Daily Richmond Whig. [volume] (Richmond, Va.) 1840-1842, 1841-05-22
Small .Noiss-Ths abuse Of ihsi, CONVENIENCE.

Gentlemen: | have read the above communication
in your paper of this day with surprise. Nav
calmly and dIspassionately he allowed to reply1 IL
Is stated that II the public make demands on the
Banks TO redeem (htir promises TO paul in coin this
very small portion OF their circulation, they must
stop issuing them. Now, slrs, | will ask you on
what terms was the privilege given to the Banks
at whose suit, and for what end1 At the time the
small note DILL was passed, the Banks OF Virginia
continued TO pay specle-albsit, the Banks North
and South had failed. To arrest the necessity of
their failure, the Virginia Banks pstitioned the
gisiature TO permit them TO issue notes under the
sum of hive dollars, pledging themselves that under
any circumstances, these notes should be redeemed
In specie. The Legislature granted their prayer,
with the wise provision that these notes should he
payable 10 com n the counter OF any OF their branch
es, and that the penalty for failing to redeem should
Oe 20 per cent, to be recovered in a summary w.y
before a magistrate. Why this clause or reserya-
ton, or, us the Banks no doubt will call il, hard
shlpi Simply because, IN 1888, they violated the
spirit and meaning Of the indulgence granted to
them. ms indulgence was granted with the e1
p-etauon that these notes, the triing amount of
per cent. OF their capital would be faithfully re
deemed IN coin, and abolish the nuisance OF small
shn-piasters $50 denomlnated) with which the COM
munlty was flooded. How did the Banks meet this
act OF graee2 They issued all their notes payable
IN remote parts Of the State, and would not pay one
cent IN Richmond Tor notes issued here. IL may he
argued that il the public demand from the Bank for
com Tor their small notes continues, II will drain
their vaults Of specie. This is n dream-an empty
farce. Hal the Banks, their last failure TO pay,
acted with prudence, perhaps may say with in
tegrlty, they would have had no occasion to stop
payment now. What WINS their course them
What is 1t now7 The same. Did merchant Of
fer them a draft on New York at ., or 4 months
they deducted half per cent per month. This was
perfectly fair, had the specie funds which il created
been 'eStTUed for resumption; but not So This
specie fund sold at to ~ per cent. premium,
making the enormous profit of 25 per cent. per an.
mum on their irredeemable paper. Assuming the
premium 10 Ire per cent, and the draft at 30 days
had this fund been preserved, in honesty il ought,
they would, on the LIST February, when they re-
sumed, have had two TO three millions Of specie or
It's equivalent in their Golfers beyond what they had
and might have laughed to scorn every assault up
on them. Now let them make their Northern drafts
n reserve fund to pay their small notes. Let them
meet the demands Of this trilIng nature Il say til
fling, IN comparison with the magnitude OF their r.
redeemable issues.) with cheeuulness. Let their
IelleTs be instructed that they the servants of
much abused and iorbearing public, and that pay
ing French Crowns at 10 cents to the holders OF
small notes, while they pay them to brokers at l09
will only increase the demand for Tetaliaiion-and
that 1t they think proper To refuse issuing small
notes, the pub have at least the legal privilege o
calling upon them to cross their s. making each
note liable 10 per cent. interest. Let such a course
be pursu, d, and the Bank officers must come TO
their senses, bc obligng to the public, the Drec-
tors be obliged TO wind up their institutions.
TRUTH-TELLER.
Richmond. May 90, 1911.