Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1843-01-19
FOR THE ENQUIRER
OuR EMpARRassNEsrs- Their Cause and Remedy

OuR EMB.RRasSMEsrs- Their Cause and Remedy.
.All agree that our circulating medium is too small
and that confidence and credit lately too abundant ale
collapsed extinguished. These are, no doG.i,
the immediate causes Of our distress; but how does il
happen that present the lie instance Of exception
to the we'll established law Of trade, that money, like
every other commodity, will find its way where II is
most needed? Is il true, that every other county,
without legislative interference, by the more natural
operations Of the laws oftrade 10 have as much
money as i, can advantageously use IL true, that
the only people earth who have to eglsla.e
money and credit, and confidence iato existence
All thaaa seemingly contradictory propositions are,
no doubt, true. We alone, OF all the people on The
lace OF the earth, have, by legislation, regulated and
restricted the supply of money and of credit between
man and man-We alone have made it CRIME for man
TO credit his fellow man, by the enactment Of restrain
ing laws; and we alone having thus by law destroyed
credit find i, necessary to attempt, by law, TO resnsc
tnte credit. Our Stay Laws, which compel men 10
credit each other the natural result Of our Restrain
ing Laws, which make 1t a crime for med TO credit
each other. The latter prevent, in great measure,
the liquidation of debts by the exchange and transfer
Of credits and lubes, aud thus compel each creditor
to collect from his debtor aud induce thousands oi
law suits in communities where, probably, ii credit
were unfetered not cent Of noney would be need
ed TO settle the debts thus sued foI Instead Of compelling
men to credit each other by Stay Laws who are un.
willing TO do so, how much more just and wise would
be TO repeal the Restraining Laws, and permit all
men to credit each other they peaeed. Then,
money circulating me dunn would be left TO the
,ural laws Of trade; nw, the amount Of clrcua,
ing medium depends, not the demand but on the
ability Of the Banks to supply il. If We have too
much Bank capital, our circulating medium is too
great if to- little Bank capital, circulating me-
dunn is too small Nature, left TO ITSELF by the lnya
rIabe laws of demand and supply, is sure to furnish
to every people the exact amount OF money best suited
to ito wants. If Legislators and Bank officers pos.
sesssd at all times the power the wisdom, and the viz
tues of Omnipotence, they might do the same thing:
but until they do possess these attributes they should
not attempt 10 regulate the currency.
The circulating medium of every civilized country
is compounded Of metallic currency and OF credit, IN
the form OF evidences debt This compound currency
is essential to the existence ofcivlzet society Metallic
money alone suices for barbarins who have little pro-
perty and few and small dealings. The supply OF credit
currency with us belongs exclusively TO the Banks
They would regulate at will the amount OF our cur
rency if unfortunately they dd not often lose their
credit, at the very moment when this credit cur
rency most needed We need q larger circu-
ation, more credit and confidence The Banks cannot
supply these deficiencies; but, on the contrary are
likely to sustain heavy losses by the depreciation Of
the property of their Debtors occasoned by hs def
cient currency. The repeal OF the Restraining Laws,
by increasing the circulating medium, and there by
HANGING the value Of property, would save the BANKS
well Us the People from impending ruin.
Well.conduc.ed Banks need no restraining laws, and
make money despite of individual competition =
They do so in England. Without this competition, they
can never De well OTelgn writer's
with SURPRISE that Bank charters fenced round
with restrictions, penalties and prohibitions than
any others in the world and yet despite OF these legs
ative precautions, have the worst conducted Banks
in the world. This is all owing to the want of free
competition, 10 making banking monopoly
IF our restraining laws were repealed, currency
would settle down. under the operation of the natural
laws OF trade 10 that which useful and
convenient. Confidence and credit would be restored,
far legislation could do anything 10 restore them
< 1a,, h., Ind ham
modes Of paying debts by transfer Of credits and aL
lties, would be opened 10 the debtor, which
prohibited
These are not the mere SpecuatIons OF o political
economist but truths attes,cd By universal experience
cuniary embarrassments, wretched currency,
stay laws and relief laws, in great peculiar
TO ourselves. Get rid of the parent, and the offspring
will disappear.
In further calculation OF views, we request you
Mr.. Editor, TO publish the enclosed communication
taken from the Madisonian. To the arguments used
therein would add, tina, ex perience of shnpOs
Ter issues furnishes valid objection TO free banking
Those issues generally made temporary expe
dent by in desperate circumstances in defiance OF
equations, it would fall into the hands OF those
best qualified TO conduct it, |, might be found e1pe
dent as in England to prohibit corporate banks Gbd
individuals alike, from iSsung notes Of very small te
nominations.
Our experience before we passed restraining laws,
proves that We do not need such laws any Than
The rest Of the nations Of the earth.
JSo. TAYLOR, OF CAROLINE.