Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1841-04-30

PROSTATE state of the Bank of the nation winch had
only twenty months before, commenced business
with an unrammelled active capital OF twenty-eght
millions of dollars !! Mr.. Cheves then proceeds 10
speak of the losses sustained by the Bank at It's olce
in Baltimore, of which he represents as caused by
fraud, and exceeding and half millions OF dollars
tie stated The aggregate losses of the Bank OF the
5, growing out of the operations which preceded the
9th March, Sl9, at considerably more than three and
a half millions of dollars.
In 1923 there existed money PRESSURE and on the
10th April of that year, Mr. Nicholas Bddle, who had
succeeded Mr. Cheyes President of the Bank Of the
United States, published an essay in the National Ga
zette:
"Tbe question is" said Mr. Biddle, "what is tho
and the nature of the present scarcity of mo
neyI;
1.-THE currency of the u S. consists Of and banl
notes promising TO pay coin AS long as the banks car
always n pay The coin MeyprOmise, they useful, be
cause in country where the moneyed capital is dis
proportional to the means Of employing capital, the
substitution Of credits for coins enables the nation L
make its exchanges with less coin, and ofcourse saves
the expense of that COIN But tins advantage has BY
lis side greet danger. Banks often directed b,
needy persons, who borrow too much, or by sangunt
persons, anxious only TO increase the profits, without
much pecuniary interest personal responsibility ~
the administration. The constant tendency Of banks IS
therefore, 10 lend loo mueh and 10 pat too many notes IN
circulati0n Now, the addition Of many notes, even
changcabe for CON- may be in curious, because The in
crease Of the mixed OF money generally &C
casons rise in the price OF all commodities The
consequence is, that the high price OF foreign pro.
ductIons tempts foreigners TO send large amount
Of their commodities, while the high price of do
nestle productions prevents these foreigners from
! taking in exchange a large amount OF our COM
moditles. When, therefore, you buy from foreign
es than they buy from you, ms they cannot take
the paper part they must take the coin
| 4 - tba l,r
ger is, that the Banks will be obliged to pay much
Of their coin for their notes, not to leave sufficient
quantity the demand for il, in which case the
Banks fail, and the community is dcfrauded."
"Ike the power Of sleam,' MIR. Biddle said,
"a mixed currency is eminenty useful, in prudent
hands but of tremendous hazard when not controlled
and the practical wisdom in managing it, lies in sezIng
the proper moment to expand and contract it-aking
care, in working with such cIp'0Sirc materials, when
ever there is Doubt 10 incline to the side OF safety
lie pronounced the disorder Of the times 10 be cover
trading, brought on by orcr-JanEing. The remedy Isl
to bank less and 10 trade less In compliance with
your request, have exhibited 10 you the views Of
Messrs Cheyes and Biddc, and will now read TO you
what Mr. Niles said of the happy times in 1919, three
years subsequent TO the establishment of the National
Bank
"From all parts Of our country" says Mr.. Niles in
his Register Of prl l0th 1912 tive hear of
pressure on in business, general sagnaton Of
trade large reduction in the price Of staple articles
Real property is rapidly depreclating in its nomlna
value, and lis rents profits exceedingly diminish
ed Many highly respectable traders have become
bankrupts and it is agreed that many others must go
the banks are refusing their customary accommoda-
TONS confidence among merchants is shaken, and three
per cent per month is offered for the discount of pro-
missory notes. which little while ago were considered
as good rs 'od god and whose makers have not since
suffered any losses render their notes less valuable
than heretofore.
Four months afterwards, he says in his Register:
at is estimated That there arc 10000 persons daily
seeking work in Philadelphia; in New York, 10000
ble.bodied men are said 10 be wandering about the
streets looking for it, and if add 10 them the
who desire something do the amount cannot be less
than 10000; in Baltimore, there may be about ~
coo persons in unsteady employment, or actually suf-
fering because they cannot get into business. We
know several decent men, lately good yers, who
now subsis on such victuals two years ago they
would not have given their servants in the kitchen
"Never,' said the Frankfort (kentucky) Argus, Of
June 1919 within the recollection OF oldest citi
zens has the aspect of the times as it respects proper
ty and money been so alarming Already has proper.
ly been sacrificed in considerable quantities. in this and
the neighboring countless for less than hdIf its value
We have but little money in circulation, and that little
is daily diminishing By HE unicersat calls Of the banks
Neither lands negroes any other article be sold
for half their value in cash, while executions to the
amount Of many hundreds Of thousands of dsllars
hanging over the heads our citizens What can be
done."
A Kentuckian writing in the Edwardsvlle Qllnois)
Spectator, confirmed this gloomy account Look
now, said he n cat Kentucky. What spectacle
does she present! Nothing is to be seen but bound
less es panse of desolaon Wealth impoverished, en-
terprise checked, al stand, the currency
deprecated all that indicative Of State prosperity
and advancement plunged into the great vortex Of IT.
rcmediable involvement.
A writer in the Kentucky Gazette, quoted by Niles
in October 1919, observed: "Slaves which sold some
time ago. and could command the most ready money
have fallen 10 inadequate price. a slave which
hires for $50 or 500, may be purchased Tor 500 or
$500"
Kentucky soon adopted what has been called the
urelief sysem in all its extent Stop laws, stays of
execution, and replevln acts, followed one another IN
quick succession.
To relieve the public distress, the Legislature of
Ohio passed law 10 prevent property from being
sold unless it would brings certain amount, TO be fixed
by appraisers. Flour worth in Ohio from TO -
a barrel.
In January, 1890, the Senate of Pennsylvania ap-
pointed committee with Condy Racquet at its head)
to inquire into the and extent OF the public DIS
tress In their report the mmee referred TO " ru-
nous sacrifices Of landed property at serliis sales
"orced sales Of merchandise household goods farming
stock and utensils prices far below the cost OF pro-
ducton'-"a general scarcity Of money throughout the
country almost entire cessation Of the usual cir
cuation of commodities, and a consequent stagnation
Of business "-"numerous lawsuits upon the dockes
of our courts -"us,rious extortions, and ethe
flowing of prisons with insolvent debtors" &c,
&c. great many petitions were presented to the
PENNSYLVANIA Legislature by citizens of the several
counties of that State, and the petitions gave painful
account of the condition of things at that day
sundry citizens of Northumberland county declared:
"That the greater part Of the citizens Of this once
nourishing Commonwealth, even with the utmost eco
nomy and industry, scarcely able to obtain sufficient
articles sustain life real and personal property
daily sacrificed, and become the property of cnlatos
debts unpaid creditors dissatisfied, and the pri
sons are crowded with honest but unfortunate persons,
whose wives and children must be burden the
township, suffer for want of the necessares of
life
Sundry inhabitants of Pike county asserted:
sAt time, since the Revolution, has greater dis
tress been felt than at the present moment We con-
slider the banking system to have been the principal
cause; instead of becomng, predicted, blessings
10 the people, banks have become like the scorpions
among the children of Israeli perfect beasts of prey
There are now living in Virginia very many persons
who experienced the severe money pressure OF lol''
ot~Ia