Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1815-10-28

bedeed ,l,a, they have iarce sums OF the paper
Of the Farmer Dank in their vaults, aud that
some oI them uniformly refuse TO pay them, when
demanded, in retirn for their own. Ia the common
course OF things. theirnterest would direct con.
trsry course. by ready exchange OF their own
paper Tor Viz GINA NOES, their woald circulate
more widely, with less probability ola quick Return
since their really cooveTtibilty into desired cur
reney, would naturally attach TO them greater i'll
trirsic aud exchans cable value
Moreover, It is clearly the object of every new
Institution to attract custom by berality aud
mo,lati0n, aud TO induce the utmost confidence il,
ITS engagements, by mandestng bOth the row CT and
disposition to comply with them with punetuaty
anil fairness. IL cannot be supposed that without
some powerful eounteryairg motive, tie intei-
gent men, who presume, are in the respective di-
rectons, would be insensitc To this obvious p,licv
particularly at meioent when the paper OF the
Chartered Banks is almost cat Of circulation, and is
~ the highest demand. Suchis at present nutuii-
ously the fact in the disiiic, OF Country where the
New Banks have been established Scarcely =
Bank Note ofMe Farmers Bank is to be seen
even in the vicinity efMe Branch at Manchester
10 what causes is this singular fact to be atribu-
ted 10 the following among others
l. The New Banks have eagerly collected all
the Farmers Bank Notes on which they can lay
their hands and hoard them up in their vanlts.
g TIL Braach Bank at Winchester, finding it.
sell surrounded by number of Unchartered Com
panies anxiOusy occupied in gathering its notes, and
anticipating hostility from such course of conduct
found It necessary TO cur,iI its discounts, and call
IN quantityofi ITS paper, by req+ring all eutas to
be pau IN IT'S own notes, in certain foreign notes
which were equivalent. The inevitable result of
tins system was to take out of circulation vast guam
tity O. its paper.
s. The Country Merchinis and dealers with
the seaport towns, in ting their accounts. and
mskiiS their purchases below, were constrained to
use the Virginia Bank paper far as they could
collect il, il was more current than any other
within tkPff Tho oFt 10
ports, IN their turn, Immediately sent or, VIII tsvcr
sums were thus collected, to Richmond, where they
were taken in by the mother Bank. and returned In
the Branch Bank, thus IA, lily accelersting the
views OF the latter Institution in calling in its paper.
T. By these means, very considerable proper
ton OF the Branch Bank paper in circulation IA
ph'y returned to its vaults without in any wise dis
tressingt.
the mean time, the Branch Bank put a stop to
its discounts, and thus prevented the paper which
had returned to its vaults from passing a;ianto cir
suiaton Thus, as something every DAY CO.
ming IN, and nothing going ont, the Branch Bank
ties in circulation lave been reduced TO almost NO.
l. ing.
The foregoing amOag the prominent c;rcum-
stances which have given rise to the great scarcity
OF the paper Of the Branch Bank at Winchester,
IN the country within which it is situated. The ef-
fects upon that country, from this sudden dirnint-
tl0n ot the only medium in which there was de-
cded public confidence, may easily be conceived.
DanX IS cOmpeIIeu to curtall, and whilst
The sheriff and public collector is compelled to EN-
force the payment of taxes, the Farmers Bank pa
per- which had been previously the chief medium
OF exchange, and which WAS the only paper to be
met with receivable public dues and in discharge
OF Bank debts, is suddenly Withdrawn from circula-
uon hus, as the pressure increased, the means
oil relieving twere proportionaly lessened and it is
SAID that the difficulties, and embarrassments, and
sacrihces likely TO ensue, of no inconsiderable
magnitude he this as it may, there is great and
general outcry against the Banks on account of the
pcrpleXities they have occasioned As is usual the
blame is attempted by each to be thrown on the o.
ther but whilst they are settling the accounts of
crimiuaiion and re-eIiminatoa, the people are Sc
verely the suf rers.
IL viii, however, neither be unustructive nor I'M
uBimportant to the main object of these Essavs to
suggest the reasons which may have induced the
Branch Banks to adopta measure which If not de-
niunded by prudence, cannot be justified. pre-
sumo they were as follows:
When the unchartcred Banks were first in con-
temptation, 1t was manifest that those in the vcini-
y OF Winchester would receive the greater part of
their subscriptions in Farmers Bank paper The
very accumulation OF their notes in neigh5ouring
institutions, rendered it measure of prudence 10
be cautious IN their dealing. and hence, at very
early period OF the Summer, tkey are said to have
reduced their business into narrow limits There
were other causes which might have led to an ap-
Prehension oil hostility. The contemplated bank Of
winchester, 1t was particularly app. ehended would
be hostile to The old Branch Bank. Whether these
applehensons were just or unjust, they neverthe-
less existed, and there were some who were not
without their belief, that the New Bank was n IN
HhcdE 91Gr established in direct opposition to The
other. These suspicious gained instead of losing
ground, when, upon the stock being subscribed for
avery large proportion appeared to be taken by fe-
derot'sts when the Directors appointed proved to
be mns-tenthS federaEstS and when all tie officers,
.glfhoUt single exception zgere Of HE Same bartv
hese events were calculated to increase rather
than diminish apprehension of hostility, and the sus
picIon settled down into conviction when it was
und, that the New Bank was sedulousIy engaged
IN collecting all the notes it could gather of the Old
Branch Bank
Thus circumstanced, the directors could draw but
% conclusion that the New Bank, calculating
upon the difficulties which shall presently disclose
resolved to upon them as soon as their demands
were sufficiently large to be dangerous; or else
that they intended to hold out IN teT0reDl TO the e
gislatrlre, the power which they supposed they had
over the chsrteredinstuton. The latter seems
most pr obabie from their still continuing to retain
pos siioD Of the Branch Bank Notes
The OH Bank ofcourse prepared tn counteraet
'hsse measures. How was it to be done
.. he most usual and palpabc as well as the most
eHeettlai mode oil defence, might easily have been
resorted TO but for the act OF the Legislature pro.
hibnIng the circulation ofuncliartered Not S. The
remedy 70 be pursued, to receive all the Notes
oi the winchester HHch0rfeI'ed Bank that shou
ne offered, IN order to meet airy demand that might
be made upon them.
Immense numbers Of these would instantly have
been paid IN, both by dealers wishing TO discharge
then debts to the Old. and become debtors Of the
New Bank, and by persons paying in the curtai up.
ON their Notes ia the Branch Bank. In few
weeks they would have possessed more Winchcs.
ter unchartered paper than would have met the de-
mands against them.
But they deemed II improper to receive that pa