Constitutional Whig. [volume] (Richmond, Va.) 1824-1832, 1824-01-27
To The Legislature ef Tirgiat.i.

You are called on to extend the charter of the
Farmers Bank of Virginia. The expedi6ncy of
that measure is so doubtful that it behoves you
to have and reflect maturely before you decide
Precipitation may do harm, delibera ton cannot
The applicants like skiful tactitians, calculate the
advantage of multiplying the points of attack while
the beseiged have only single point of defence.
Agents fom every quarter, where that bank has
branch have appeared in your lobby. Beware of
a coup-de-mdin. Let the subject come before your
con stitutents. They could not have anticipated
application three four years before the expiga-
,n'of that charter There is necessity thai the
bank should wind up its concerns at this early day.
lift be the will of the country to continue the ban-
it will be in full time, to extend the Charter the
the succeeding year. III 1T IS to e>pif,, the
Legislature cannot hesitate to- allowit reasonable
period to close its business after the termination o.
| the charter. An extention aoC, may giva tacti-
| tious and temporary enhancement to the price OF
the stock, of which spec'idtjOnS may avail thsln-
selves but, with The appendage OF the branch at
Norfolk, constituting oe-iourth of Its capital 1t Is
impossible that the UoIe of the stock of the State.
or other permanent STOCKHOLDERS can be increascd.
| 1t is questOnably whether the great body OF
the stockholders would sanction the application for
an extension, without some important notifications
of tn, charter if they fully understood the subject.
TVith respect to bniing ii is time ior the enlght-
ened statesmen of Virginia, to act ON the sound
iEprnciples of the best political economists. These
principles should be well understood before ano-
ther step is taken in relation to it. The plenty or
scarcity of money depends in great measure on
the operation of banks, that is, an enormous pow
| er placed in the han of a corporation. IT bank
charters be necessary, proper and conducive 10
the public welfare" let them be granted with Tn I
view and not OH the renns of the odious mouopo is
of Queen elizabeth, of the sale OF lndulgencie5
! by the Popc The exactiOn of excessive bonuses
| for bank-charters is piece of political quackery.
| The representatives of the people are morally
bound to protect the public interest," and that inter
est is more essentially concerned in keeping the
currency Of the country in state Of purity, than IN
| multiplying banks for the sake Of premiums. Can
the LEGISLATURE denounce the fox his rapac-
ty and then become the greatest of all eStortion-
| ers? Where is the consistency of such conduct ::
As the mea ms Of facilitating the collection OF the
public revenue, and of furnishing a cheaper and
more convenient circulating medium than gold and
silver Banks to limited extent and judiciously
located, may be useful. When they are numerous
and bought at high price, they cannot fail to pro-
dnce over-tradinp and all its disastrous consequent
ces Rivalry and the desire of decentralization
! for hard baeain in obtaining charters, lead to
! dangerous hazards in making loans, and bank
ruptcies follow of course. These paraze the com
crcial energies and destroy the moral principles OF
| the country. When the state must have banks
the aiest mode of remuneration for the privilege II
grants is to retain all the profits exceeding certain
! 1ercey,taee That would leave no inducemeni n
excessive loans and issues. IL that principle oper
atss in the case of incorporating Turnpike compa-
MES how much more forcibly does it apply to q
banking company These de5ultory remarks are
hastily thrown out merely to excite you to consider
well bef2ye you act, by
J .4H old fashioned Politician. y