Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1856-06-03

st"ppar- vf payment Throughout! the Union III iNtt
ard lS3s. Nor dill the banking corporations mem
selves ESCAPE unIurt III fh. general ram winch my
brought upon MI clasSe al our people. li'Tt" hu'
bred and uiu-y live banks in the United S'hS 81, So,
fnilel prior 10 the year lSil and from 1857 :"
the losses of bank capital, 10y failure or on, ar;,J
amounted to Sl6l 55S.3S5. Within the s ai',e Xxx
the contraction of their circulation was Ir.rs,,rv
and by the report of the Secretary VI ~, time the
for lS4l it il estimated thar. mp 10 'n"a If his
whole cost of our banking system 10 'ns sum of
country, had amounted to iho e"0
S6i1 .ij2,I97. -, ,ron.rlv restrict.
- ,,,a n.,yJn,lv managed, yet the oh'ahcu VI """'
il not To be controlled by laws VI o J., ; ,,r
exports will not pay for our ''rp".,s, ,L hnInnc
49, isove the country 70 discharge tne Da"s'e
mus and ,he banks the first to feel thus tor
;, G.maud tor specie. lis expectation SUI 'ut'ne'
I.r.,s., the me- iIc currency already diminished |"
y considerable extent by The Substitution al paper no'
nov But this paper circulation, too, must now oe
Ill, more largely Contracted, rs specie leaves the
vaults of the banks. They must preserve the proper
lion deemed safe between their specie and their notes
Our law requires it to b. not less than as on" 10 nVt
50 that for every dollar utspccie that goes our h'e u"'
! lars vt paper must be drawn in. mus. upon an un
favorable balance of trade the contraction "' TIE cur
rency would, when it consisted in part o p"pc. """
in part 1T specie, be six times rs grehl as ""c
sisted wholly of the precious metals; ana mus "oun
commerce be embarrassed, even ny banks prudenty
restricted and managed.
Bnt, in fact, IN. tendency Of banks 10 effect too
large u substitution of bank notes or Danh e'.un' m
| paper has been 81 uniformly evlnced lha' IL ""u"'
s-e,n To be almost OF their nature TOO s"o"I ~,
the most rigid restraints OF legislative enac''eie "n
that occasional suspensions o payineh. ao neeoSsy
incidents to the banking system. EAeese',o o"""
loans create and increase these i"relgh o""Nec'
against US by the spirit Of speculation winch !hcy
produce. Hence, the foreign deIhahu 'of speo,e 10
apt to fall upon All inflated currency vi P"po'. "
contraction follows e1paiIsloh anu TIE 'o'''i"y GA
perence the evils of Il sudden change from Il reduh
| fsut IN d.fic
| nrise sinks from unnatural excitement tn undue de-
pression prices, raised 10 Their hghesl poih' ia.
once To their lowest; wild speculation anu unlimited
credit are followed by stagnHtlon vi business ana
! the cessation of confidence between man and man.
and the paper money We have toiled tor d"ihueS III
our hands, through the whitening ihhuence vi uann
SUSPENSIONS. During these bank fluctuations "h'oH
differ from the natural and hehlthiui hucluh,""' ~
commerce. as the tempest differs from inc uues MI
classes suffer- the niilionaires ana STOCK
none so much rs the abnrer and mechanic anu 'io
morals of the community and character I" 'nN Pe"po
are no less injured than the material interests VI e
country. - ,o,
Sir, no saving Of the precious metals can c"'Npen
safe Tor such evils IN, currency usche pen
ed is u worse economy than cheap oats ana uf.us'
! Nor do bank notes necessarily effect sa'"'S u
| cold and silver. The insecurity OF paper money
leads to the practice OF boarding specie. he' -
mos; wanted-iu periods "t monetary eihoar "s''..r''
1T Is most h"ar aud the Question ARISES ms 70, ","
! in ENGLAND and France, "Wnnt mas become VI u ",
surc,- I" This boarding i'll times OF distress "'"y o
more than an offset 10 any SAVING IN the use VI s"s "n
silver which the substitution oi paper m"lsS ,,.
and even, according 10 Mr.. GL!iatl' lie u'e"' i"p
money is aitni!ded win no o'nc'
| taeo than cheapnesS =. - a., an,
II IL ,hu. hut lie doubtful benefit on the one
| hand, against many enormous Pos'''' WIZ
| other. =, . , ,oo.sssrv
-, r., V,r,iri. WAS no necessary evil III the begin
niny II came not from the narura and hehi'n'u OPP
Grafton Vi the laws Of trade But was the arc ,'
duet of monopoly. When money corporation m"e "a
established i, has been truly sad The natural equ''
! hr,,n az sncety WAS destroyed The use az pap'L
money was not discovered by The most Popu"u, a''
wealthy cities OF ancient times oy tne 'nS i,;,,n,
| of ancen: Asia. Egypt, Greece ana hoihe' "liou
il th,y reached great wealth and ex'ensl. e"'"'
t. E,. many ioup wears WIS there an incnnvetioIe
MINER currency on side ot the Dfi',sI' .H"""F'
and gid AMI silver currency on Tue olHet OIL
uaner currency woald never have ueen Hh""!' W
mnd.rn fines II State necesSlli"s had not gwen olr'
e gnvru,nsut itself by authorizing the issue ot oahK
bills 10 circulate money, had NOT, III iucl ihaie war
u,njust the currency which the common co''se" W
nations had esiabl shed. But for the interference "i
government aud the dangerous m"opoes VI o""hS'
We would still be in happy ignorance =" paper cur
rnlaou With a currency exclusively uelaIic,
large sums would be paid. at distance ny oi,iS W
exchauye and nearer home by certificates OF u~P"-
sit. 4 commercial me .Iun, consisting Oh ho'cS'
drafts and bills of eXCnangr, would, IN the !arErr
trausact,as OF commerce, come III nld VI spscr'
winch would By solely employed III sina 'ralisacuo"s
and IL pay the balances Of trade. For uaue. CON
s!s,iug IN an exchange Ut products, and not OF spe'
,e or of paper munry, II Ii only the oaauce ot ~.
debt.une,s Oh the side Or the other which must
d., vuiu aud pad ultimately in gold aud Sver' w!e'
ticr the currency be paper ar nrtaic. IL Is ~ run
BY commercial paper Hy inland and lore'S" o"'7 W
exchange aui not by bark nuieS, that IN" accounts
nt trade between dtirr~u parts III The country ana
De;wec, different countries are even new adjusted"
except the balances which have to be pad hy"p c'
There Is uotung, ihcu, i'll the history Ut IL" t'!a'
which shows any Necessity, originally, for paper "'"
nev-no;ning in th" commerce ut the hlneirt"'n r'"
,lIrv which calls for il. II power nud inna"p's ~
moi attacked the real money "t III" world we S""'
.,nw have !. currency at nothing hH' re" "i'"'t
among u. AMI III the absence %, paper money: VIC
could never be deprived! ut just proportion OF the
precious metals, except Ey such causes Is rum te
comm cree and industry oi NATION; we shou'u "h,e
innpr;al Is we'll pulitica! Independence: 'here
could no. be a concurrence, ny az p'.se ~ R'e"'
nsterial prosperity aud great monetary enoarri's-
neut: thrr would DE hone but healtIiui nuc'uaio'S
Of ;rae aud currency: aud the progress "t aSrcul-
rure commerce and the Srts would be permanently
based upon the SOLID touudation Of increasing c"P''
winch banks. with all their functions, can never Gre
ate however they may distribute IT, or divert II from
ia accustomed channels.
Concedug that past legislation has made banks oi
issue. for the present, an unavoldaoe e'i W nsf
MIA Yet ory!It we not Mr. Speaker, with such adinn-
ntoHs FROM experience, so 10 direct our course, II
possible gradually to retrace our steps Oack 10 Inc
point from which W started-gradualy return from
hazardous paper clrcaiah'ii. 10 Tue true money VI
the world currency al gold aud S!!ftr
The brief review which has been made OF the his
tory of banking clearly indicates the cardinal oheca
which . should aliG 10 secure oy r""NG''obs NF""
banks however We rEsy dIirr rs ~ tac oesl m7a''S
of se,uriny them To secure The p0ehrdtr, 10 llihhe
IN. paper money of the banks equivalent 10 Specie,
TO give, the people OF Sats sound currency ana
20 protect them against the expansions anG coii'rac
tions Of credit and crculation SO incident 10 DRIES
and so fatal 70 the country; these, beyond question:
~.
ARE paramount to tine interests of banking corpora,
tons. just the whole is greater than It's parts nd
the general good of the community to be preferred %
the advantage of one class only OF ii3 citizens. .
Having established, then, these land smaes IN guide
u.s. let US keep theiD steadily III View III coHnidc!!h2
whether we should perPetuate the Old banking sSs
TEN Of Virginia, Or whether we should legsihte WAN
a view to the substitution of aGOher ana uetltr Sys
tenn in i,s place. There is another system of bank
ing which, in an imperfect form. has heen already,
to some extent, introduced III TINS State i's us
tinctvc features, with higher and better guards Tor
the security of the public, are embraced III Eehtra
law which has been already reported 10 the House
from the Committee on Banks, entitled "a bIil 10 au
| ,hurizu and regulate the business OF banking. Inc
main difference Is this: that under the latter syste
and not under the foriner here Is separahh' IA w
4 np;and between the issue and banking Gcpar!m nts
Examine and compare, then, the TWO systems by
! the lights which experetae mas ahorneu us See
frat, which best accomplished tie great ooect-tne
| security OF the note holder. Hodera q! oank-stocR
d.u,.turs and other creditors Of banks have volun-
tarly becuulc such But II legalized paper curfonry
| is forced into the hands OF all Gold and silver nny
be- tho only legal tender IN payment OF debts. bn'
when paper money the cfrsnry. creditors must re-
| cerc il nothing. The fi'l,i mGst receive II Tor
his crops; tho abnrer, for his wages tie Insrciinnt
for his goods It's appreciation d-rau'!s MI Creditors
It's Gcfrauds all debtors, lis tucturoiiS
effect every mal eGutrucls, and the value OF every
mans property. Hence the high duty of govern
ment to protect the puslic aSsne. losses by the chr
rency II has c..azrd 1t i this which "a attempted
| in the system proposed. What is thsru SO Gbnux
lou, in the character Of the provision for ths PURPOSE
Ii is this simple announcement by government t" iii'