Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1854-01-03
For the Enquirer.
THE BANKS AND THE CURRENCY.

For the Enquirer.
THE BANKS AND THE CURRENCY.
The object of these articles is TO present such reflections
upon these questions occur to the writer 10 DC o use III
the consideration Of one Of those important pnr of State
policy that interest all who reflect on the pemanehcy ana
usefulness Liberties and prosperity and as there cannot
be any motive but that u ruth and the public good such
candid reflection upon TIC various views that may be- pre-
OF the questions is asked AZ the Importance OF INC
questions involved should dc'and free from all parry or po
Iical bias, and originating in sincere love OIL country ana
devotion The interests Of The State
The point which have arrived In our history as
nco, IL and the connections which around US free the
subject ul many features that independent OF The relations
we hold towards other States would and ought properly
to be dcmsse bur- nevertheless our relations TO The other
States hG plead barrier against such aclon as
the Interest of the commonwealth of Virginia requires
We are liberty TO depart from Inc great phcpcs
which lie The root of all soundness in banking and 10
adopt Tie habits Of other States upon Inc SUBJECT HmPg
because error has grown habit with others we are
no, al liberty 10 follow multitude To do evil
If our experience State has proved anything, II SHOWS
conclusyciy that all connection with the banks by the
State Virginia has been dsad"anaeeons TO The oanas
and coujllng and detrimental 10 the pubic interest," ne
basencss Outrage0uess OF single circumstance VIII
illustrate this fact bill waE passed authorizing 'e oahks
subscribe The capital OF the Jamcs Rver and hhna~a
Company The representative OF the state voted o' Tie sup
scpiop TO sere the subscription 3G2 shares OF the stock
of the Bank of Vrgni was transferred 10 S2 different nd
ytuns W my memory sc!vfs and the whole was transferred
hack again hy the same individuals within ic~ days alter
the vote taken These facts stated in the memorial 4"
the late President Of the Bank OF fTgina u lhe
Of l7h January lSii The application for The bill was no
the instance of oers and the action OF the
with these outrageous proceedings on e par! oil individuals
perfected fraud without parallel IN inc history Oh Ie
and pinndcrCd the shareholders VI S5VuUUV
and rave rise TO farther robbery of mach more TIE
Commonwealth has 10 do with banking, legitimate
w. than il las with the business Of merchandising or arin
Ing or mechanics lis duties are TO guard Inc community
from npusiiiGns aHd cXuct faithful compliance WIN
laws enacted In pursuance OF the Consntuon ana 10 eAe
power tho people OF the State SAFE ana re-
liable exchange hsr productions Can she do This when
she is herself party in the transactions OF inc bahAf
shall cu!ea"or show that separation OF Inc government
from the Ranks demanded By every consideration maj
cen apply Ia lis tucs people, and should result ~
benefit 10 the Banks and their customers. Specie Is The true
and only pasis Tor the circulation in this or any 0ler COM
munly. No medium which is not based on tts 10 tc-
Liable or Safe Wien from taxation tie State receives mo-
ncy being The Treasury o the State me dnly 0! Tie
Legislature know HAT il Is safe and sntrct 10 hef con-
troll No farther legislation necessary for her han 10 de-
eide upon wha, objects The OF the Commonwealth
shat! spent TO Collect taxes from the pinn@ ana !rm
os the State for the purpose oil creating oahn@
capital lie commercial points Is as clearly an oppression
OF or the benefit OF another, as that the capital
collected will be used Il! tie points upon when IL Is De-
slowed The evils of our legislation is ina! egis!ae Too
much upon all SUBJECTS, end He property OF every one l.
considered property o all The Legislature 81 Inc STATE
Is considered the proprietor Of the property vi The whole
State. TIE results OF the present system ct Banks
are lired:emaIiG paper currency convertible IN
20 specie ct various rates ol discount anu ho
where representing gold or silver, because II Is MOI
convertible specie, except AT particular places ms
evil results oss Of certainly rs much as ouc.ha: per
nrcI" which is bought at .reee poin
cn nf tic State: ard estimating that amount al thirty mil
H H 81 a%a ne ei" ssind annually which il
the price paid az compensation for the present oahR'ne
SYSTEM But another and more Geploraoe result IS 'he
Iny pau.r representations below So which has every
whcic expelled the precious metals There was period 10
the SAFE wien the Literary and oh@r iEus'iuns ru py c
STATE. be Invested in productive Success anu "eo
The cca,ion Of bauS seemed justified and 10 bring
he, in 10 % uara credit the wealth made herse!
shared, !r in u!, gi"r credit 10 their circulation ana
IA r,Icr her Investments profitable and when private capital
cnu!a En had iT the necessary commercial operations o
the community Bu! -nC is not The case now-nen'Y or
uuie much private rapa!has found lis way INTO oahhEG
within twelve nanhs in Virginia, upon The State STOCK
prncule and by increasing The old banking caplths us
Inc entire States interest In the Old oanRs 10
which she Is Stockholders which clearly establishes the
fact that the stock oil banks could be very easily cis
posed ard nrnry invested in SIX per cent bones 81 Tue
Common an; ard this may rid the banks OF an e'il con
nccgn ar! herself q! association 10 "mch sue ongn
never To consented Bat The separation "onh De az
tended with tive State and would tepTccnlc the value
Of The States rc!urnf in dividends il The reply thar would
suggest itself of those Sho might ia'o The seParn
ton The this objection s h: ii thefc ~ an IN
which cannot be changed, ana ID 80 sensitive 70
the action by which its value s 10 be tested men Inc
prce al which il G held is ephcmeral, and should nc
regarded az merely nominal; but the expiration OF the
charters Of the principal Banks Is quite three years OIL ana
IN tina time the States interest could be disposed OF as The
Legislature should direct, and for that purpose mink Tue
true policy 10 anhorlsc the Commissioners OF Tue ohh
ng Eund or the Board OF Public Works 10 sell al their dis
cclion al The market price uncs tina! price should be be-
low The par value 81 the Bank eocks AID rcnrcst III hc
bonds Of the State The separation benG perfected, the
question arises what limitations ought 10 be adopted, and
upon what should the whole system rest Certainly
tho nruDoson ia correct one that uniform and gene
m rnic apply all WHO wish To enter the business
Banking no special privileges should be enjoyed by
any All should be subject The snic restrictions, and
made ae the rules and regulations These should
be of such character public confidence and
sound uniform medium of circulation 10 produce ihs,
no noC shGuiJ he issued without the guarantee OF Stale
snrks IA an ultimate redemption fund 10 The nae.hGidcr.-
TIE Of Bank arc nothing more nor less lEaa prom
ss IL pay; and In requiring them 10 furnish the proof O
hrr nl:rucv Than they ;!re ct every one Ia
whom .iny lend money: for 4 drawer and en-.
,,nsrr a;- The real rQscs demanded before the Exchange
o! credits TAX" place, by which Bank credits thrown
,in circulation FOR which they chart" ian The
usual raie n interest tcduch!c from the nmuun! OF The
iIrs ar has confouprI in tic public opinion with
loan The T.-ul simply Ihn; tie Bi:h has taken INC
k iliuIc ni tee drawer ard eDdoISr for SPECIFIC
length She Bank discount and hantc over to tic
rr0pr o7v credit thrI books the Banks ncc for
the e proceeds OF ii the cndos2r aud drawer
ia the Cscs; tie Bank fi the plu rf lis notes
lose. ns advantageous position, occupied by the Eank,
is CONFERRED ty The Legislature through Tic charter c the
Bark and .i charter should be asI in il 1'ovisiuns
towards community, and quite rxac;ng in liz re.
qnemeEs HE Birke arc in e transactions with The
public Tor tic granting Of charters for any purpose IL al
contract hetWccn certain persons an! the STATE IN
which Tor certain privileges certain duties be Ic;!U
ed Tie ,iI.r well The Split the charter ought 10
DO complied with by both parties. In every instance, as
shall rOcc.d show tho departure from the contract has
been tolerated STATE and although the p;ovsuns
.ccl spirit oi The contract has been and s habi!laly
dlsubcyei by The Banks, yet, for various Insufficient rca
eos tue State docs enforce The Of contract
against tcfE and for this dreCton appeal tI!bu
mai bu! the and experience OF the people They
and ought cont:U the action of their representatives.
u. II. l..