The enquirer. [volume] (Richmond, Va.) 1804-1815, 1812-01-21
S 6T,is9


pounded, will NJ the end oil , years,
yield 80 8 67,lS9
The aggregate otproS; accrains tn the
State Irou t.r augmentation of the
capital OF liz. b.,rS of Virginia, ac-
cortlins 10 the terms Submitted by
tiic stockholders, Is = 5Go,lg6
Hcace il rcslts p.i.y, that the advantage Geriya-
BIC To the state from augmentation OF the CAPITAL
o! the hak ot Virginia, upon the proposed by
tie stockholders over ans. above tie advantage which
will result TO the state from the proposed independent
banking systcm may fairly bc estimated at $500 gee.
The foregoing estimates, moreover, have been
made the most ibefal calculation OF the profits
'eri>abe tn the state from the proposed independent
banking system, and the mos. Il; f2vor0oke view of
The Benefits derivalc 10 the state from the anS,nen-
ta:ion ci the capital of the bank nj Virginia. ord
ing to the terms proposed by tc stockholders, the
Following explanations will ev;ncc.
L. The computed bonus upon the renewal Of the
Charter oi the present bank of rsina, at the ex-
ration of its present charter (which stated part
of the benefit of the proposed ndepe ulcnt banking
systcin) is proportionaby much larger than has ever
been heretofore paid Gas yoi committee bclcve) for
similar privilege. The BAN; OF the United States
offered To- Congress 100000, to extend the dur-
ton OF their charter for tisc;ty years; that is the
same premium (namely, eighth o. their capital
which was SolOO00,O00) for tsuehty years. which is
here allowed forJsfeen years. And the bank of the
United States have offered TO the legislature of Penn
sylyanla bonus oil 1875 COO, to grant charter for
t7venty years for capita. of 500 900, that is on
ly one tspentieth OF the capital. To home, the
the present bank OF Virginia, the end of FIVE years
from It's incorporation, with Interest compounded to
that time; and the whole benefit deriyable to the
state from the proposed independent banks TO the
end of the like term, with interest compounded in
IKE manner in either case, is less than $780, 900 dolls
whereas the bonus of 1000 dolls. at the end of
years, with interest compounded to that time, pro-
duces more than 100000 dolls.
9. The allowance of 33 Is per cent. advance on
the value of the stock reserved the state in the
dependent banks, exceeds the most ssngune expec-
atons-and the advantage of that estimate the in
dependent banking system, is still more palpable,
when is considered that it is made equal to the
umated advance upon the value of the shares
ed to the state, of the proposed augmented capital of
the bank of Virginia.
8. On the other hand. the go per cent above par,
which is allowed in the estimate of the advantage to
the state from the proposed augmentation of the
pitai OF the bank of Nrgna, the rate which the
sales OF the shares of encresed captalma he
effected your committee has strong believe,
is much below the advance at which they may in fact
he sod-for shortly after the dividend in July last,
the average rate of stock 81 per advance
and since that PERIOD it has been above DO per cent
advance BY gentlemen conversant with the subject,
your committee informed, that little doubt exists
that the sales of the 900 shares NAV be effected at
advance of at least so cent instead of 90 per
cent. at which it is estimated. so, the preponer-
ance OF proht dervable to the state from the propos
ed augmentation OF the capital of the bank of Virgi-
MIA, over the profit to the state derivable from the
independent banking system, instead of being as
above stated only 622 dolls will be 421 200 dolls
And IT IN other respects, the estimate of the profits
dervable to the state from the independent banking
system has been too liberal the estimate of the pro-
fits dervable to the state from the other plan has been
restricted both which, for the to be found
in this report, your committee apprehends to be the
case) the advantage of the latter over the former
plan, will be yet greater.
Resoiued therefore, the opinion of this commit
tee, that if the bank capital in this commonwealth
should be- augmented, policy and interest recommend,
that such augmentation should be made ON the plan
and stated in the above rected propositions of
the committee the part of the stockholders of the
bank of Virginia.