Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1855-10-12
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FRIDAY MOhNhN
rpEI; BANKING.


FREE BANKING.
;,;.,.n,ube requisite Of n good system of
:. that it should readily expand or contract
ar,I;ng 10 tho demands of trade. A specie currency
,..ss.s in its universal credit, great advantage
,,y.r the present system OF Banking with us, i'll this
rc.uect Ii from fall Of prices and dullncss OF
,rade there be of such currency than can pro-
ftsby be used, it readily finds lis way TO other cnun-
tries where trade is brisk and money needed To car
Nv it OH. Tho owner loses nothing by exchanging it
for the commodities of other countries for ii equal
" current every where. 1t is only sent OF when
not needed ut hono and when, from the fall in prices
or dmnuon in quantity of cxportnbe products II Is
required to quidate unfavOrable balance of trade
With present paper currency, fall in prices i-
duces run upon the Banks, TO obtain money To pay
off the foreign balances, and produces panic dI'
tress and often Bank failures at home. The Banks
themselves on such occasions, know not what TO do
with their capitals. If it were just sufficient with
high prices, it becomes too large with low prices
They cannot wind up like Free Banks ut any mo-
nent large part of their capital lies idle and Their
stock becomes Improbable. This state of things "c-
CURED lust after tho last with England, and WAS
ruinous TO the South. In agrowns country like ours
however, the opposite evil is the one most likely I"
occur from fixed amount of currency, that cannot
e,pund wi,k tho increase of wealth and populations
and tho consequent increase Of trade Indeed IN
crease of wealth aud population will only keep pace
with increase of currency, and the inability OF rc""S
expansion inevitably prevents national growth anu
| Improvement.
The history of our currency for tho last eight yr'rs
affords ample and conclusive proof oi tho absolute ne
cessitv of system of Banking that can readily ncEr"S
or diminish tho volume OF currency with the demands
OF trade. Within That period our currency has Deer"
but slightly increased, whilst the rise o prices q" pro"
perty then existing, and the increase IN Inc amount III
property and population, have more thai u"uoeu wv
money price of the property nnd anhua' pF"""''' -
the Statn Eight years ago We hud Twice aS "'"'''
curency as needed, now we have only lla't enough
TAX, either horn of the dilemma, and condemns tile
existing system We will proceed to show more III
ds,siI that wa need twice as much currency now ar
We did eight yeurs ago. Agricultural products have
doubled in price, and. from the improvements III agr
cu,tur. greatly increased in amount The purchase t"
this agricultural product requires more than double The
money employed Tor that purpose eight years ago
Apuin. The farmers rxpend in merchandise, ol
| other tnlnS5 lhclT lHClch-co i"N'''NS' $780, ''
tban double currency is required TO supply the farm
ers Mules and horses have doubled in price, ner",
almost doubled. The enormous artlci" "t guhno bc
gets the necessity of vast increase OF currency
The increased expenditures OH our rpubir works. give
occasion for the Use Of much more money than Tor
mcrly. So. also, the increase Of our taxes. lht
growth of our towns and the increase Of the price
of town property, has doubled the value of such pro
per,y in eight years. Lands have not increased Sc
much in price, but lands require but little money or
their sae and purchase, as sales aro but few lht
mere increased activity Of trade, that would have oc
CURED with an increase OF currency, would have
given EMPLOYMENT to much additional money
Add all these considerations together and we
think il is obvious we need twice aa much
currency now as we did eight years ago Can
any one calculate the evil consequences That have re-
suited from our being dcbarred the requisite expan-
sion of currency! How may useful and profitable
enterprises have been prevented; How has COM
merce been crampcd, and agricultural Improvement
been retarded! 1t is well known nov, that the farm
ar can buy guano for borrowed money aud make n
| profit. But where was he 10 borrow! How many
new fields of Industry might hare been opened,
| amidst the thousand undeveloped resources OF our
State! How manufactures might have arisen and
hourshed How old towns would have grown, and
new ones sprung up! In fine, howvastly would |Ir-
gius have been relieved from he enormous tax
which she pays annually to tho csila and credit OF
| other countries who conduct cOnncrce for her. md
furnish hcr merchandise at profits our times I'd great
as she makes by her oramped AM crippled agricu-
ture
ID Al. c.on G al oplr Nnt fprk
and London tax u prostrate worlG, which pays them
heavier tribute than Proconsuar rapacity ever lie
We'd from Roman Provinces We do not wish I" SEQ
Virginia initiate their example, and live by the pro-
fits of trade rather than by Industry; but we do
wish and hope to SEQ her rcscu;d from the clutches
of those who are now living at her expense. To ei-
feet this she must have sufficient currency nnd cre
dit of her own. In her enormous natural wealth.
she enjoys q better basis for such currency and such
credit, than any Slate in the Union. system OF
Free Banking opens wide tho door to enterprise anu
invites skill and industry to State from every re-
gion whilst it will be amply secure against failure by
tho hypothccation Of State stock.
The bank currency excludes the natural expansion
by the introduction of specie, which is sure to find
its way where it il needed, in the absence OF paper
currency. The banks cannot increase their issues,
because they have neither the power to multiply the
number of banks, to ncr.so the capital of exist
ing ones to meet the exgences Of trade. The LesIS
lature meets but once in two years and sits but
short time 80 that it is difficult. by tho erection II"
branches. to kcop up will the wants Of trade
Besides, such branches are apt to no placed ut
wrong points, either through tho ignorance, prejudice
or favoritism Of Legislators or stockholders. Al
best such legislation aiord but r crampcd, arI
cial and unnatural state vi the currency. After Sc
curing note holders, nothing requires 40 much to oe
left to the laws of nature end of trade the curreh
| cy. Those laws are powerful the influx oi the
tide of the ocsHn, and overwhclm eventually oil art-
fetal barriers inteposed 10 their progress Mr. h'u'
| die, with his mighty Bank, was swept of like stra"
before the wave, when Canute-like he attempted TO
control tho ebb and flow ii trade. Besides there are
periods like the present, when the question OF rrhe"
| al of charters il approaching, whcn existing p"'AS
will establish no new branches, matter wha' 'he
demands of trade. The banks are private property
and forget that they ao public institutions" erect
ed for public well US for private good 1t is never
wise orprudentto trust cpubl interests to the hands
of any man of men, unless you make 1t their
interest as wen as their duty Ia discharge their trust
taitnfuly. ouf oahks nave been lnuuuSou W 0'
honest men, but Yet by nen. with the common ira-
ties and infir1nhics Of humanity.
There is ample room in the State fnrthe old Banks
(which should bo rechmterel ut least for limited
PERIOD and l'ugs number of Banks, gradually 10
be erected under general banking law. Ench any,
as our internal improvements advance. new hcihS oi
industry and enterprise may be opened, and new "c
cason be givcn for increase of our currency IL VIII
be safer a,a wiser, to leave the erection OF new Banks
to the people Of the various localities where they
may be needed, than to enrust that power to stock