Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1829-03-17
For THE Enquirer

VIC Nouhtry TOT the worSs; that the value Of An.l.
have been destroyed by their influence. and tn.
no country can prosper. where lands are .ien.s.;'
sted below their true value; and now proee~a =.
inc redemption OF my promise.-I have ende svos-
Ell TO shew, that before thore were Banks In VII.
una, the people were prosperous and happy, and
We all know, that at this time, the people are in
general, ruined and miserable. One Of the e..i,.
consequences OF Banking Institutions in Virgin;s
was an over-tratng amongst the merchant ans
consequent failures to an alarming extent, wher
w r. "hi' cver-trading, there would have been
no failures. Had there been no Banks i, must n.
obvious, that no over-trading could have talen
pace; Tor, this over-trading as a conseuuenee If
arohciai Capital, and this artificial Capital con-
se9uchce Oh Bank accommodation. If mercantile
failures, are to be- considered nu rious m reo-i
then think that proof, most abundant can hs Es'
nished, oil great injuries to the people of Vfre;n;.
rom This source; and, if supply of artificial c.,
Ns can be said 10 conduce 10 wild Speculation. IA
consequent ruin then, 1 think all will ,dmis ,hS.
,nis EVIL may be traced to Banks-for, thew fir.
nished The artificial Capital. The Bank of tirr;-
ma went INTO operation in the year 1904 with
Capitai OF $l,509,000, and having no compet;,or.
= "'hk Iar 10 conclude, that its outstanding debt.
lions tive hundred thousand dollars. This lar.
SUN Oh money being scattered thro' the lana
specuaiions OF every kind were set aflost not ;,'
ueed' because there was any good grounds for
, ese specua'ons' but merely because the people
hau the paper money in abundance and thew W.,
resolved to make use of it. About the wear Isns
our commercial difficulties with England hal 80
stunned serious aspect, and all regular trade viii
Shat country became destroyed, some wears ha
lore the war. Commerce being thus brokan nm. a.,
our Tobacco, Cotton, and Bread-S,uff; rem,in a.u
from necessity, upon our own hands no snecuiss'
''ons could ne made to advantage, in any ariel,
when was connected with Foreign Commerce
IN 'nis stale OF things, our Country was soon fil
e" win spectators in Lands, and every mao vii,
could raise money enough for the pnrnoss ~. -
soon found purchasing Lots about The Town.
money being plenty, (such as it was,) lands ana
ots In and about the towns before the war go, ~.
t e .l'os' wonderful and unexpected prices; and
10 the year ISL, the artfil and deeis ninp man ~
Don't ths Metropolis, started a scheme for an onro
siaon Bank; and by means Of new accommod..
lions, extern. their speculatons in lots and Iands
so As 10 unite Richmond and Wcstham above. an,
iichmond and Port MAYO below ,naL;ng o.
splendid scheme OF metropoIi an i,nprovan,aS. "0
ABOUT this time, another wild Companv IVA. g.
3D. called Marion Hill Company, who determ;n-
&c TO improve upon the errors and the folJ;es If
o'"ers, anu cause the City Of Richmond to be ca.
tended 10 point below Marion HILL These naw
schemes oil improved specuIations soon ex,arJat
themselves throughout the Sla,e-and. like o,isr
contagious diseases, other States became infsc,.
70 me same extent As yet, however. tbese
.nS, we're only In contemplation, and all de.
pehded upon the creation of an opposition R,nL i,
'he session OF ISL, 'l2 If success attended hi,
APP"cation for new Bank, all con;em,I,teJ
schemes OF wealth and grandeur were 20 he rsai-
,len' ou. II the application failed then no ns,r
Iotcns could be made, and all inprovene,ts 80.
be limited to the old towns To those ,-hn ,na"
actors IN these scenes all the dupes looked for s,,c
6 ess-to those who were intelligent. and ners
lockers on, a feast of amusement was constantiv
sP.IIu before mem. Every art and Device which
couid DE Practced to dupe the Legislature avs.
resorted to; but that which was tho mos, ia,,oha
nie' and, verify believe, the most successful vac
,he name which they gave to the new Bank The
' 9 ~, Oh ms scheme Tor new Bank, both in and
Lon saIn I...l
we"' and prepared themselves TO practice every
necepnon. Alter great reflection and consiiers
l'on' they christened the new Bank, "Tbe Farm.
ers Bank OF Virginia" and in all private a. we'll
rs WEI. a. some public discussions, it was urged.
mat " The Farmers Bank was to he r...ssss e.,
me express purpose of granting supplies of money
20 the agricultural part of the Community. who !,
was said, had been unjusty excluded from All &C.
co .r in the Bank of ,Virgina With This
Emu imposing name, supported by fiimsy and
iecepuons arguments, this Bill passed the Leeisla-
ufe' and the Bank which it established. co,c.
nrhced It's operations in the year 1913, with Can
TAI OF two millions of dollars have bcfore sat-
,n' mat the Bank Of Virginia must have had near.
y OF quite Tour millions and half of dollars ont
Il one time, and is believed that very Iittl bot
u This sum- was in circulation in 1873 when new
ssues OF notes commenced from the Earmers'
odnk' In 1914, il was ascertaned, as nearivas
uch isct can be ascertaned, tha at notes TO the a.
mount oil between IL and I3 millions of dollars.
rom these two Banks alone, were in c,rc,,i,t;on
mo that they bad not half a million of spec;e with
ymch 70 pay these notes. in their vaults. Under
MS extraordinary state Of things lands and lots M
'ilos. every part OF the Country, became the
.e"su'e Oh money-thus Bverting the rule which
, AL times before had prevailed, that ,uouey
nouiu De Inc standard value of property Never
vas money so plenty and so cheap before. and lols
. , ,he CITY OF Richmond and Town of Petersburg,
ou Ear hgher. III said, than real property ever
old tor In the City Of London. No I;ft,c,,i'v .vss
ound IN raising money 10 any extent H., vy,;aht
e desired Tor speculative purposes for the owners
: o's a"n lands, IN and about the towns had moth
ng 10 do but advertise piece OF real p,one,tv "a
20 ,o'o al AUCTION, and they were sure to find
h.'.e ,or casn ana, perhaps, at double price,
'Dout 'he year 1915, there was no difficuHv in
eephg up these unexamped prices of lots; be.
aise me owners had become so Interested in the
aiue OF real Estate, and paper money was 40
ls s 'hat they would buy from each other, at
,; w. pees' ra'her tnan permit any thing like de-
''he W value; but it is highly probable, that the
eliIsion could not have been kent nm Iorger DIN
$40, had not the United States Rank been es,ab-
shed IN 1916; Branch of which was located in
richmond, in May, 1917; and thus new facilities
ere lufnished These united causes, produced
nd continued the same APPARENT stat. ~ nnex-
implied prosperity, until the wear Is1a ,,har 10
nc ainazement OF all, the United S,ates' R,nL no.
an 10 cuftsiI, and this drove the State RAMS IN
ne same necessity. TIE strange snectacls was
W. presented, OF three Banks in tie C;tv Of
.s.a''. 'u''"'hg al the same time; and lie
ressure Tor money, became somewhat inconysni.
az every where. Those who held lots and lands
oou' ''s towns, were obliged to sell them al auc.
on' ana abOut the end Of the year 1873. for tho
,st I,ine, IL was found that This Kind of nroperfy
10 both price and demand. This fact
1870 pa.u a. Panc' from which there was no re-
osory Neal property grew worse and worse,
n'i' rum marked almost every owner az jis vic.
M; out, as yet, this wretched state of things vas
onnn go, 70 the towns, and the country people