Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1841-11-19
WIN. LAMBERT, Chm'n.
'uoMAs Richie, Seem
FUK TIT. l4UIHTN.
Resumption Of Specie payments by The Ganhs IN

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| FOX TIE ENQUIRER.
Resumption Of Specie payments Ly The Ganhs IN
| Iirgjnia.
The TO specie payments by the Banks OF l'r-
GINA important TO every interest in the State, that
the atte non of The Legislature the state Of those in
stutons must form the most important business OF
the approaching session. So essential these Insti
tutons of credit TO the best interests OF the Common
wealth. that il becomes every TO contribute what
he aid in directing public opinon to the true ana
proper TO be pursued, and in clearing oil every
difficulty which lies in the way Of forming proper
innate of what can be done and what ought to be ex-
pected. The writer does not presume 10 believe, that
he can settle the knoty questions arising in the cons
Iteration Of the subject; but he begs the use of small
portion Of the columns Of the Enquirer to present his
views to the public.
In discussing this subject, it is proposed first 10
slider the interests and wishes Of the stockholders
great effort is made by those who claim for themselves
the credit Of being the especial friends of the people,
to convince The public that the stockholders in The
Banks greedy set of moDopoliss, who are prey.
ing upon the vtals Of the community and rlctisng all
manner of fraud and continuance 10 obtain unreasona.
BILE profits their capital invested under most advan
tageous charters. Than this there can be no greater
mistake. To Bank stock is considered no
peculiar privilege. That cannot be monopoly which
every may emmy by aking the stock at less than
its par value; and speak the mind of every private
stockholder when say he would prefer that the value
OF his stock should be returned 10 him, rather than un
der present circumstances to hold interest in any
| Bank in the Sate-and If any stakeholder IN the
Banks is opposed 10 the winding up OF the business OF
those Institutions II is not because he prefers their
stock TO his money, but because citizen, he be-
eyes the people benefited by their continuance. Tie
Legislature must then, in acting the subject con-
slider settled that he stockholders not DESTROYS TO
be any longer considered holding any peculiar or de-
srable privileges; and they must in selfdeiencc do
if they are permitted, what is necessary for the safety
of their property invested in the Banks, even hongh
it should require them to ask Of the Legislature to
grant them the right TO close their business under
law relieving the capital of all the for!eitnrcs and pc
nallies which now hang it, if the Banks should
continue business under the present charters, without
amendment alteration.
The stock in the d fsren banks is held by the State
10 an amount exceeding four millions Of dollars the
remainder is held by individuals chiefly is not much
short of eight millions Of dollars, much OF which be-
longs 10 orphans and others, pabe OF managing II
for themselves According 10 information which may
be relied on this capital safely invested in loans, spe
Gle and other property In the management othe Banks
the State under the charter and the largest stock
holder exercises control which is irresistible by the
private stockholders, and such power held by The
State does in the view OF the writer, place the respnn.
sibty Of the present condition Of the Banks heavily
upon the Stale Ia it asking too much of the Legis
lature, 10 demand that The property of the State
we'll rs of individual citizens, be relieved from The
pcnates which threaten TO waste and rnn so large
amount of property Ii it generally known that
after the first Of January next, the Banks are liable to
of said inst tutons and that, after the first of April
next they liable TO pay ten per cent damages, and
fifteen per cent. interest on all unredeemed notes and
debts and the great waste and ruin of the hard earn
ings of the citizen 10 60 to I'LL the pockets oil foreign
brokers' /,
Whatever may be the wishes Of the stockholders in
the present situation Of the Banks, is by means
the choice of the people collectively that the Banks
should close their business, and no event could be
more disastrous every interest If remains for
the Legislature to adopt such course towards the
Banks, will bring about resumption OF specie pay
ments and reian in existence, institutions which are
not only convenient TO the habits OF the people, but
necessary the support of all the business and enter
prize of the State.-Denunca;ion, threatening, and
penalties will serve good purposc-Party preudices
must be discarded, and course of compromise and
enlargement must be adopted. If the Banks are ex-
pected to resume specie payments at gwen day, they
should be encouraged do So BY relieving them of all
penalties six per cent. on their dc5ts-lhs risk
being removed, il will be safe for all sound Banks to
make the effort to restore their credit and Standing,
by redeen ming their liabilities. Let il be enacted that, If
any Bank shall not, in good faith, resume specie
payments before the first day OF September,
1912 such bank shall cease from that day to issue
it's notes make discounts, under penalty 10 be
inflicted It's e6icers-bu, let it be permitted to
retain all the powers under the charter necessary for
the collection Of lis debts. If Bank shall have
branches let not the failure Of one Of The branches to
redeem its liabilities in specie after the gwen date oil
resumption be considered failure Of The whole nsti-
its issues and discounts and go into quidation and its
capital distributed TO the remaining departments Of the
bank Under such arrangement the worst that
could be feared would be the necessity of closing the
business of some of the departments of bank per-
haps the whole institution, but in this event The stock
holders would not have fear the waste of the capital
by heavy penalties inflicted by brokers.
II AS further encouragement and aid, the Banks
should be permitted the of small notes for
year or two after resumption The experiment of small
notes has been tried, mich 10 the comfort and conve
nence Of business. Such continuance would prevent
drain Of specie for purposes Of circulation.
Another important aid 10 permanent resumption of
specie payments will be- for the State to fnrbear to bor
row ofthe Banks large to meet the deficiencies in
the revenue II is generally known that the State is
at this time heavy debtor to the Banks at Richmond
for loans made to meet ordinary expenses as well as
the payment Of the interest the public debt If the
writer is not msinformed the debt contracted BY the
State during the past Summer with the banks amounts
to between three and four hundred thousand dollars
Taxation should be increased until sufficient revenue
is raised, and Virginia should not be again permitted
10 present the world the ridiculous spectacle of being
an applicant for loans, in time of peace and prosPer'-
~, at the counters of suspended Banks. If such
course is adopted towards the Banks of Virginia by the
Legislature as soon it assemblies, there is reason
able ground 10 doubt that these institutions will gene
Il fhe coursp of the and, IL any