Daily Richmond Whig. [volume] (Richmond, Va.) 1840-1842, 1842-02-17
RgsuMprIoN-viRGINiA BANKS.
ln,suosa,oSies propounded by the Committee on
Danks. to the Presidents and Cashiers Of the Sc
v,r,i Banks Of this Commonwealth
orpIeE EXCHANGE BANK OF VIRGINIA, \
Richmond, 3lt Jan. lS42.

v,r,l Banks Of this Commonwealth
IcoSrNuED.I
orrreE EXCHANGE BAxx OF VIRGINIA.,
Richmond, 3it Jan. ls4s.
Jort HoLLxnAs. Esq, Chairman;
sia,-ln replying TO the ntcrrogatories PROFOUND
,d by the committee of the house OF delegates oI
b.nk. received in your communication OF 2Slh in
,tani respectfully submit the following as my an
1t. The circulation Of the Bank OF Virgins
Farmers Bank OF Virginia, Exchange Bank Of Wiz
gina and Bank Of the Valley in Virginia. appear
from their several statements to have amounted o
the LIST January to about S6,sSo,000. Ii would
diff cult 10 form any decided opinion rs TO the amour
in Baltimore, Philadelphia and New York respec
lively and collectively, but from the general com
paint of the scarcity Of money in this state seem
TO be very certain, that unusually large proper
ton OF he notes issued by the banks IN Virgins
must at present DO in circulation or held beyond th'
limits OF or state.
2nd la case OF resumption IL is reasonable TO sup
posr that nearly the whole amount OF Virginia banh
notes IN circulation held beyond the limits OF The
state. would speedily be returned for redemption
because as they would then bc Of superior value Il
the local currency at suspended points, and nearly
nj equal value with the local currency at specie
naying points, Virginia bank notes would speedily
be displaced by the circulation OF notes issued 10y
their own banks.
81. Iitho payments to be made out cflhe state fol-
goods imported account Of the interest or princi
amount The funds created by the proceeds Of out
exports, the balance thus arising against US, woulc
OF course for its correction require the rsnser OF SC
much o. our specie.
4th. The amount due at this time from Virgins
20 the northern cities must be large the donanC
for funds remit seems TO be incessant anj urgent
with an increasing rate OF exchange bu; no opinion
can be formed by me as 10 what II would amount
10 upon fair settlement.
5.h. IL is manifest that the balance of trade il,
h,, ho.n f,rS time Nrcntn-
IL had not the proceeds of our exports would have
settled the claims upon us. 50 that there would
neither have been occai)n for the transfer OF specie
nor the payment OF an exchange for checks on the
north.
9th think i, would be unsafe for the banks in
Virginia to resume. with the expectation Of being
able TO mintl hin specie payments. until by cur
thin mt of their investments they shall have alb
torbed 50 large an amount oil their own Liabilities
ms TO make IL mpractcabe that larger amount
could he used TO make paymsnts out of the state
than would be required in return rs the proceeds Of
our exports. The capita, Of the Bank Of Virginia,
Farmers Bunk OF Virginia, Exchange Bank Of Vir
cinia and Binl, of the Valley in Virginia, may be
SAID in 10 md numbers 10 be 80 ,000,0 and their
investments about Si6,00000o, and thus their in,-
mediate lilbes must exceed the cash funds in hand
nearly 100000. To reduce these liabilities to
one hi'f OF tina; amount, by q corresponding cur
t,ilment OF the investments, would probably leave
ahoat an amount not larger than would be absolute
~ required 10 Afford n medium for making pay
m an,s in our own state, unless some currency 4
Inferior value should be introduced and tolerated
substitute for the notes OF our own banks. |;
seems TO be very certain that attempt on the part
ot our banks 10 effect prompt cuftaliment TO the
amount Of SO, 100000, would be attended with
much mischief and therefore, i! might be iudeious
and advisable TO give reasonable time, IN which
any necessary curtailment should be maze. would
nuggest that the banks and branches should all be
required to operate, by n OF steady, PRO.
grcssve, united action, SO that by the time speci-
fed no bank or branch should have investments
exceeding, say SO per cent. upon It's capital and
the amount of surplus profits, which they may re
tpec,iyely hold, after deducting therefrom the
amount Of all bad and doubtful debts. |, ought TO
b. remomhered that our only means for correcting
existing Indebtedness, paying for imports, interest,
SC OF loans, eXcep, our Specie will be the proceeds
Z" xpoIts, and the amount OF the funds arising
from this IN. present year, IS likely 10 be
unusually limited. I am Of opinion that the CO.
operation Of banks in other states is Of material
IMPOTENCE IN enabling us to maintain specie pay
iIents. So far as our banks may have funds TO
mature at suspended points, they would suffer
loss o The exchange that would be required to make
these funds equivalent TO specie, and would have 10
be Careful afterwards only 10 take such funds on
terms az which they could he used without loss.
The price Of every thing which we have 20 dispose
OF al suspended points, Is regulated by the value Of
the currency in which payment is 10 be received
7th. ! have in onswer TO a previous question: in
iima,ed an amount, which it seems TO me the banks
would at the least find it necessary 10 curtOil.
Slh. doub; whether il would answer so well 10
require all our banking institutions 10 redeem their
notes al the great commercial points, to require
OF all the banks and branches 30 10 regulate their
Investments, ms 10 correspond relatively TO the
amount Of capital employed. When curtai.men. is
necessary, it mus, and ough, TO bear in jus. pro-
portion at all points. There ought 10 be some re-
gualon by which the effect OF curiailmen; al par
iIcuar points could not be defeated by no curtail-
rent, or perhaps even expansion, OF others equally
extended.
The first suspension Of this bank was in concert
with tie other banks in the city, and took place
on the ~ h October, 1889. The resumption Of this
and The other banks, was on the Is, February 1871,
and second suspension 7Ih April, 1871.
AT the time OF the LIST suspension the notes Of this
bank IN circulation was, s2i4,250 20
And the specie on hand was, 1854 IL
At the time o! resumption, the notes
in circulation was, 222,2i5 90
And the specie on hand was, 1858 81
a, the time Of the End suspension, the
notes in circulation was, I4f $50 90
And the specie on hand, s6.I7O I6
Yours respectfully
JAMES CASKIE, Prssd, mt, -
concur generally ~ the views expressed by the
president Of this department. in the foregoing letter;
ard therefore deem separate Communication su-
pe,Au7us.
Very respectfully. your OBJ ssrv't,
W. P. STROTHER, Cashier.
JoEt HOLMAN, Esq Chairman &c, House Of
Delegates.
FAaNzas BASK VIRGINIA, February 9. 1912
StP-l have The honor u submit the foiOzing
ausv-r5 70 he nferrngatories contained Ia your