Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1840-01-18
DOMESTIC.
FARMERS BANK OF ElRGi

DOMESTIC.
FARMERS BANK OF VIRGINIA..
At the Annual Meeting Q: the Stockholders Of the
Farmers Bank Of Virginia, held the 9TH day Of Janu
nry lS40 the President submitted he following report
whereuPon II was resolved,
.Tha the report subTn tied By the President be adopt
cd and as further evidence of the concurrence of
this meeting in the views therein presented, the said
repo., be published and copy thereof laid before the
General Assembly now IN session.
REPORT.
1t has not been usual TO do more, the annual u1eet
in- OF the Stockholders OF ths Bank than to present
cc3rendous vet clear stacmc:.: the general cond-
ton Of til institution The usage IN that respect has
been complied with on tins ocea,on as appears bF te
tapui- itacIE"c.s cX!....-: nr the recon- sci-
pecsion OF specie payments, and y" attentions miro
aaced into III. Of tic bank sac" the last annual
meeting. secai - cali foT e. addst'onair rpa't.
The board OF tue mother bs!A deemed it necessary to
resolve to suspend specie payments temporarily the
l2.a Of October last, The resolution adopted BY
the directors under painful Of their obligations
70 Il, institution andto the public, upon full consoera-
t:a Of The weghty and delicate po:n;s waic 5chooy-
ed them 10 consider.
L. must be known 10 al! those any way familiar w;h
the course Of business between ; city aud the c"s
OF Philadelphia aud Baltimore, taat suspension By
ther banks oil necessity exposes our oEa . t. most
,.r,ors and prre nt s<arGts Iic; arc the
po:tS from wi.;rA ar5" portion Of circulation =
returned b. redeem. =; winch nn.!cI "ro'nury c.rcu:n
stances y i,cnG rr locks Gsar.i ii funds Th!,
cur banks enabled !" PROVIDE ~ fn3@' ctcs. IL
ma be safely assumed that eight cnti!s OF t.ic notes
returned upon banks fo specie - 70 De- exchanged
for other funds come from E-ttir-c ana Phadcip ha;
and the demands hlTc o. lce been frequent that 1t
would scarcely be exaggetaton TO describe item as
daily
II hence appears why suspension in the Northern
cities must e attended serious consequences &c on!
banks The funds which they are accustomed to
rcl- ,f the redemption &c ti,.t notes become nnarai
in: and drafts discounted, with an eye 10 -" accumu-
la<io, ,T cprhfu VI iaI,,a
cations payablc at home Whilst the available means
of the banks would be t'"rcby greatly diminished, the
demands for specie would DC multiplied. Fer tine sns
pension IN the cities before ned would not tend
10 keep tie circulation Of our banks n:, but on TIC
contrary !. n!ow It rapidly back 4po.. tie, =
When specie IL at p.>:ainm 2! PER cent IN BAIT
more and philadelphia, and i waR for time as high
rs r. the strong Inducements TO the holders OF ho,es
and dcposcrs TO press upon the banks wood &c gene
rally yielded 10.
The condition Of this bank at the date Of the resolu
zion TO suspend such 10 warrant confidence IN
its ability + meet afY thu: short OF unexpected and
.ytraord;nary crisis Compared with former years It
was in . state Of more than mary security The d.
rec,o-y had been impressed with the Importance OF
strenr thcn:ng he bank and had aE?ed Itself 70 that
end as carefully Just rrgarG . effects upon c
great interest of The community seemed 10 authorize.
In, Inc Of discounts had Dccn reduced since the be-
ginning the year, and along with il The circulation
and dep Is had tccH broEgh: down But yet the bank
Gas no, IN condition 70 abide with safety the disas-
trous reverse 10 which i Unexpectedly exposed by
the Suspension of the Northern banks II was upPre
hcndcd that the unequal intercourse which would su-
rcrvene thereupon, would expose the bank 10 the
speedy loss of its specie to supply the foreign demand
for il. and hence il would BIZ also lost 10 the circulation
OF the State. And the chance of rcpcn'shing its
coin was cecua!ly cut off by the of the North
ern banks, an impartial regard 10 the rights OF every
creditor whose claims could not I'll be satisfied III CON-
"a well as urgent considerations of policy, seemed 10
leave but one alternative As suspension in the
end unavoidable, upon am prudent aud discreet plan
of conducting the aiirs OF the bank, tho rcsodto
aid but anticipate what, with widely different
1uences TO the community ard the bank must have
ensucd if events had been left to their course.
il is admitted that the foregoing view places our
hanks in state OF dependence upon the course OF
banks elsewhere that exposes them to suffer By their
Encouragement and indscretlon. The fact IS so; and
Il "a equally true of the banks CT any other State
country connected with other points or places By ac
tive commercial relations Its explanation IS TO be
sought the laws of trade that regulate the commerce
of every people whether domestic international
and exert controlling influence wholly independent
of all conventional arrangements II mag be grsred
that the liability OF banks Of State t. suffer h
the mscoG!,c, of those Of another, IS u some degree
ccra ton from winch they cannot wholly escape
but il may reconcile 10 know that II banks were
dispensed with altogether the sympathy between c..
fcrent communities would still exist, and rader any
conceivable u S-5!:o::y ":c cer.y
the disastrous consequences Of revulson beyond the
Inits Of the country in which it originated. And the
opinion may be hazarded that the calemtes attendant
mon such an occurrence, in extent and intensity would
be aggravated and recovery ro:a the pressure Of
evil time retarded for the want Of that very bank agen
ey which has been enormously supposed 10 be the head
spring of the mischief
It is not intended to say that change can be made
in the mode of conducting the hank, which vii! not
serve render it nc OF other banks, and
better able to stand the shock of vc'ssudes
4 change forcibv recommended by the experience G.!
recent years would be to restrict discounts TO ransr OF
strictly commercial and business character, having bI
n few ,non.is 10 run, and which was intended 10 ce
maid az maturity 1t is known that different practice
has NJ, ailed ]: tbs and other ..c Il the State from
their Foundation end that has LED 20 re creation OF
large accomnooaias debt The efectof such debt IS to
detract from the ability 81 the bank to conifoae 10
wants Of aid expanding commerce, and 10
leave the institution greatly more exposed than us
discounts were ccined to notes to De paid at maturity
The directory through the year. endeavored to con-
form their course TO this suggestion, respect to al
new applications fo1 loans 80 -c4aao tee old accom-
moda,on line TO he reduced 1t would corpcTt neither
with sound policy, The understanding with winch
this debt past contracted to insist upon s
toe rapid payment but if due regard DC had to the col
lection Of it, as IT may be eSpedient from time to
fine 10 call i, in and ce he taken to avoid the crea
ton of similar deb. in future, the consequences 10
the institution viii be highly salu:ary If this policy