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

SDcCle. SlrCuidloi
l. Suspended way ''"' s44e,7s;, IS 2,92o, $50 6
!. Resumed, Aug l3ih, :, i. %, -,a =
ISIS,
> Suspended, Oct. li'h, -,,.,,- o-,3 o63 :
1899,
.. Resumed, reb'y. LIST, ~, N, 90 . ooo ~, I
1911, '-"'iof ~
8 Suspended, April o'h' am 400 :, e4oo 300 3
154l, r.h,,n,v la l3l2
c.. IT.. shnye abatement exhibits The amount c
,n1 circulation of this bank as near the seVera
ao,"s If susnension and resumption as the reports o.
hand from the branches will enable me TO make
have the honor to De, 49,
Very respectfully, Sir,
Your obedient servant,
J. w. PEGRAM, Cashier.
To JOEL HoLLFMAs, Esq,
Chairman Committee on Banks, House Of Delegates
F.nNens BANK VIRGINIA, February O. 1872
Sr--I have the homer 10 submit the following an
swers to The nrrrogaiores contained IN your cohnu"i-
Gallon Of the 18th nltimG: =, , e
n. notes of the Virginia Banks in Baltimore, Phlla-
l.lnhia and New York. but my information does not en-
able me 10 stale the amount with any 'hing IKE Certain
70 In the city first named the amount has been report
ell al S50On00 and above and IN Inc ohfi we Or; -
800 600 10 5000 900 of which the larger part IS IN PM
lalerhia. -, r. Tho
. The whole amount of their circulation out oil rhe
State, would probably return upon the banks sPeeNh!
after resumption; and would have TO be me- IN CON or
checks equivalent 10 ii. There is probably large
amount Of the notes ct the Virginia Bank in c'rcua-
,ion in the West and elsewhere and for the most Iait
lhey would be returned upon The banks through the fas-
tern cities
A LARGE reduction Of the circulation is the only mode
of preventing serious run upon OUT nanSs CONS
ouent IN resumption But what should be the extent
of reduction | am unable to answer with any thing
like certainty Il would he less, as The pubic
might confe in the ability Of the tanks TO continue
spece pay:nens and the business operations oil the
State a, large its commerce, agriculture. &c, shall be
re OF less active and prosperous and render necessa
nv smaller or larger circulation.
8 The present liability o. our banks To the North Tor
notes held there would he an imperfect measure OF The
demands 10 which resumption would expose them
There would he Domestic demand, as well as from eve
ry quarter abroad in which the notes circulating bnt
| am unable to answer how much the demand would
exceed the present liability of our banks to the North
4. | regret that have not been able to obtain any
information which would enable me 10 answer what Is
the amount Of debt due to the northern cities.
s. Nv opinion is, that the balance Of trade with the
northern cities against the State and against Rich
mond rs the great settling point of he State. II Inc
balance against the State, but IN It's favor the
credits we should have the North would be equal to
the debts and exchange would not he At premium
But what is the extent Of the nnfavorabln balance and
whether i, he on the increase, am unable TO answer
satisfactorily
and + / beg to he allowed 10 furnish copy of my
answer 10 similar interrogaorcs Of committee oil the
Senate as my reply TO these enquiries.
s. am not prepared TO say that il would be better to
require the banking institutions to redeem their circua-
ton at the great commercial points. In respects
it would be convenient and would tend TO strengthen
those points; but the whole not sure 1t would
result fivoraby.
l am, very respectfully,
Your obedient servant,
WIN. f. MCFARLAND, President.
J. HoLLEMAS, Esq, Chairman, &c
II may be answered in general terms, that our banks
are not now prepared to resume specie payments or,
which approaches nearer the Of the case that the
country is not prepared for II. The difficulty is two
fold lst the debt due from the State at large abroad;
and 3D. the embarrassed condition Of the country, eX-
GLIDING the rapid collection OF good debts
l. What is the amount Of the Indebtedness tc the
north is not easy ascertan hut it Is clear from The
rate of exchange that the exports of the State have
been and are less than the imports. So long as that
shall continue specie will be sought after toqudatc the
balance and none be returned through the ordinary
channels of commerce II the banks resume, there
would he an instant demand for coin not for domestic
use, but for expnt, which would continue until ex-
change was brought down to the cost o transporting
specie
There are no banks Of which VIC have any know
ledge which would be able 10 continue specie payments
in The face of proracted adverse exchange The Bank
OF England, rs is known, swas compelled, not long
since By unexpected reverse in the balance OF trade
to make loan in Paris to prevent the threatened ex-
hauson Of It's COIN The security OF the New York
ana eastern banks results from the fact that sterling
change is at par, below. Whenever the immediate
liabilities Of bank for circulation ard deposits, exceed
its cash means its general assets however naly ample
and secure furnish but inadequate provision against
public cxigency, resulting from excess OF imports
The question therefore when the banks will be pro-
pare r specie payments resolves itself into the question
when NAV the debt due from The State abroad BIZ expect
cd to be paid Hence the Importance of realizing The
full proceeds Of another CROP bearing resumption,
is apparent And it during the intermediate PERIOD tho
banks set themselves steadily 10 the reduction Of discounts,
so as to diminish the of purchasing abroad, our
next crop may aeusiby relieve the community from the
foreign debt.
9 The embarrassed condition of the country presents
another obstacle to speedy resumption II is generally
found to co-rxis with unfavorahe state OF the cS-
changes: That there is much prcunlary pressure s ap-
parent from the low and declining price OF every species
Of property and investment. TO some extent, the evil
may he traced the d;slrus and suspicion which pre-
vail, rendering capitalists tmid in the employment Of
their means and much the more Is any accession to
the grounds of d,trust such attempt at resunp-
ton in advance OF public confidence IN lis success to be
ieprccatcd tending aggravac The public embarrass-
mcnt The depreciation Of prices the vast amount and
variety OF stocks in market the general Indebtedness and
the sacrifices il would involve put out OF the power o.
the banks collect rapidly, and 10 the extent necessary
provide for early resumption he course 10 be pur
SUED is obvious, but the stale OF Tie times reucrs IL Tor
the present scarcely practicable Town and country are
already smarting under prcuniary pressure What would
be its severity ii the banks werencxoraby bent heavy
collections! What losses would Il ey not incur by in
solvencips which more iudugent course would pre-
VENT
The extent of reduction upon their discounts so as to
render the hanks secure agains; the demands 10 which
resumption will expose them cannot be determined with
certainty The experience Of former years docs not ena-
bic us to decide ulon The proportion of specie to cir
cuaton is now hghrr,han it was during long intervals
when specie paid to all demands and the circulation
is below what has been during specie periods II may be
that the time spl,t when largo circulation can be kept
out 1t is very certain if banks in tho Ian
nuace of the intcoaatory whoutrespect to the action
Of banksi in other States their circulation must be brought
down greatly beow lis present amount, how lar 1t m
possible I'll: fer their notes must in that event return
upon them and they will be under the necessity OF ccas-
ng TO The result would be- that the notes of our
banks would constitute an incon:iilcrablc part OF The
general currency of the STATE; and that deprecated pa
per Of every type in despite Of every effort 10 the Gun
irary. would force itself in'o circulation Without 20
inc into spccna,ians the to be called in by the
/ 80 ,x,,, ,,,or,, IN raSI,mu,iou may he stated in