Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1843-01-31

do vIih such matters Exchanges should be regulated
by the course of trade and ii would be as reasohaoie
10 contend tina, the Government should regua'e '"s
,r;ce or the freieh. of merchandise. Gentlemen hao
snoken Of The wa:chu eye OF sellnierrst 10 ieeuae
the banks. why not leave exchanges TO be ny
i als,: When gold aud silver are ihe currency, .e
rate of exchange never exceed tne p'ioe VI
narration fa bank on side OF The street redeebis
no,.q whilst another the opposite side does not
the ference between the notes OF the Two IS as much
tho rate Of as If the banks were in differ
ent sections OF the country. Why should the Govern
nent any more undertake TO regulate me price o.
change than the price Of provsons lie liiusa'ea '''
nosi,ion by several examples and concluded tnat uH
interference BY the Government IN sucn ma'ei "'"1
he vain and idle-wond defeat its own enns-aho' 50
r., from being beneficial would be disadvantageous to
commerce. ;, E
r,lns1old and silver only All acknowledged it was
desirable that more gold and silver should circulate in
thn community. MIR Barnard shook his head. AS
tho gentleman had shaken his head, he would read
3, few extracts from what said by man who, he
presumed, was very good authority with the genlie
man He read from the message OF Gov. John DAVIS
IN the LEGISLATURE of Massachusetts in 1884.
uTbere 10 doubtless difference of opinion as 10 the
c,,scs ,rbicb nroduce the great vGclllatons the
ney market At one time, the premium on capital falls
below the legal rate Of nerest-at another, money can
scarcely be had any terms There CAM however, oe
little doubt that the small quantity of specie in clrcu
ation is one of The tending to produce these
disastrous fluctuations. IL panic should seize the
public dsrust should overshadow our banks but Tor
day. all in specie would cease-tor the iunas
on hand do amount to onetwelith OF the biiis ~
circulation and those depostes they are bound TO pay
on demand. This disproportlon between specie and
paper canno be materially increased. II the quantity
Of specie is diminished the paper circulation must De
curiaed Ii il increased the paper may also be in
creased. The paper therefore, ucuates as It's basis
changes.
ar cyhi
(he adds in S34,) some extent 10 be imputed to
the fluctuations i'll specie (meaung IN amount, not IN
value y and the smaller The amount of specie in the
country the more likely they are to occur. The most
obvious remedy, therefore, against the recurrence oil
this calamity, and the most certain method Of saving
the active industry Of the country from the devourng
vortex Of this almost periodical DISASTER which comes
of curtang discounts is to increase, by some ndicous
regnatious the quantity Of specie in circulation 10 such
an extent, that these occasional drains shall not curall
the circulating medium, 10 produce such conse.
ouences If the circulation Of small bills had never
been permitted, but their places had been supplied with
specie the quantity in circulation would be large,
and would greatly strengthen the confidence OF the
public and the ability of the banks, as it would flow IN
supply the place OF that drained Oft, and thus super
sedc 10 great extent the occasion for these forced
curanents of discounts which always prove injurious
to the public. The States which have adopted this
corrse best supplied with specie and if The whole
country could be prevailed on TO suppress small bills,
IL.
I" Experience has long since proved that metallic
currency least liable 10 fluctuations, and therefore
bes, adapted 10 the purpose for which il is designed; and
u be hoped the earliest opportunity will be seized
10 return TO itso far at least, to recy the present
credit system of paper currency, and prevent its PERM
cious fluctuations
Fluctuations visit Ell who have property, and all
who work 10 acquire il, with injury, and compel them
to submit 10 severe sacrifices What is cnieda scarcity
of money, only means that The banks do nat discount
The gentleman from Massachusetts, Mr. CushIngl
had we'll mentioned among the inherent evils of paper
money! lis expansblity, which brought periodical ruin,
Disaster and distress Should the Government, then,
increase aud promote this evil, by issuing Government
paper by Government bank, or indirectly through The
agency OF U. S. Bank Was it possible 10 remedy
the evil of expansion by increasing the amount of the
paper volume: Would net such course be only add
ing fuel to the flame; And if it was proposed by
Bark OF he T. s. regulate the issues of other banks,
history proved that such purpose could not be so &C
complshed. History and experience showed that the
banks nearest and most under the influence Of the U.
S Bank, were The first to suspend whilst those re-
moeiy situated from that institution held out longest,
and were The last TO cease paying specie II it
pecied check these oyerssues of banks by law such
idea could not be carried out, because it went coun
ter to all experience of the past. What had been the
history &C The banking system: Did not observation
.e that banks could not he restricted by law: The
zeal, and influence and the unlirng energy of inter
ested individuals entirely too strong for The law
They had heretofore oil law at defiance. They had
applied to State Legislatures 10 give them authority to
sus pend specie payments, and then called il giving
ief the COMMUNICATING relie by issuing more OF
their irredeemabe paper!
And az 10 the wachiul eyes Of self interest, which,
il WIS said, were important in the prevention Of the
abuses Of banking had they not been shown TO be ut
teriv unavuilne? HAD it not been shown TO be pow
cyless in all that they had heard OF the suspensions and
frauds committed the stockholders and the pub|ici
And what had availed the power of the Legislatures
OF the States Il had proved to be utterly useless, as
as lately found TO be the with regard 10 Bank
Massachusetts, The Legislature of that State passed
a law to provide for inspections Of the banks OF that
State and the law had proved to be SO perfectly use
less, that the present Governor in his message, recon-
mended its repeal.
The gentleman from Massachusetts, in the remarks
which he had made the House. had not asserted that
the result Of the late Presidential election had been
an affirmative decision upon the question 10 the
proprety of establishing Bank of line United States
Tie would ask the gentleman whether, in the result oil
thu, election the people had manifested their approba.
ton of the Exchequer PLAN And he would ask, 1t
the question were put 10 the people of this
Try, wlethc. they would have Bank Of the United
States or an independent Treasury, he believed tina,
they would decide in favor of f Bank No. Sir; he
would not say SO. What did they hear from the gen
,Ieman from Vermont That the objection urged against
The scheme was, that it Government Bank. This
being the case, the issue given up. II was
given up in the report of the Committee Of Ways and
Means. lfii had been rendered unpopular account
Of mistake its true character, arising from false
mpu,ations which had been cast upon it, what did the
result prove' Not that the people condemned the In
dependent Treasury scheme, bu, that they condemned
the scheme oi Government Bank. To show that he
had mss;ated the report he would read the follow
ing passage:
These banking powers, thus conferred upon The
Exchequer, for the purpose Of furnishing paper cir
cula,'on distinguish this plan from that of the Sub
Treasury"
They under the apprehension that, when once
established, this would be converted into great Go.
vernment hank. Bat, that there reason for
this apprehension, was evident Gon various pas
50 ges the report. The report acknowledged that
The Independent, treasury plan made it felony, punish
able by fine and Imprisonment, for officer of that
institution to any of the public moneys ntrus,ed TO
its keeping. They had, therefore, what had been
urged the main objection 10 it, at once given up
The AFFECTIONS fell to the ground; they vanished into
a-into thin uir. 1t had been frequently said, on tina,
floor that it very difficult to tell what precise issue
was determined By the late presidential election. AT
any rate, he would contend, with grent confidence,