The enquirer. [volume] (Richmond, Va.) 1804-1815, 1804-09-22
EN- OUR Err.
BANK or YpCINfA.
REHlrOND !.
SATURDAY, SEPTEMBER go, 1904.

! Ec.%<~C~r( ~~<C%<HC~(~~~ <C (C.sS:
BANK or YICINtA.
The bank of Virginia will then commence lis ope-
rations Monday the sth of October II is NO,
probable That ITS dIcOnts during the rt two months
will be very extenive 1t is provided by the law that
each flare ihoud be divided into four parts payable
in four different inaments The frft was paid, when
the flare fbfcribed for the fecond will be due
in 60 days from the time, it commences bulinefs the
third in l2o days: the fourth in $50 days Now it is
evident that If extenfve dfcounts are allowed II will
be in the power of the flare holders to draw from the
bank that money which they will have to pay in a,
tier iecond initanent. The proviiion of the law
that it il,a be paid in ipecie, will not prevent this one
ration Il Will be eafy for the tockholder, who re-
ceives the bank paper his dfcoun,ed notes, to re-
turn with to the bank and exchange it for Cold or
Silver In this cafe, the directors will have no other
reiource than the one, which the bank of ENGLAND
has reiorted to: reuial to hue any Gold and Silver
until the exigency of the fia have expired
That this is the dilemma, which will be precented 70
the directors IS evident from the nature Of the cafe.
Yet if the experience Of other fnilar i,tutons wa.
demanded, fhould find the effects of an early and ex
tentve dcount clearly luftrated by the hory of the
Bank Of Ayr in Scotland. That this was one of the
principal cauies which led to the deitrueaion of thar
liberal but l-conduded initituton, we have evil
dence fufc;ent in the following imple account bv A.
dam Smith. Wtzltb sf Nation, HoL L. rare al
London Edition.
In the midi of this Glamour and dinrefs, new bank
was etaohihed IN Scotland for the expres purpofe of
relieving the dtreis of the country. The defign was
generous; but the execution was innp,,dent and ,b
nature and caufes of the dihrefs which il meant IN
heve, Were not, perhaps, well undertood This bank
was more liberal than any other had BEEN both GRANT
ing cath accounts, and in dilcountng bills of exchange
ith regard to the latter it eems have made fcarc
any dtcion between real and circulating bills but to
have dltcounted all equally. 1t was the avowed prin
cpe oil thus bank to advance, upon any Reasonable f
curity, the whole capital which was TO be emploved
IN thoie improvements OF which the returns are the
mott How and ditant fuch as the improvements NJ
land To promote iuch improvements was even f,iJ
to be the chief of the public pred pupofes for which
1t was initituted BY its liberaity in granting cath
accounts, and in diicounting bills of exchange it. no
doubt. lued great quantities Of its bank-notes Bn
thoe oank-note being the greater part Of them over
and above what the circulation of the country cond
ealy abiorb and employ, returned upon it. in order
to be exchanged for gold and flver as fat as thew
were niued. Its Golfers were never well filed The
capital which had been fubfcribed to this bank at tw
different INTERRUPTIONS amounted TO one hundred and
lXty thoutand pounds, Of which eighty per cent. on
~ was PAID up This FUN ought to have been maid in
at ievera different inltaients. great part of tbe
Propretors, when they paid in their frt in(tament
opened cath account with the bank and the dire
tors thinking themtelves obliged treat their own
ProPretors with the fame iberality with which they
treated all other men, allowed mary of them IN to-
row upon this cath account what tney paid in npo,,
all their fubequent infalments. Such payn,ents.
therefore, only put into Golfer, what had the mo-
ment before been taken out of another But had ,b
Golfers OF this bank been filed ever 70 we'll its e,ceC
I'VE circulation mutt have emptied them fafter than
they could have been replenhed by any other exped
ant out the rulnous one of drawing upon London.
and when the bill became due, PAVING IL toge,bar
with intereit and commfion, by another drauqht
upon the lame place. Its Golfers having been filled n
very Ill, it is iaid to have been driven TO this
within very few months after it began to do bpfiper
ne etates OF the proprietors of this bank were worth
mhons' and by their fublcrption to the ORR
gnal bond or contract of the bank were really pedo
ed tor aniwering all its engagements By means OF
the great credit which 70 great pledge nece1ar;lv
gave 1t, 1t was, notwithstanding its too liberal copdq
enabled to carry on buineis for more than two
when 1t was obliged to ftop, it had in circulation
ABOUT TWO hundred thouiand pounds in bank-notes
In order to fupport the circulation of tho notes which
were continually returning upon it as fat as thew were
iued, IT had been conantly in the practice of draw
ing bills OF exchange upon London, of which the
number and value were continually increafng, and,
when 1t itoPt, amounted to upwards of fix hundred
| thouand pounds This bank, therefore had. in liz
tie more than the courle of two years. advanced 70
different people upwards Of eight hundred thoufand
pounds at hive per- cent. Upon the two hundred thon
land pounds which circulated in bank-notes this
ive per cent might, perhaps be confdered as clear
gam, without any other deduction beGdes the exnence
OF management. But upon upwards of fix hundred
thouiand pounds, for which it was continually draw
ing bills OF exchange upon London, it was paying, in
'ne way OF inereit and conmiflon, upwards Of eight
per cent, and consequently lolng more than tpe
per cent upon more than three-fourths of all its deal
ings
A CARD-7o THE EDITOR OF THE ENQUIRER.