Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1836-03-01
FOX TIE ENQUIRER.


Tho paper sYs.em be expanded ill bursts, ana the whole
involved ruin Of broken Bash The multi
pniiun u" DmS a the money to 10 tins
business aud M"o IS maIlpy; Ba"S.' with million" upo" millions
See On ccc.ut Of a late Speech Of nr. Calhoun.
The first enquiry presented on examining the bill re.
ported by the select committee Banks, increasing
the banking capital Of the Commonwealth is how does
It happen that this ancient Commonwealth, which was
SLOW 10 admit OF Banks at all and has been upwards
VI thirty years gradually augnlenng It's banking capi-
tai TO about SIX millions of dollars, should now, at
fell swoop propose TO double that amount: Can it
be owing the abduction OF Que million and half
of the capital Of the Bank of the United States -
The inadequate to the effect. Erg must
have abandoned her former principles and policy, and
eauglle cOnagion OF excessive banking from some Of
the neighborIng States, before the lever could rise
to such crisis this bill indicates. But few years
have elapsed, since the Legislature decuedly
in favor of matchmaking all the banks in the State,
and OF thus getting clear Of the increased expense of 50
many institutions With this view, the charters OF them
all made 10 terminate On the same day. But now
changc tout ccn New councils have in cnlnbi.
nations lined, and we cannot have too many hHnks
We To have Implications and Implications IN the same
towns besides NUMEROUS l:tle establishments in several
little towns to turn the heads Of the people, and to end
i'll tl!e ruin cxultingy predicted by MIR. Calhoun
And how is thus great scheme to be accomplished -
More than six millions of capital is to be aised and
threeGts, upwards OF three millions six hundred thou.
sand DOLLARS 10 be paid in gould and silver The 'il
does tell whence this amount OF specie Is to CONE
g.
one million and IA halt. " hen all that shall be drawn
out and TRY ruined TO build up the new cdlce II will
be half fnsrd-and whence comes the residue OF
materials; Experiments have teen made as to the m.
poraon Of specie from the other STATES and from abroad
for The purpose establishing Banks here and they have
failed When the Farmers Bank o! Virginia conin,en-
crd operations. Of the specie of the Older Bank
drawn from its vaults Not dollar came ilom
abroad. hen the Bank Of Virginia last year increased
its capital half million subscribe TO the james River
and kanawa Company did it add any thing to Its spe.
cal capital By the operation: Not dollar. How many
non.residents Stockholders in the existing bank:
Few This speaks volumes on the subject before
How, then, to obtain foreign capital: I'm
port Specie, say the needless and the reckless What
indictment is there to import gold and silver I'M
less they be profitable to the importer than broad
CLOTH linen, silk and other articles tor the use and con-
sumption OF the country Does any believe tina, i'm
porting merchant will invest part Of the bills OF exchange
he rens the country produce he exports in gold and
silver to buy Bank stock, when he knows he can make
more profit by keeping in The regular ue OF his business
In to this it may be asked, how do other States
manage to establish many banks with such large cap
itas That question is readily solved. In the south
western States where The lands fresh and fertile:
and money great deand bank interest is much high.
er, and of bank stuck is prohiabc and IN
v;es foreign capital! In many too, the States issue
their bonds for amount Of capita required and they
sold in other markets. and the proceeds invested IN
specie for the capital OF the Banks In other States
d
up By brokers and stock obbers for their benefit,
who sell out TO the unwary and creduluus Look al the
specie capital Of those banks, and you will find gram
OF wdleatin bushel of chatf. They may 90 on Tor
time, while the current Is smooth but whenever any Oh
struction fills in the way either from adverse trade,
panic from whatever cause what Is their CONDITION
The gamblers who them in motion have pockeied
their expected gains and leave the dupes to their fate
Is Virginia emulous TO participate IN thus state OF
things? Her currency is sound and in high credit
cIrc n hp
nouweath the Literary Fund and the Board OF Public
Works IRE deeply interested in the present Banks. is
this great advantage to be given up tor rash e1Per'-
rnenl, in multiplying Banks and indefinitely increasing
the circulating medium. And above ALL has the Select
Committee duly reflected the ordeal, through which
the community is 10 pass before the present b;nks VIII
allow all their specie capital to be taken from leIn: W
not become Imperative duty Of those Banks to call
their debtors, the moment this proJct becomes law,
to pay up large proportion of their debts measure
of proper precauton and protection against the iheVl
bic that will necessarily be made them f'r specie
by the new Banks? Their very existence will depend on
such measure However liberal the Directors may be,
they cannot forego the means OF preservation.
.Igam-Has the Commonwealth of frg mia lost sight
of its old andmarks In the larger Banks the State
retains paramount conroul In one OF them tae Irea-
surer the guardian Of her interest In the other, the
Executive Council elects than majority Of the
Directors although the State only onc-sxtn of the
stock. In the prclet, she retains the appointment
only of one-third Of the Directors to be appointed VIM
this Innovation be agreed 10 by the 1enea' As;fnoy
As sovereign State she ought to keep the cont o over
the currency in her hands, and thirty years eSpe'
rience shows that she has not abused her power.
The withdrawal Of the Offices OF the United States
Bank render the infusion OF more capital
but mack better srod be to procGcd moderately taah 10
TuSh into e1csss The purchase Of the debts OF ne OIL
ces OF the Bank Of the T. States by two OF the Stale
Banks, has relieved tor time the pressure that might
have followed; but as those debts called in, sone va
will be created which might be filled by establish
Hank n IN