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

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, no, suppose the eonlmi,,es Will psesss hsevty j
these answers.
CO. Aaswss to tie SIKH aud Seventh ln,efro
gatories.
fI The balaue. Of deb, being now against the Vir
GINA banks, II would seem that tue CO operation
the banks OF Baltimore and Philadelphia would No
furnish " with any additional means OF mee,in
the demands which a resumption would btise
This Is certainly true. Aud u the extent OF GU
liabilities in those cities our banks would be ea,le
on moge promptly for paynlen, TO The banks q
| those cites than II their resumption wee postpone
7 20 a later period. But whist tho eoiempoTaaeou
action iG this matter CT the states with which NJ
are in immediate cor,act--say North Carolna. Ma
~ and and Pennsylvanla-woud not IN the presen
state OF accounts relieve us from the payment
noses aud balarces out Of the sdte, II would let
ter enable MS 20 keep afoat the circulation whiel
constitutes our domestic currency. For, rs hav'
already minated, unless those states resume n
the same time. or unlsss II be Practicable to exclude
the use in this state OF the notes o. suspend,S
banks elsewhere, the bank, OF Vir:iaia would b
| called on, 10 The course OF comparatively shor
time for paymen, Of al their notes, by raising then
| TO higher standard OF value than some other cd
Missile currency.
This pesilioa was illustrated by the events Of ou
last resumption. During the two months ei Febru
| airy and March, 1871, the banks Of Riehmcn1 p,id
their notes in god aud silver. while the states have
named were suspended. The Bank OF Virginia al
Richmond redeemed in specie and ether cash funds
within that brief pesoc. Ss2l $40, or about one
/ fourth Of its whole circulstion-an amount which
must greatly have exceeded its foreign circulation
! the time OF resumption. Du;lns this proceeding
I these notes were bought up at a premium equal &c
| that on gold and silver in the etiecr, suspended
states, consequently they disifP,arsd from ordinary
| circulation.
The osloun, thus returned and redeemed by one
department of this bank within two months after
its last resumption gives the hes; data can arnish
OF the eurtailnent Of us business which presen,
! resumption, without tie corporation OF the neigh
-bourins states, wooll require.
1 televe that tie hanks OF Vmsinia will. a
measure necessary 20 their credit and utility.
| resume whenever lhUse OF Pennsylvania. Maryland
/ and North Carolina shall coneuD The earliesi
DIV" st which such p.ion ought to take place
depends On events which | canro, fcrssse. lmean
The ability OF the sommaniiy to meet such demands
for their debts must be enforced by the blnks in
order 70 enibe them 20 maintain resumption. To
what eS'ent the country Hiay he prepared lor these
payments, either row OF after the crops of the ap-
Preaching season can lie feali-ei, youf Committee
| can as well Judge rs ary bank officer.
Tire elsss Of debts due I, this bank which l. ia
most desirable 10 e,ll IN, is the Cd seeoaim, zion
debt; Hn1 this cur;ailnent OF per cent. every
60 JAYS, comm ,neins n the Is. OF Arr, mex, and
| continuing uni each ds5t shall bc fully Paid oT
has been already ori re bv tn. board Of directors
But IN addition TO th's lr,a nent OF the oceoTmo-
ds,ion notes, far i'at tho decline Of pubc conf
ience vii force the banks 10 coa,tae. their bush
ness tu anu SsSCeNAs
paper more spArlnsv, whenever another resump-
lion is attempted. The exact rate and IN etvals OF
this reduction must he governed so mrch by the
State OF things 1t the time, that should be az loss
10 suggest IN anticipation, any precise rule. With
q proportion Of spscis hand much larger than the
banks found Il Necessary 10 hold during cash pay.
men,s IN former years, the present panic serves 10
saev, that whilst public conhj,rce is so much
wsAke1sd they will be unable TO sustain q cicu-
l.tion much exceeding their immediate cash re-
sources.
Until ,hSi. investments shall be sufficiently real
z d exhibit such 4 condi;i)n doubt il our banks
will command the public faith in the permanency
Of their resumption. Desirable 4 return OF spe
Gle payments may be- essential as 1t is at all times
20 a wholesome commerce, and 10 iIicioas bank
ing; ard Indispensable as believe 1t will soon be.
;cn'e to the preservation OF the banking system,
.eieve it may be, IS 1t has been, retarded ty too
great haste.
Wi'h limited mporatons by our me- 'han,s,
ptopitous seasons for our planters, and c =nt
administration of the banks, our ability for per-
manent resumption may be established Nr '-o
resources OF the present year. WheiLef ]. = sUcr
10 await the realization Of these results, "a act IN
anticipation, those who are TO dispose OF the sub
lect will no doubt duly and wisely CONSIDER.
To enable the banks OF New York 10 sustain
resumption, it viii he remembered that the com.
meTcIal pressure in that city was lcr time runous
10 many; but severe as the remedy was. n reaction
ana revival ensued alter the banks established their
position IN inc puolc COla- ence. we nave no
reason 10 believe that an immediate cure can be
effected in system without 4 similar process of
depleton-ihe only hope is, that lie remedy can
De I'd nnis.erei with equal success by allowing
more time for preparation 10 those upon whom il is
10 operate.
8 Answer TO the eighth Inierosa,ory.
The radical change IN Our present system OF banks,
suggested Oy this in,erosatory, would perhaps
b; found imprsc,ic1 a: this tine. Whilst il
would give 10 the State m7re eqaal currency
| Especially during specie p.ymenis) by making al
our notes convertible at accessible points, it could
only be accomplished by giving a gseater Contra!
power and restraint Than IS now exercised by tho
parent banks over the business Of their branches
This change nigh. possibly be introduced INTO our
present system, without objection, by confnng it
to notes Of the larger denominations The principlo
here suggested has been benefciay prac,ised in The
New England States under a system OF independ
eri banks.
Very respectfully Submitted,
J. w. PEGRAM.
(Thc statements showing the specie and circula-
ton a, the several dates OF suspension and resump.
ton since 1887 lave been fdrni.hsd.)
Dates Of SR'pmSion anil Resumption II Specie
PsyzisH: By iie Bank Of Virginia, ,oih the amoun,
@Is Specie and circulation at each dale.
Specie. Circulation
/ Suspended May ls;h, is1z. sn97ss 81 ag29 $50 60
suspended October Iiih lss9, silica IL S7ssce3 90
ss.ameh FeIrgary lIi. isil, s1Ioi 50 2y29925 "
BANK OF VIRGINIA, Feb. LIST, 1912.
Sir-The above statement exhibits the amount Of
coin and circulation OF a. bank near tho several
dates Of suspension an resumption rs the reports
on hand from the branches will enable me 10 make
have the honour to be,
Very especially, sir.
Your obedient servant,
J. w. PEGRAM, Cashier.
JoEL HOLLEMAs. Esq.