Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1858-05-11
The RICHMOND ENQUIRER.
BY RITCHIE & DUNNAVANT.
SCHEME FOR GRAND FINANCIAL CEN
TIRE AT NEW YORK.

TUESDAY MORNING, NAV II, 1855.
SCHEME FOR A GRAND FINANCIAL CEN
TIRE AT NEW YORK.
We did not msapprehend the proposal of the "New
York Herald" TO which we referred some DAYS since
we understood, then as now, that it proposed to
associate the fifty odd banks of New York city and to
furnish them with common branch offices throughout
the Union, at each of which the notes of all shall be re-
deemable. We are still Of opinion that this plan is
impracticablei that fit were practicable il would be
injurious to the welfare of the commercial interests
OF the country that it successfully attempted itwoud
necessarily be met with contravening lsgislaton.-
Ihe nifty odd banks must first manufacture a moral
capital of entire mutual confidence Without this
| they can never establish common offices of redemp.
tion and we are very much in the dark il all these
banks maintain character sufficiently reliable to in.
duce such joint stock operation. =. this difficulty
were overcome, the plan, in order to he successful
must concentrate in the hands of the New York banks
All amount OF specie sufficient to furnish basis for
the entire paper currency Of the country. Could this
be effected, II the present relative proportion of
specie to circulation could be preserved7 But the
proportion could not be preserved. banking
establishment with but centre of issue and
numerous places of redemption, would necessa.
rlly be obliged to restrict its relatives amount of
circulation much more strngently than if it had
but one point Of redemption. 1t would be impossible
for the New York banks, then to amass a sufficient
basis OF specie to supply the requisite amount of
circulation. We would also enquire by what
machinery an extended circulation would BIZ effected.
Certainly the discounng operations effected at New
York would not of themselves be sufficient TO aupply
the whole country with an adequate circulation.
And circulation is not the only object to be eensid.
cred. The operation of banking ia the machinery Of
the credit system How could the people throughout
the country obtain dscounts7 Large dealers could
indeed make arrangements for discounts at New
York but even this would be attended with con-
slant. frequently with dangerous inconvenience and
smaller discounts could not be effected at all or the
benefit Of people remote from the financial centre.
To render the system at all adequate TO the
4uirenents, either of credit or of circulation, the
branches must be enabled to ssue as we'll az to re-
deem. Would it be possible TO preserve intact su2t.
complicated system7 Fifty odd banks, issuing &C.
paratey ct the financial cantrs and jointly every
where else, woaA present contrvance as uumsn-
asesb!e as 1t would be novel. The equpoise could
not be preserved. The pressure would vary at diff
ferent points and at different times. Should panic
induces maximum pressure on one OF the 5I:ncles,
it would indeed be supported oy the combined
strength Of tho centre banks but it would also ba
obliged TO meet their combined liabilities. If the
pressure should BIZ most severely felt at the centre
it most frequently would there would be unitst,
force meet the shock, which might :Gli altogether
on single one Of tie ~itJ odd centre banks. 1t
would be impossible toequazs the circulation of the
different banks. system liable 10 such iuctua.
tons, such inequalities, and such possible concenrs
ton OF all ts risks and liabilities one, perhaps the
weakest, Of ts subdivisions 2oaId not possibly admit
of the creates, safeguard, the first and highest
atty Of banking operstions-theg general and uushaken
confidence of the whole community.
But supposing that these evils could be obviated.
the effect would be to conoentre the money power Of
the whole country in QUO aeItral point, aud under
thu coptra, OF central directors The accommodation
e1ouded would be desgnedly partial and discr"';"ss
ting. The whole country would become proVlnclal
lied. Financial operations every where would he
brought to bear en- eonuercia transactions to ELECT
more absolute commercial Capitalization at New
York. This commercial Capitalization has already
sufficiently progressed to render us all tributary 10
New York. This tribute would BECOME Tievoualy
burdensome BY the operation OF the financial central
zatian and the commercial Capitalization, acting and
reactins. until all the energies Of the Union, instead
Of being employed in diverse channels, distributing
and equalizng the benefits of trade and industry
would be made to converge to one point there to de-
posit in one mass the gGldan sauds which should be
scattered throughout the length and breadth of the
land
The HERALD seems to regard suoh a oonsumma
tion az beneficial and even unavoidable. But to
prove this it must first be demonstrated that New
York possesses the only point which nature has mark.
ed in all this vast territory for the site of centre of
trade We entertain an entirely different opinion
We have sea ports much more highly favored by
nature, and others still equally capable of artificial
development. To develope these natural nd |
van.ages, and to create artificial lines of in.
terna trade, sho:d bs the effort Of every State
which now pays tribute to New York. We /
can build up own centres c! trade, and |
from our own we can realize greater profits, un- |
accompanied by the Losses which attend our existing
provincial relations. 4 financial monopoly, which |
would be directed against this dysten Of commercial
would be the greatest evil which could
hefal us. And the "IIerald may rest assured, that
legislative restriction will be adopted, whenever it |
shall be rendered necessary by financial coalition.
That we may be preserved from such an improbable
necessity, is still our constant prayer