Lynchburg Virginian. [volume] (Lynchburg [Va.]) 1829-185?, 1839-03-14
From the Richmond Compiler.
MR.. TOLER'S BANK SCHEME.

was glad To see in the Compiler Of his morning
a" Review Of Mr.. Toers Scheme Of Banking"
since my original prcpossessions in favor Of that
Scheme have becnra,h strengthened than impaired
by that article.
Without doubling the accuracy of the statement
made by the Reviewer, in reference to the "aggre-
gate OF loans" on the capitals ofthe Banks of Penn
sylvania would submit TO him whether it would not
have been more just well more pertinent
10 have cited the example of the Banks % Tirqina
rather than that OF any other State, and more par
ncuarly of that State, which, IN proportion TO its
commercial importance. possesses larger amount
OF Ranking capital and consequently makes lower
PROFITS" than any other in the Union | have not now
before me the Reports Of our Banks; but have no
doubt, II g f." will refer to them, he will perceive
that they have at various times loaned least tro
and a nay hines The amount Of their capital.
But concede. Tor the sake OF argument, that the
loans OF Bank will not ordinarily exceed in Tie ag
Cregate 80 per cent upon its capital.-an what is
tue true result OF Mr.. Toler's projec as proposed,
e. makes appear that the result of the five years
operations vii be loss in interest of $3.50 900.
Even II this wS'e so, the State might very properly
embark in a scheme. which PROMISES tor so small an
actual outlay, to give il Railroad, stretching from
James river TO the Tennessee line, and connected
each oil ITS terminating points win managn'l'eent
works, which will pour upon it lntqtcutable amount
OF travel and transportation. But Ia order 10 reach
his conclusions, +" changes feature OF Mr..
Tolers proposition and om,fs another altogether
Tic STATES, Tor instance the amount OF interest," ~ DC
padb the State at $500, 900 annually, instead OF
$3.50 900, by estimating it AT SIR instead of fire per
cent annus; and il is confidently believed that loan
may DO procured at even less rate than i've per
cent And he allows to tie Bank no profit whatever
upon its "depostes" which il IS permitted TO receive
aud TO Ioan in precisely the save manner that II IS
authorized to use its capital, ant which 1t may be
safety assumed will yield sub. Gent to pay al
least one half of the " expenses and bad debts say
Soo'o0o per annum Recmying Els" statements
then, ~ these particulars, let us what viii, be The
probable results even upon his own in my option,
too much reduced estimate OF the loan account:
Interest received in five
years, after deducting ex-
pcnses, &c. according to
the estimates Of" f." Sl,l5O,00O
To which add one half
of the amount Of sex
penses and bad debts"
which il is assumed will
be paid by the destosites, 100000
Gives $1,000, 600
Interest paid by the State in five years on
S,ooo,o0o, at per cent $3.50 900
s :";' i Of '' ''' the a'''
Instead Of loss Of $3.50 900, according to "E,s,,
statement. Mr. Toler, l presume, never design
ed 10 be understood that his estimates were crit
ical'y accurate, or that the results would conform
Iisidly to these estimates. But l may safely, as |
do confidently challenge, any opponent OF tina,
scheme, BY any exhibition OF its financial results
which he may be enabled to work out, to show the
faacy OF Mr. Us essential conclasion which is thai
the combination of tho Banking and Internal I'M
pfovement policy, in the form suggested is the only
practicable means OF eiecting the great end desi.
red and that il will effect that end without hazs,d TO
the public credit and without the slightest bur,hcn
upon the people.
Perhaps it may not be amiss here to state that a
reduction OF 100000 per annum from the sum ap,
proprated to the Southwestern Railroad, in MIR.
Toler's Resolutions (making it 500, 900 instead of
million annually will cover the amount estimated
by the engineers sufficient 10 construct that road
which will. OF course present the scheme in still
more favorable light before the Legislature and
the people. r.