Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1842-09-16

,,s. und,r The Tariff slIOO0u0O % 100000 3s9oOoo
The IT, S. Bank loans are an indeS 20 tue .HPa"
son all over the Union the increase III an ounAs
IN Ire ame proportion. The facts are men ciear M
the hank loans doubled-that Inc imports , ae
,r cent and that the customs increased a'so ~ Pc
ant showing The increased rates OF duues bha u"
feet either in increasing The revenues or IN di'h'sh
mo imports; The latter effect being counte'acu ny Tue
EVANSTON ofihe banks. The banks now are III no con
dlon to expnnd. There is now no iofe'gh c,ea"' a'u
III credits are perishing beneath the State, cor
norate and individual di~honors. Inc iolo",ng 'aoie
;ll illustrate the difference in the position OF Inc bank
Ing system and at the passage OF tne arm OF lco'
lseREA'x OF b'NA''' - '"- Circulation
No ssrss css's. q h Sn 100 1855 sTS S DO
FRI" 1880 1 1ssS s alsa5oss adsss eSsoSSS
is4o to 1872, al 1870 5soaao 1876 35osao Csoc90GO
This decrease since 1910 is by actual iaiIure ana IL
ouida,on of the banks much larger dm'nut.on IN
oons and currency has tlken place on The part OF nose
banks that are yet doing business me cause OF ''s
vast reirograde movement has not neen IN le nature
or the Tariff but the absolute inability 10 pay oeoS
II is nm undoubted fact however, that the banking
conal is still redundant and the process OF curtament
mus, 90 on, until the funds employed IN banking are
40 greater than will pay profit III legitimate way.
The amount Of funds required depends ~ great ue
gree upon the state Of the markets for produce act
which may be illustrated IN the arucie OF .,ou,,
absorbs in great the means OF the BANKS 10
certain districts The quantity of flour manuiactureo
in This Stale for the year 164l, was not far from 2Ooo
0OO bbs In 1885, there were about oouo,ooo ousne
az wheat produced in this State in addition to
bushels brought here from other Statesmmaking Isl
ooo ooO bushels. equal to near 100000 barrels Of
our. If we assume 100000 barrels as the quantity
of each wear, we shall have the following as The
amount of money employed in the trade. The price
in 1887 was $40, and is 81 so. Therefore IN 1871
it required $40 COO TO conduct the business and but
80 600 600 in 1912 leaving S1l 100000 for other EN-
olovments or not employed at all in the same proper
lion has the price ofa articles fallen When prices were
ooing up there was constant demand tor more BANK
ca pital and il created as the rates advanced
reverse has now been The for three years. ana con-
sequently is as requisite TO reouce '''e csPa " o
fore was 10 increase it.
THE same renernl causes operate upon oil sections OF
The Union more particularly at New Orleans and the
effects are now taking definite shape between the
strong banks and the weak ones
The crop of cotton TO forward, II is difficult to
esmae AT this early seuson but it is generally supposed
that il will equal that of 1871. This crop will all
tprn mon the specie basis. The average paper cir
culaton Of New Orleans, has been as follows for four
years. . ooo ma
1910, 55oouoo 1912, 5,SGo 100
The present circulation ts specie, paying Sl20Uoo
with ST 0S3 Of suspended paper at an average de
probation of 81 per cent, making altogether
of paper currency, which be made available ortLe
new crop at liz specie value, which, is, however, con-
stsntly growing worse. The old manner of purchasing
by bill credits cannot be kept up, and It Will be aoso-
uey indispensable send specie from Europe for the
purchase Of the crop of cotton, well as for all other
agricultural produce when atcurrency returns North
for the payment of goods the present stock here will
become reduced. In the mean time, no goods can
come from abroad except those actually paid for out oil
the proceeds Of our exports after deducting debts, in
,erest &c, due Hence increase in the quantity of
goods imported, can take place similar TO that which
followed the high Tariff of $685. on The other hand
commerce will be puralyzed, and the Government be
left without revenue.