Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1843-03-16

I
Ivy 'ir. Charles GTant-"A preventive rather Ihan
corrective Of flac,uat,nns-a check whereby the evil
wish IN avoid is arrested before it takes place. -
National Bank has been supposed 10 produce The
same result. But little examination will show, that
though may etard, yet it cannot prevent conrac-
tons and expansions. When the Government funds
are deposited in National Bank, the operation is
this rs soon the imports and the amount Of duties
begin 10 increase, conseque OF expunsun OF
the currency, demand is made upnn the State Banks
for specie 10 pay em If TIE duties payable spe
ce; Or, II they P:yabe in STATE Bank noies, these
notes go into The National Bank, and in the weekly
settlements the balances drawn in specie. Thus
the sia.e Banks checked, AMI il there was aay
security tia; the National Bank would he red with
discretion amd Judgment, the cheek wan!d be very
perfect, rs af rs It went; but National Ban has
the same Inducements 10 over-ac,icn winch The State
Banks have and there is "no regulator 10 re-. ulale the
regulator On the contrary, tho increased amount Of
public dfro>iies resulting from the augmented ties
and The supply specie obtained lis settlements with
the State banks stimulate 1t 10 xpausion which goes on
unit, the channels ofcIIcuation are filled with lis notes
wien they fall into the possession of the State Banks
10 the course of their business enable them to settle
their balances without the loss OF specie-and thus re.
move the check upon them And under the Joint
acton of the State Bahks, and the Naona, Bank the
expansion goes until ~ suddenly sied by the
foreign exchanges, and then there a violent revul.
sion, which infcts distress upon every pa.l OF the
cauntry.
The difference between a National Bank, and an In.
dependent treasury, as check upon The Stale Banks,
and preventive of excessive expansions and con-
fractions of the currency, is THIS The former, o,
check, operates not by necessity but by the discretion
OF those by whom il, is manngcd-who act under the
strongest Inducements to the latter
operates from necessity, no, depending upon human
discretion or judgment, but growing OF the laws of
| its creation
The effect of these rapid contracticns ard expan-
s;oas of the currency Ia 10 introduce into The paines
and most sober pursuits of lite, all the hazards and
uncertainties of reckless speculation No sagaci,y cal
toresee, and no prudence provide aga ms, them
The result OF the simplest operation of the farmer is
uncertain. The humble tenant who rents small lo
Of LAM, makes speculation. Ii he rents when prices
depressed and they suddenly rs, his head is turned
til his prosperity he thinks there will be no end 10
it: and he falls into habits which ruin him for life On
The other hand # he rents when prices high and
they suddenly fall, It takes the small savings of many
years of patien toll to pa his losses. Thus are all the
baneful effects of gambling and speculation visited
upon the moot regular pursuits of life The very ,llers
of the earth taught 10 Look to wcdrec.ed in
dustry, bu, TO favorable turn Of the wheel Of fortune
to years of high prices, the Of his prospsr
~; and the virtue of peope-lhe very foundation
of our RSPuslie-s saPPss and undermined. If the