Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1850-01-15

On motion of Mr. PRICE, the House adjourned
SMALL. NOTES.

The Wh, leaders who in times past advocated United
Stls Bank a o sovereign panacca for all the ills
that is heir TO- appear now 10 have shrunk nto
the size OF ragged onedoa shnpascr, and their cry fo
small should be little needed by the Democracy
the State the cry from the quarter in behalf of
United States Bank by General Jackson and the glo
Gus band Democrats who sustained his administration
The small question has but intrinsic merit in the
minds of the Whig leaders and that is the triumph OF helr
party the Democracy. We fully in the opinion o
intelligent merchant osome twenty years standing, who
in that time has never our knowledge given any other than
Wing vote ana who has for years been director in Bank
that the issue OF small notes would increase the evil com
planned Of No will urge that when Banks
issued small notes they forth with horns long
enough gore Of the State the small notes from ohe
Siatcs-so far from it, shn-pastcr SHIN plaster
whether issued in Baltimore North Carolina, in Sottl
Carolina or BY Banks and yet the brn'nm tt'mc'
Of the argument Of Wing leaders is that we want our shin
pasicrs drive those Of other States. We know ha
strong cattle will drive the weak from good pasragc but
when all are weak, gain the asccndancy We would
strike down the evil by bringing strong cattle on the pas
turage, and by Multiplying the number OF poor half
starved animals.
II would in our Judgment be wise in the Legislature tc
adopt the views of Mr. Conway and make the five dollar
notes Of the parent Bank and its branches cdccmabc in
specie any of the branches the parent Banks with
ont regard the point where the made payable
and require the Banks keep ten per cent of their cir
cuIation in notes Of five dollars This would bring forward
pretty wcghy force strong cattle and pressure
upon the weak that would drive many of them into the
woods.
The Banks their enemies in this: Their policy
anpear Ia be TO dcrecatc every dollar of their circulation
by their avarce exchange which they only deal III
by the admission that specie funds valuable than
the issues secie-payng banks Banking proper and cx-
change brokerage, anasonistic elements as those
which make up great political parties of the country
and vet Our Banks act they of the family
and make exchange business their primary and Banking pro-
per secondary consideration. We illustrate in this way
The brokers' in their regular business, desire as much
margin as possible between the price of specie funds
on that heart of exchange New York, and the Bank
notes of Virginia. so as 10 swell the amount and in
crease the apdiy of the Of the notes through their
agency 10 increase their profits and they up the cx
changes and half per- cent the banks to-
low them up within one-cight per cent; and in thus
catching at the shadow they lose the substances io as they
run IN the exchanges they the value Of every dollar
they have in circulation and their notes 10 he returned
with greater rapdy and greater increased volume, than
would be- the case il they pursued the policy oi keeping tc
notes par thus giving them healthy circulation ana ma
king money by the increased length oi time Their notes
would circulate before being returned To the Banks lhe
notes would by this policy, become valuable and ind
healthy circulation quarters where they arc now bought
M like cotton on rising market and hurried back 10 the
Banks for the profit such traffic brings about
Healthy banking may, with safety be always based upon
the amount of staple productions which find market in
the centre heart of exchanges Our shipments are main
IL TO New York and abroad and the amount OF sale:
of Virginia productions is very nearly equal TO th'
purchases we make in New York and elsewhere
md whether tho amount passes through the BanF
would take the ust and manly position that they will pay
specie o their notes draw New ork as they now dra"
IN Petersburg or Lynchbg The result Of cause ana clcc
might be argued differently, but memory informs US tha
before the Banks turned brokers well bankers their CIR
culaiion was seader and larger, and, consequence
their profits greater when they sight drafts on Ne"
York at par than they have been since they found out VIVA
a nice thing is brokerage adjunct TO banking.
1t may be argued that the Banks, at times may have tt
buv specie and incur the expense OF shipment and insurance
uoon IT, Admit that this be- yet We contend mat pro
vision was made in the bond (ihe charer for such con
,ingcncy when il written that they should nave IN
privilege of drawing interest three dollars Tor every on
of specie they held and such expense Is as legitimate ah
ms reasonable in banking the counting house expense
of merchant.
When the subject shall be cooly examined and the iata
consequences y oreshadowed the mind we cannot be
leye that this Democratic Legislature Of Virginia VIII sane
ton mschevous policy is proposed 10 be enacte
MO Inv