Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1842-11-18

tgate the general distress for the benefits expected
from it, will be greatly counteracted by the depreciation
of the notes Of non specie paying banks, the unavold
able consequence of demands of specie. From the
reports of the banks which pay specie, it will be
seen, that the quantity of specie hand, will not
justify the expectation that tbay increase their
circulation, except upon paper at short sight, upon
the maturity Of which, it will be Immediately called
in. On the Is, of October, the aggregate amount Of
specie held by nine banks whose reports received
during the month of October exceeded but litlle half
million Of dollars, while the demands against them
IN circulation and deposits, amounted TO nearly two
millions of dollars After striking balance of reci-
procal dues among the banks, there il a balance OF
about hundred and ftte thousand dollars in their
favor, which must be due by banks out Of the State
In this estimate, debts due by the Georgia Railroad
and Banking Company to some Of the Banks Of Au.
gusta, and on interest, ore not included These state.
ments approach accuracy, bot from the manner IN
which the accounts Of some Of The banks are kept,
say that they mnutely correct. The reports
of the banks Of file in this department. subject to
your control Those deb.ors therefore, who shall not be
so fortunate as to meet their engagements before the
month OLA prl will he left exposed 10 all the hardshps
Of demand of specle payments when specie nut TO
be obtained There in the hands Of the people,
million and half Of dollars in paper money, autho
rized by the General Assembly be issued, repre-
gold and silver, and which creditors have the
stitutono and legal right to refuse TO receive in pay
ment of debts; and which, it s almost reduced TO po
sitive certainty they will refuse.
"Ths state of things produced by the acts Of the
Government The Governn emit Ten, should, az far
possible, avert from The people The consequences OF
its policy. The manner in which thus is TO Do
accomplished, is for your consideration. l would.
however, suggest tina, the purposes justice might be
answered by providing for the assessment of value
on property, under which il should not be sold, in all
cases where specie specie funds are demanded; or
that when property sold for such funds, the debtor
any Of his creditors, who may desire re sue ot IT,
shall be permitted TO redeem it within specified time
under such regulations you may prescribe.
"These made necessary, and are justfi
ed by the policy Of the Government, which influences
directly indirectly the business transactions OF mcn.
The increase OF money, which effected by the incorpo.
ration Of banks, stimulates speculation, presents temp
ations 10 individuals 10 create debts, invites e1trayn
gance and raises property To value not justified by the
quantity Of gold and silver in the country II lays the
oun daiion for all the ruin, which occasionally over.
spreads the land by seducng into understandable
enterprises and consummates il, by putting into the
hands of the people currency that cannot be used,
except at the option of the creditor, in payment
of debts. Ought not policy, Taught with snch unior-
tunae md rulnoCs consequences to the country TO be
Abandoned Should it lie tolerated single day? OF
the proprieiy, there should be no question The char
ter ofevery bank, whose return ehaws TN inability To
answer the end for which wasincnrporaled, ough;
be Instantly repealed for when il has capacity for
good, i, is armed with double power for mischief.
am awar, that in making this recommendation, en-
counter opinions that, 10 carry it out, would interfere
with constitutional rights. But Notwithstanding the
am of opinion that the Legislature has absolute
authority the subject aud may repeal in virtue Of
its sovereign power, any bank charter which it hos
granted without the reservation Of the right 10 the act
OF incorporation The comforting Of authority 10 sub.
sute poper money for gold silver coin is the dele
CATION of high sovereign aud political power, and
affects the great body Of The people, influencing their
operations, and controlling their prosperity. IT, there
FORE upon experiment, it be found 10 be miscberous
abused and perverted to purposes not foreseen
contemplated by the sovereign, can be revoked and
annuled. Itis much within The control Of the Lee
gature any matter Of public policy, and more deeply
and vitality affects the interest oil the whole community,
than many subjects which it is not questioned the
Government has power The incorporation Of bank,
the exercise of sovereign power by State, in regard
to its domestic policy and lis Acknowledgement is thu
exercise Of like power, for the change Of policy
which might prove pernicious; and, in the
else Of this sovereign power, II was never the pur.
pose or intent of the Constitution Of the United States
restrict The States 1t matter Of public concern,
and those who embark IN the business OF banking,
under charter from State, do it properly under
constitutional guaranty, but must rely the morality
and Justice Of those who hold tie sovereign power, that
there will be interference long they exert the
important privileges conferred, for the public
ence the only ground upon which they granted
If the proprclors OF bank have the power
der the charter, when the individual gain derived from
il does not equal their expectation Why may not the
sovereign authority revoke annu ii, when it abused
the public disadvantage, or when the obvious policy
of the State requires il:
"Bank charters usually sought under the pretext,
that additional banking capital is required for CONNER
cial purposes II will be found, however, that theso
applications generally the prompiings of in,
terest than the impulses Of patriotism. Banks have
been established from commerce. and at places
announcement 10 the hndeIs of their notes TO present
them for payment. They have established agencies
for putting their notes in circulation in sections OF the
State distant from The place at which they ore TO be
redeemed. would recommend that oil such banks be
h.va gtnr
done; or, that the charters BIZ repealed would re-.
commend also, the enactment Of law to prohibit The
establishment Of agencies by banks, declaring all con-
trncts notes. and bills of exchange void not discounted
at the place which the bank established, and max
ing j, highly penal offence for bank officer or agent,
to lend offer TO lend money, at other place places,
than at The Bank.
81 recommend the repeal Of the law 10 authorize the
business Of banking Those who have embarked in
the experiment. have failed to realise heir hopes and
any law that encourages increase of paper money,
is injurious TO the community. | lay before you the
reports of The Ruckersville Bank nnd the Exchange
Bank of Brunswick. By en- examination Of the APP
praisemcn Of the property upon which these nstltu-
lions are based mude in highly prosperous times, it Will
how little protection the community has, under
this system Of banking.
"a more favorable time for signal reform in our
banking system, we cannot hope for years TO
come. settled conviction rests my mind, that
banks, OF all descriptions injurious 10 the people.
1t clear that il there banks there could be no
losses by the depreciation Of bank notes. nor by the
waste ofhe capital employed; and The community would
be much the gamer The Of the trans.
ooration of specie in large sums from place place,
is the plausible srgument in favor Of the system
II is much better TO encounter this difficulty, however.
as it is than 10 be subject to perpetual losses by
the failure Of banks. Specie is always available for the
purchase Of properly in every country and uodPr all
fluctuations of trade II is always valuable Bark pa
per no, always valuable. This is argument enough.
But as it cannot be expected that system which has
been SO long in use will be in moment abandoned, it
ought 10 be established and regulated upon the best
possible plan. am of opinion that il will be decd-
eddy advantageous to all classes Of citizens and part
cuary beneficial TO the great agricultural interest," if
there but one bank, and that, located at our
principal seaport, with branches at commercial points,
where banking facilities needed ltis settled by uni.
versal experience that Tho people not benefited by
competition in The banking business. When of