Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1815-09-23
FOR TIE ENQUIRER.
CONSIDERATIONS
On the subject Of Unchartereg Banks,
DrA DISTINGUISHED CITIZEN.

1he EnioaITaSsniefHs connected .rth te,,iunsac,.-
on Of The aVairs Of Uscha'fercd Bt.nks.
Ha'ng gwen very general, but MS accurate an
account oil the extent to which the evil OF Uncha-
ereu banks las already gone, or is likely TO be-
carried IN tins Commonwe wealth, as my remote sit,-
a,'on from the scene Ot their establishment will
permit, shall now proceed to offer come Cons;de-
r"tons on sie probable prosperity or adversely Of
those Institutions.
10 those, who are in the slightest degree ac-
quanited with the banking business, it is well
known, that the extensive circulation of their notes
Is great secret oil their profits Ii, them the en-
barrassInents in which they will be involved 10
traasac,'nS their affairs, Will tend TO prevent this
elreaiAuon, IN SO great degree prseiseiy will they
prevent their prosperity anu limit their profits.
wall suggest several obstacles which will oppose
the circulation 81 their notes.
l. lac noies OF the Chartered Banks receive
currency aud circulation in uo inconsderable de-
gree hon bel"S Receivable in taxes and other pubc
cues. IL is tins, which renders the note of one OK
pur Charterc Banks, acceptable: whereyerit RAGS
and thus is, they fnd circulation Throughout the,
Whole extent OF the Commonwealth The I'm
ci!GF.eTfd Banks will be without this adyauaee =
iheirnotes not ing countenanced by law, the in
Gniduai vine receives the,n, can only pay them a.
way " ths courtesy Of tnc recciyerI and this he
DOES at The risque OF beng fined 10 ten iinra ,he
amount The natural effect of this state of things
%h' D., that such notes AS 90 rto circaiatol, viii
re'oiye IN confined orbit around The INSTITUTION
from which they issued, and return speedily 10
the vaults from whence they came. B sides 'fl,e
number ci Onchartered Establishments will of it
Sell res i1et The cIrcu alton OF t:teir paper for
note will scare " from one before it falls into
the haids It the neishoring Banks which will care
tuiy hoard it until they collect n mass of Sufficient
importance to be demanded.
Nor shonid II escape observation, that the
Chartered Companies ing established In branches
throughout the State, he We thereby an advantage.
winch petty Independent establishments cannot
have. This connection ofthe branches of the CHAR
tered Banks Civ 4 currency to the notes of each
throughout the State, and elsewhere. n dealer In
NpisJk would a. so IA receive Lynchburg b nix
Note as one oil the Bank OF Norfolk because he is
conscious 1t ~ equally current there. a PhiadcI-
plaza Merchant will accept a Norfolk Bransh
Mote IN payment, readily as one of the
mother Bank, at Richmond because, he
Knows that he former is current at the lat
ter. But, what merchant at Norfolk would ac-
sept Clal kshurg note, where there is no Bank in
h vicinity associated with the Clarksburs Bank that
WIigve 1t currency NOne-and hence another
great source OF embarrassment ard difficulty in The
circulation OF the notes of Uncha, tered Banks.
8. laminclned 10 believe, that it would be of
no little importance 20 the Unohartered Esfsblish
ments, II the Chartered Banks would receive their
notes, and open accounts with them. Il wouId rem
der tier paper more general in its circulation and
give II all the advantages OF beiug receivable for
taxes. But this neither seW oe done, nor o1ksjs to
pe uOne Dy The Chartered .iankS.
IL iolH nor De done, because in inonied ins,i,u,i
ons, self-nterost is tue supreme law: ard il IL nm
reasonable to suppose that the chartered companies
VIII be disposed to surrender the great ADVANTAGES
arising from the exclusive credit conferred ON their
notes IN payment Of taxes, 10 siare those sfyan-
tlges with rival.
1t would be to presume, that m institution whose
Dsis IS monopoly, aud whose aim is the attain
OF advantages not possessed by Others would sur
render its beneficial monopoly and exclusive piisi-
ieges, alter they had been secured The Charter
ed Companies would, for us reason, among others.
oountess be inclined to refuse 10 receive the notes
oil Oheharered banks, and in truth IL would be tbei.
duty TO do so. Moreover lust attention ~ dc
interest OF Stockholders ought to impei the Direct;
ors TO avoid every accommodation to if,si;tutio.s
which, being exempt from the burden of q Loit,s
come into the market upon better lootpg IN this
r';peet, than the regular Establishments
Ho" could they justify to their constituents Tie
encouragement OF rivals, who are freed from, t,e
burdens which Cypress, aud the ttammels whiel,
nmd themsei'es whose prosperity cau only in
crease as their own decreases and who being with
out coutToul, may be indebted teufolj tie nfnDuut
o. what they can discharge Sef-in'erest aud safe
y equally iorDid such intercourse
Nor are these the sole objections itg ;ntereot,rs.
betyeen the Chartered COMPANIES aud Oneharter-
eti Establishments. The lOrmer, hnIdioe AZ tbev
do9 Charter from the State, ought, II IS Conceived
TO be peculiarly cautious Of becoming in any.wise
esotssoi) 10 u VIOLATION oil TIE law by BANKING
Company-Ihe iilegslfy Of Uucharlered Fs,as
0i'nents VIII be assumedip this place, though the
discussion Of tnat questiOns postponed to another
paper
II then the notes Of Unchsrtered Banks arc he
ga, It would be en- act Of great imprudence In the
directors Of Chartered Companies to receive them
and pa; them toto Circulation. Waving the oresti-
on, Whttner the circulation OF illegal Back Notes
would be sutli breach Of lle law as to endsn-.r
joJeitiHe Of their charter, il may conlie,,ly h. =
Vsneed, taat Che lie siature would, from i,is, rse
Of what was do, ln le la1p and IN fhl,n..l...