Lynchburg Virginian. [volume] (Lynchburg [Va.]) 1829-185?, 1838-12-03
COMMERCIAL CONVENTION.
MIR. ANDERSON'S REPORT ON BANK ING
CAPITAL.

-
CAPITAL.
The committee on Banks submitted tho following
Report
At an early period, when Bank capital in any part
OF the Union small, the Southern States ENJOYED
large and profitable import trade. They made
their exports directly To foreign markets. aud in
turn imported whatever they needed OF foreign iab-
rics. Then, II Southern staples proposed TO be
purchased on foreign account OF explorations 10
the States were made by foreign capitalists. the opc-
ration WAS not, ny II now ~, almost exclusively,
through northern agency. bnt in enher The in
tercourse was Immediately and directly with the
South-The South did not need ahy intermediate
agency 10 conduct her intercourse with foreign
mark g.; possessing IN the number and value OF
her agricultural staples the elements Of foreign
trade. and IN TINS respect enjoying advantages over
the north, she was her own factor aud her com
mcrcial prosperity, and as that involves almost every
internal interest, her domestic welfare not H.
able 10 be affected by tho ylcssitndcs which nigh,
occur III the markets Of the East or North. An OK
traordnaiy change has occurred IN the foreign com
mcrce Of the country , change which exhibits the
South IN the attitude of dependence the North
for the supply OF her demand OF foreign goods and
what is alike remarkable, Ion the sale, 10 mo,,iy
ing extent OF her staples intended for foreign con
sumption.
The change commenced about the time that the
North decided in favor OF policy which she has ev
Ell since steadily encouraged, TO her manifest and
great benefit, but oil which The South was reluctant
to avail herself, and has YET pioGted by as she
should That policy IL the Banking System. and 10
its powerful agency. as the North has applied II, may
DO aserbed in great degree, her g,ea, commercial
ascendanCy
The effect OF thus policy in concentrating al New
lork. where II has been appealed with equal judy
mcnt aud vgor. large portion OF the entire business
OF the whole country is obvious. II gave her capl-
tai, and capital was alone wanted TO secure CONNER
clal success The effect OF establishing Banks 's.
FIRST, 10 bring together for commercial purposes the
money Of those who should subscribe 10 its stock,
aud secondly, To render capital, raised capable oil
performing tho office OF largely greater amount dis
trlbned among individuals. As then, an Individual
OF large capital is an unequal competitor with one OF
small, SO state, city, which biiGgs To any branch
OF commerce the advantages oi ample means and cx.
tended credit, must obtain the superiority OF one less
favored in those particulars.
BY means OF her Banks, and their largo capitals,
New York has presented IA aiket IN which every
commodity may be sold, and which there is no dan
ger OF oyeistoch by the accumulation OF com
nod'tIes. She has not been under the necessity OF
restiaDDs hei dealn Is IN the products oil our own
or oliore'gn eo,.,modlues TO some small advance on
the actual private capital employed III Trade but has
been encouraged 10 enter largely in,o whatsoever at
tracied commeIcial enterprise by having II III her
power TO substitute credit tor capital. So ian Is she
advance oil the South, IN all The facilities which
are essential 10 commercial activity, that ior the
OF like facilities, many OF our cntc1plisng Ciii-
zens, OF no inconsderabc private fortunes, go hIth
or to profit by advantages denied TO them AT home
Your COMMITTEE do not refer to the commercial
ascendancy OF New ork. and TO the influence oihcr
bank capital IN building up and sustaining II, IN any
spilt Of jealousy complaint the contrary, thelf
object Is to direct public attention 10 what they re
gard rs valuable and powerful agent in her policy,
III the hope that II may lead 10 more enlightened
and lbe,a opinions among us.
If there be those who would seek for an cxplana
ton of Northern commercial ascendaucy in other
han he IN Hoo has
red, none, Is presumed, question lat has been
efficient auxiliary. To doubt twould be TO ques-
ton the conDexion between commerce and credit,
winch the experience, of this country only, but
OF the whole world has a.ceitalned 10 be nsepdrable
The inevitable tendency OF commerce is to those points
where credit may be obtained with the least discour
agement, and upon advantageous terms and without
credit, commerce cannot rise lar above simple bar
ter and mere hants have neither inducements nor
space for their vocation.
1t would have been desirable to annex TO this
port table showing the Bank capitals of the great
cities OF the North aud East and comparison the
small and uncomfortable capitals Of Virginia and
North Carolina. This has been omitted Tor the
want oi documents from which to compile II. The
f,c is however notorious, that there Is not point
in any part OF our country distinguished for com
mercia activity, which does possess in eminent
degree all the facilities for banking whilst the Bank
capital OF this State and Of North Carolina has been,
and IS, not only relatively, but absolutely small aud
wholly inadequate to their vast capabilities, and the
exigeucies OF trade
The Legislature Of this State, at the session OF
1897 authorised addition 10 the Bank capital,
which has been III part only SO far realized. The
law in respect a part of THIS increase has been
suspended and if II should be the pleasure OF the
Legislature al an earl day, again to bring the I'M
poriant subject under review, which IS most earnestly
aud respectfully recommended. 1t is hoped that the
terms may be SO settled as TO attract subscriptions
from abroad, the true policy being 10 recommend
her institutions by relieving them from onerous and
essary restrictions, whilst provision be made
against the abuse and perversion Of their powers.
The committee therefore recommend the adop
ton of the following resolutions:
/. Resolved, That IN the present condition Of tho
world It is impossible Tor any state TO enjoy high
degree of prosperity without awaiting nsehllberally
OF the Credit System
9. Resolved. That it be earnestly recommended to
the Legislatures OF n. Carolina and Virginia
crease their present Banking capital, and upon such
it st aud liberal terms will invite The investment in
our Banking Institutions OF both foreign and domes-
tic capital.
REPORT OF MIR. STOCKDELL ON MANU-
FACTURES.
The Committee on the subject of Manufactures
submit the following
REPORT
The Committee very much regret that the neces
sty for dispatch, denies them The opportunity OF fulfil
ling their duties they would DESIRE They labor I'M
der The further disadvantage vi having precise IN
formation in respect 10 several important points,
where many branches of manufactures have been in
successful operation upon a large and constantly
increasing scale. They are in compelled to
Ii,n,t 10 an exhibition of the ma