Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1854-01-03
Tor nc EnfuTc
THE BANKS AND THE CURRENCY,

llE BANhS AND CUkkENC1.
il.
Inc small notes issued by private individuals below i"'
dollars is evil against which the laws are wholly inupc
rare, and has originated In several causes the chief
whch ac Inc scarcity OF silver the branch system
Inc banks and the anxiety for profit which grows
lhelt use t' hc parties WHO Issue thcui and tic policy
VI Ee Dahks To countenGnce and uphold The syslam io
every dollar of paper thus issued decreases the se or spe
Gle The remedy which will bs successful Is Iaw similar
IN LIE provisions to that adopted in Maryland giving an;
person VINO s cls red any below FIVE doars the right
10 recover before single magistrate judgment for thrice
the amount and The cOsls II paid the guilty parts may
elmpfisoned The idea expciug hem from circulaor
by requiring cnch merchant before he get license sell
anything, TO oke oath that lie will receive c, pai
away any note Of less denomination t.. live dollars wi.
DC nepeave Tor The reason that hs clerks will end may
IN defiance OF his ORDER the contrary. take uni pay
mem away; ou moreover The enaclinS Of iaw operate
exclusively upon trades, In Stale where they ONLY 4
small part OF The community is say The least OF IT, cXcu
ding the agricultural aud planning interests we'll as
mechanic and the labocr, from his participation The be-
nehts ol Sound currency snd rendering that criminal in
one cillZan that may bc done by another will; impuaty aud
against mat legislation the common sense of every czch
would rebel.
T2 sn?py iir community S: lie T7@rzo snail c,.T
lhe present banks might be allowed 10 issuo small aolo nh
the provision that after tho prescn. charter expires tie, W
be required 10 redeem them in spccr wec r.ya
oe except thai ile note shall be e issue OF the bank H
branches TO which presented The provision thus sran,cG
am disposed 10 hink, with such restriction mg. be
harmless; yet as r:inclPe opposed their s.ue.
The evil is great one and their issue is strong evidence
oil The total and complete control with the cormpting nd
ences That banks exert tho commnity for they have
JuCEcS even Indifferent TO tie also
worthless safeguard against open and untiasuscd viola
lions OF the statutes CT the State. No eau tccy:
moment That disregard hahtGaiy. Of The laws he
other"lse man sinful and dmnraZng TO the whole
oisy; but the calculation o worthless representa- 0f The
precious metals osturs habits Of extravaganza anonas; m
ao0res and lie poor that tend % break down lNt system
oi economy which Is more nsCheYOus than Il isguc in
retardins lhe accumulation ol wealth, and the rnuncnaECc
oi That care aGd discretion without which all iaSJ!cys dese
nerate hio nero auOmstons tc used bg those who
ploy them al such avocalons cy suited tr :hou;
any sei-Teiance attention the welfare families
ne centre OF The banking system IN lie UniGd SaIes is
New ofE; out every Stale has Hewisc centre 0 i,s
own The commerce o the country has been cenr6i In
New orS by the action Of The GJve.nnlcni the ua-d
States by the usCs Of the BinSs and By variety causes
ong operating and deeply seated a siren. iccd every day
oy the growth OF the country ard Inc .ts cl the people
Inc States Immediately teIi haze adopted rcnu
Iatons respecting BANKS, which exen, niu.
ence ihe acton ol Firgoia; hut do
The proposition hat what wouid tu useful manuacu.
ring conm"nv, in The shape oil anks ought be follow
cd IN an agricultural Unf uf the obvious .eas1n That in the
one more circulation IL needed and can bc safely loeae
because the s'naincss of e space in which the people
located and their avoca,ons render OF The o.!
the Banks an easy ard Constant RESULT uI moreover the
labor usually for cash and the settlements
are irtquen between capital and labor En State lia
is not The case The great leading articles production
win US ere agricultural prodnco%s which rrqnre mucl,
lime To prePatc them for market and constitute when ra
dy Tor sue the products Of al easl years labor tho
loes by consequence OF years. interest upon the capital
invested In The land labor ard agricultural interests Fer
This reason, we sonl have golier proportion sp2ce
and lever notes with u5 because the necessity Gr ccn
ny entirely. fewer bank necessary thn in either
manufacturing agricultural community and simply .oI
the reason that merchants checks substitute tho Bark note
and the credit upon The books u; BauSs which should
always be taken tic Of that species Of circulation
There two items make up The c!rcuaon the cheek CON
slauy beug used FOR The purposes which Ruua note i
useful will illustrate This proposition by Tia ia!iGunr
facts: In New York civ the ioirs d"bs rf lie Bas
proper in 'he cy are $50 oi 1885, specie Si2 $50 ~ JcFc
sits. i35 "QI ccGa;io0, 80 l33 $50 In Virginia,
Banss, under the same esd on st OcoheT ah7~ icsnG
and debts S23 y6s 775 5l specie SJ XII G2 l9 deposits
So 62 24 g.; circulation $l2 go? sG g. Onr ccuai!3n
tor The State .: Virginia l. greater than that CT Tho entire
Ci;y BANKS uf the Commercial En'pa;ie:: of ho wA"c
ours oa b; .sssis is e: SF5s rs ss s
tho city of New York, by 50 3S3 3IGo-d.nons'faHnG te
vond question: the assertion tal in entirely eor;tcaI
community, with any suitable place OF 'enos' c,it"'H'
tion becomes ofndereDcc eniirfg And 's hoes
p another aspect Of The subject of banking, which must 10
the process OF years become ol vital nrcess'! n
will result from system OF banking us 40" pursued ah d"
i, u.t be modified in the process n years Al "at "-AS!
poin In lhe growth Of the country, the business Gi
and circulation should be separated il If dEcrl % de,
mine they are antanonsica in their Ve;y hn'ae ah1 J.
easy observe 10 the condition OF the New ?A pas
they ha vc vry nearly reached ;hc punt al wch Inc hc
of circulating their Is yaluecss VIA! Us me
NJ vd farther off and the questions win us 10 ae!s
arc how safely progress 10 the termaaon o. sse
tom urch carries with i, l!s own destruction 20" al
hnnph the fact, that every of bank, which li2t;H?
fnds iIs way Into circulation leaves debt behind III ana
r that reason constitutes in itself DEM nd Tor lis Us: III
he payments debt by which Il "a7 created ys ht
s,coent vicssitudes Of expansion and conThcon 10 "nC
tho whole systcm from very nature s liable TO- inu rom
yich mn deyc Of the OF can Tree H. inasInuc IA
nyiss merely upon confidence for the iouudaions upon
the whole supcrslructurc rcsts are toay inahequc
~ the immense supeisiruc;ufc placed upon ~ must u's
crcdit these notes as n means OF circulation -.
The sapposition that the circulation OF me Slae o.
nj, woud be les scned by requiring oil the banks 10 deposit
Nor ccrt State stocks guaTauee would lessen le car
cnaon and deprive the Institutions OF pto tnef o"
and subcct the whole community to ir2nui caan'esi o'
The van, of suticiency o! the circulating heu'u 5 o
,v nroundess nasmnCh as tho JOINT capiias 81 cgj
r. Nh IN ,hc State the st October was 81 3cf-vo
hls, their entire circulation si2 a9 aO oV Or IL chc
wnrde tho entire circulation cny exceeds lie Goso4's Ga
,l hv s m 367 80 giving only one eleventh more oi ah
o. fr Ihe usc. of circulation than the absolute cafi"
,on holj hv the Banks Now II cannot be que7oncd 'h'
oa,v Ran note in Virginia endorsed BY the treasurer
of Ihe commonwealth with the declaration upon lis very
,bo Sa,c ner cent stock held for It's ultimate re-
nm,,ion tho circulation wonI increase more Than enough
~ make nm This 81 367 37 for TO circulate such noics
onIJ bn rascr and their absence would 30 mcch longer
Gu h hnmaes In which they made, Than is tno case
nov bn ccroioy the demand for quite us n1c' OF "a'e
oock as will be nccLci within The cnsuing iieo years '
Sa,c imn,oycments BY which n"n citizens ara lnsa
inns will become the poprrlns ot as o! our t'e p""s
inns ser,Inn the double puspOse o security 10 C c""u
,;,v or Bank Issues 1T lie same t:', GET 'th "
n. our Stocks and guarantee for the comrcon o. ou
n,ornn These are questions u WHICH 'J
;mp,oycmcnt man the State ought 10 give nis At
,onion and in which, surely the interests and %ehan o
hc community ant bonds will be placed upon ai'a'ns rs
sncure as IL Is possible devise tor paper clrcu'a' OF
6ny kind.