Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1839-12-07

that brought the intelligence Of the snspen-
sion on the part of the Northern banks brought also
several brokers with considerable dapiands, who ina
rining they had anticipated the nc!ss, were not dis
posed 10 receive FROM any thing but CON- although
they were offered checks their own towns for their
claims. 1t may be proper here f. refer 70 tie course {"
trade which necessarily throws considerable amount
of the means OF the banks ni Virginia mic the Nor
tncrn banks and which for eq=a!,ZnE exchanges ana
afrrdng the facilities o; rcnlttanccs, without '.ic rish
ana expense of transporting COM renders Il cohEc-
nirnt that we should generally keep funds III those
places. The action Of the banks III Philadelphia and
Baltimore was sudden Tcgard 10 III" present sti-
pension that the banks here had opportunity OF con-
ycrtin@ such funds, deemed, III ordinary times, equal In
specie into actua! com. The international commerce
of the country requires that these connections should
exist between the banks III the different States, and
without them soinc Of the most important c"nvcnicnccs
of banks would be rs completely lost here II there
wee, 10 banks III the S.ar Had the banks not rcsoiy-
Cd suspend, they had another danger - chconnier
1t honc. Every one knows that the banks are Inc
creatures ol public confidence, and the moment IT was
ascrrainrd hv onr own people tia: The large BANKS Of
The North had determined to suspend cash payments,
aud the OF drawing specie from Them whir they
caul;i draw from i> were denied: an alarm would
law. been cl; lest the banks here might not bc able 70
ma tam specie payments under such circumstances,
and both Inc holders of notes and dcpnslt0rS would have
hustrncd to ohtan their share OF the coin IN the banks,
for c purpose of boarding "t making II an article
Of traffic Since the adoption Of the resolution dcciar-
mr. the CNpCGcncr III suspension, tn" 1GaE mas con-
,murd 10 supply, the public hrraly with change for
smaller transactions. while il has received none III turn,
except from officers of til nicd States ;litSrr special
agreements and il has satisfied very many applicants
with checks View or IT lower rate tiii tiS cur
rent exchange between the two places. II has also
been enabled to retain amount oil specie, WHICH has
kept the proportion between II and the circulation With
N In. limit prescribed BY the charter, and has thus
escaped violation Of the law that would nave been as
fatal 10 the charter any other
A., ,1a- OFT
Stockholders 10 the acceptance Of ID" new charter, The
most potrn; :at oi the forfeiture clause Their Tor
mcr charter contained 10 such provision, ana yrt th's
bank had ricc suspended under the cNgcncy Of cncun
stances and had twice resumed without hcurring IN;
dancer Of any excessive penalty The stockholders
had pad fun equivalent FOR the bcncht OF that charter
upi the wear 1912, and they deemed II measure OF
cxt. me severity he deprived OF their privileges with
ont ans consideration By the power 81 The State vote
| They could gradually have wound up their concerns
and made, .ooi more than their capital They may now
owe their corporate existence entirely I" the srcracr
and bounty 81 The Legislature, and tilc would minute
Is have preferred that the charter had been made repeal
able N the pleasure Of tlir General Assembly, rather
than h. subject The Inconvenience and possible loss
Ia which they are liable under the penalty ot forfeiture,
which e!nha-raSScs the regular operation :" the ls'in-
ton, and which may most probably happen wh'!e me
LEGISLATURE Is not III to relieve them from diili-
cutv That the banks must he exposed to such occur
rencrs under the present organization OF ihc pak"S
system Of the L. s. and under the principles ." when
they have been condu"tcd is obvious TO these VINO are
practically nragcd N the mana cement oi them lc
such establishments multiplied II the | ni"G
states and each ".av"ring t" become - rr"'ahc
- po,, hl, the paramount oh"cr Of their creation IS
ovrrl"",ud The great 'ccign N establishing ha.ths
! Ia promote arcuitrrc commerce and manufactures
~ Temporary aud moderate advances Ct thcr crHoi III
aid of individual capital and cntrrpriS" They ar not
intended to furnish capital 10 buy land 10 build ships,
or Ia erect lactoscsbut 70 supply the facilities nccc-
Sar 10 the exchanges Of The products Of these cardinal
branches OF industry. ana IN performing that iinc'"n
thew should he care, ul II avoid any excess that may
head 10 deterioration OF The currency Of the country
Til. injury which the country sus,an- from the prc
sent corr,. Of Banking attributable III great n!ca-
su 10 the practice o. extending loans III seasons Of Il
favorable balance Of trade, and III reducing them III
times Of nj adverse current Instead OF keeping Mp a
steady and arv Uniform amount OF discounts his
u,ay h. .ai;, and udicous policy private CONNER
"iI house; hut Banks public institutions, rnducd
with m pri!r@ Of adding to Il" currency .; the coun-
;r G:.G ar" other functions 10 perform tha mat 81
max r,r profit When >pcci, luwm.. :nto t, conn
my for our surplus products ~, Banks become slron
aud are tempted to ,x,an winch rnc"u ta",> >pcrua-
ioa and extravaganza, vel! a sri"i tncfpr'>ca:
and when tie tide turas, they are not prepared Tor the
drains a; fellow, ana are compelled !" resort 10 cur
taimen- when their debtors least able I" bear them
Business Of all kinds then !ass--inrcs follow, and
the banks themselves exposed 10 tie necessity OF
s.r,n.,,n The treat rrproJc oi the system, excess
.y,, .xt.an,or,a and ruinou$ comtraci"ms, might hr
aso,!rd ~ i,t-handin Ia" means afforded ~ GOOD
TIMES 10 ave relief in times less prosperous. ne
bank. would not be- profitable, but lii" currency
would be kept more cguab'c and the domestic "N-
changes more npr"rm. How this reform IS 10 be
brought atou, among hundreds Of banks established
under different laws, is very d:icu to determine"
vountar: change OF the system hr the banks them
selves would accomplish lbs desirable end, but d"'b'-
c.s :satiyr control would III S"i' ras.. /" requisite
I Under the prevalent course OF banking IN In" nltcd
State there is always danger that Suspension IN one
indeed some happy circuus shall cause decided
balance Of trade III favor OF the latter was the case
viii, The New I'm gund States during the last war, and
i now the case with New ork and Boston. In ' r.
Gina we can seldom expect such advantages L!kc
,rr other producing States wc hay" within the last icw
wears owing 10 the iaHrc OF crops consumed more ni
foreign manufactures than surplus produce would
nav for. and the balance agaTs. Us has been Guidatcd
liz The loans of The State taken abroad, On other words
BY borrowmg and by til disposal; Of much OF our la
uur!no capital 10 The cotton and sugar planters 81 tho
Y South Both these cut OF or greatly
reduced and W. have to rely entirely on our own IN
dus.rv and economy for protection. Happily, Ia" crops
of The, present wear unusually abundant, and our
surrlus products NAV speedily rive relief to the
ftry ana may enable the banks to resume Their caSs
payments without any ccercivc measures OH The part OF
the General Assembly But Sill unless The banking
operations of the n;;rd States bc modified b. general
consent or other way there can he no criiitncn
. security Tor kc"pin@ H." circulating medium OF Inc
country IN 4 sound condition The "Xpcrmnc" 81 tho
banks q late years and due regard Tor their own ~
,cf< and FOR their being il may he nationally
hoped, VIII b" adequate 10 nGncc them 50 |" iini' lhe
as to render all severe restrictions and penal
ties of lax unnecessary. Tia, the banks 81 rGnE
would have maintained specie payments he'd moi Tho
treat institutions IL The nri"hb"rng states SiSpctcd
there il no question. and il is for the wisdom {" the Hc
neral Assembly to decide whether under the crcuEl
stances Of the they justified III the measure
they adopted fior the reasons assigned IT be decided
afiirmavciv they lock with confidence TO The cgisla
tire for relief from the penalties TO which they may be
liable This bank Will cceriuiy ABIDE ihe TAT,
cnnpmon I, the other institutions of the State: but
il may no, be improper observe that there ar" tw'
circumstances attending this bank which present r"
culiar claims Of the private stockholders to the cons!d
ration and favor of the General Assembly Isl. !ha'
the present charter, with IL excessive penalties, was
forced on hcm bv the power Of the STATE vote. against
the assent Of majority Of the private, stockholders; and