Daily Richmond Whig. [volume] (Richmond, Va.) 1840-1842, 1842-02-16
TuE,r,Y NIanr. =

TuEsp.Y NIsHr, FeL. sth, 1874.
Dear Sir-Having been engaged with the Boar
OF Directors, your letter Of this date dad not reoc
mo before O'Clock, and instead OF formal aus c
to tn, question contained IN Il, beg leave TO sdor
| the form Of letter in reply.
Iresrct that some of my answers to the question:
propoundei by the Committee were no; satisfactory
This, think, may justly be attributed to the nature
Of some OF the questions, which DO not appear TO u'
TO be susceptible of definite answers. ltwould have
been something like dogmatical pre,ens:on in m'
/ TO reply with confidence TO that which may depend
on circumstances that may vary every week. u
might be as reasonable 10 suppose that the officers
OF an army should lay down rules Of action to con.
due, difficult campaign before they were aware Ct
the movements of the enemy, as that the Officers OF
a bank, in the present crisis Of the monetary and
banking affairs OF the country should undertake 10
pronounce the manner and amount at curtaiiniens
which may, under all circumstance, be Necessary to
commence and nsaisisia specie payment. That a
slow and continued diminuiioa OF discounts IS re
qlisite 10 tina, end, have already said and feel
assured Of it, hut canno, hsz'rd an opinion rs 10
| the qudniun, the periods, or tie mode OF making
that dminuiiop. As 10 the qsI'iiHEn We must as
certain what reduction on. customers can bear or we
may ;akcn father than strengthen the institution;
as TO the periods, that mus; depend on the eomiog
| IN and value OF the crops. and the means OF the
country TO pay the debts to the town; and the
| mode, we must I've regulated hy the eapabiiity of
the different classes OF debtors. In ordinary times
It is the re,dest way 20 reduce discounts by reject
business paper, Nlt Mten til1t Carried 10
extent, II ernbarrasses trade ond causes Gee Inc
The prices of our agricultural products. by givics al
the advantage 10 the yea: spil'is;s over the
jerate dealers. a reelection of the accommodation
piper Is the most des sable out that Is slower IN
ITS operation, or VIC soon create mlrc susper6e Z
DEBT, and incur TIE heavy expenses Of mnl,itrdc
OF law suits. Much then must be i.it TO the dis
e.eiiou OF the Boards OF Directors on these points
From the iss February, ISL, 10 the 5h Apti,
following, when the BlnSs IN Richmond persisted in
M ~. Ia "a
tai suspended again. the Bank ct Virginia II mean
the parent bank) reduced is circulation upwards ~
one icu-th-tha: Is from $3.50 BIZ, 10 S6Ss ose
ana the consequence was that the portion which
was not sroush, IN ceased TO Be o. general circus
ton and was used only for tie purpose of draw
specie, while the notes which were no; conve rtse.
took the place in circulation OF the Convertible NOES
on the well established principle in aoli:icl eecno-
my that two Calculations Of unequal value can-o,
exist In that abortye fort Of two
to maintain specie payments, our stock OF coin was
only reduced abou. $4,000, but we parted with
o:aer funds eiuivnlen, TO specie 20 m Ike up the
tstenee. This fact shess tina, when 4 resrn,p
uon does take place, 1t must be Oy general 20 ops-
reuon oil all the banks OF this and the adjacent
states or we shall be inundated with circulation
Of inferior CcaiilY.
would afford me grsa: pleasure 10 give the
committee precise information on all questions Of
TACT, but on those which deem, not suscepti5l. Of
definite answers, | cannot venture 10 offer onuions
70 events / might present great array Of figures
ana calculations from which the Corulitiee ml,ht
he led INTO erroneous conclusions, and there fore
"hA ]. more becoming 10 conhne myself TO ssnsral
psHaip'eS man 10 Indu &c IN vain eonjecures. The
poSiuon take IS ih.s. that until there IS something
approaching equality in value between the exports
,nu imports oi tie state, especially in q lime Of
otsNus', there can be no security for the main,e
nance OF specie payments. The arrival OF every
rAIl road Car will bring demands upon Us. ami |,
premature G.temDf will only
OF thinss than now exists. IL will lie In nv ori-
non lar more just that the banks should Surrender
'heIr Charters, by which al claimants will have an
equA part cpsiion in the assets of the banks than
10 undertake TO pay 4, 4 specified ;ime (xhen thew
are unpteparedl these more lnpor;unaie applicants
who will crowd their counters until their spscie i,
exhausted, and leave distant notcholters 70 ayyai,
INC collections which shall be made from the debit
ots 70 the banks. IT, however, the legislature can
nave surlcient reliance on the banks 10 low then,
their own time aud manner of resumins. and will
only require them, every bank and branch 10 re
cuee their respective loans, including also their real
estate 10 sixty per cent. their capital before the
hfsi day OF January, 1898, they will all bona fidt
resume, confidently believe before that day nro-
v'ded Tue ne!ghboriny States will Cooperate with
them The Legislature cannot imagine how ,rk
some II Is to the higher officers Of the banks 10 car
ry on their Operations under the presen, n,orcyin-
inoidenis 70 which they are xrSsed. They would,
am Jushhed IN declaring, hail with the creates,
satisfaction the return 10 and maintenance OF
payments.
No man is more strongly convinced Of the evil,
oil an InconvertIole paper currency than am, and
prmI. me to cay, those evils cannot be succe.sI,iIv
corrected by harsh and precipilaie measures. his
case IN which the whole system is deranged. and
TO use the language Of my original profession. the
remedy will consist in the Alternative course of prac
tee instead OF the more vio'en, and active one.
have committed my thought. TO paper as thew
arose, and while have perhaps written with loo
much freedom for such en- occasion, beg TO assure
you OF my great respect.
JOHN BROCKENBROUGH.
To JOEL HoLLEMAv ESQ.
Chairman Of The Committee on Banks.