Lynchburg Virginian. [volume] (Lynchburg [Va.]) 1829-185?, 1840-01-16

u lA4s,Gr teFou snhnitrd ~ tie President lie
aiai ted, sd asa leahe, evidence al lie eon-
cuueucr Il tlas meeiihg u, tnc sieas fheiein pr
seoied Tie s8ld iepou 10 pubiish' 81. AID a enps
therroiaI bcleie he General Assembly now m ,ses-
siot." 50
REPORT.
i has Drl bfca usual 10 do NOR. a ihc annual
meeting Il iIe Stockholders Of tils Bauk, than 10
Hpttscut mfcadnu-, gel clear statement, Of the
general eobditiep Of tie Institution. He usage IN
that iesiec Las beeueonpied wiih On Tits casion
aprcafs Is die fabuat staten euis nov cniubiied
bat tic recent suspepsane sp eIa payments, and
tie alterations Introduced ,ao the charter o tie
halh s1ee The last annual meeting, To call Tor
an ndii'anal repoif,
The bo.nd ofthe moiilrr bank deemed lit necessary
10 resolve to suspend Specie payments, femrorarl!y
tht 12ili of October lasl. The resolution VAS ADOPT
ed by lie dntethts nhlefH painful sense ii teir OBJ
legations Z" Inc institution aud 10 thr public, upon full
consideration 81 lie wcishly aud delicate points
whoh II hchuotel tllem 10 eonsider
II mus lie known 10 all tbose Any way familiar with
tie course of business bets ecu tins ciis and the c,s
Of Pluiadeiphaaud BalHmoie that a suspension by
ihelf banks u necessity exposes uuf own 10 lie most
serious aud prfl leX0g emhauassmeps. They are
the points hom nbich Iarze poaiin Of oui cifcula
lion is returned 10 BE redeemed; which under otdn
a,y Circumstances is effected by checks dawn upon
funds which our banks enabled 10 provide ia those
eturs. il my be salely assumed that q hi ontbs
ufthc notes returned nppn our banks or specie, or
aud Philadelphia; aud the demands have Of late
been ftcqncGtt that 1t would scarcely be an cxag-
geraliou scribe them as daily.
il hence appears why suspension in the Northern
ctcs must be attended by serious consequences 10
our banks. ! lie funds On Which they dtr accus.
toned TO rely Tor tie redemption II fhelf notes be-
come nuasding and drafts discounted with an eye
10 ille accumulation OF such funds are made oi less
value lhan Obligations payable al Lome. Whist
the available means Il the banks would be thereby
erehtly diminished. the demands for specie would be
multiplied. Fut HE suspension ~ the cttles be ore
mentioned would not tend to keep lie culatiuu Of
banks ont, but on lie contrary 10 throw 1t
,apidly back nnou them. Wien specie Is At u pre-
mlnfn OF per cent "a Baltimore aud Philadelphia,
aud ii was lof atIn,e high as =, the strong in
dueements Ia the holdefs Il notes, aud depositots
10 prcss upon the banhs would be generally yielded
to.
The condition Of tlis bluk at the date ofthc roso-
luton TO suspend, such as 10 warrant confidence
IN is ability To meet any thing shoa oil IN uncxpcc-
ted aud extraordinary eltsis. Compared with former
years II III state OF more than ordinary sccuii-
~ The directory bad been impressed with the I'M
porsuac 81 StIeng hening the bauk and had applied
sef to that end rs carefully just regafd its
effects upon the great interest Of the community
seemed 10 authorZc. The he OF discounts had
been reduced since the beginning Of the year, and
loug with II the circulation aud deposits hid been
bought down. Bni yet the bank was not ia con-
dition to abde wh safety the dlsaslclous reverse
To which IL unexpectedly exposed by the suspen
sion of the Northern banks. II MAS apprehended
that The unequal intercourse which would suppryfnc
iheteupoa, would expose the bank to the speedy
loss OF tsspccic to SUI ply the furegn demand ior IL
and hence it would be also lost the circulation OF
the Statc.--And rs the chance ul replenishlug its
coin was elleetually cut oil by the contsn oi the
Northern banks, an impartial regard To the rights OF
every creditor whose CLAIMS could not all be sais6
ed IN CON. as well urgent considerations oil policy
seemed 10 leave but Que alternative. Asa susl Gu
sion IN the cnd unavoidable upon any prudent
aud discreet plan OF conducting thcaits o the bank,
The resolution did but JuucIpate what with widely
different consequences to the community &the bank,
must have eLbued, Il events bad been left To then
own course.
II is admitted that the foregoing view places our
banks IN state Of dependence upon the course ui
banks elsew here, that exposes them to suffer by their
| ml.manaenW and ludisctelun. The fact is So ;
and is equally true Of the banks of other state
'unfy, connected wlth other points or places Nv
aetn' Commercial relations. LIS explanation is 10
be snu hi IN the laws o trade that regulate the com
,ne,ce nt , very people whether domestic inlerna-
,ional and cftaconrollng influence wholly IN
d.peoJ,p, oC all conventional arrangements. llmRy
he o,,nto1 tI,t re liability OF thc banks uf our
eia,e ia suffer by the sconduct OF those ol another,
IS TO so,ae degree a COM. 'lon nom winch they can
not wholly escape but tim. " fecoheile US 10 hoo"
ihat il banks Nsle dispensed WV '.oee'nVI' 'he
sympathy between different conn. "n''es "oulu sun
exist, and under any conceivable form VI eo''iei"
economy would cary the disastrous cons i"e"ees3
a revision beyond the limits OF the county - "'i'e
II originated. And the opinion my be hazN. "'"'
that the ealames attendant upon such occN
renee. in extent aud IN enSib would be aggravated
and recovery from tho pressure oi an evil Tune re
tafded for the want OF that very bank agency which
has been enormously supposed 10 be the head spnng
ot The mischief.
lis not intendel to say that no charge can be
made in the mode of conducting the bank which viii
not serve TO render II more independent o, other
banks and better able stand the shock OF CONNER.
cial yicssitudes. A change lorcbly recommended
by the experience Of recent years. would be TO re-
strct discounts 10 paper OF strictly commercial and
business character, having bun a lew months To nun
and which was Intended 10 be paid at maturity. 1t
is known that different praclice has mevailcd in
this and other bah ui the State iom their louuda-
ton ; and that II has led 10 the creation of IA large
accommodation debt. The effect of such debt is to
deirac from the ability Of the bank contribute to
the wants OF aa active aud expanding commerce, and
10 leave the institution greatly more exposed than If
lis discounts were confined TO notes to be paid at
maturity. The directory, through The past year,
endcavofed TO conform their course to THIS sugges-
ton, IN respect To al new applications for loans and
required the old acc ommodaiou Inc TO be reduced 1t
would comport neither with sound policy, nor the
understanding with which this debt IN Yeas past vas
contracted, 10 insist upon lis too Iapd aymcn; bur
1.-THE due regard be had to The collection of IT, as IL
may be expedient rom time 10 lime call it IN and
care be taken 10 avoid The creation OF similar lebl
IN future the consequences 10 the institution will be
highly shutary. II This policy be carried out, and
discounts be confined within proper limy, II Inch
prudent directory are alone compete I 10 Judge
there VIII be rs great security is Ia be expected OF
human management and of most Other nptionS of
reform II may be SAID they are arbitrary ii not petn
cous aud rerench the safe aud valuable functions OF
a kank.