Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1842-12-22

not even the fact that Wellington fought at the battle off
Waterloo II is proven by the universal experience OF
that nation to be practically true, and every man OBJ
serra,ion confirms it here. Whoever travelled through
North Carolina when ten cent bills were authorized by
wv would be slow to dispute the fact that they ban.
ished specie f,om circulation. There is no specie
left the country, where they allowed to susta ~
the banks in case OF run upon them. The banks
may curail as rapidly Us practicable, but they draw
in specie-they gain strength from the con
traction OF the currency. TIE country is distressed
while the bank is not strengthened curta'imeni,
under such circumstance IS attended with rum TO the
country, without aid to the bank The fluctuations are
greater and rapid-he currency altogether more
unstable. But cut off these small notes, and t'.!u
sve specie circulation takes their pace, ready al ell
times 10 sustain the banks. smaller curtaIi Will
draw il 10 aid the banks and less contraction OF The
currency will remove the danger of suspension. The
mixed currency of specie and paper will be safer for
the banks and the people more stable, uniform and
desirable in every respect. There no laws IN ply
sizes ethics more certain andInvar'abe, than the law"
which regulate currency and commerce-and banS
notes much thing Of Traffic, as tobacco OF wheat
MIR. f. soil, the Legislature had been induced, in
March, 1887, under The influence Of a similar cry OF
want Of bank facilities as the present, TO increase The
banking capital five millions of dollars After great
and mature elaboration, they had passed general
banking Law. One Of the provisions Of that law pro-
hbted the issue Of any note under ten dollars, and
after the let day Of July, 1910, of any note under
twenty dollars. He opposed the increase OF banking
capital unnecessary; bnt warmly supported the pro
hbition of notes OF less denomination than $50 In
lees than two months the banks suspended, and prac-
lcay demonstrated TO The country that their capital
great and their circulation too inflated Then
commenced system OF perncious measures oy the
Legislatures oil the sauary restraints imposed by the
general banking law suspended, and all the sound
maxms Of experience were disregarded Notwl,h
standing the caamtous experience to the whole Union
Of an inflated currency pervading every State, the IN
crease of banking capital was persisted m And still
further 10 undermine all sound operations the auorl
~ 10 issue small notes superadded Suspension
and resumption have alternately followed and IN each
suspe nson the great panocea has been, increase in
the number Of small notes Such has been The course
for five years. and such is destined TO be, until accu-
mulaed disasters shall teach the people, That money
cannot be made by laws nor an inflated currency sus
tanned by legislation. lie regarded this bill as another
blow ct The sovency of the banks, the safety Of the
currency and the welfare of the whole credit system
We are getting into sound condition; the resumption
bids fair TO be permanent unless by such tampering as
this forced circulation shall be attempted The amount
of their specie much increased in the last year, and
their general condition greatly improved.
(loie The remarkable scarcity Of bank note in many
parts Of the State is we'll calculated to mislead the PEG
pie in respect to the circulation and accommodations
afforded by the banks. comparative statement OF the
condition Of the loans and DISCOUNTS specie hand and
circulation The lst of October lS42 and lt January
1885, Of all the banks added interesting at this
time:
lst Oct 1912. LIST. Jan. 1885.
Loans and discounts Sl4,297,l27 $Il,0s653l
Specie 241o,Oo2 l2iO ga
Circulation OLE! ,O40 5Sl3,loo
1t is believed that the circulation in the aggregate is
greater than any period previous to leG, since
the establishment othe banking system, The loans and
discounts Also II believed also, that the stape pro
ducts of The less value and amount the present
year, than the ordinary average few years previous 10
S36 The period preceding 1886, is selected for com
parson, because the banks commenced about that time
the most imprudent expansions. The ratio OF specie
to notes is very great aud the condition of the banks
sound But The failure in the wheat and tobacco crops
and the fall in their prices must greatly curtaii our
trade Of diminish the amount Of circulation
Each individual must know that he has not much to
sell usual that he cannot get rs much money from
bad crops and low prices that he cannot sustain his
part of the usual circulation, and of course the Stale
cannot sustain an average aggregate circulation The
small then vii! only dsp!acc like amount oflarge
noies.