The enquirer. [volume] (Richmond, Va.) 1804-1815, 1812-01-21

y.NiiliAM EOWDEN.
KPENICN RANDOLPH.
JOHN BROCKENBHOUGU.
In the copse OF the communications between Your
committee ,and the committee I'm the part OF the
sers, 1t proposed TO extend The ddration
otthps harter OF the banS for the term of ten years
onlS but fifteen years WAS insisted on by the com
,ttee ON the part of the stockholders the cnndi-
uon OF their assent to the augmentation and aerati
ons proposed
The Legislature having heen solicited from various
quarters OF the state, to augment the bank capital of
the commonwealth, and the direct profit to the trea-
suy icnvabie IRON such institutions being strongly
urged as a main nducement to the Legislature, "a
grant bank charters it becomes important to est.
mate the comparative benefits, that will result to the
state, from the different schemes which have been
proposed. On that point, therefore, YOUR committee
have particularly bestowed their attention.
! The select committee, to whom were formerly re-
ierred the several petitions and bills then before the
house on the subject of banks, recommended the In
stnuon al au independent bank ut each OF the towns
OF Norfolk, Richmond, Lynchburg and Winchester
IN the capital stock of each of which, they proposed
that the state should hold similar interest with tina,
winch the state holds in the present capital of the
oank or virginia The proportion of shares of the
capitals OF the proposed independent banks to be
held by the state has been specified one sixth
has been mentioned by the friends OF that plan; and
at most it is not expected that more than the pro-
portion OF shares held by the state in the capital of
the bank OF Virginia, that is one.fh is designed to
be reserved to the state of the shares of such indie
pendent banks, shonid that plan prevail And this
scheme of independent banks.
Let 1t be supposed that the augmentation of the
ba.'k capital OF the commonwealth, proposed to be
ELECTED by both the proposed plans, is the same
namely, ) 1,500,01O. An estimate of the relatiy,
benefit, to he produced to the state by each plan NAV
DC very easily and briefly exhibited.
l. Az the oeneht to the state (excusive of that en-
loyea N common with the stockholders) derivabl.
from the proposed independent banking system. re
Of fba lin. Al
state Tor Its shares in those banks, and the payment
OF TOUR per centum only thereupon, until the pay
meht Oh SUCH sum be completed; that is, the advan
tse OF two per cent. saved upon the sums remaining
uue from year to year, until the instruments be full,
discharged.
! This advantage on s 100000, installed for ten
years, computing interest the savings the state,
as they accrue, & compromising that interest would
produce not more than about s. 10000 Which is
general view of the benefit to the state accrlinp
from all those Institutions
Comparing, however, in detail, all the pecuniary
advantages deryable to the from the
ton OF the bank capital of the commonwealth on the
proposed independent banking system, with those
dervabe to the state from an augmentation thereof
according to the propositions of the stockholders OF
the bank OF Virginia, the advantages of the latter
Will be found very much to preponderate over those
of the former.
The following statement exhibits comparison of
these two systems as respects their pecuniary adyan-
taes TO the state, IN point of view they are in
deed susceptible of many others, which YOUR aom-
mittee !orbear to present, because should they he
found important, all most of the materials out of
which they must be combined are contained in the
statement here exhibited.
The pecuniary benefits derivable from
the independent banking system to
the te,exclusive of those enjoyed
IN common with the other stockhol.
ders, surprising the payment of the
state subscription installed at five
years, and compromising interest ON
the saving to the state, at the end
OF 5years, cannot be computed al
more than s $4,000
Probable bonus which TIE state would
receive for the .xtension of the
charter OF the present bank FIVE
years hence, Tor Is years, compu-
ted at one eighth of the capital
thereof in the hands of stockhold-
ers other than the state, that is,
one eighth OF s 100000 G15OOO0
Increase of the value of 5000 shares to
he held by the state in the new
banks, computed at the high esti-
mate OF SO Is above par g 100000
Surplus OF dividends On 5000 shares a.
bove the rate of legal interest, sup
posing the new banks during the
first live years of their existence
to divide as much as the bank of
virginia divided during that period
from Its creation, Ton which sup
position the dividends during that
period would not average per
ceDtum per annum, but computing
the dividends at that avsragc) they
VIII yield a surplus OF per cent
per annum, which for fr: years,
with interest compounded, will
-, yield S 1857,
The aggregate Of profit accruing to tho
state, therefore, ut the end of FIVE
years, from the proposed indepen-
dent banking system, and the pro-
sl,sct of boans for extending the
charter ofthc existing bank, upon
the largest estimate Gas will APP
pear from the sequel of this re-
. port is g SO3,574
On calculation analogous to the preceding, the
pr"s't oeiyale to the state from the augmentation
OF the capital stock OF the burk of virginia on tc
terms proposed By the stockholders, may be com
puted asfoows, viz
The advantage Of the reservation of
1000 shares TO be paid for in four