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

Michigan CATO Detroit 2si3
The present state Of the exchanges is more healthy,
perhaps nn at any period since the establishment OF
the first Bank Of The United States This is owing "a
the great change which has overtaken the Banking
system, both here aad in England In both countries,
the discredt into which corporate mcneyed institutions
have fallen has changed all The channels for the employ
men of money! and caused hesitation among capital
isis in putting il into those kinds of business, which
have, heretofore beea mostly dependent upon banking
facilities In the latest Of the Bank OF Eng
land there was great reduction in the securities held
by it, caused b. the difficulty Of procuring fresh paper,
10 replace thai insured Among all The joint stock
hanks there we're symptoms OF decay, and the cry OF
DISTRESS sent up from the manufacturing dislrctsin
all parts Of Encland-ye, al the same time, money IN
London was freely offered al two TO three per cent
Why was ths Why were all these pursuits OF wealth,
which, few years since, were eagerly sought, as
Welding the greatest profits not only Neglected,
bu carefully avoided IL arises undoubtedly, from The
prevailing conviction Of the insecurity OF the paper
system and Of that manufacturing, which, III the lev
years PRIOR 1896 than doubled under the hot
bed influence of the joint stuck banks. a revuison
amon those banks is looked for inevitable, and, in
consequence, all those manufacturers, whose business
is based upon the artificial capital, furnished by those
banks, ure, in the highest degree, insecure Capital,
therefore, only seeks employment through private chan
nes those occupations, unlimited by bank credits,
which, though yielding small profit, yet secure.
In Wall the state of affairs IS apparent.
Ruin has already ove';aken banking. They yet, m
deed keep their doors open, their splendid marble pa
lsces are vet occupied by we'll paid clerks and pamper
ed officers Tie boards Of directors continue 10 meet
in the magnificent parlors, 10 decide whose paper shall
be discounted with The funds OF capitals deposited with
them. great and prodgous falling on IS, however,
appare a. the quantity Of that paper offered Tor DIS
coun., and IN the supply OF money deposited Tor en-
ploymrnt. The reason Of this is apparent The I'm.
bounded confidence formerly reposed III corporate ~
slu,ions is gone. The public have become aware
after, former years, keeping good account
with Bank, merchant may go bending his back ana
suppca,inc for loan 10 the Bank, and then receive
naughty answer, sit is not done" Why was at not
dcnc because his dcpos,es ond that of many others,
have only suiced supply the wants Of needy drec.
tors All this has been working lis own cure, and
men choose rather now to make their dePos'les with
private houses of known integrity and business ca
pacity. 1t is well known fact that the anounto mo-
new placed with these houses las been rapidly the in
crease The facilities they offer for the procurement
Of money on undoubtcd paper, brings to them lhe
choicest class of customers, whose business can be
done by economical individual houses under little ex.
pcnse far better advantage thnn by lie corporate
nccupers of prncey palace. Another advantage is,
that houses siinaed are personally known 10 their
cnstomers-hey know their business aud their wants,
and they the paper OF such individuals TO lie
best accoun, for drafts Sc. The competition among
these houses at the same time reduces prices 10 the
lowest level THIS is seen in the exchanges. Every
metchan nj knows that under the U. s Bank the uni.
form rates between here and Philadelphia was per
cent. II varies scarcely 10 IN The hands OF IN
divdual competitors 1hese perform all the functions
of Banks without the issue Of kites and paper promises
a. money The manner of business here limited at is
ranidy growing ard with the renewed activity o!
trade which may be confidently expected within the
succeeding SIX months, vii! strengthen and extend IT.
SELF.
The preposerous notion which prompts the Govern
me mt and small politicians to talk Of regulating the ex'
changes by The issue Of paper is surprising Take the
plan of the President. The exchange ransaciinns o.!
this country in year may amount to 1900 ,CG0,co0
dollars All these are now done with the utmost
facility, at rates never before SO regular To be-
neft i9 state of things, the President proposes to
retain 50 900 coo Of specie in the Treasury from the
revenues, and to issue Sl5000,000 of paper promises
Thus nomnally adding $40 geo 600 to the currency
This he says will restore commercial prosperity, be-
cause they will come in aid of The exchanges. There
are now outstanding $l0000,OOO of Treasury Notes
per interest," md convertible into specie nj all
the clues Of The Union the will of the holder, because
the demand for them for investment always furnishes
ready BUYERS These notes form the best possible re
mt,ance 10 all sections of the Union and are endorsed
and used az such TO great extent. In Summer and
Winter, when tie exchange transactions fall off two
thirds in amount, and the demand for that purpose
ceases, the demand for investment absorbs them and
susains their value 1t is proposed 10 replace these by
the same amount in bills payable TO bearer, and bearing
no interest These could scarce be used for exchange,
because of the risk Of loss These worth nothing
an investment and their circulation would depend on
their availability at tie Banks with whose notes they
would come in competition. Rejected by the bank
they would be vaneless, except for paying Govern
Eent dues and their circulation could not be maintain
cd.
M--,rv .xn prxYsuyryT ny DEATH on HOARD TIE