bank paper below
specie par is held end regarded the degree of 9Th,
arrangement Of the exchanges;"-as exhibiting the de
gree Of the difference inequality IN the rates OF ex
change This view Of the subject is totally incorrec
and untenable.
The exchanges between any two points-as, for in
stance, between Mobile and New York-mny be en-
trely equal, whilst the local cnrrences OF the two
places may be greatly unequal in value and when ex
changed for the other, would exhibit that Unequal
y IN striking manner, do the local currcnces most
generally throughout the Union at this time During
the last winter the notes Of the Bank of Mobile md
Of the Planters and Merchants Bank (both srecie.
paying banks,) at Mobile, bought checks and bills ol
exchange New York at par, within fraction Of
par; whilst, at the same time, the notes OF the
spece.paying bank another in the city,
TO wit. the branch bank at Mobile with capital paid
in Of four millions Of dollars, could not bny check
bill on New York short of premium Of ten or twelve
per cent Now, in this case, The premium of ten or
Twelve per cent paid for check on New York in the
notes Of the branch bank showed The degree of the de-
probation of the paper Of that bank below the specie
standard. Il did not show any difference or inc
quality in exchange for the fact that the notes Of the
other two paying banks would buy exchange on
New York at par, proved the exchanges 10 be equal
By exchange, We mean the exchange of raiae in one
place for ralae in another;-not the nominal amount
Of bank notes in one place for the came amount Of