The Recorder

FROM THE EXAMINER.

COMMUNICATION.

WE learn with extreme satisfaction, that the bill for establishing a bank in Richmond, has passed the house of Delegates. The advantages which arise to a country from the institution of banks, although obvious to all acquainted with mercantile pursuits, are not so well understood by the community at large.

The banking system on a superficial view, appears too closely allied with monopolies to be acceptable to Americans; but this idea entirely proceeds from the great opposition which these useful establishments are accustomed to meet with in the legislatures of the different states.---If banks were more numerous than they at present are, they would partake much less of the nature of a monopoly, and they would likewise be of more service to the people at large.

No establishment tends so much to improve the face of a country, to promote industry, and to give a spirit to manufactures, as that of a bank. Banks and Insurance Offices, may be considered as two of the most useful institutions, in the policy of modern nations.

Few circumstances ever took place which rendered more service to the various manufactures in England than the assistance that was given by Fordyce and Co. and no event ever occurred in Scotland which promoted the spirit of agriculture in an equal degree with the Ayr bank : many individuals no doubt were ruined by the failures of these banks, but the age of the country was improved, and a stimulus was given by them to manufactures, which before was unknown.

These are facts well known in England, and to a great part of mercantile men in the United States.

There has never been an instance in any country where a bank was established, in which those who were near to it, did not partake of considerable benefits, and no instance has ever occurred in which the inhabitants of a town or the vicinity have petitioned or complained against the establishment.

When the failure of the Ayr bank is urged as an objection against others, it is forgotten that the Ayr bank was established by private adventurers, who circulated as many notes as they pleased. In this country the directors are always restricted to a reasonable amount, so that a similar circumstance can not be feared.

There can be no doubt, if the law when finished by the Senate, should be founded upon fair and equal principles, such as will induce the men of money to take shares, that it will be found to be beneficial beyond any calculation.

It is well to remark, that there are some inhabitants of Richmond who take every opportunity of condemning the institution, but when we look a little farther, it is found that they are men who, not only possess large cash capitals but are also in the habit of using this advantage so as to produce very great gains. They know that the establishment of a Bank would deprive them of their present monopoly, and therefore are interested against the final passage of the bill.