Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1829-06-02
FOR THE ENQUIRER.
BANKS. NO O


Banks, standing by themselves, and uneonnect
ed with the Commonwealth, in my opinion, pro-
duce evils, great enough to alarm all thinking
people; but when the government shall become a
partner, 1t will of course take sides with the
Banks, and in the course Of time, must produce
tyranny and despotism. l have already said, that
the condition of the Country was such, that an in
dependent and disinterested legislature, canno, be
had, upon .'ia ordinary principles Of elections;
and that, when these interested members come
together, and, in their acts, represent the sove-
reignty Of the Countryside State in its corporate
character, being also deeply interested in the
Banks,-will form double motive for subservien-
cy, on the part OF the Legislature, towards the
Banks.
| If the members Of the General Assembly, in
their private feelings, are shackled with Banks
as to make them afraid,or from being stockholders,
it becomes their interest, to sustain the Banks in
all things, (though they will never acknowl ledge
the true motives which govern them,) il will rea-
Oily be seen, that they will eagerly seek
| some excuse to cover Themselves and this
| excuse they readily find in the great interest
which the State, most unfortunately, holds In
| these institutions" All the aid which is given TO
the Banks by Legislative. proceedings, is justi-
fed to the people by the fact, that the State is
too deeply interested in the Bunks, to disturb
them; and this very interest, if it is permitted
much longer to exist, in its present form, will, lat no
distant day, exhibit in Virginia a scene not very
unlike that which was exhibited in Scotland at ono
time, by the Bank Of Ayr, or in England at ano-
Their, by the South Sea Corppany.-The actual
amount now held by the State is, as believe not
less than one and half millions of dollars, and
the loans which the State has negotiated upon
the faith Of this stock. exceeds one million two
hundred thousand dollars.-All Legislation upon
| the subject of this stock and Loans GROWING ont
oil it, have been based upon the deIusve idea, that
the stock is sound, and whenever it shall be dis
covered that il is unsotf,ld, the deficiency will
necessarily fall upon the people of Virginia and
heavy fall twill be, unless am greatly mistaken
IrraN ba ootttx ofooxr t;ak .Ix.1l
This is point, which cannot be too quickly exam
ined into, and more appropriate time cannot be
chosen than the present, because the Charter of
the Bank OF Virginia is about to EXPIRE and il is
| certainthat en- application will be made to the
next Legislature for its renewal. Various cousid-
| erations unite in pointing out the necessity of in
yestgating and ascertaining the true condition of
| these Banks. In the first place, it becomesir i'm
portant that the State should stop the further ne
gociation Of loans founded upon this Cap;IaI nm.
less tits certain that the Capital is sound know
will be said that regard Is paid to the dividends
which this Capital produces annually and that of
itself is proof, that the Capital is good but thi.
does not follow, and l shall endeavor to demon
strate, In subsequent number, that the CAPITAL
Stock Of the Banks is, comparatively, of but little
value, and that demonstration will rest upon their
ot1,s shetoing At present, the State is ne rfectv
able to meet any contingency which may grow
out OF thorough investigation Of the Banks; but,
by delay, the evil may accumulate to so great n
degree, that all the talents and wealth of the Com
monwealth, may be necessary to save the people
from ruin. II not wonderful, that the represen.
tahves should not act boldly and decisively upon
this subject, because the people stand quietly nv
and whilst they feel and the wide spread ruin
which desolaes the land they yet fail to instruct
their representatives to probe the supposed evil to
the bottom. The representatives, therefore, do
not feel authorized 10 cause a shock 10 fall upon
the people, until they shall ask IL; nor do they feel
justihed In taking step, which will interrupt the
progress OF internal improvements. This would
be all well, IL the evil which hangs over us, could
be altogether avoided; bc' as it cannot the sooner
the worst is known, the better. A thorough in.
vestigation Of these institutions, would be better
in another point of view; for, If IL be found that
they are sound and solvent then new confidence
would be inspired and new and valuable measures
could be marked out. On The contrary, If the
Capital upon which all our improvements are bas-
ed should be found deficient, it would become
the duty Of the Legislature TO provide new means
to improve the internal condition of the Country
as l trust they would; for, my desire to see