Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1840-01-07

TO THE LEGISLATURES OF ViRGiNil-I.t6. Al
lhcrc are diiulties besettng the action of the LcTs-
lature IN relation 10 Banks which every hoata man
OF all parties must wish to removed and in The place
OF the present disturbed state of public opinion sound
and wholesome confidence, based upon The known abb
htv OF the Banks TO redeem all their liabilities and to
furnish circulating medium of steady and ucccpta-
bic character, not only in every part Of own State
but wherever in our country the Vrginian in the trans
action OF his business may wish to his funds In
the honest endeavor TO effect desirable object
venture with much difdcncc 10 present THO following
suggestions
since, under the conviction if Virginia did not per-
nit her citizens To Use the capital of banks located in
the State, INTO the affairs 81 which, the Legislature
could examine, aud when necessary, exert such
troll rs would tend TO the safety and liealthG character
OF their issues that the accommodation Of banks ocat
cd cut of the State would be rcsorcd to- into the az
fairs Of which we had right to examine, any
hory to control the most corrupt tendencies for
experience had shown that sister States claimed the
power TO establish many State Banks they pleased
hc no bill OF credit clause III the Constitution TO the
contrary Notwithstanding and the first Bank of the
United States defiance Of all constitutional authority
had been i'll operation for several years. besides, was
not fair that State should be made field for bank
ing spcculatons, from which orr State capitalists
could derive advantage. II is true that, at the time
our first bank established, vast majority OF our
people opposed to the banking system, but Virginia
had done too much for the good of the Union to tacr
her patriotic she therefore yielded TO the
wishes of her sister States their notions about State
banks and the only means Of Dang herself justice
under it, established her own as that defence which
the occasion called for The system commenced,
but few years elapsed before the second bank csa
bshed, under the plea that competition wanting to
guard against the aristocratc tendencies of partiaes
favortes of Institutions and that produce would
sell higher and goods lower through the influence of
competing bank To produce all these good things, the
Farmers Bank estahlished-the Bank of the Val
lev the North western Bank, the Bank of Wheeling at
different periods afterwards, and recently the Exchange
Bank. Perhaps competition between different sections
of State may have given existence to the last
named institution.
There can he permanent standard of value in any
country but the precious metals and all estimates OF
labour and property It's result must be finally
duced to this standard And although the quantity of
gold and silver has been vastly increased since the
opening of the mines in North and South America, the
influence OF the increase in reducing their value has
been slow that will form favorable exception to
the rule of their permanence in value, affecting the
interests of society The question presents ITSELF
how protect the State and people of Virginia
| from the influence and domination, so far the
kes concerned of banks located out of our State,
and at the same time comply with the demands OF
a specie standard Of value. 1t be done by 1st,
placing the banking capital Of onr State rather be-
low than above the amount estimated to be wanting:
and 2nd, limiting the notes of our banks to Il much
higher denomination than tacy have been. would
say $50 at least and believe 30 would be better Ii
i
cuation of the of the Banks of other States of
less denomination than those authorized to be issued
by our own-no special calling in of the notes below
the limit need be made but let them gradually find their
return 10 the Banks in the regular transaction OF busi.
ness; and when once IN the possession OF the Banks,
be destroyed and Of larger denomination issued
in their place when the amount was large enough, and
specie when it not. Information derived from
merchants of great intelligence well my own OBJ
scrvaton, satisfies that the day has gone by when
yit for f
sister States, Virginia will in her own defence he
obliged TO permit their establishment and use within
her territory; and moreover, her dscontlnulng them
would operate as premium 10 other States to prrse
we're will, theirs by the whole amount Of profit derived
from the custom Of our people to their banks We had
best keep profits amongst cursclvcs-and if we
could induce, by example, sister States TO dis
continue their State Banks, there viii be arguments
enough for the purpose to convince jorty OF the
people of the L. $, that produce would be sold higher
and goods lower, with the aid of banking capital than
without il and under this aspect of the subject the ma
tural consequence would he, resort TO T. = BANK
with all the dangers exactons and miSdcmcanors ofsuch
institution, aided BY the history and experience OF IT'S
predecessors in permanently making the exchanges OF
our country in such manner would SUIT its own m
terest and debating not only the terms and conditions
of Ia" markets of our country, but controlling by cor
rt!pt all legislation calculated TO Influence her
prospects Of gain. The Constitution has wisely for
gina also forbcar prctcxT s
istencc by compliance with what IS now iicvitanic
(namey the employment Of banking caplta and csta-
bs her banks upon such Just and tar grounds
that they will be able to make the decnccs, furnish the
supplies and afford such currency the interest OF
the State calls for But the attempt to establish banks
so much restricted that they neither give good div
dends TO the State individuals, will not succeed
for, rely upon it, is wanting to establish such
banks as will answer Virginas purpose than the mere
passage of law they must have capital and the eXPe
rcncc Of the injured credit of the Sirc as well as the
fate Of the laws of last session authorizing an increase
! AZ, 4 that il,rr To-
gal enactment viii not produce the investment OF ca,
pi;a The unwisc restrictions OF the laws oil lS' ana
Of S59 forbade the expectation Of far dividends ana
thousands sent out OF the State that had been pre-
pared for the payment of the stock of our OWE banks,
and kept ready until after view Of your law satisfied
the owners that fair return could not be anticipated
from capital thus ctercd by injurious and unnecessary
rcstrctons and of the few shares subscribed Tor ny IN
divduas, | know that part paid tor new stock
under the impression that the Objectionable restrictions
of the late laws must be repealed to permit the State to
derive fair return upon the heavy capital she has IN
vested in our banks.
The cunning and fr auducnt who arc without capt
tai and who wish live by their ritS rather than their
labor from the force of circumstances, often Glamour
for an increase of banking capital and every argument
which their ingenuity can devise will be brought into
requston TO effect their object and what capital ticy
can obtain to BIZ invested in banks viii always II they
are TO be consulted be divided into as many separate
institutions as possible: for, the greater the number,
the better their chance Of playing oft their tricks upon
the banks and the community So general, indeed,
have observed this to be, that when hear any man
especially vocerons about the increase OF banking ca
pita set him down to be without capital himself,
and will venture that in nine cases ont OF ten, am
right I certainly have wish, that honest worth
without money should not be permitted to enter the
lists as purchasers in our market but such are rarely
clanorous and generally procure the requisite en-
dorscment to procure Bank aid whether there are many
or few; and ii is qe reasonable to rus, the safety
of the hard earning OF honest industry, the widows
pittancc or the OF the State TO the sackcep
ing of men who cannot procure backing but by men
of as desperate fortunes as themselves These argn-
mens them do not constitute inst objection to the Po'
sition that the amount Of banking capital should be
rather below than above the estimate that is wanting;
fir laying aside the liability to overeslate from the