Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1815-11-11
RICHMOND (vA.) NOVEMBER II,
ON BANKS AND SPECIE.

writer OF considerable ability, in the
n. Y. National Advocate, under the SIGMA.
ture or AURELIUs, has touched this very
important subject. He asserts, that CT the
ans viii h the Banks Of n. Y. had made
to individuals, and the amount of panc7
which they had in circulation on the LIST az
October 1915, were less than they were On
the 18th of September, 1874, the day on
which they suspended specie payrnents."-
lie then gives the following Sketch of the
situation of those banks:
I" The whole amount of paper which the banks Of
tbs city haven circulation is LEES tbsn five proha.
Oily little more than four millions of dollars, but the
largest sum shall be cstimaed The snnnn,,t M No.
ney which they have loaned nut NAV be calculated
at twenty-five millions of dollars. and consists &c the
following items:
They have loatci their own capital
stock, say * oOo ooo
They have loaned in bank notes
Which are in circulation : onO 0Oo
They have loaned Of the money de-
posted in the banks by individuals,
ard what IS termed, in bank LAM
guage, dep0Ht capital, 10000
Total amount IF loans . ooqoo0
- From this statement and which is known 10 be
substantially correct, follows that the banks hold
IN the notes OF individuals or other securities that
are deemed sufficient, twenty two millions ofdollafs
l hat they owe their dealers two millions Of dol
lars, which was depo'ited in the banks G.r conve.
nenee, and have been loaned out by them. leaving
balance in their hands Of s.sesfy nii,,s of diiars
70 GOOD securities to redeem tire millions Of pa
per Which they have in circulation"
With view Of removing the apDrehen~
sion, that Bank paper viii be issued I'M
tn the market is inundated with it. he
states that the public have an excellent Sc.
curity.
/" That security consists in the ARRANGEMENTS
which the banks have uiade aruug tle,ns.Ives
ana which arc, substantially that they will not ip-
crease the amount OF their loans and CONSIGNMENT.
W, not increase the amount Of their circulating pa-
peri that they viii we xiv. at general meeting If
= committee trim each bank, present a statement
oi Their operations, so far asst applies IN loana o,4
that It one falls in debit, the other, the debtor
bank shall pay interest lfthis contract il psrfrr-
e IN good faith, IS impossible that the regulation
o. bank paper can be- increased IN anuunt an,l that
II has been aud viii be faithfully performed we have
tire pledge oia the directors Of all the banks in the
city" sums :" '"'
In subsequent No. AuRE1rus at
tempts to show that the Banks ought not
to resume specie payments and for this
purpose, urges these two facts. 1st. that
specie is now worth from 10 to IS rer
cent above par :" and Cd. that bills ofex-
change on England, in our city. are at this
moment, 10 per cent above Dar"-because.
the balance Of frade is against us. lie IN
fers from these two facts, thatif The Banks
were TO open their vaults, all the specic
would leaye the y. ;. Il IS on these two er-
roneous positions, an The Important error
which IS based upon them. that the writer
OF the following Critique has cast a fash
Of light.