Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1842-03-01
FoR TRE E&QuyELR.

Since writing the article which appeared IN your pa
per Of the end INST have seen and prrused di'en
lively, the given 10 the enquiries OF the Com
nit,ec on Banking, appointed by the Legislature a:
| | do not see in these answers such measures recon
mended would lead 10 any practical result, without
the co-C pera'ion Of the banking institutions IN oh'
shborirg States, again take tie liberty OF address
ing you, and through the medium Of yeur paper, o.
explaining my views 10 all who may take interest III
this all.lmportant subject.
] repeat then, that account OF the giea' want Of
confidence prevailing rnrss general resumption
4 Of srece payments ~ tie Banks North and S"uih q
shall lake place, oc which sec prospect 2; pre-
sent, RESUMPTION safely be attempted IN TINS
State Until after lle outstanding dcbi due 10 the Banks
shall he reduced not to exceed more Than t;y per
rent, in addition 10 their actual capital THIS can only
he effected by gradual and steady curalnen; Of the
| whole outstanding debt and 10 make This curlalnlen
effective in any reasonable time consider It necessary
that no new paper ought 10 be discounted except when
offered Tor the purpose Of paying of larger amount o
old paper until the Banks shall have resumed specie
payments, fer, by dlsconn'ing new paper, now under
the Of business paper 10 BE- paid Of when due,
well know that This will lend 10 an indefinite, had nj
most sad, endless continuance Of the inability Of
our Banks 10 safe grounds, with any pros
pect Of pprmanency FIR, nine out Of ten Of those, 10
whom discount had been granted would calculate On
paying off their paper, when due by obtaining DIS
I count on business paper Of Ike character.
! ! am well aware, that the course commend, which
is leniert and favorable to those who indebted 10
who so indebted; but which s hest, That a
partial hardship shall be sustained for a season, By that
portion oil the community which is best able 10 bear II,
or that large portion of those indebted, shall in
consequences OF heavy demand, Immediately 10 he
made upon them, be plunged into bankruptcy, to the
great injury Of The community and Of The Banks them
selves: cannot doubt, but that every rejecting man
viii agree wiih me, thai it is better 10 torego for sea-
son, all the advantages which lie mil ht expect 10 reap
from discount at Bank than that such direfn cose
dnpn nh F tEn Pam re
qurcd 10 call in the outstanding debt due thein IN
any other thana very gradual manner especially,
if in the time lie solace himself with the hope
that Tie Banks will ere long by this measure he enabled
to resume and continue specie payments, and do busi-
ness hereafter OIL proper and regular footing.
On THIS view OF the subject think IL viii be neces-
sary that the Legislature shall require all the Banks
with their branches 10 reduce the outstanding debt due
TO them, 10 an amount not exceeding fifty cent in
addition To their actual capital in the speedirst manner
in which il can he safely done (Which think cannot
be effected than by the is, Of January next,
and hold it vain I" expect that this will hc effected
By any measures which will be adopted hy the Banks
themselves, in any reasonable time, unless they
thereunto compelled by the action q. the Legislature
observe, from the contents of the var,ous commu.
nications TO which have referred, that the gentlemen
at the head Of Banking Institutions, seem TO ap
prehend tho event of the circulation of their notes
being maternity Diminished in consequence Of their
calling any considerable portion of the outstanding
deb, due them, that the vacuum occas:nncd thereby,
will be filled up by paper Of less value than their own,
on the principle, that two curenclcs Of dssmllar va.
lue cannot circulate together.
At present, see no ground for this fear; for, regret
say that the rates exchange being generally against
Us, show too clearly that in situation,
with our currency, than the neghbourng States, either
North South OF and surely il cannot be believed,
that, when Virginia taking measures to improve
her currency, the neighbouring States would suffer
theirs 10 be impaired Ill value rather think, that The
Banks III the other States, can place themselves in
situation 10 resume specie payments than we
can, as do not believe that the system Of granting
disc onns accommodation paper, extensively pre-
walls any where in the Stale Of Virginia Moreover,
it cannot he Intended, that any shall he obliged to
receive in payment, any paper Of less value than Nr
GINA Bank notes. This, then, consider to be vision
airy fear and which, therefore, il is not necessary to
provide against at present.
But for argument sake, admit the evil 10 exist; what
will be the c0ustG ucnccs 10 the Banks who not 10
be compelled TO receive these foreign notes III payment:
| contend that nothing but good result 10 them
ihersrom; every thing which give ;ce: 20 he:r
debtors, mus; be advantage 10 the Banks. Their
debtors must obtain these fore notes. either NJ pro
curing discounts abroad, By the sale OF property,
which they could not dispose OF as we'll al home. In
either case If they can pass of the thus received
they will be more able 10 meet The curtan,ens, de-
mauded BY The Banks for surely cannot be supposed
that people will receive in payment The paper of bro
ken Banks or indeed Of any Bank whatever unless
they make it available 10 their purposes, according
10 the value al which they may have received IL.
| Let discard then, from consideration, magi
nary evils Sufficent to the day is the evil thereof
and sufficient will be the difficulty, to provide rene
dy for the evils which already exist Lei me close the
subject by admonishing that portion Of our fcowcit-
liens who debt to contract their expenditures a.
much as possible, and such in trade, to conhne
heir business within reasonable bounds, and to be gu