Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1848-01-21

yellers then, as now, scattered them on the srea,
ihoroushiares, and our own citizens, returning
from other parts Of The confederacy, broushtlhem
in small numbers; and, in addition 10 these sup
plies The manufactures OF this species OF com.
modify in other STATES found it their interes. 10
force them INTO our channels OF circulation by all
the means in their power. Experience, then, has
, proven that The remedy proposed will not cure The
! disease.
The malady is aggravaed-calome is admi-
nisteled 10 patient already slightly suffering
with mercufial fever. For one note now in cir.
! cula,ion twenty more are added 10 Danish the
first This is as extraordinary practice in f.
nance, as medical prescription OF gloss diet and
stimulating liquors 10 p!eihoric patient. In.
deed, it is The Homeopathic principle OF "s,milia
sim.iiJus" bu! without being administered in in.
fniley small quantities.
The lamentablc consequence must result, il
this measure should be adopted, that specie will
be, Tor The most part, driven from circulation.
| The dollar in silver cannot circulate with the
dollar noes The cheaper currency will always
drive out The more costly. This might be anci.
paled, SO yrior,," but we are not left to anicipa
! tion, TO theory or TO argument. Experience has
proven the proposition wherever il has been tested
/ Why do not our gold coins circulate among usl
The reason is obvious They are expelled by
the five and Ten dollar notes The quarters ofan
eagle are met WIN, pSSdusC 'uCJ w nv uuueiSO
the same competition.
In 1925 panic occurred in England, in pc.
Rod OF peace, with a good harves', and traceabe
To no other cause but defects in The system OF
banking and currency. The principal remedial
measure adopted was he abolition Of one and Two
pound notes; and an "act was rassed 10 prohibit,
after the - day Of -, 1927 the issue OF all
notes of less denomination than five pounds
sterling In 1928 vigorous effort was maielo
repea the law, but il was sieadfaslly and success
fu Iy resisted" In the debate on he subject, The
Duke Of Wellington said "Tbe measure OF 1896
flhe suppression of all notes under five poupds)
was not founded On any theory, but on expert.
ence which The last three years had confirmed.
That experience had proved the iaacy OF the
ory which stated that paper currency was per.
fec,Iy safe. as long as il was conrerIibc into gold
and silver. Experience during the aslthree years
had proved this theory not 10 be true IL had like
wise proved anothe! theory not True, The theory
that soyereiens and one pound notes should cir-
culate together" This is precisely the eIpcrimen,
proposed 10 be made here, only differing in the
denomination of The notes. They were conien,
with descent on the scale 10 one pound, about
FIVE dollars, in the decisive hope lha, The note
and the coin would circulate together. We pro.
nose TO 90 still lower, and the lower we descend,
Inc more disastrous must be The result; for the
less OF specie will be leit in the channels OF CIR.
culalion.
But perhars it may be asked what will become
of The specie now afoa7 Let Us suppose lha,
,bree millions OF dollars in coin are now in cir
rnla,ion. and are necessary To effect The exchanges
in his State in all transactions over one dol
lar and under five (This supposition is made
merely for The purpose Of illustration Should
the measure be adopted now under consideration
and become the law OF the S ate, the banks would
gradually insinua,e their own notes. under the
denomination of FIVE dollars, into circulation, 10
the amount Of the three Millions and The specie
would al the same time gradually disappear 10
the same amount. The goods 10 be bought
and sold being The same as before, the demand
for the circulating medium being the same,
when the banks shall have made their issue,
should the coin remain, there would be an excess
If thre, millions-theEe would be six instead OF
three These we have supposed suihcieni TO per-
form the exchanges; whatever, therefore, beyond
this sum is poured into the channels oil clrcula.
lion must overflow. II cannot be employed by
ms in Virginia, and it will therefore dow into
some other region, where there is demand Tor
il, But the paper will not leave our confines, be-
cause. far from the banks that issue H. II loses IFS
value. The coin then must depart, and we shall
he lett on nv hypothesis, with three millions less
) OF The precious metal in circulation. But the
banks Of the Commonwealth would gather up
perhaps one OF he three into their Golfers as oa
sis for their additional issue OF notes, ard We
, should BE- deprived only OF two millions. which
would go 10 other markets. With specie flowing
out OF "bolh ends Of The subreasury," making us
way on the one side 10 Mexico, on the other 10
ENGLAND, there wonld lie no difficulty in fading a
demand Tor our surplus
Are we prepared to lose il? Is our system oil cur.
renew 50 strong, So sound, that there is no danger
in this measured The more our specie is
diminished, the more insecure are our banks. Al
This particular time, when the precious meals
are leaving our shore with every steamer, and
when there is al leas; some danger impending
over the currency Of this country-when some o.
the banks al The North have already suspended
snccie payments, il would seem peculiarly map.
rropriale 10 adopt an act Of legislation which
would cause loss oil any portion oi our coin.
But The measure, in my humble judgment,
would be bad policy al any lime. Our efforts
should be 10 give srengib, stability and Sc
CURLY to our monetary system by larger
INFUSION Of gold and silver. The inanciers o!
England do not deem il sale 10 have smaller noes
than FIVE pounds; aud in France i've hundred
flames are the lowest In these TWO countries, as
we'll as in all Europe, all The small business trans
i. actions are effected by the precious metals. 1t
IS only in large commercial affairs that notes are
brought into use. Travellers olien pass over the
whole of Europe, indeed often reside there Tor
T. wears, without ever seeing bank note. That
his system conduccs to the stability Of their cur
i rcncy there can be no doubt. But Tor the absolute
necessity Of this restriction to secure Tins ooec'
r line governments would. long since, have gladly
Il awaited themselves Of the profit 10 be derived
> from the issue of small notes But such prom
are worthy of no consideration when opposed TO
The insecurity, The expansions and con'racuons
and all the sudden and ruinous fluctuations OF
i an exclusive paper currency. panic IN Inc
money ma,ke, is unknown in The countries on
I the conlin nj. That they occur in England we
! all know but Jess frequently than amoug US
Their occurrence there, without doubt, is partly
10 be attributed to their small Notes.-The five
Mound notes being small when compared with the
, lowest denominations on the continent. There
are other causes peculiar to that country, which
powerfully contribute 10 the same result, bu!
which we do not deem it proper 10 consider al the
, present time.
:. Il is 10 be presumed that all will agree, the
larger The mstallic basis OF our currency the safer
will be our monetary system. Nor is there the
least doubt tha. the larger the denomination ~
notes 10 which our banks are restricted, the more
abundant will he The precious metals. Cfeae
demand for Them and they will soon appear; su.
persede them by paper medium and they VIII
equally a. soon disa ppear.
But return Ia The evil which it is the object
of the Legislature 10 remove The existence 81
the small notes of other States among us. II
seems TO me there is an &c. Of legislation wnhh
is obvious, which is just which is appropriate
that would al once remove the nuisance II mas
d been before recommended ard has been endorsed
0 by such authorities that speak with more con-
5 fdence OF it than my own humble judgment
: would induce me 10 adopt were The originator.
Require that all tcbts due from our banks, wbe'
,he 10! DEF osiles or otherwise, should tc payable
; in specie or their own notes according TO lhe
: choice Of The creditor" This, it is confidently be.
= lieved, would afford efeciual relief; Tor czens
e would prefer specie 10 small notes, il they could
v obtain it. The people OF Richmond would soon
4 rid themselves Of The annoyance to which IheT
j. are subjected in these notes il they could go ir
=, their own banks and obtain gold and silver. b.!
= the difficulties they encounter in Obtaining hes'
l. have induced them TO receive, in violation OF law
j. lhe nelly nnes &c other SIaies. The banks. b