Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1841-11-16


interest," but 10 present before him inducements to give
activity TO his monry for the benefit Of the community
to bring 1t into trade, to increase the facilities Of
merce, and enlarge the of general prosperity.
All efforts TO evade and thwar these purposes should DO
made highly penal, and the corporate privileges OF
banks violating The letter spirit of their organic law
should be abridged annuled, according the enor-
nifty of the offence They are no more beyond tho
reach of legislation than natural persons The capaci
y tor mischief is inseparable from the power gwen
them for good This necessarily the case, and they
should be restrained BY saluary laws from pcrverting
this power to mschievous ends.
! 1t the position be correct, that banking privileges
should be conferred those alone who have an actual
surplus capital, not needed TO be employed any other
way, might it not be wise regulation, that a loan
made directly or indirectly to stakeholder, should in
voive forfeiture of his stock, or of The charter a
loo" TO a stochiotdr, 10 a .r
the capital Cor which his note is substituted The ar
gument that tho note OF stakeholder may be made
rs good as that Of any other person is delusivc and
tdlacous IL IS true III fact and therefore spacious;
but when examined proves BIZ unsound IN principle
charter is never granted 10 persons 10 enable them
TO issue notes to lend To themselves but that those who
nave money may associate and bring their toge-
Their to lend TO others loan one s,ockhoder it is
known, may be as good as that 10 another and each
has an equal right. Loans may be made in this way
not only until the entire capital is absorbed but beyond
ts 10 the amount OF issues the Bank authorized 10
make. There is in such cases. stronr temptation 10
wrong Tor the directors TO extend mutual ndugences
W each other 10 refuse accommodations to all except
the company, and when their Indebtedness is great
est 10 oepreciate the currency that they NAV purchase
at enormous discounts or receive il in paynen for
property sold at unreasonable prices. The plan pro-
posed promises to be eectua than any other that
suggests itself TO my mind, to protect the community
rom lhs unjust and neiarous speculation By ex,ir-
pating tue system OF banking upon fictitious caoal
: ne soundness OF the currency most likely Ia be-
: Pserved stability will be given I, exchanges; the
specr and merchant protected from the de vices Of tho
depecar, and the laborer paid in funds not liable 10
As a mo.
the dsor>o of ohviating The causes which have led
. might be made Of the currency, favorable change
Bank is the onlyPur banking system The Central
Communications to ti.tutlon which has dfused its ac
profession throughout 1ple OF every occupation and
tained by all the means State. This should be sus
: laturc. But besides this ms command Of the Legs
The public interest would be pfion am satisfied that
u single bank, located at priGed if there were but
capital adequate to all commercial | seaport with Il
CURED establish branch at each poioses, and re-
u facilities are needed. The many adva,Ayhich bank
. this uoul Id have the existing system, mas which
nfes, to all. Every section of Georgia would he
same currency, not liable TO loss by unjust exaethe
ofuneasonable premiums OIL exchange, and OF unilos
value throughout the State BY establishing a sub.
stanta crcdi, at home il would acquire confidence
abroad and enable those who wish 10 use their funds in
other States dispose Of the notes at little
crice There would be but little probability that
those who embark in banking with the view OF fabri-
eating money for their use could bring the insti-
tuition under their control to execute their pur-
pose This should be effectualy provided against in
the charter. That many banks have charters as yet
xpred, may give rise TO some difficulty IN carrying
this promptly into operation II the act OF IN
corporation were immediately passed, providing that
no other bank should be chartered and that the char
ofthose in existence, except that of the Central
would attract the attention Of capitalists and accumu
late strength the other institutions expired submit
these views to your consideration. II expected that
they will encounter the opposition oil many OF the banks
nov in existence, and the hostility of those towns and
cities ambitious Of reainlng bank But the public IN
teres, alone should be consulted; and the recommends
ton is made under the firm conviction that 1t Will be
promoted by IT,
reoniring the vera banks in this State their branches
or and after the first day of February there
ale redeem their Liabilities with specie IN conior
mty 10 the provisions of an act OF the last General
ASSEMBLY Some Of the banks complied with the re-
onisi,,on and still, continue to pay specie; others re
sumed for time but were forced from the heavy de-
mands made upon them, 10 suspend; while there were
others which from inability to meet their engage
ments or other causes, made effort 10 conform 10 the
law.
|, was made the duty of the Executive 10 order judi
ca proceedings against any bank for the forfeiture of
its charter upon due proof OF ITS failure to redeem ITS
liabilities with specie. lnformatlons having been
lodged proper form against the Georgia Rail load
and Banking Company, the Bank Of Columbus, the
Planters and Mechanics Bank of Columbus, and the
, Chattahoochee Railroad and Banking Company sus.
taned by due proof Of their failure to comply with tho
nrovisions of the ue Judicial proceedings have been
ordered against them and able counsel have been en-
poyed aid in the prosecution OF the respective cases,
for such compensation as this Legislature shall pre-
scribe.
The ntercs, that The State holds in the Bank Of Da
rien requires that should invite Your special attention
to its condition transmit TO you copies OF commune.
cations made to this Department BY e. H. hopkins,
ESQ., one Of the State Directors, in relation to some OF
its transactions and of my replies 10 him. and cor
resemblance with the bank also submit to you the
copy of conIact-the referred TO IN the letter OF
the Presdent-made with the New York Banking
Company, through lis presiding officer This Is do
cument Of extraordinary character While the Dank
places in the custody Of the opposite party large
amount ofi,s and other notes, TO he forfeited and
sold on non compliance with It's part OF the contract
if that can BIZ called contract which IS without mu
tnay the other party binds himself 10 the perform
ance Of act, nor does il extend to the bank any
power or privilege that it did not POSSESS independent
of the instrument. lfthcre any collateral, verbal
understanding, it without obligation, and rested
with the option Of The party to execute or not ms
, matter requires investigation. The Central Bank IA
the wear eighteen hundred and thirtyn received
large amount Of the notes of the Bank Of Dati-
, en- part Of Which is still on hand. This, with the
stock owned by the State and obligation TO protect
the community from loss, constitute sufficient consi-
Iteration to induce you look thoroughly into its ars
If there be doubt general principles Of the consttu.
tona power Of the Legislature TO exert controlling
authority over banks, the RI ut reserved in the SIN
nth section Of the ac of incorporation OF this insii
tuition relieves The matter II all difficulty. wonid
recomme nd that lis of AL descriptions be trans
terred TO the Central Bank under such regulations
will guarantee lis debtors the greatest possible IN
diligence, consistent with the rights Of its creditors and
+ the interest Of the State.
:, The Central Bank an institution which has afforded
more actual accommodation than any other to the
people at large, and has suffered fewer losses and Of
II less amount in proportion 10 ITS capital, ana Tue length
of time it has been in operation, requires The aid OF
your sustaining efforts has, for series of years, been
taxed with the support of The Government and heavy
j. Legislative appropriations Its power to do good has
!. been almost destroyed y continual encroachments
upon its capital stock but at time have greater
i yes been committed upon it than those suffered dn
Is ring the political year just ended from the acts Of tht
last and pr, Legislatures The of four hun
dred ana eighty thousand three hundred and nine
"a ,yacvcn dollars and two cents has been paid upon
- questions Of The last General Assembly and about Tn
d. sum Of one hundred and trtytwo thousand FIVE hun