The enquirer. [volume] (Richmond, Va.) 1804-1815, 1814-12-27


opoundec-That il does not coinpott in their opinion
With the interest otthe Bank, under existing cirenn
stances. to make any new Losn much less one oil 81
great magnitude ms that required by the commonwealth
Could the be Directors tempted BY the ce,t,iny of
mediate profits rathcr,han the prospect future or
dit ofthe Bank, they could make I0aus to the ~. s
Tor the space oil one only the Of per cent or
they would make discount to in iuas on hills fo,,ird
90 real transactions payable at very short dates which
would enable the Bank ut any time TO diminish expe-
,ously the amount of its issues; but aware that the
SUSPENSION OF specie payments (cireumscrihing the
range OF circulation and conhningt exclusively the
limits ct tho STATED must depreciation Of the NJ,
per OF the Bank unless the amount be so reduced as to
correspond with the or things. they have not
only iorborne to increase the Leans hut have actually
curtaicd the outstanding debt the Bark. With re-
gard to the second enqsiry-the committee on the part
otthe Directors expected receive not to orr specific
terms After the opers'ios OF las, ar (so MAY ornle
tn the Bank) TIE Directors feel difent in making asy
ptopositIouto the Legislature. They believe that tie
Eans, by easy bonn, tn the State
and tax 10 the u States, with $50 600 dollars of its
'nndsin the Stock cethe General and State Govern
msnts, whic's not convertible into money without
Immense ioss can by strict adherence On their part
To the correct princp'es Of Banking still 90 on with
perfect security. Great profits the propieto,s S A.,
Stock do not require. Under this state Of affairs the
Directorsar unwilling to encounter new embarTays
men's by extending their Loans, whilst the Specie
Capital remains unangmentc,; vet "a the Com-ni,tee
OF the Directors have becninvitcd BIZ the g
the House otDc'egates tn state the conditi- on which
they woulG undertake to recommend to the S.ockbo,
Gers to make the Loan OF one million d dollar, to the
commonwealth Tor Is years, their respect for that DO
dy induces them TO suggest such term. rs would in
thciropnion, Justify them il such Recommendation
lst That thu Capital Stock Ne increased 1000 GRO
dollars to be sold on account fthc Bank NJ the dis
cfe,ion OF the President and Directors
The time OF seilHg cannot be important to the
Commonwealth and n,ay be so to The Stockholders
forced sale would sacrifice the new Stock and re-
duce the value Of the old
The = -.
s'ed nv the Bark would take care IA dsnosr. oe the
rev Stock so as TO maintain the credit of the Insti,
~ hat the Charter lie extended ten years beyo,d
re present term. This would furnish an additional
motive 10 money holders to purchase the S,oc; ,nJ
when the quantity now in market and the conseon-nt
repression are considered, great difficulty must h., an
prehe nteda rs 70 the sale ofthe Stock especially
brought into competition
Sd That the rite Of interest on the loan be - Der
cent payable Annually, and specific f,iGs appropriated
TO the payment OF II
he United States now pay 8 rcr cent for ,ronev
and 1t is doubted whether the state would create loan
redeemable IN fifteen years AZ lower rate the com,
monweslth would then gain 500 dollars in the fr
teen years, as a bsnus the increased carital. In
Gct us orTrst,on proposed would merely add tn TIE
Capital Of the Rank million in state Stock q, which
net one dollar could be discnuntcd and the Rant
world cot under anv eNigcncy diyose IF such Stock
bearing 7per cent, without considerable loss So, tla,
IN hn nttr1d
IN the extension ftrne.
9Th That il shall become part of the Charter fla.
The commonwealth is not TO grant anv additions, Rank
lns Capital during the existence of the Charter f the
BANK OF Virginia, nor shall any existing Charter be
renewed, unless shall, receive therefor at least 90
per cent on the Capita. bonus, for term fChar
ter not exceeding 10 years-nor shall the Pask c,oc.
or dividends thereon be taxed
1t Is Obvious that the limitation OF Banking Capital in
ue stare can alone CRADLE the existing Banks To hear
inc oppressive bonus eyacted by the state In tho rro
posal for establishing National Bank il is provided
that no other Chare~ be granted and that no TAX Is
iaH,, and no bonus IS demanded The state may end
us interest IN tnstering the present Bank so long as II
oids sn erge proportion ot the Stock but Isat vii,
prevent Il from selling its Shares and then crca.ine ore
oY more Banks if the pressure in the TreasrIy cont;
hues ihe same principle that leads the state TO
pay per cent for money, 10 grant an incras, Of
banEing Capital upon better terms this wear than the
ast, may lead 1t 10 grant Banks or an increase of
thanking Capital TIE next year uon still more sayora
Ole terms 10 guard against this contingency the 9Th
condition ,proposed.
SIR, '''' . ; "tSN''"' De' ii"'' 1919
Your note this morning, asking Of t- co.ry,;..se
OF the frmeIs Bank, whether that Irst;;,.ton IL a,
present M situation to loan the State 500 900 collars
or 100000 dollars, and nor what fhey will rcouie
at tue hands OF the Legislature to enable them "a
ale me loan. and on what terms, has been received
and attentN.iy considered bv the conro;,tce ubo
considering that the Bank has already during the mr.
sent session loaned TO the State 100000 dollars rnd
stand pledged 20 the committee of inapce 10 advance
'r tne connonweail the fnrtter or 800 600 .Io-
l"'s, are OF opinion, as much nnfIer .~;et,, 90,
cnr stances as they can engage 10 loan the States
hey have also considered the second enquiry in
ycr note, and are unable to discover anv means
w'c5 could be afforded by the Legislature to enable
t'.n to make tho proposed loan
" are, with gTea: respect, your ohedcr,. se,yts.
BENJAMIN HATCHER.
: WILLIAM G. WlLIIANis
Committee Of FHrmerS' Bank of V5rrf7in.
Tie 'ifrse 81 Delegates u