Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1841-01-05

yond their actual capital. Thus, If a merchant has
ten thousand dollars capitn 10 invest in in eater.
prise, he safely borrow thirty thousand Gv.iars
and the Iiaa!S can securely loan it, if his lnown
character for prudence, warrant, that by insurance
and other precautions, he will not lose, il nasuc.
cessiul, more than fourth of the amount embarked
in the enterprise. In word, money is only MA.
chine TO circulate property, and paper costing little
or nothing is cheaper machine, bu. it always sup
poses It's redemption in coin unqussonable. These
are the legitimate uses CT Banks. They not de-
signed to Loan money TO Government, and wien en-.
pnycd for that purpose, it is fraud gpon tue people
and operates forced oan if is made in bills Of
the Bank. Money loaned To Government, represents
no property. 1t IS expended in gunpowdcr, md
leaves, when once used, nothing behind, any more
than the powder itself, after it i, exploded But j,
swells the circulation and thus deprccatcs It's value
and when carried to great extent leads to The easure
adopted in England, rgszed suspension of specie
payments and compulsory tender of Bank promises
instead Of real actual money The prevailing 70.
ton, among merchants that Banks are necessary
to facilitate exchanges between the States especial,
that United States Bank is 50 necessary, is flacy
which is capable oil demonstration TO those wIs vii
forget their prcjudiccs and submit themselves the
guidance Of reason. First, then-Banks hay,
been used, and not intended to deal ia exchange
between nation and nation. The quantity Of ex
change depends on the amount Of property trans
mited, generally speaking, and bills originate witt
thu merchant liza merchant III Charleston transmit.
to draw upon, and the importer who owes fcT cargo
Of English goods, seeks that bill to remit in payment
1t is the proper duty of Bank TO discount the bills
comm. 10 maturity, where its own capital is located
Thus, the Bank Of England discounts bills, payable il
London, but bill payable in Charleston, would not
be discounted al the Bank of England; neither should
bill, payable in London, be discounted in Charles
ton 1t tends swell! the current of exchange beyond
the actual transactions of trade, and introduces that
species Of bills termed kites, BY which two parties al
each end Of the line. By drawing and edrawing, use
exchange species OF accommodation paper 10
raise money TO facilitate exchange of actual pro-
ducts or merchandise. III Legitimate exchange is cal.
cula:cd upon the basis OF specie the on y money Of
commerce. There is no real difference b.twrcn the
several States Of this Union and thr several countries
of the world who deal together. The value o. lie bills
ofte Bank o! England or France do not affect exchan
scs. II is not necessary 10 the trade between France
and England, that the bills Of either kingdom should
be current in the other. They are not 80 in fnc and
exchanges are not mpcded The truth is, Bank pm
per, convertible at will into specie is currency
at ALL but is than deluson. lfevery State per
United no Bank paper not redeema5ie-if suspension
vas DEATH as it ought 20 be every where. L. States
Bank altogether useless. But L. States Bank
would not make its bills rcteenabe, except at the
Branches where they issued. The former Bank TO
avoid this even in relation 10 FIVE dollar bills drew FIVE
dollar drafts its Branches, which, Of course, became
PAYABLE ony where accepted The command Of the
change Of the country gave the Bank that opportunity
Of making bills Of exchange the substitute fer local dis
count, thus orerburdenng the exchanges, enhancing
tho prices and TINS avoiding the restrictions on the
rate of discounts, and causing the balances ot ex
change to dercnd, not on the balance Of trade, bat
the balance Of kiteing When the revolution Of 1887
took place, millions of this fictitious exchange was
brought light 1t is not wanted TO loan It's promises
TO Government, for when Government IS under the ne
ccssly Of borrowing which ought never 10 De, except
under temporaryc Emergencies, lis own security NJ being
taken as Investment would derange the currency,
and is The legitimate security for pu5lcloans The prvi
lere of having the OF u. ;. Eank, wherever
deenab!e receivable for duties, would at enable
il TO cripple The State Banks-they in turn must asisi
on the payment OF tie 900 600 due them the poe
pie and in less than two years, the bitter fruits q Wing
experiments would be tasted. SO far from making mo-
ney plenty, it would reduce the circulation Of the
State Banks and reduce property to IFS value under The
hammer.
The unioundcd allegation that Cen Harrison cleo
ton would raise the value of property, is already in
part exposed He is elected and yet money remains
the same: property the same. The moro cunning part
Of his advocates are boarding their means 10 buy nj
sac rcc the estates OF tho Gupes who united with them
in clamornp for change The mild and gradual effect
Of the separation othc Government from banking the
gradual return to the collection the money,
and the Independent Treasury, were cicaclons RENE
dies for redundant circulation The hope that any
change Of administration could save whose obiga-
ton PAYABLE by the laws and Constitution in specie is
y
cula;ion and deprecated circulation from the consr-
uuent loss too allacious for honest Democratic
10 hold out and the proposal to cTpPlen
the State Banks by placnga regulator, with chartered
privileges compel them TO call in four hundred mil
lions of debt is the most cruel mockery and De curses
Of ruined country, deep and loud too, will fall upon
it's authors. The Independent Treasury, and well
advised Bankrupt Law applicable to all dealers, was
the of relief. Now, the wealthy capitalists
Alone have any prospect of protng by this reiterated
L. l,,ch nl,,..rS dpd
in disappointment TO The people. Not only s . u ,
Bank unnecessary but the idea OF lis money oe,nS III
fact any better than the money o spece-Pav'hS DunAs
of the States where ITS branches are situated, IS chi
rnerca except for the unjust monopoly OF oeins re-
reiyable in payment of duties although not redeema-
bic in spcce where paid: monopoly, the fruits oil
which are reGped By ore stockholders Such an m
sti,uton evidently unconstitutional, ana Inc exist
cnce of such 4 Bank, IL only proof now pressing
enc rgences form excuse for departure IRON pr'n
chile and how readily good men slide into the ioul
heresy in morals, that the end justities The means
The constitutional objection TO Bank chartered BY
the United States, has never been iary met ana as u
man reason is Just clear now as ever was, tue e
has arrived when the people will again resort 10 hrst
and test the point by sound and connected
arnument Let lis trace the history of thi, institution
from it's first embryo. In 1870, during the Revolution
arv War the Bank of North America was chartered by
the Continental Congress. The inducemcnt was, that
the Bank was 10 furnish the army GOO ratsns ana
change ON our Minister in Europe The subscription
or capital was 10 be in gold and silver Even then SO
Jealous were the statesmen OF that day, that they
required every evening except Sundays, state.
ment Of the cash account, and the notes issued and
received, and to be delivered 10 the Superintendent
of the finances of America" The eSigencies of the
country were the excuse and the States we're request
ed TO carry into effect its provisions By State laws
Tins. United States Bank was known prior to the
Constitution, and was the subject of debate in the
Convention This Bank took a charter from Pcnnsyl-
van;a afterwards The question generally of giving 10
Congress power TO grant acts OF incorporation, and
also 10 incorporate Bank, Mr. Madison says was fully
considered and the power reiused md now The ques-
ton arises-Has Congress that power As 10 the ar
raw of great names in favor OF the position, It is
enough to say the present generation arc endowed
with the same intellectual powers their predecessors
and with the same facts before them arrive at as
wise conclusion and the pressure of State necessity
being removed they have better prospect Of arriving
At the conclusions OF unbiased reason. The United
States and its Congress- possess no inherent power or
original existence, body politic but is composed
solely of such sovereign powers, the States have
By the Constitution granted results that the on''s
sion to grant is prohibition to the exercise of any OF
the powers appertaining TO a Government. The peo-
80 IF ha eeyerol Siates independent and fose-