Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1842-02-19

,or Of notes issued by their own banks.
3d. flhc payments TO be made out q tue state 'oi
ooJ unorte on account Of the interest or lrlncipai
So l,,. ,r other loans should exceed in amount The
funds created by the proceeds OF our exports, the bal
nce Inns arising against vs. would OF Course ior It's
correction require the transfer OF SO much oil our
Gle. -. v::;,
The northern cities be large, as The demand Tor
f,rds 10 rcmit scems TO be ncessant and urgent, WIN
an INCREASING rate exchange, but no opinion can be
formed BY Inc as 10 what It wouio ani'uh' " upon
fair settlement -
9Th Ii is manifest that the balance oil trade u, ana
b, hcn for some time against Virginia II II had not
,Lo nroc.e,, of our exports would have settled the
claim, upon US so that there would neither have been
o,casion for the transfer OF specie, nor The payment o
an exchange COR checks on the north.
9Th think il would be unsafe Tor the panks IN sir@
MIA 10 resume, with the expectation o. pels as 10
tain specic payments until by acuralnen OF their invest
mems they shall have absorbed large an amount OF their
GUN abtie, "a to make it mpracticabe that larger a.
mount could be used TO make payments Out OF the STATE
than would be required in return as e proceeds oil our
e1oorts The calital of the Bank Of Virginia armers
Bank of Virginia, Exchange bahh Oh Virginia, anu
Bank of the Valley in Virginia, may DC sad IN round
numbers te be - 900 O00 and Their NV siments about
sI6 O0O 0 and thus their immediate llab les must cx-
Gee. the cash funds in hand nearly ooootu iore"uce
these liabilities to one halt of that amount, ny core-
pondng curtamcnt of the investments would rona"y
trly rrnuire, TO Afford a medium Tor making payments
in our own State unless some currency OF Inferior value
should be introduced and tolerated asa SUBSTITUTE Tor inc
notes of our own banks IL seems very certain mat
an attempt on the part f our banks 10 eject prompe
curlament to the amount of oh 600 would be attend
m With much mischief and therefore it might be judi
ciois and advisable give reasonable tnc IN which
any necessary cur,amrnt should be made would su@-
rest that the banks and branches should Ill be required TO
90 oEcra,e ly of STEADY progressive united ac-
al ,I,,al bran Shp
have investments exceeding 30 percent upon its cap-
lal and the amount Il surplus profits, winch they may
respectively hold after eucins thercifom the amount u
ali bad and doubtful II ought To be rcmcmbcrcdtha
our ony for correcting existing Indebtedness
ina for imports interest," &c Of loans, except our specie
viii he the proceeds OF our exports nj The amount OF The
finds arising from this the present year likely
to be unusually limited. am of opinion that the co.
opera,ion of banks in other States l., not OF ~@tcft"
importance in enabling 10 maintain specie payments
So far n our banks may have funds TO mature OF sus-
pened points they would suffer loss Of the exchange
that would be CURED To make these funds equivalent
10 specie and would have TO he CAREFUL afterwards only
To take such funds terms at which they could he USED
without loss. The price OF every thing which We have
10 dispose Of at Suspended points is regulated by the
value of the currency IN which payment 10 be receiV
cd.
It'll have in answer 10 previous question, inmat-
ed an amount which i, 10 me The banks would ii
the least find It necessary to curtail.
Sh doubt whether it would answer 50 well TO re-
1uire all our banking institutions to redeem their notes
at The great commercial points as TO require Of all the
banks and branches 10 regulate their investments as
TO correspond relatively 10 the amount Of capital employ
3D. When curailment is necessary, II must and ought
10 bear in just proportion at al points. There ought
10 be some regulation by which the effect of curaiincnt
at particular points could not he defeated by no cural
ment or perhaps expansion at others equally ex-
tended.
The first suspension Of this bank was in concert with
the other hanks in the city, and took place on the l2th
October 1899. The resumption Of this and the other
hanks was the LIST February 1911, and second sus-
pension 7h April, 1911.
AT the time of the lst suspension the
notes of this bank in circulation was, S2l4 ,23o w
And the specie on hand was, -, 52i Al
AT the time of resumption, the notes in
circulation was, 2SS,3fo W.
And the specie ON hand was rs 63S 81
AT the time ofhe % susren: ion, the notes
in circulation was. i II .3o W.
And the specie on hand, oo,l'o 10
Yours respectfully.
JAMES CASkIE, President
| concur generally in the views expressed By the
president Of his department in the foregoing letter and
therefore deem separate communication suEeriiu-
DuI.
Very respectfully, your obi ser,'t.
w. P. STROTHER, C.shisr