Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1841-01-07


will still be necessary for this State TO resort to some
other for the support Of her credit and tho fulfil
ment Of her engagements. Her portion OF this fund,
under the new census, would probably nat exceed
eighty thousand dollars year, which would leave an
annual deficiency of more than five hundred thousand,
10 be provided for in some other way The Legislature
will, 10 doubt carefully consider every circumstance,
connected with the debt and finances of the State, and
will adopt such measures, they may deem necessa-
r to preserve the public credit and provide Tor every
Just claim the Treasury.
The currency Of this State consists OF various KINDS oil
per- issued by banks under authority of their charters,
by other corporations without authority and by private
associations and individuals, under the prete1t OF sup
plying their neighhors with change These private
issues will probably cease when specie pa aelts are
resumed; but the banks, the savings INSTITUTIONS. and
other corpora lions, which have issued notes cerli
Gates for small sums will doubt continue to exercise
that privilege long il found to be profitable The
small currency furnished by these corporations though
preferable in some respects 10 the notes of individuals
more injurious TO the public because 1t is issued to
4 much larger amount, and has more permanent
effect in preventing the circulation of specie. 1.-THE
people prefer the of specie for change, and tor
dealings Of triling amount, they certainly ought to
have their choic. and this they never can have,
hilc small notes of every description permitted TO
circulate through the State.
Many persons are under the impression, that all the
evils Of dcrangcd currency have been produced by
the measures of the General Government and that,
will be removed without The aid Of State legislation
Without intending TO discuss the general question OF
The currency will briefly state my reasons Tor beev-
mr. that too much is expected from General Harrlsons
and that it will not be in his power to
CORE ct the evils, Of which so many complain.
The currency, which has been so much deranged,
is The currency Of the different States; and consists OF
paper Of every kind issued under the authority, or by
the permission ofihe State Legislatures II too much
of this pcr put in crculation 1t was the fant
o The corporations that issued II; and there were
too MANY hanks il was the fault Of the States that
chartered them Il has been supposed that the United
States Bank regulated the State Banks, and prevented
them from increasing in number. But IT could
only restrain the operations OF other hanks by rst re-
ceving their notes and then drawing upon them every
week or month, for the balances due II had no con.
troll over weak and dscedited banks because it would
not lake their notes; and could only regu!ate those,
which were in high credit, and which coG'd regulate
each other By the process frequent settlements
Ii defective too as regulator, III lhis particular,
that when other Banks discounted too freely anc stood
in need If restraints Iaboured under the same dit-
Guilty, and required to be checked in ITS own move
mens for the State Banks very seldom extended their
business unless the National Bank first set the exam
pIr Whenever. it enlarged its discounts, they DID the
same: and then it rather III situation 10 require
assistance than to exercise proper control But IT
instead Of BEING often debtor it had managed It's al.
fairs so prudeny to he always creditor OF other
Banks ther was nothing TO prevent from SUSTAINING
Institutions that were unsound and inlurng orrs hat
were worthy Of The public conhdeLce and nothing 10
prevent it from giving the Banks ana merchants OF
city, great advantages over those OF r'ai
cities.
The National Bank, however might be prudent, VI
oilant and impartial and still be inefficient as rega
Ia,or because the State Banks could always escape
from its control. by refusing to pay specie, or by
otherwise discredit:ng their notes and thus place
Themselves out of reach Of the regulating power, al
the very time they stood most in need OF Vt.
The condition of the currency in the several States,
during different periods, furnishes the poo that Ills
value depends State legislation, ana mol on the III
fuence of n National Bank.
Tie L. S Bank went into operation in 1917, and
from that period the year io, its influence was not
percepble in any Of the States that encouraged e8ces
sive banking. The currency Of Kentucky tennessee
Indiana and Illinois, was as much deprecated, during
the greatest portion of that period, as that Of sslssp
p is now; and gradually restored t"a s"uno STATE
by the operaton Of their own laws, and by the determ
nation nj the people Of those States, TO rid themselves
of rsper money which had los. its value The process
by which the people of Kentucky were relieved from
lIer depreciacd paper is described in the following
published in Niles Register in February
ISIS:
"More good news.-Bills Of the Bank OF The Com
u m onwenlth OF Kentucky, To an amount Of seven
hundred thousand dollars, were burnt at Frankfort
- on the 18th utmo. few more good hres Ike ms
& and shall begin 10 expect reih'luhces iio'h w.
i friends in Kentucky"
"Kentucky is going nobly in the work OF burn.
Il inn naner money There was lately another great
Is publication of the currency by fire; Sl,4oo,ooo, IN
notes of the Bank of Kcntncky besides The coniia-
grafton of the paper of the Bank OF the Common
u wenlth have been committed to the flames.
The United States Bank had then been IN operation
six years. without being able to equase me 60
between the Western States ana me rasu , ~, III,
nr to restrain excessive banking OF 10 tha
,f denreciated currency. During that perioa, lhe
notes IF many Of the banks in specie paying s,o,es'
at nc greata discount the currency Of any ives
arn STATE and throughout the whole country, pahks
continued 10 multiply and explode, as II no Nauonai
Bank had been employed IN regulating lne'f h'o'e
nents. , lila ~ oon
;nno sns.e payments during the last war; when there
- m National Bank because their discounts were 10
proportion 10 their means II the Eastern slaes n.o
chartered too many banks, or permitted ,he 70 run
o,,a lind of excess no National Bank, no adinstfa
lion of the General Government couio hafe i'e'e
the depreciation Of their currency. ,r..,.a
The Trainers of the Constitution OF inc ohleu
States had no conception, that National banS, OF
onx incidental power of the Genera! Government 4.
could regulate or restrain the paper cu,tsy ,hrn
Sro,es: and therefore expressly pron'O'lea lneh'
rron, emitting bills Of credit. This RESTRICTION mas
hsnn rendered nearly Intellectual by the agency OF
Ranks and the States, after giving b'r.a 70 nu"e
aus prorcny OF corporations, whose business - " -
enc ne- money insist upon the necessity OF fegu
Two tbcir different currencics uniform value
The States have am pie power over their own cor
pornons and their own paper money ana mere ,hs
M necessity for making nse OF hscal agen' =, M
General Government for the management oil e',he,;
If il be desirable suppress the circulation o. SINAI .
.,as n nrcvent the increase of banks, to limit the
issues and to compel the payment Of specie the stae
,sasa,ures can accomplish these Objects without Inc
aid of National Bank.
Surprising the Eastern Shore Railroad adj 70 t be c STa
doned the Baltimore and Ohio Railroad and the ehes
ansoke and Ohio Canal are the only works when now
remain unfinished The Railroad cs s, y, WIN two NOT OF
,hree years and will not suffer the interest on 'heir
portion of the public debt to fall on the Treasury
The canal is only unfinished ou. the company
without the means of continuing their operations
The debt contracted for their use, dead weight on
the State, and 50 it will remain TIL the %hoe ne %
canal is opened to Cumberland While every . one
9 oerceires The necessity of doing something j; d
cult 10 devise any practicable scheme Tor of 1asns
the for that and would to be
desperate s experiment to send new sci Of 00"'' NV
tue t.rs received two letters from the governor o.