Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1842-03-24

and given in the opinions OF the Bank officers Ii
mad been proved, that they had first spoken from
lconlecture--ihat they knew nothing, but vaguely
guessed. When the Banks sent 10 learn the truth
ot the matter when their officers went on 10 the North
win funds TO take up the notes III New York, Phadel
phia and Baltimore, only $4,000 could be found,
whist the Banks had estimated the to be half
million. Under these circumstances the Cashiers
obliged to admit that there had been great mistake,
that the amount far less than they had sated-and
then they abandoned the position they had formerly
assumed. THIS showed the mount OF reliance 10 be
placed upon the opinions and statements OF Bank OIL
GERS IN relation 10 their own AFFAIRS.
Mr. ii. said he had alluded 10 this, because much
reliance had been placed on The statements OF Bank
officers, to show that the balance OF trade against
Virginia and that il would br impossible for the Banks
to resume; for they did according TO
The argument, 4 demand would be made upon them 10
correct that balance OF trade lie, MIR. H. regretted
t.at nc cccupy;a. distinguished stations men who
must be familiar with all that trade and the
balance of radeshonid nd 10 this House such pure
conJec,ures had been received from the Bank Off
c"rs Here Mr. II. read the following from letter OF
DR.. Brocsenhrough:
"lhere cau be no su;er barometer Of the course OF
trade between d,e.cnt places than the regular ratio OF
Exchange. II is toe however that the regularity OF
exchanges IS occasonaiY disturbed by pancs excited by
money job5ers for their ovn benei,but they are but
,ransitory in their effect. wish Baltimore the rate at
| Richmond is about ar ~ per cent, against Richmond
and with Philade phla about per n-and neither OF
those cities pays specic-of course Virginia must send
less in value those places than she receives With
New York and Boston, the rate OF exchange is still
higher, owing tn the cause III higher degree"
| lie was mortified that gentleman occupying the high
and distinguished station and maintaining the high
character which DIR. b. did, shonld have venUred 10
urge 50 fmsy argument. What, asked Mr.. H.,
was the rate Of exchange; 1t different IN different
sections of the country. In Virginia, for instance, 1t
the difference between bank notes winch were &c.
preciated and those whc. called current in Bal
timore aud Philadelphia 1t was the difference IN value
between notes which were somcw hat deprecated ana
those which still more so IN New FORK, 1t was
the difference between specie and notes. The argu-
ment Of the President Of the Bank OF Virginia was,
that because there difference between New YORK
and Virginia currency, therefore thcrc was baance OF
trade against Virginia. This conclusion Mr. ii. conld
not admit For instance, the notes OF Wheeling
ut discount of IL per cent. Baltimore would 1t
therefore be SAID, there balance al trade IN That
ratio against Wheeling: II the depreciation OF BANK
papcr WINS to be taken as the true evidence Of the ba
lance of trade, how did II happen that IN Baltimore,
there was depreciation Of per cent. IN the value OF
VIRGINIA paper within few days; IL deprecated from
to 10 per ceu during very short time Would
emen therefore contend, that the balance oil trade
had thus, 1t we're, become hve per cent worse
a1ains, Virginia in an instant Suppose some Banks
maid snecie apd others not woG!d hefe not be differ
ence Of exchange between them would not Their
notes d fer IN vaine How could II then be sai, tiat
the balance of trade with the Northern cities
So far from believing It that this was $3.50 lar
from believing that the balance of trade was against
Richmond MI IL commended that t might be IN favor of
Richmond-and still the notes OF The Richmond BANKS
might continue TO be no better than they were now
The balance of trade sewu, he said, not by the de-
pre ciaon OF Bank notes, not By the comparative vaine
of the paper OF different Banks but by The difference
between the amount OF sales aad purchases. For IN.
stance If we bought more o! New York than we SOLD
to her. the balance Of trade would be against us-and
rice rcrsa But, said Mr. llolcman, though we might
owe New York more than she owed rs, the general
balance Of trade might s,li be in favor The dc
probation OF money WAS no criterion TO ludse from
for there might b., and frequently was, difference IN
the value o money on 'yo sices OF inc SANE sree' III
LARGE city One might we'll argue that difference
in The value of money between North and South sloe oil
Chesnut street. proved balance OF trade IN favor OF
the one or the other, to argue that difference IN inc
value of paper money, in different cities, proved lhe
existence of balance Of trade .ganst the one or the
other.
II was true said Nr. II. that upon The general prn-
c!es Of buyng selling this balance OF trade might
exist, So lons, said nr. peterborough, Us we ony
more that we SELL the balance of trade Will be agains;
Us this opinion as general principle, lie entirely
concurred; but he protested against the idea that the
balance Of trade and The same thing with the d!i-
ference III value between specie aud the notes OF sus
pended Banks
The Cashier agrees with DR.. peterborough IN the
unfayorahe baance of trade but he adves 10 the fact
that the Northern Giles have become the sealing points
for sales of Western produce, and therefore Tue balance
ef deJt NAV be in favor of those cities without any adj
yan,a1e in the mere exchange OIL commodities
In the answer of the President OF the Exchange
Bank that officer expressed his belief that the ba
lance of trade not great As had been supposed
As for his own part, said Mr. H., he did not believe
that any general balance OF trade existed at all II
m,rbt be true that bought more from New York
Than we sold to that tyihs YVES the IN specie
having as well specie paying times; but 1t was
not ,rue that we bought OF the woild more than
sold For, though We might always buy more OF New
York than we sold 10 her YET, II we SOLD more TO other
"a, l,ha ah,I ariupf uudq
10 meet our Indebtedness to n York For instance,
send annually s. America large amount OF -four In
return for H. what do we buy tere' Scarcely any thing
But we &c, large amount of specie" Sometimes we
receive products OF the country VIZ: hides dye.stnfs,
mahorsny lopwood, &c These products are sold IN
the Northern cities, and thus our merchants were en-
bed To sell tie Banks specie funds to pay ther oeos
al the Norihor 10 give those specie iunds 10 merchants
indebted n Tine North aud thus The balance OF trade
Inundated THIS balance OF trade therefore Is OF no
cnnsecuence so long sell 10 the world more Than
we buy from the world. man might, II wasFue, guy
more corn of an individual than he sold ban IN wheat
bnt would sell to another greater amount oil wheat
than he purchased in other articles and 10 save himself
from ultimate Indebtedness: for, sad Mr. H. ~c cannot
always barter III equal 1nanhtes
Mr. H. maintained, that the balance OF trade was not
now against There was, Ee SAID, standing accom-.
modaton debt arains, Us the North, but that would
not come upon us suddenly Al! were aware that The
me- reliant a, the South the habit OF buying goods
from the North 4 credit OF mon'hs, that The money
was not called for till the end OF that i's when me
merchant was prepared TO ply. Thus, said Mr.. H.,
this debt or balance of trade j, was called, would not
operate injuriously, as it would not come against us
for six months. In fact, it M ht be considered
standing debt I!c considered the cry about the
pressing debt to the North ali humbug. It
uos The same deb, as had existed for the last twenty
years and it would always continue 10 exist 1t was
not injurious u.s. except so far as credit was generally
injurious to the who goes in debt SO soon as inns
dbt il paid at the end Of months, new credit 10
willingly extended by the Northern merchant SO that
il amounts TO standing accommodation debt renew
able every six months by mutua! consent
while we continued TO buy more than We sold; but as
soon as we should sell than We bought 1t would
cease to e1,st When we looked 10 the rate of ex-
change, which was in general said Mr.. H., The true
criterion from which TO Judge The difference between
Two nl,ces il was necessary to take measure CT
standard Of value. Taking specie as the standard