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

To every man, VINO has the least knowledge of
the subject, II must at once appear wonderful that
| mere extension Of the Charter, should produce
| this extraordinary rise in Stock; aud the amaze
ment is greatly increased, when we recolect, that
the value Of Stock, upon every fair calculation,
must Just as certainly he regulated by tile state OF
its own dividends, as that the value OF cotton in
Virginia or New York, is regulated by its value
in Foreign Markets.
III, then, the stock OF the Farmers Bank in 1926
was worth only bfty- mine dollars, what circum-
stances. real Gdpe,liitious, have occurred,
since the charter was xtended to Justify the ex-
traordinary advance, 10 one hundred aud three
dollars per share? l assert that there has not on
ly been no favorable change in the state of Com
laerce, so as to improve the dividends Of the
| Bsnks, but that things have gotten rather worse
(tni! the last inonhs,) s. this fact must be known
to every one who has the least acquaintance with
| the times in which we live. Yet il may be said
and indeed, it has been said, that the extension
| OF the charter Of the Farmers Bank left wide
Held before those who manage the institution, and
| by judicous use Of the Capital which remained
the heavy losses OF the bank might be recovered,
and, therefore, the advance was right and proper.
Before touch upon the dangerous policy of en-
couragng these wild and ruinous calculations for
stdfe purposes, permit me TO enquire how il has
happened that the stock of the Virginia Bank
which was equally low, has also gotten up to a
price, at one time even higher than the Farmers
Bank' Surely, il cannot be said that the same
causes exists in relation to the Bank of Virginia,
and therefore, for the same reasons the stock OF
that Bank rose also: and il il cannot be so said,
| then other reasons and other causes, must be
shewn for the Improvement of the stock of that
bank The truth is, that there has been no good
| reason whatever, why there should have been any
advance from fifty ght dollars upon the stock of
either bank; and from the great increase OF the
| clock held by the state, which has been always
| accommodating under purchases made by aulhoris-
ed agents, II seems TO me that these favorable chan
ges IN the value OF stock, have been made to take
Place,or the purpose ofselng out stock the state
do not pretend to know, at what prices the State
| has purchased, bat think IL will be found upon
examination that very few purchases were made
| by the State, when stock was al its lowest. In
all probability, the spectators then purchased
themselves, and afterwards awaited themselves OF
the rise, produced by themselves, to sell out to
| the state.
BE this as il may, il Is certain that the state now
| owes third of the stock, belon ring TO the
banks, and those whose interest il is 10 cause il Ia
be done know very well that the deeper thew
can involve The State, in these Institutions, the less
chance there Is, to get the Stale 10 act rgdly to-
wards them, and therefore the more probable tina,
| the charters will be extended, as they shall ex
| pre, by which individuals will have before them
a ne" held, widely extended, and upon which
they can play at all games of hazard which can give
them chance OF either improving the value OF the
STOCK held by them, or OF selling il out 10 the
eiate 1T Is not even concealed, by those who are
interested in the banks that the sole cause of the
rise IN tiie stock, after the renewal of the Far
Iners Bank charter, was the new chance which
now presented itself for new operations, so as 10
recover the former value of the stock. put il
PLAINLY 10 the people to look at this policy and i,
VIII not only be found 10 be hazardous and almost
rh'nous TO the public finances, but unjust in it,
principle Is not the Legislature bound by their
very situation, to take care, and watch over the
very best interests of the people! and have they
NOT vested IN two banks capital of one aud a hal
millions oil dollars, which at this time are employed
| oy others' IN specializing upon the people, None
wiz venture 10 deny this, because the annual re-
cords OF the Commonwealth, will prove the asser.
ton true 1t, therefore, it was certain that. by
| extending the charter of these banks and eneag
ing IN new sPeculations, the full value of the lost
s'ocA Iou'u De received, just policy would frown
upon the deed, because the gain OF the bank must
he the loss OF the people, and no principle can he
sood, which sanctions state specuiaions upon the
people. GEORGE CIJNrON
To the Editors of the ENQUIRER.
| GENTLEMEN Since the writer of the Nos nj
u, Clinton finished the 10th No. he has taken
| some pains to check the estimates which are made
Ia mat NO., in relation to the state of the debts
que 10 me sank OF Virginia The writer is far
| from being disposed to do, or cause to be done
an unmerted injury to the Banks, and therefore he
taxes great pleasure in making CORE ct,ons of all
| errors winch he may have committed IL is pro
odoie thst The Item, contained in the 10Th No stat
~ .''e amount OF ueot due 10 the Bank, at one
niliion TWO hundred thousand dollars, may be too
nigh; but II will be remembered, that no posi,ive
| assertion was made, because the writer admitted
that ne had no means OF ascertainng these things.
and OF course, they must be left to fair calcutta.
lions:-in making this suggestion of error, howe
Ver III mat particular item, the writer has also dis
| covered that in putting down the bad debts. dine
to the Mother Bank, and the branches at Peters
urg,Lynchburg,an and Fredericksburg al $3.50 900.
he has also committed an error of $3.50. 900 in fa
Dor o. the bank, as he now thinks that that item
should be one million OF DolIars-Let both cor
rections be made, and the result as stated in No
10 will not be materially varied