Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1855-12-25
rW' EHIN'''F.
SHOULD RANKS BE REQUIRED TO REDEEM
THEIR DEPOSITS IN SPECIE!

vliIi.., and .n lucrative tu those VIII" rniIy 4, that
til, i:i;y We" afford In sustain Inconvenience
III "rGcr to iuiHl their obligations aud give s"iEd
"G!r"ur: 10 the poop of the S:ut: tu Individual
Aud Al Incorporation uI individuals for banking pnr-
poses, occupy positions !e rser-r Of one anothcr.-
II Ia" former is,n" his nuts r jigs at irl> SIX per
.'.n. per nn'iin Im:crc. them |! the latter end
urh t!rr n:rs they T~cr.r s.vrn ucr cent interest
t!IcI. Ani. s'ir! II The rUunu", ut IL say Tyst"-
ruus nature q! these institutions called Banks, tiat
HE STATE itself. whrh -v"S them existence, and 10
whore endorsement, by tie net Of incorporation they
indebted for iher credit. pays them interest for
Ills -rruc credit In other words, u Bank the cfca-
iure uf the STAT, deriving from the state the breath
If lie indebted tr t,r S:n.c iur the currency of IL
notes nIa lie cred, gwen thcln. receives from
ne Stat, irter,s, !"r III: u<c ~! this credit
Virginia, with her vast rcSGCrcC, and world.
xid. confidence III her promises, to pay, Dor.
rows from on,: I'll her avn corporations the loan
If i!s credit. Bat suC! has hrrninr the usage, Tor
me np-t part, both @; ih' .iIE':i:ria aGd the Eu-
rrpcHH world. II is nGt pr"r"srd :" .citN' here tie
prup.i"ty polIcy ii t u,aI". Ba! 1t mn? be per-
incn.lv sad, III tbs CONNECTION, :ilHt such L. IL" be-
", conferred, that An iiyilnaI ccciving from this
STATE the exclusive r. .:t ot furnishing currency.
ii pu-.iH.: BIZ own un' e, rum ui having them re-
ccit,d in payment III the public dues might well If
lord 10 pay all the ordinary expenses "i our Stasr
government
Such being the buuny conferred, it may wall be
repaired thai I!!r currency u lie State .hou,d bu
ally and nut u::!i:!;" reasonable in specie. Th-
r:lusIiirn should ir'i be rvadcd by throwing notes
into circulation III the iaiict p'rss" dlriaLcc from
the piarr ii re!ciap"n. Tie Banks ot Norfolk ard
Richmond ::.p.!I not send their o;rE niraI p-fscvc-
:iu..y a. III. West: HnJ the Nc..rrI Banks theirs 10
Ihs EH-t, ivr circulation: ...ap!n. the W".I al pro-
:asr !" 10" ear hnt I"rr"iri;i:i2 practical evasion
ii charter srnla:.nu,, productive "t c"mvcni:uc,'
aud loss tu tlr prOlie at ;i;r STATE. Whenever CI-
c:ln@c rises hisrr :u Ike of transporting the
precious IEu,a:>. the difference. j. chargaGic 10 this
rvasom Of li.c law. And This difference amounts i'll
Iii" aggrc gate Ia irge |; fall, i'll the tr, i'll
stance. usuuy Tie rc!IaE but Ultimately on the
iaGlacr, an'. Mi other ciass, uI the community. This
is a -rao oi things justly ciIargcable 10 the Banks.
Again. Another cui:-"t,d ,drncG 0t This evasion Is
the scarcity nj coin for all The small transactions o
business, whichever sirrtc - al premium. Tho
Banks and the Broker :'rr up the cUin of orllIn9-
rs rirclau. nnd but Little il lett TO supply the daily
demands of trade. Or slcl occasions the cry is raised
i,r small nucA winch %nnd oily imcrr;tsc the evil.
II the banks were responsible in specie rr their de-
posts, which they receive and list representing
much coin This deficiency would never occur.
iGohcr evil of the Present system is the temItn-
ton 10 throw into circulation larger amount Of notes
than is consistent wE their circumstances, as the
danger OF bcin. called OF ~ redeem them, is remote
in proportions TO the dl>mce o the place OF circula-
latiu; from :hr place III redemption. Bur this con-
seG;frr is Eud.icI - Sohi. extent bv the ct, that
other Things bcn equal, less credit is given to notc
Tic farther they removed from the place D! pay
mpnt. Bat, ordinarily, this consideration has bu;
it'll. weight aud cXrrts very sight influence, II the
notes are from sognr Bank III the State. The Only
question asked, j. 'do they crcniair" or wi!l hr
Bank Of the place take ;h";n Oh deposit - Ii The
answer Is in the affirmative, they pass freely.
But; it i. urged by the friends of the present sys
tenn that thc Banks would not receive the notes -!
"thcr Institutions Oh deposit II they were comrcl!cd.
when called on, in redeem ''irni.
Aud further, that il i, not just t" hold them reSpOn-
siblc !,,r any other Noes than their own.
Suppose they would not. The consequence womi'!
he tha. tl,. no;c- %! each Bank would b. confined
for the most lar; in their circulation 10 the section in
which tn. institution Is placed that issued them
which wund cnsur" 4 wholesome Responsibility nn'
u mos, discreet administration o their concerns. II
the Banks of Richmond wuGh not receive the notes
ol Il Bank AT Wheeling, tn: latter would have bal
little cr.d; II; the capital. The note, when brought
hr,. would be quckiy se bnrN tn the vicinity Of hrir
debtor aud would show, in this RESPECT, the same fate
~ the notes Of individuals under similar crcum
stances But il il not believed that this would be
tie result. Ii the BrGnCIhank system oh"n.d DE con
tiuucd the parent institutions Ia Richmond would bt
too much Interested Ia :hr prosperity ot their oil
.priua 10 refuse their notes. And. even Ii this sys
tenn snUuld be sub. titu;ed hv independent Banks, IL
most cases, they would find il 10 their interest II
give and receive credit. They would be very re-
uctant 10 give mp the advantages which III,
III. of these deposits offered them. The possession
: ard employment Of Very many thousands oi dollars
hot 10 say millions, the alnou being pr"porii"ned
the business of The Bank, without interest, w"!lu no
bc gwen unless upon iEc loNt "eI-ilty CoiiHl.ic
rations They would not su.tai:t the loss to escape
the peril connected with the p"ss.s-lon OF their funds
They would rather increase The stock Of tho precious
metals mcr; the danger: II they unprecedented any
:n:n rive up large source :" pr"a'. but u uoc
not appear that this would he necessary, or, only ~
vorv mall extent. In case %! anticipated d.aii!a
tn. ;cerr::Js and rail roads AFFORD tho means %; rapn
communications anu speedy transfer al funds! In les
time than would suffice 10 count hundred, or ever
ii.ly thousand dollars specie would he Se't IRON
.l,t IN It,sh
u,oI or Ia o,ie another. In uf alarm, it is pre-
.um1bl. there would be great hurry on the par; o
4 han;: ~ counting nut coin. The Bank oi England
once saved har-clt by counting out sINpenc"S II ai
advance of specie ma'!.."n iI" part ol tiie haNs
f, tin n;r: of auo.hrr which had been received u.
dnosit, the probability j., that by the time the count
jur was over, IT il any CONSIDERABLE amount,
moi before the notes would have been presented to tn,
institution from which tncy issued, aid the sprcie rs
plnC.. in the Golfers ut the paying BihI. lhuS, bu
little Inconvenience wnud result ana the public 'ie
rive the great good OF spccle-rayln- currency
The Banks would exercise greater circumopectIon ant
caution in receiving notes for which they rendered
lhem,c,ycs liable, and sauary espionage would bt
exercised orcr one another: and the community gan
additional security.
In reference to te charge Of injustice, it is not per
cciy,.l how sich reqaisition from parties on whom
the STATE il comforting such privileges cond fairly bt
Icrne, liable 10 il. The Banks give currency to the
mites which they recri"o on deposit. l'y tins act they
n profit from them. Besides. it is their duty TO a"'
lint we have sDuiI currency convertible into coin
and there can be doubt that this would BIZ one OF thu
no- efficient moan. Of accomplishing it. Under th
system. they wu;!d give out their own notes nj heiI
owil counters 10 circulate III th"l" own vlclty. AYE
there the rub
Another important consequence OF this change, an'
ono Of much v;ia Ia tie Banks Themselves, would b'
found in the fact that they you'll loss much "f helI
,crrGr OF the brokers. Now, The moment that cA
Il ,,rf.
lions metals these gentlemen the objects Of per
,.tuul apprehension. Bar, undcr the p:"posc'
change. ,ii i!a,k4 themselves would keep down TN
exchange the notes in crca!Inn won!I De r"a'ii!
convertible into cnu and would be Impossible 'h':
eny other than n very ii, ,hi hisrcnce "ou!d cXis
tween cxchan.c and the price Of transferring th'
cola. -.
Ir,nu.t bc reelected by those who arc not familiar
with the subject, that Ike banks would only be re
unrsii!c ioc the nuics ot other Institutions whlcI
:ncy hnve received and hold deposit. There coUlt
he no demand made on them by the collector. o
notes save Of their notes Aud if there were an!
reason "a believe in an paciicnar case, that depo:li'
were offered for the pdrp"sc G extracting their cc
they would of course refuse them
II il we'll knnwn thai many Of our citizens are anN
ious 10 destroy the branc!l.ban!i SYSTEM because
among other reasons, II Is associated i'll their lnn!'
with hi. evasion of specie payments. bIt The evi
would not be rcUnedicd by this means. The evasion
would be prac;!ceI 10 a. grca, az extent under the
iniepcl.dent banks rt present. The cure for III.
disease is to be found in REQUIRING responsibility ii
specie Tor their dcpUsl!cs
With this change, our banking system would hc
more secure, inspire rcattr cnience,and take IRON
its enemies vino would destroy i. altogether one u
their pruci,a points attack The friends of bank.
regard them as conSrrvntors nf good currency, as
guardians Of the public interest, rs great conre
uienc. 10 commerce a saving lar@. sums to tho
State by hilordIng paper us circulating medium III
stead Of the more costly precious metals. Let them