Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1842-03-01
(FIom nc cAar'n,icseiGe .l &! !,

BANKS DEBT, DISTRESS.
Tho ranIes Of the Presidents and Cashiers oil The
c,nLs IN The CITY of Richmond, TO the queries OF the
Bank Committee Of the House Of Delegates exhibit but
deferred hope Of return to specie payments lnGeea
the question Of permanent resumption IS likely 10 De
slow and painful 10 all. The respondents appear TO
deem n cur,ail Of three millions OF dollars necessary
land do not doubl mat u ~ 70 e'ao'e 'e"i " -
snmr with safety
There is hut one way in which the difficulties OF the
times are TO be overcome by the people VIZ r'g'd
economy on the part OF every individual, como'neo
with persrverlng industry. IL IS Stale OF lnoehteu-
ness from which We cannot escape but by time, indus
nv and economy. Let merchants bring nothing
but necessaes INTO The country, and let US buy nothing
else This is the moment for influential individuals 10
come forward and set examples oil patriotism, IN exam
Piles OF frugay form economical associations 10 re-
strain the nprudent, aud encourage the well disposed
I'VE have had indeed no foreign wars; no INVASION OF
hostile armies desoaling our territory; no blightlng
seasons upon crops; but we have had what has
be,u equally disastrous, The wild phrenzy OF bank
mania The frauds and ollies OF paper money. The m
rration of It's reyes having passed, are now like
one the morning after a night debauch al the gaming
table our property gone, and our pockets picked b.
swindiers and sharpers. We have now, as we are
truly told by the presidents and cashiers oil the banks
10 come back the hard standard to pay debts
contracted at paper money prices Tins IS the result
Of the wise expcdient Of attempting to live by lamp
blpcks and rars instead oil The solid earnings OF indus
try. .
increased ana increasing taxation both by the tedera
and State Governments; the former increasing its debt
II, rate probably ltile short OF million month since
the advent Of a Whg administration TO power; the ai-
Ter with tax roll Of $4,000, 600 on annual interest Of
now ssi00D00, engagements falling due IN year or two
which wil add over 81 900 more per annuH: raising
the interest of the State Debts 10 sum larger than the
amount, of last years taxes debt also increasing BY
loaus To raw interest and loans Tor further expenditure:
dep.c cation III the value Of the bank stock ned BY
the State little short Of million Of dollars, with de-
creasing dividends EXHIBIT an ex,ricabe labyrinth Of
lebt and difficulty, that is calculated to INSPIRE we'll
grounded alarm for the future
We find among these replies suggestion 80 astound
inc in its character 10 have filled us with amaze
ncn and the deepest regret 1t IS that the Govern.
ment Of the T. States should debase the CONS Of the
country forming the fractional parts Of dollar, aud
make The dcba .ed coin legal tenders fur all sums under
len dollars That is, that half dollars and all CONS Of
less denomination, should be reduced IN sze or have
haser metal, "copper" or some other substituted ID
place Of the silver distracted; and tie coin 50 adue-
rated 10 be made legal tender al lis present value
An notes not exceeding dollars, would be redeem
able al banks where issued IN ts deaased coin The
correspondent, another passage Of the same comfnu-
ncaton, LAYS down the true principle, that where two
currencies Of unequal value enter the same field OF
circulation the inferior supersedes the superlo thus the
debased half dollars would expe the good half dollars
and dollars and the five and ten dollar notes Fedeema
he in the base com will supcrsede and expe from crcu
a,ion the larger notes reccrmabe in good money The
interest Of the banks would be so manifest IN issuing
notes redeemabe haser metal that you could not
expcct them 10 issue any others Our circulation then
would consist exclusively OF dctased com, end deprec
aied notes Instead Of the banks honestly paying their
notes and thus bringing them 10 the value OF sPecIe
they propose 10 make us nation OF swndiers, Oy deoas
inr the coin the standard It Their notes 1t the hall
dollar should be adulterard by withdrawing fourth
or It's silver and substituting the same bulk OF copper,
il is evident il would he worth but 81 cents and II the
Government compelled il 10 be taken AT hty cents IN
every paym.nt not exceeding ten dollars the banks
would pain 81 30 in redcemng every ten dollar note,
and The holder of the note would lose that The
two Millions in five and ten dollar notes, which the
banks Of Virginia now have IN creuaton would DC re-
deemed by $50, 000 the banks would gam halt mil
hon. and the holders o! the notes would lose that sum,
BIZ d, basinr the coin wentyve per cent the holder
OF ten dollar nole wished 10 buy article, say for
instance CLOTH the merchant who had been compelled
T. owe good money in the foreign market for his
cloth. mieh, he able 10 take in the kind OF
money five dollars per yard, but, in the aduierated
com, he must have six and quarter. If the bank
maid Tie note in good money the holder could buy
two wards But as pays him IN bad money he only
buy n ward and hall. The bank then has defraudrd
hun of the difference. II had promised payment in
good money! and after years of delay, pays seventy
five cents the dollar without interest The obvious
result of this scheme Of robbery, for such the debase
men, Of the coin has been held in every age aud ma
ton is to enable the banks To deraud their creditors OF
- per of their just debts and 10 deraud laborng
men OF - per cert. Of their earnings.
| What assurance have We, that if We allow the coin
10 be debased twenty-five per cent now, after the next
expansion 10 winch the banks may be tempted by high
dividends they Will not ask still further adueraiion;
for such has been The Of dcspotism and fraud in
the mast history of the world The livre Of France for.
mery pound Of silver, lis denotes, has thus
been bv successive reductions, designed 10 deiraud the
creditor reduced To l6 Of Is the OF the
banks 50 much be pted that should commit this
act dshunor country and 10 ourselves To bene
Gt them When individuals cannot comply with their
engagements they curia their expenses 10 enable them
10 do so Have the banks done this The first year Of
their suspension, when they avowed themselves unable
TO meet their engagements, they divided ten per cent
10 be expended their persona! expenses by tie stock
holder and have hen dividing sin, seven, and eight per
cent. ever since What individual in the country has
received four per cent on his property:
The banks say they cannot pay their debts until
their debtors pay them be ii bnt ike other debtors
ought they not mutually pay interest until they can
nav The debtors Of the banks pay them bank neres,
on every dollar which is due them: why should not
The banks pay ncres, on The debts they the pub
lie: viz: heir notes of crrcuation and pay ii into the
public Treasury. They like all other debtors will be
indifferent as to the payment Of their debts long
they arc exempt from payment oflnerest
CIRCULAR
Office of Solicitor Of he Treasury,
February 23d lS42.
Sir: As the act 10 establish an uniform system o
Il q