Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1829-06-12

'e.isencer snu ". .. leieSrapn, nave statements,
which we shall lay before our readers--the first
contains Yiudication oftbe eonductof Mr.. Nour-e
the last, the whole matter Of Mr.. Fillebrown's
paying over to Mr. Newton ION the last day OF the
last Administration) the sum OF, $4,000 "iof 30
acres, more o. less, adjoining Fort Nelson -
These papers We shall give hereafter
FOR THE E.TQUIRER.
BANKS, NO. H.
The mysteries and difficulties necessarily at
tached TO Banking Institutions, are so various, that
none ought to presume themselves to be entirely
qualified to Investigate them correctly after the
have been, so long time as twenty years, i'm op-
Grafton. The writer OF these humble ESSAYS is
far from assuming as much to himself---yet, he
entertains hope, that others will unite with him.
in en- earnest desire to render wholesome the pub
lie funds of the people; for, if these funds give
Of the Commonwealth. This union OF actiea,
may elicit truth, and thus many may accomplish,
what one could never succeed in.
The first and greatest error, which il is believ-
ed the Banks have committed, was committed at
the very outset OF their business and for the sake
of better illus.Sation, will here make quota
ton from the Charter of the Bank of Virginia.
1t will be found in the 2ni vol OF the Revised
Code OF 1919, page SO, and is follows -" And
the amount OF the share or shares subscribed for.
except in the case Of the Common al,h, shall be
paid by the several and respective subscribers in
gold or silrer-one fourth the time of subscrib-
ing, one fourth within sixty days after the Bank
| shall 90 into operation, fourth within four
months, and one fourth within six months, to the
Bank Directors, for the time being: Propided al
| todys. That il shall - lawful for any subscriber
| to pay the whole OF his subscription money, or
any greater part than is hereby required, before
the time above limited for the payment Of the
same; aud each and every subscribe: 30 paying IN
ADVANCE shall have discount at the rate Of sig
per centum per annum, on such adyance."-l
have no means Of knowing how much OF this Cap
ital Stock was paid in within the time prescribes
by law; nor do believe, that either of the Banks
have ever, TO this day, shown this fact in salts
| factory form; but this, think, may be said with
great truth, thatif the Bank of Virginia, or any
other Bank situated in the same way, should have
made considerable issues of their own paper, be-
fore the whole requisiticn was paid up, and that
too In gold OF silver, or in something else, indie
pendent OF its own paper, which was convertible
into gold and silver, il never could, afterwards,
possess itself Of the CAPITAL Stock contemplated
and required by the Charter. Let this point be
examined. Suppose, after one fourth of the Cap
itai Stock was paid in specie, the Bank proceeded
10 do business, to an extent requiring them to is
sue their o,on paper, for one million of dollars,
docs not every one perceive, that when the ne xt
nstsiment should be called for, that il would DO
drawn out of the Bank itself, and that the Bank
I must necessarily pay it, out of the one fourth
which had been paid first into its Golfers, and so in
relation to adj the remaining roquisitions' And, il
this be true, is il not obvious, that the very foua.
dation OF its safety neper eristed7 A Bank may
very safely do business with metallic capital III
one and half millions of dollars, whilst lis oyn
issues shall amount TO four millions; vet, il is IA
from being true, that they can do safe business,
| TO the same extent, with solid and Independent;
Capital OF only half million of dollars. In The
latter case, ruin must inevitably ensue, al some
subsequent period. II il be denied that the las,
instruments, under such circumstances, must ne
cessariiy be paid in the paper Of the Bank itself.
| l reply, that after the paper medium had taken
the place Of the metallic, and driven il out OF cir
cuiatlon, 1t would certainly and unavoidabiy pass
into the hands of those who had to pay these in-
staiments; and when presented to the Bank, fer
payment OF Stock, the specie must be given Tor
them, or the notes in place of specie, could not be
refused, without at once destroying the Bank
Nor am able to imagine any for an error,
go fatal in the very beginning; and that the error
was committed, cannot bring myself to doubt
In such state Of things, the wonder is, how the
Institutions have kept together so long, without
being driven to the same necessity that the Bank
OF Ayr was, OF drawing and re-drawing upon
some wealthy and friendly Institution, and paying
interest upon the money thus raised. But, think
| IT is highly probable, that from the moment the
Virginia Bank went into operation, il was paving
interest for money; for il will be seen by the
quotation have made, that if any persons chose
to pay in gold or silver, before the time prescribed
6y tdtc, they should receive interest OF six per
cent upon their advances. 1t may be asked, why
have dividends been made, il such things have
| already happened, and profits have not been made?
The reply 10 plain and easy: the Banks are com
PEELED TO make diU,de1ds; for, il they once fail 10
declare them, in ordinary times, the various inter
ests which they have created in the Country,
would raise such storm, that the Banks could not
| sustain themselves under it., and strict examina-
ton OF their real condition would soon follow
| To avoid this, must be primary object with
| them. If il be said, that these examinations are
| made annually, by the Legislature, | answer, and
say, that such an examination s0ds neUer made
by the Legislature, nor any Committee thereof:
such examinations as are made by the lie gisature,
are mere farces-for, unfortunately, the Legisla
ture represents the State, a partner of the Banks
and, in general, the Committees of the Lepisla-
ture, feel as much desire 10 conceal the true con-
dition Of the Banks, the Banks themselves do
II ii be said that the present prices Of the Stock of
the Bank oil Virginia, prove that the statements
which have made are erroneous, then answer
that the Stock Of the Banks is a marketable arti-
Gle, the value Of which is regulated entirely bv
those who have the management of them. Vir-
gna Stocks, like all others, have no nscertaiued
value, intrinsicaIiy; the floating prices are in
continual state of oscillation, whenever the cur.
rent of speculation is rapid; though, in times ike
the present, they are still and uniform The com
mercial world, does not now offer any inducements
to disturb the smooth and tranquil surface; but lei
the scene be changed, by which commercial ha-
card is invited, and from the mild breeze which
now prevails, would flow tempest that would
soon involve the ruin of thousands. If there
shall be found those, who deny that the value of
Bank Stock can be regulated by those who man
age the Banks, will call their attention to the
value Of Farmers Bank Stock, three years ago,
just before the renewal Of its Charter. The Stock
OF both Banks was then down 10 fifty nine; and.
II Is believed, that some sales were made al fifty
eight dollars Most unexpectedly, petition for
renewal OF the Charter Of the F. Bank burst I'm.
on US, and before any for opposing il, could
be arrsyed, bill passed the Legislature extend
ing the Charter" In the few arguments which