Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1856-01-25

rhtt ut ', IN anc i2per cent. I'm obtaining this
,aN Their gross rates OF PROFIT must be very high
et III Europ" :hr rate of interest is but little over
halt ns our and rnrrly ever reaches sx per cant 7
gross profit made by our Bank, is high. !sr. e.. .
trrnst than Any community can afford to pay .i IN
coupled with tue fact that onr Bank paper is -.>
coHHt, accompanied with the often repeated r-,or,s
that the money market il very stringent, furnishes
proof conclusive, that they are wrong in principle
| and mnIagrd solely with the view oi heering the
community that su.tans theln. Why is it that Nir
giGls Bank paper is abundant in the Northern c
ties, and hawk,'d about at q discount, and even at
home the brokers will each their paper without
handsome discount! Why is it. that We see New
York and Philadelphia paper in circulation here! l.
II owing To the fact that our Inferior Bank paper
drives il 1ut Of our markets, il il because they
have placed Ba.lks in tho condition of PRoviE.
cIAL Banks to be worked for the emoument Of the
great Northern ci;iesi
Who. in this great question Of Banking, is to ad-
vOcats the cause of the wokIISG masses1 The capi-
tast and co'nmercia classes doubtless busily
work. Who darcs to battle fOr the people, and beard
the money clangnrsi Where are your Andrew Jack
sOnsl Who will uLinld the Banking systems Of Eng
aud and France, and show 10 the people, that what
we borrowed from them. VT have pushed into i
travagunt exrenr. IL is stated on high authority,
that the currency of England is osE-HALr gold and
!ilver, and that Of trarce ia SlSETEsrHs gold and
silver, while ours, perhaps, is SiSE-TxSrHs BANK
PAPER.
A. orr old Banks have recently been 20 much
, commended, il excss investigation and discussion,
end if much has BEEN urged in their behalf either in
the shape Of Argument or authority it is thought by
many that much more be adduced 10 their prelu-
dice. That Incorporated Banks liabu to break,
stop spec" payments, and bs conducted in the most
ru;non, maIier, We prup0se To show cOnclusrely.-
That the community iio suffered by their introduc.
ton will bs equally clear, r:il enough will be shown
10 satisfy any desruus If arriving nj Just cnnclu
sions, that the boosted checks and safeguards thrown
around our system OF banking in the several States
OF the Cnion are Inefficient to restrain them from
bad lnalageinen, and ruin, as cob-webs would be 10
render II lion harmless III a sheep-i"l,..
The qut ston not rs 10 the pruprety Of dispensing
with Banks but what is tho mos, desirable and solid
basis upon which they can be- placed and that Will
be equally advantageous IL I'll parties.
Mr.. Webster, IN IN" Srnni" ut the United States IN
1882, rame-kc,l TINT '"i ALI. THE cuNInIvAScEs
foK CREATING rr. LAr"H.SG ':LA,a.s "i mrnklnd.
none have b' .nrG ciI,G IL. :...: that which pE
IrDEs them with PAPER MoHYi. This is the most
citctual Ut inventions 10 FkN.iLizE THE RICH
MANS FIELD III The SWEAT OF THE FuuH MAN s
BROW. Ordinary tyranny, oppression, excessive
TAXATION these hear lightly on the happiness of the
community, compared With rRAuIgLEsT currencies
and the RoBBERiEs COMMITTED Bi DEPRECATED
rArEE.'
Nich"las BidiIr, in April 1898, published An essay
in the National Gazette, from which we extract the
following:
THE currency Of the United States consists Of coin
and OF bank notes pruni.ins to pay colu. As long
"a The Banks can ALWAYS PAY THE COIN THEY
PROMISE they are useful; because, in community,
where the moneyed capital is di4proportoncd TO the
Of employing capital, the substituting OF cre-
dts iur coin enables the nation TO make its ex-
changes with less coin. aud Of saves the ex
pense Of that coin. But this advantage has by its
, side a GREAT pAS1EH. Banks are often directed by
SEEpY PERSONS, who borrow TOO much, or by sangune
persons anxious only to increUse the PROFITS, with
much pccun!ary interest personal respon-i5il-
" in the administration. The CONSTANT TENDENCY
OF BASKs Is, THEREFORE, TO LEND TOO MUCH, AND
!
Mr. \. Gaaiin, iii lis puInphIe on currency, justly
observes that "i. ia extremely doubtful whether the
Banking system with lis Indispensable strict punc-
tunlity, can under any circumstances, be BESEfl'
ci,LLY applied 10 PURELY AGRICULTURAL PURPOSES.
The only material Improvement which hus during
the last fifty years, taken place III Firg'na-her nav
ing become Of the frat wheat growing States
| cAsSor BE AscRIBED To BaSKa. In every other re-
spect what has she gained By lhs circulation OF Bank
notes Aud what progress has she made, siuce the
introduction Of Banks, in agriculture, manufactures
! commerce, "r pupuiatluu r.
In report OF The Secretary OF the Treasury Of i2t
February, lSil, the following statements are made
in reply 10 call from the Senate asking TO be IN
formed of the number and capital Of the Bsuks that
have failed in the United States, since 1889. Annex
ed is his summary
Capital Of 90 banks, failing before lSl s3,G0oON
Capital Of 1875 banks failing between
l8ll and 1890, 36,7E, ,N9
Capital of the $50 banks, of which 40
|
tween ;s,G' - ,s' $1,000 900
| Capital of 3 -H-h- H"S Suspended,
Which have ,-c. ~ f.i.ed. l2OOo,OGo
Whole numbe: 3yo, and their whole
capital Syo7s1, 500
This number Of 395 banks computed To have failed
in fifty years, muy high; but it is not so large rs
! in England, where, notwithstanding any favorable
! influence of National Bank exis.iug near century
ALL. half has happened that from l. IS to lSb,
period OF only thirty. -four years. 3Sl failures of bauk-
have occurred, ON which bankrupt commissions were
taken out Near four times as many more It IL said
failed within that time aud compromised. Tucker
OIL money, p. .52
| the existence o! banks and the use Of bank paper
| lst Losses by bauk failures, SlOSSS5,72l
2d. Losses by suspension Of specie pay
| menls by banis. and consequent de-
| probation on their notes, T.eoe.W
81. Losses by destruction Of baa. notee
by accidents, I,i.l,1'?
+th. Losses by counterfeit bank notes,
| beyond losses by coin, i,+li,4Ii
| 5th. Losses by fluctuations in bank cur
rcncy affecting prices, extravaganza
! in living, sacrifces of property, and
| by only part of the other incidents
to the banking system not computed o,
above, at least, lI)VO,UW
Avprecate computed $36545l, ,497
Amount paid BY the community to the banks annu.
ally the last ten years for tho use of banking nsti.
tutinns.
The resolution calls for the sums thus paid, whs.
ther "directy or Indirectly" and whether by "the
people or tho government
1t muy be, therefore, that the amount collected by
Banks from Tho community, annually for interest
exchanges rents Sc, ought in the opinion of many
to be considered what il paid to them fur the Use
Of banking institutions" Consequently, an attempt
has been made, fret TO form some estimate Of this
amount, which shall approximate the truth. The re-
suit has been, that tie whole payments made TO the
Banks for the OF them their capital, &C., during
the last ten years, hos been, in the aggregate
S2S2, ono ,O0n. This would be- annually, on an aver
age, S2S. .2G0,OUO.
By adding the aggregate loss, computed
at 1896, ,45l ,i9'
And the aggregate amount paid in the
| last ten years for the Of Banks, 282,OOO0U0
Making the whole cost Of the banking
system s"'''4'i'f"