Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1842-12-24
4 DEMOCRAT.
FOR TIE ES-Q UIRER.
DaarS Sir

Dear Sir:
In former number, suggested the propriety of pro.
ecting the Banks from made by brokers and others
who make merchandise of specie, and thus keep the
community from the benefits which Banks ought 10
confer would not al all times make this discr:niina
ton in the demands for specie, but the present s pc
culiar crisis Without any crop TO recuperae her re
sources, Virginia is in most distressed condition, and
requires all the relief which wise legislation secure
Accom- panyng this, send you copy of the law oil
Georgia this subject, which you may publish as one
Of the e1 peden,s adopted there. The Maryland law,
presume, well understood in It's provisions There
levied brokers, which protects their Banks,
whilst Virginia is faf field for their operation 1t must
be manifest that the money dealer ought as we'll as the
dealer in merchandise, 10 he subjected 10 tax tor the
benefit of the Commonwealth, and his usurous profits
ought assuredy to be rendered liable 10 some OF the
conditions under which all other occupations
are placed. My present object however, is 10 suggest
mode of creating a sinking fund for the discharge OF
large portion of our State debts, and at the same time
bring about that consummation devouy 10 be wished
for the Of the State rom the Banks 10 ths
union and the consequent legislative interference there
in most Of the financial deraDgement OF the country 10
be- attributed. The State relying uncertain Bank
discounts TO pay debts, and borrowing large amounts,
which are thus Withdrawn from commercial pursuits
creates want oG confidence in both the State and the
Banks which always will produce monetary revulsons
The want of confidence in the sovency of the Banks,
so often asserted the floor OF our Legislature, mas
been the chief OF the depreciation IN The value OF
the stocks, and has placed this large portion OF the
resources Of the State in great peril sale OF the
stocks of the Banks held by the State at once and al
this time would end in the reduction of its value to
ruinous extent and would be breach Of faith by the
State as partner. Instead Of this let committee be
appointed by the Executive to represent the State AND
the part of the several Banks to fepresen, them
Let the bad debts and those that are doubtful be sepa
raiey Chased place in the hands OF the Banks the
specie and cash on hand, together with enough good
debts, including the current bills discounted, to meet
the liabilities OF the Banks; take the remainder which
will he notes discounted in the form OF accommnda
ton debt represent the capital stock, dvide TINS
amount by the number Of shares, and it will show
their real value. Leave with the Banks the bad and
doubtful debts for collection as Tar as praccaoe 10 De
accounted for when collected according to the ner' 81
of the State therein Then divide the good debts be-
tween the State and The stockholders, in such way as
to be equitable and place the evidences of such debts
as shall be assigned TO the State in the hands OF the
officers desgnnied by law. The debts assigned 10 the
State should BIZ Immediately secured by bond and mort
gage or equivalent security if the parties do not
pref.r to pay them at once upon condition that the IN
erast be paid semi annually, and the principal e3tin'
guished by animal payment equal to that proportion
which is designated by dividing by the Number OF
wears That the Bank charters have 10 run. Upon the
Of those debts to The State let the stock held
BIZ the Commonwealth be cancelled.
If this be effected, the Legislature should rrevecaby
and soemny pledge the interest of the debt and the
principal paid in, to the payment OF the interest," and
the extnguishmenl of the principal of the public debt
large portion OF the indebted community would have
certain relief; and legislative pledge, based on such
means would restore confidence to the public in State
Stocks The credit Of the Stale would be strengthened
and that Of the Banks also improved. say improved
because their sponsibility would be increased The
State would feel the sympathy Of partner, and The
laws would be enforced upon delinquents 1t IS the
height Of folly resort TO oaps 10 sustain our credit as
a Slate--Iet the means which we have, make
them available, and pledge them for the extngu'shment
of our debt and relief will soon come. The fnvoriie
doctrine with the Democratic party is d'rorce Of State
and Bank; and doctrine is sounder and no IN stake
more nischievp than TO disregard it. The mode sug
pes,ed is one which secures from all violence IN the
drorce and promises the best results Should any one
object that we thus withdraw half Of the Banking CAPT
tai Of Virginia. reply, is only the dead 'oegh and'
f the State we're out Of the way, and fair protection
given to Banking, private capital would always seek
investment such an extent as IS psohtaole, ana NO
further do not approve Of the repeal of The restrain
ing laws But, by chartering Institutions The caPal
to be owned by private individuals, such as The numef
GUS Banks Of Massachusetts and other States ano snch
as own, would be without the State as partner
Sound Banks, with all proper and just legal response
bili,es make il the interest of individuals to engage IN
banking who have the stimulus OF interest IN the m
nagement of their nstitutions and then enforce me
laws on all delinquents, and we shall have system
regulated and limited by the wants OF the commercial
communicable only safe, the only allowable sys.
TEN. | am led 10 this conclusion at present oy
many circumstances in the condition OF the State
but by none so much as the necessity OF pro
viding sinking fund for the payment OF our IN.
erest and debt Taxation must be resorted to-but
such is its burden at present, that fear the people
will no, bear it, Any thing which will SO Cypress, in
the shape of ,axa,ion hazard that most d'refu Of
caames, Stale reputation, is to be carefully avoided:
and believe me- Sir if taxation be pressed much further,
the demagogue,, of whom there is always plenty will
not fail to asaie The public mind by such appeals as
,his-"Ths debt was created without our knowledge
or consent, and the money squandered in Improbable
cd n n,yit" This va, done else here and why rot