Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1844-10-24

| Ea.Gest and the most uulnstifable. The preced-
ing lessons were forgotten. Ii forgot. or il it re-
membered il, it did so only TO maze use OF lis ex-
perience iur mSchet-how terribly lis previous
| fluctuations had worked OUT upon the community
how lis very respiration, Inc periodical inhaling
and eyhalin9 oil lis loans, had convulscd the con-
,incn and, without justiiying CAUSES il began an
expansion unparalleled E history. An act oil
! Congress had been obtained 10 authorize the Pre-
sident and Cashier 10 appoint deputies Tor the pur-
pose o. signing notes, and the only check being
Tins removed paper OF all standards pay notes.
post-notes, small notes, large notes drafts, bills
kites, race horse>-were Showered on the commu-
nifty. In October, 1899, the statements of the
Bank showed i total Of loans of Soy, $50 052, and
III May, 1882, OF S70,42S,O10.
w no wonders al the mad speculation and the
debaslng luxury that followed Who wonders
al the deep disgrace and general ruin that ensued?
And need We go any further 10 determine how
much IL was that the Bank did 10 equalize the Vi
ciSsiu!es OF trade Instead OF remedyiny the
mischief, II increased it, Instead oil smoothing
the waves, il agitaied them stiil further We have
been tainted with the reflection tina, We are theo-
rist>; We asa the thinking men and the reccllect-
ing men OF the country 10 accompany the Banl,
from II; cradle 10 its grave, and 10 ASK how our
theory is borne out By facts
.Secoadig How far the Bank controlled the ex-
cesses Of banking.
|, was one Q! the great recommendations oftte
Bank, at the period OF its charter, that it would
/ check the State Banks from over-lSsue, ana pre-.
vent an undue extension OF banking capital. How
did the Bank make good the promise! From 1890
TO 1880, according 10 Mr.. Galain, the bank notes
IN circulation increased from 81 900 900 10
Sol ,OOo0l0. In 1910, when The Bank was cher
tered, lie aggregate banking ca pi,al Of hc Union
was 5,So00O,0O0; in 1880 il was @li5000 G01-
fYr. raup ~. ~
three years from 1880 10 1884 There was no
limit TO the extension OF bank issues, except the
ability OF the country TO take them The result
was. ii one era, excuses oi the widest order III
The Lext, suspension and bankruptcy. Tie Ma
tiona Eank, instead o, ohecain. and moderaling,
by Is superior weight aud experience, the motley
band about il, led them 10th 10 the dance Il was
a dance Of death 10 many; but it VIII have been
productive at least Of one benefit il it shows what
II wa> that the Bank did to moderate cXcesses in
the banking system.
IHirdiy, How tarlhc Bank evellct tue inequa-
lics oil exchange.
To run over the extraordinary variations which
were suffered by exchanges, domestic and TO-
reign, during the Banks supremacy, would oc-
cupy pamphlet BY it>c! The brokers' index
seems often 10 have run round and round the
dial plate, an! 10 have fixed within the shortest
interval, upon rates q. every pitch and character,
Take a a single illustration the condition o! tx
changes between Philadelphia and New Orleans.
in l-25 4 period when the Bank and lis branch
e. we're at full blast New Orleans notes says
Mr.. Gouge, (which were at two or three per cert.
discount al Philadelphia in the Spring, fell on
the 3Is; OF September 10 fifteen per cent, and were
quoted on the :9Sth Of the same month, al iitly-si1
per cent. below par. On the ith oil December,
the same notes were quoted al only four per cent.
discount.
The FAC; i>-anl the comparative equality o.
exchanges since the bank has been got rid Of
proves it 10 be so-lhat National BANK is utter
l. useless and often worse than useless. as an
exchange regulator. Either the local BANKS pay
specie or they do not. Ii they do. the premium
OF exchange from one point to another should he
the price that il would take 10 transport specie
over The given distance. II they 10 rot, in addi-
ton 10 the price thus required ii will he nccessa
~ 10 aae into calculation the premium 10 be paid
on converting the local NOES into specie. Such,
in TACT is the pa,ura! difference in exchange ana
it is very clear, thatthough National Bank NAV,
il i, chooses, occasionally hare the opportunity
Of selling drafts cheaper, yet on the long run, the
average Of lis EXPENSES will bc that marked out
b. the necessary causes Of trade Bat Nation
al Bank, Is .h.us;ng its hands too roughly into
tue delicate machinery, may embarasS and clog
il: or for the sake o. large profits. i, may sell lis
brilliant rates. Such, in fact. was the course oil
the late Bank. and such were the reasons oiihose
great vicisSiiudcs which conyulscd on. monetary
system during the twenty years of It's corporate
existence.
III-WHar THE BANK ND roR c;R PoIrrIcAL
PURITY.
That the Bank did but li,e in politics in the
first few years Of lis career was because il had in
that quarter nothing to do. Mr. Jones, it is true,
hand ;rIo he caldron, but he speedily withdrew
t. not tecaase political interference was unwise,
bu. because IL was GnneC esS2rr. Mr. Moaroe'> pla
cid neutrality, and Mr. Adams jealous friendship,
LEI. The Eann II lIlcrr Ia pnl>Uc lis own schemes.
ans 10 indulge IN il own cAtraraganceS, al one era
with toletati0n, at the other with encourage
nent. But wien, in ISIS, the Republican party
regliued the asccniaucv the Bank a%ose from
is lcthaIgy. General Jackson. in his first mes
sage, had intmaed doubt both as to its consti-
utioaaily ana its cxpcdiency and at orcr, rs with
the sound OF q trumpet, the armed men arose. A
rushing was heard III the armory. and in a mo-
mcnt, with a!2criiy and energy which exhibited
the aptnesS and efficiency OF the camp discipline,
scouts and spies were sent out. il was 10 COM
mon i'm that was 10 open. II was 10 L. the
strurole of mammoth moneyed interest, wound
c,l bu, not crippled for existence. Il twas Srug-
Gle GA the paIt OF those who governed il for name
and fortune. In the security Of calm they had
laid ont 4 system Of corruption and depreciation
which. sooner or later they knew must explode
but The contamination o.. which they had expected
10 he delayed til the generation 10 which they
belonged had descended booty in hand to that
grave where the search OF committees ol nvestI-
cation would he baiicd They ici; that their good
name, rs vel! a. the lie OF the Bank, rested on
the result Arouse. then, horse and foot One
day the Bank awoke to the danger, and the mex,
dav il operations were di>corerablo In the las,
six month, Of iS29, the sum paid for stationery
and printing amounted 10 - 1iijj In the first six
months Of 1850, the account Swel'ed 10 S1,l3l;
and in he lrs six months, 10 81 $50. At the same
time, S7.0)D were paid for printing and disri5nt-
ing Nj. McDu!he> report. and Mr. Gallatin's
pamshIf, On the Both of November, 1880, il
appears rs the Banl; minutes that the President
>ubm;: e 70 the board a copy Of IN article OF
banks and currency Ju>t published in the Amcri-
can Quarterly Review. OF his city, containing
favorable notice Of this institution. and suggested
the expectancy OF making The views II The author
more extensively known 10 The public, than they
can b. BIZ the subscription !IS,-wheieupon II
was on motion, Resolved, that the President be
authorized to take such measures. IN regard To the
circulation OF tie contents Of the said Article either
in whole or in part. as he NAV deem most for the
interests uf The Bank" On the llth of March
1881, Immediately after the adjournment OF Con
sresS, a similar suggestion appears from the mi
nncs OF the board to have been made By the Pre-
sidcnr. and thcreupon the board finding il adyisa
lie 10 do The whole work at Jump, Resolved,
that the President is hereby authorized 10 cause 10
be prepared and circulated, such documents ard
papers rs may communicate 10 the people inior
nation in regard to The nature and operations OF
The Bank" Immediately, the sums paid for
printing and stationery ran up. during The first
half Of 1881, 10 s3o,919 The following loans,
about the same time. were reported By The Gov
ernment directors:
The New York Inquirer, $4,000
Philadelphia inquirer, $1,000
United States Telegraph, $4,000
National Inlelligencer, $4,000
The Government Directors demonstrated
protes;ed-but their protests and circumstances
were neglected or >purn-d On the 10th OF Au
gust 1883, resolution vas offered BY one OF the
number, representing, that the stationery and
printing charges in two years, had reached eighty