Virginia Argus. [volume] (Richmond, Va.) 1796-1816, 1805-08-17


4 commenced four months before the ope-
rations of the bank Of Virginia aud at least
zine mouths before those Of the Offices of
discount aid deposit. The directors of
, the bank OF Virginia had to provide every
thing for four establishments; those Oh
the union bank for one establish inrnt on.
. ". Even with the immense resources oil
the baak Of the United States, they nave
. only established their Offices from time 10
time as their funds would warrant. The
dire stors of the bank of Virginia had no
I choice: They we,e bnaod by the act Of
incorporation To set their several Offices In
( 10 Operations within limited time, aud
that before i, could be possible for the pro.
fits of the mother bank TO defray The ex.
penses Of the adjustments. The pro-
fits Of the first org months were in fact
employed in paving the expenses f the
branches; and those being completely
betrayed, there Car be no doubt that the
subseqnen, prcfi,s have been gradually &C.
cumuating, and viii furnish a dividend Of
or 4 10 per cent. on The frst Of January
But will 1t not bring blush into your
cheek when you reilccl tina, you. at the
same moment, csisure the directors for
not declaring dividend and for issuing
too many of tiisir notes? This is indeed
laying them on the bed of Procrustes; if
they are too long you lop them of, if too
short you stretch them. They must de-
clare profit, but they must not use the
means az making that profit For how
was the. profit ~ be obtanei was il not by
lending gu, money! aud what sor ofmo-
ney were the directors 10 lend their avn
notes or gold and silver! That the notes
have been returned upou them rapidly on
ly proves thai the circulation is limited
one, and thlt no extension of the capital
of the bank can be beneficial until the cir
culation shall become more extensive.
! With respect tn your denuociation OF
the Virginia assembly for prohibiting the
circulation of private bark notes. as il is
impoten' ! shall pass il over without sin
gle comment.
; The Cause Of the depreciation (Which
is as much exaggerated 10 your producfi-
on) Of Virginia Bank-Stock may certainly
he explNned without supposine any mis-
management on the part OF the directors.
| The astonishing avIdity with which the
! shares were suhscribed for is notorious.
! In the towns the merchants used all The
means in their power to procure them.
! Owing To he extreme pressure upon the
commercial world, arising from caus-
! es totally uBconnected with the bank, they
are now comheiled to dispose Of them.
! The merchants al Norfolk ia particular
have experienced a combnation Of IN O.
ward events almost unpa, alleied. An I'M
) IN nse amount of properly has been des-
troyed by fire: the sums required to re-
place the buildings are enormous: thro'
the hDeraluy al tne government, he du-
ties oil the last year were suspended aud
double duties are now to be PAID added
, TO these there is no foreign demand for
. our produce, a great proportion Of which
is 10 the hands of the merchants. Inthis
state of things il is impossible for them
10 spare so much of their capital, as is
: vested in stock, out Of their trade. The
consequence IS that great deal of stock
: is al once brought into market, and the
] Inevitable efIeel must be depression in
> the price. This was foreseen by the 7sa-
o gacious Mr. Galatin, when he sold the
5 bank s,ocs of the United States to MIR.
). Bar'lg. for which I've has been loaded with
: oboquy by his political enemies from
: Name to Georgia. There can be no ques-
] ton but THAT as soon as the shares Of The
c bank of Virginia fall generally into the
hands If country gentlemen who will
hold them sor as subject of speculate
on, but as safely resting heir money IN
a way TO produce feguiaT annuity, or in
TO the hands ut large capitals 5. sho may
be no Longer Under the Necessity Of selling
; for their iTmedae use. the price will use
: TO level will, that OF any other bank
E shares in the union.
Your statement relative to the discon-
, tent OF the country people"a not obtain
: ing atU,r dollars in exchange Tor note :.
r is probably no, correct. They must have
5 at all times been able TO procure sfecie 81
I some sort, or the credit of the bank would
: have been al once destroyed. Their
!. " sonnd sense" would soon convince lhe N
+ that II was impoItic in the bank and inIu
: rious To- the country To pay out sfIurr dsE
{ lars WHEN there weIevesselslyingin Jane:
o RIVER for the very purpose Of Carrying he
Il dollars to the East Indies. IL they pos
: s-ss this $. sound sense" then they woult
readily receive gold 10 exchange FOR thos,
7 A. -