Daily Richmond Whig. [volume] (Richmond, Va.) 1840-1842, 1842-02-16
:suMprloN-vIRGINIA BANKS.

~,i,l Banks Of this Commonw saith:
IL, Nvh,, is tho amount Of circulation Of N,
Vir~ni, Ranks supposed TO bs in each OF the cities
a. Baltimore, Philadelphia and New ork, respee-
lively md collectively
o. What amount Of circulation would have to be
hr-y.n 10 ptevent serious run on the Nrgini,
backs from those citiesf
81 What additional demand beyond present
li,nity OF the Virginia banks at the North arising
f,,,ra any cause, would likely be made upon the
Hanks Of Virg MIA from the Northern cities, ia case
OF resu.np;en1
Ali. What amount do you suppose to be due a,
this time upon fair seIiemenil from Virginia TO
the North I'm etiesl
s,b IL has been stated that the balsnce Of trade
VITA the Northern cities is, and has been, ogains,
Vi,sinia and Riehmond particularly. Is this your
opia,onl why do you think SO and TO what ex
tent is IL true
Oh. Win, would DO the caries, day at which
the Virginia Banks umc, and maiatain specie
rayn,su:s with the co opsration OF the Northern
Barks; aud whea without their co operationf
7th woald or would it not bc indispensable I'm
either easel {, eurinh the business oil the Banks
extensively; and il 60, 10 what arnouts upon what
dts.ription OF debts can II best be made ara o.
Whist intervals oil umel
9Th. Would i, in your opinion te better, that The
banking Institutions IN State, should be requiF
Cd to redeem their circulation, at the great eom
mcrciNl points in the State, or where issued as al
PRESENT. aal IL you think this would be an I'M
provement the present system, will you gave
your reasons for that opinion
oh. In addition 10 the answers 10 specific INFER
rog.ocies the officers n; liberty TO express thei'
general views upcn the 3ubiect OF resu'nPu n.
.iLidional IrieTrogd.o'ieS.
What were the dates OF the late SUSPENSIONS
anu assumptions OF the Banks respectively, COM
mencins IN lSS7I
Wta, was the amount OF srecie and notes ia
circulation in esch bank, including the branches, at
tie several periods OF suspension aud resumption
nfor,ssid-Ns neatly MS practicable
.7is,g.Ts to ise fs'egsiHs iai''r'ga'0''ss.
BuK OF VIRGINIA, 2d Feb. lsis'
Answers 20 The several in:srrosatotlcs PROFOUND
a by hc Commiite. OF the House Of Delegates on
thc - = January.
r-rer 10 the first Question.
have TO d.il on which can form even tole
rab, cs,imate Of the circulation OF the Banks OF
Vir-inia ~ the several cities mentioned. Letters
have ben dressed 70 each OF those places, ard
E,cn Indignation as rnsy DC obtained wal be sub
M ;ed 10 tie Committee. From the great scarcity
az money, 10Th in town AMI country, in Vrgins,
d. 3 pso5 .5'e that large proportion OF The e,reu-
l1'0n of itc tanks Of Virginia Is wiihou; ihe State,
rad wherever II be at present, Il va! rapidly mod
Us way & one through the channel OF the \ oFthern
fi-s while Virginia IS indebted 10 them, rs soon
IS N, resumption Of specie payments shall take
pa.
A-s,y,r to Ii. second Question.
L. ace tie circulation requisite for the business OF
e-s.y kind 10 the state could be kept fall OF the
Ispcy o. nc Banks of Virginia, it would not Re
necessary u withdraw so large an amount Of their
circulc;o1 IS il probably will DC under ;he real
,icur,s anccs tina, vii, occur, bu, Us the Virginia
notes ere withdrawn, the spacc they now occupy
vii te Immediately filed with the paper Of The
u-i-htoun- States. as Is exemPlhed IN the State
81 Maryland win Yir mia notes IN consequence Of
lie Withdrawal o. the notes OF the banks OF BA.u-
II-c. Much, therefore, depends on the contempt
r.aeous acts Of the Banks in adjacent States. II
they coll "a due proportion OF their paper, II will
leave room in Virginia for the circulation oil
oar . ger.
answer to the third Question.
Whatever amount OF the paper OF the Banks OF
Ni.-'Hi1 may be in circulation in the Southern and
Western States will, in case OF resumption be trans.
IE.tsi 10 ne Northern cities OF the most
o..sioo modes OF remittance that can bc made from
t'o7c States, and that paper, together with such
Inns on Virginia as may be held by them, will
reach the banks here through the Northern cities.
answer % the fourth Question.
have no means of answering this question at all
Cadslacory to myself.
= swer 10 The fifth QUESTION.
IEtre can be no suTer barometer of the course
a. tide between different places Than the regular
r-.e- 81 exchange. lis true, however, that the
gricriy ol exchanges Is occasionally disturbed by
l.frics excited by moaey jobbers foE their own
ben r., hut they are but trans:ory in their effect.
With Baltimore the rae al Richmond is about or
8. per cent. against Richmond, and 9TH Phi.adel
Vhia ABOUT per cent, and neither OF those cities
pays spceie-of course Virginia must send less in
Ta're 10 those places than she receives. With ~
York and Boston the OF exchange is still high
er owing 10 the same cause in higher degree.
Answer TO the sixth Question.
This Is puzZns question, which | approach
with great dfHdence, but will briefly state my dif
fcureS on the subject. A paper currency, not
convertible into coin the will OF the holder, is
great grievance 10 any country, chiefly fIoni its
tendency TO depreciation and fuctuaiion, which
Geranges the value ofproperty Of almost every kind,
but we aborng under that condition, and the
great question TO be solved IS, how get out
oft with tie least injury to the community. Banks
Tissue are the creatures Of confidence. and fear
tast three suspensions IN the course OF FIVE years
have created dslrust in the ability Of the banks 10
maintain specie payments, and many Of those who
can E!I5rd TO keep money unemployed, may be in
onej 10 hoard the coin they may withdraw from
H., banks, until they are convinced by experiment
q d; specie payments will he permanently continued
The Indebtedness Of the country TO the towns in
Virginia, and Ct those towns to the northern cities
!. 50 great that premature attempt To resume may
r-cstrate the banks without any adequate benefit 10
the community.
From the best estimate can make with the aid
a. come o. our well Informed merchants, the indebt
edrcs5 Of the country to the city of Richmond asne
- g east three millions Of dollars. With 90 much
O. their capital in the country, our merchants are
compelled 10 resort 70 the aid the banks TO enable
t.em 20 carry on their commercial Transactions and
. meet their engagements in the Northern cities.
AZ The agricultural products OF the country are
brought 10 m'rGet, many Of the country debts are
hluijAted and by the export Of those prod ucs the
hoctheTn deb:s are discharged in whole or in part
b'dcs, without the facilities given by the banks 10
F0me OF the shipping merchants and manufacturers
fr~ Inc lime Of purchase until the exports become
r-rI'1h'c, they cannot, in many cases, pay fair
r-c Tor counlry produce, or carry their business
wr rdvanlsge. IL therefore would seem to be inl.
polite 10 attempIa resumption OF specie payments
ur oite: he exposition OF the crop of tobacco now
b-~mung TO come 70 market, and Of our growing
crop e wheat
Egen then il will require great absteuiousness in
tic Use ofioregn articles OF consumption during the
ysar, auj a considerable diminuon Of the discounts
Of The backs, and that, too, at time when the coun-
trv is not prepared for heavy peeuniaEy pressure
inc prC snt crop Of tobacco, great sta pie al
tho abundant, ii is thought by those best quo.
FED % Judge will not yield to the State much ss
VIC previous crop by million and half or two mil.
l0ol 81 dollars. IL should be recolleced, too tha,
rJ3Y, halfof nur State debt has been within a few
gears dispossd Of jroa1, and then served as a re-.
s1urcl y-0 iaaio, but that instead OF receiving
ne base % pay for the interest
In regard % n reduction Of tire discounts OF the
hanks. use The language Of Mr. Gllialin, strong
su -p.ionisg "The Legislature does not and can.
Ip' hc aware, how slow and gradual the dimn uiion
o discounts must he, in order that universal distress
h.y tot cntue."
Tender as the subjee, is, must siy that should
" ifio'c.l 10 see such dminuiion, by the slowes
pr7cuc1he process, persisted in uut the bslance Of
itldc tllli he IN favor Of Virginia. or at least be-
come cquoiz,d.
CDlefs this can be accomplished before resurnn.
ton is c0mmcnced, | can sec no security for The
reim1rencY OF specie payments, inusmuch as the
brinnCfg must constantly be DISCHARGED N s,er;e