Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1816-01-09
REPORT ON BANKS
December so.
7,-wIOw

Submitted 20 The House of Delegates an
Friday, January The 5th, 1916.
The Committee to whom were referred
sundry petitions for Branches of the exist
ing banks. or The Incorporation of indie
pendent Banks within various parts of the
Commonwealth, with instructions to make
the following enquiiieS--whethe there ex-
lists any depreciation OF the current paper
medium !? and if there be such depreciation,
the actual extent, true cause and proper
remedy thereof whether any uncharter-
ed Banking companies have been recently
formed within the Commonwealth, and
what means should be devised to guard the
chartered Banks against the infraction of
their privileges, and the Commonwealth a
geinst the abuses OF private Bank,ng?-have
prepared Report, which they respectfully
submit to the House of Delegates
In performing the duty assigned to them,
your committee deem it necessary to pre-
mise some general observations upon the
nature OF the subject. ON which they have
been required 10 act, before they call the
attention of the House, to the result of
the enquiries which they were instructed
TO make.
An individual, possessed of money or
stock, " may derive a revenue" either
g from employing it," himself, or " lending
it, to others. "In the one case, his rev.
| enue IS profit, in The other interest. -
The fist Constitutes the revenue of a
Merchant, the last OF Banker.
Were every individual, who has money
which he can lend more peefitably, than he
| c4n himself employ it, to become Bank
er, on attempt TO draw the whole or the
greater pare of mis- income from loans, he
Icc~ 70 l..
to himself from lending at all. AS the rate
OF interest is restrained both by law and
necessity, unless his stock was great, his
income wouid not maintain him.
befo' large capitals are anassed in any
country, the lending OF money will be con-
nected, therefore, with some other III ra
tive business. The capital which might
be product ely loaned, Will often lie IDLE
IN the hands of the lender-and some
times. for the SAKE of extraordinary gain,
he will demand, and receive for IL, a high
ef Interest than the law authorizes.
What every stockholder, with : small
capital, must labor under great dsadvsrl-
tages IN doing separately, number of indi-
viduais asso lated together, and acting. by
common agent, may render alike prof.
table and convenient.
Their capitals, however small, when ia
! ken apart, viii toge ther be large enough
atter paying the salary or wages Of their
agent, and che rent of his house, to Weld 10
them a conside rable income.
| Fl number OF persons, so dealing in mon
| ey, and binding themselves, by their agent
IN their iHdiv dual capacity, to those with
whom he transacts their business, consti-
tutes in the simplest form, what is usually
termed Z" A Bank" And if the employ
| ment OF such Bank consisted in leading "a
men OF good credit, or l. BON approved Sc
curlty, the gold and silver coin of a coun>
| try, the common representative of value
and medium Of exchange, it is presumed
| that no objection could be made to such
an institution, which would not equally
apply to any other employment of Stock
or labour, or to any other means of aug
| menting the wealth of nation.
| The benefits which it assures to the
| Stakeholder or lender, are economy oil
time the certainty OF receiving his in.
| Come, when it becomes due-increased
security against the total or partial loss oi
the capital on which it accrues, and new
facility of converting his money, while il
! Continues productive, into any other species
Of stock, either for the purposes Of agri-
culture, manufactures or commerce.
ne price OF BANK stock, huCtuates
more than the value of dead capital in
money, but less than the notes or bonds Of
individuals; and the danger of losing tbs
capital itself, by violence, fraud or acc;.
dent, is less than that which attaches CT
Their 60 the current coin Of the country, OF
| 10 such obligations.
The benefits, which the borrower de.
rives from such an institution, are scarce
ly less important. They may be cosnpris-
ed in the increased facility and certainty o.
obtaining h S required loan, upon giving Sc.
ourjty for its repayment, at hxed pc
| rod
To this he is indebted, not only for tho
more active employment Of whatever other
capital he possesses, but for being able e.
devote his undivided attention 70 his D Gu.
liar occupation. The condition on which
he may hope for the rencwal Of his loan
being its punctual repayment, when due
his integrity is guaranteed by this interest
minute inspection Of the simple me-
chauism Of Bank evinces that as laboui
saving machine, it's Of great value to th'