Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1838-07-13
TO THE EDITOR OF THE ENQUIRER.


From the journal Of the proceedings Of thr CONNER
ca Convention as reported in your paper OF The 22nd
inst it appears that the committee OF commerce recon-
mended and the Convention adopted resolution APPROX
ng application 10 the Legislature for increase Of
banking facilities capital II am inclined to believe
that neither the Committee nor the Convention were in
possession of such lights this subject az were neces
sary 10 enable the committee to nd understand
ngy and the Convention 10 adopt advseoly, the course
indicated.
Is it not known Sir that by the act Of Assembly Of
March 2o 1897, Authority is given to increase the bank
ing capital Of the State, S5640,l00, making, with that
previously in operation, 81 $40 900; and That the State
has bound herself to subscribe for and hold one moiey
Of that increase has actually subscribed and paid TO two
Of the institutions 1913 900 dollars; and has loaned to
three others 81 200 700 more, which, if they accept the
provisions and conditions of that ac is TO he converted
into their respective stocks and has invited individuals
to meet her liberal advances, and unite in giving 10 the
Commonwealth an ample banking caPtaE
All this she has done; and how have these provisions
been met by individual subscriptions, TO furnish the other
moiety Of the increase So $50 600: Why by subscrib
ing during period of fifteen months, the Of about
half million :! With what propriey then, with
what prospect Of success we 60 before the Legsa
ture ask increase OF banking capita The
will assnedly be- first complete that which has already
been granted and show its nadequacy TO sustain and
promote the various interests Of the Common wealth,
and then it will be lime enough 10 consider the subject
of further increase. But am one Of those, Sir, who
believe that the banking capital authorized by the exist
80
Objects to carry out the views and Intentions of the
commercial convention in relation 10 the direct foreign
trade and the other important interests OF the Common
wealth. and this belief is founded the provisions Of
tIa law, which State has had the first and
foremost Of the States TO adopt for the reformation Of
the banking system Of the u States; aiiude the
of March 22d 1897 for The regulation OF banks; the ro.
section Of which requires thai bank shall possess three
fths Of the capital stock subscribed in current coin OF
the United States before it its banking
ope TONS and the third section provides that the total
amount Of bills in circulation shall not al any time e1
coed FIVE times the Of gold and silver the actu
al property, and in the possession Of the bank. Now,
apply these sauary provisions to the existing authorz
ed capital of the State, which for the sake Of perspcni
ty we will call y 600 00O and what is the resu why
that on three hhs of IL 900 O0O which is 0O0O-
you NAV have sound and safe currency OF ST 0UOO00
about three times much the Stale institutions have
ever had in circuation including their 6eposes, which
Mr. Gallan in his very able pamphlet on banking, con-
sidcrs 90 circulation Well now, Sir, suppose for mo.
ment that the whole authorized capital in gold and
silver; and is it not evident tina, the circulation might be
safely and sufficiently increased to meet the present and
prospective wants of the Commonwealth But some
one may ask how the banks 10 become possessed Of
much gold and silver answer, by establishing the
direct foreign trade and breaking off dependence The
North for supplies foreign productions BY which means
the annual balance OF trade against u.s. and IN its favour
10 the amount of one 10 three millions and which can
only be paid in gold and silver will be at an end
and The consequent accumulation Of these means al
bon,e will in q few years realize the amount neces
sary to sustain the preceding posilions.-In connec
ton with thus outstanding our own resources at
home, should be the avoidance OF my banking con
nection with large Northern establishment; such, as
has recently been brought before the public eye in the
Senate of the IT, Staes-or experience has taught
that such connection be detrimental to the ine
of the South by the constant exchange Of paper
credits for its gold and silver and at expense, too OF
nearly per cent per annum. This statement is fully
borne by the fact recorded in the very able report
presented by Dr. Mallory to the Commercial Convention
and drawn from official sourccs-namely, that IN The
course of few years, the late Bank Of the u s drew
from the South and Southwestern States, in gold and
silver, The enormous Of % millions OF dolias!:-
Had this been retained within their borders and
reserved 10 sustain their local currency within The lint
talion our aw does any doubt that with them al
least the late arrangement of banking matters ano sus
pension of specie payments would have been avoided!
trust Sir our State will pursue the course she mas
marked out for herself in relation to banks and thego
vernmen and not hastily increase the NUMBER until II
shall be made manifest ALL that the existing laws are
inadequate to protect and promote the inst OF
her citizens. ISLE VI "l0hi'