Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1842-02-22
FOR THE ENQUIRER.

GIVING my views, suffice it to say, that nave
S" w., friendly 10 the establishment oil BANKING III
vs. from the numerous advantages derived iio''
sa0ns, nnerce. and TO every branch of industry,
onera,ions are confined within proper limits;
~ these limits are exceeded, far as TO prevent
vmsuts, and for considerable time too, BANKS
| : ,bsn cease TO be benefit, and may rather oe
',,sd As an evil, which it would behooHe US 10
of unless remedy can be devised, sucn as
S,,,hIs them 10 return to specie payments, WIN
y dangers Of sudden relapse. may be asked
monId consider to be proper limits for Banking
80 n which this is my answer, that consider
= ,,nes unsafe and unwise, either IN individuals
a.,,tu.ions to push their credit too far
an The Bank of Virginia was hrst estaoi'sheo' u
= law permitted TO discount to treble The amount
,ap,al- this might have been safe, wh'ie tue ca
~ "a moderate and no other Bank existed in the
-, unless am misnformed, it was not found
- or proper to proceed to such an extent, and
: over. did their discounts exceed double
moan, o! their capital
- ,bs establishment of the Farmers Bank, and
a...,ss Of Banking capital throughout the State,
:, c,pjon. that even in times OF prosperity,
IA, no distrust prevails, it would have been
.",uis, for all our Banking Institutions to dis
/ =. :, dopbIe the amount of their capital actually
| ,na question whether they ought TO have been
| ,.t,oexceed seventv-five cent. on the amount oil
.,,,t,l. o. whether they would find demand Tor
| - greater amount teeu secured paper. In
LtLs The present, i, is difficult 10 say what ought
3 n. amount Of their discounts.
.-e- oerhaps, was there period when distrust
Generality prevailed. The failure Of the late u.
t Of Pennsylvania, and the i'll success which
,p.nded many Of our heaviest spectators, tose-
9TH the alarming depredations which have been
,,,cd on some OF our Institutions, have produced
.Tsr, have therefore, ever been of the opinion,
the ..st suspension Of specie payments by the
"a ina, they ought TO have been ruled INTO steady
:. Nd cur:allment of the outstanding debts due 10
by gradual and regular steps, so as not to crush
eb,o,s, vet such, as would ere now have produced
.;i.ed feet, Of enabling them to resume and con.
.pscie payments. 1t was with PAIN, therefore
,aw that the Legislature of le39-40 required Of
7,ass oaig that their discounts should not exceed
/ :. December, 1910, what they amounted to on Isl
,3b,r, lS39 " ell knowing, that the Directors would
he the responsibility of calling for cur.a'l, with
~ 10 return to specie payments, while the Legsia-
Id not require it Of them, and while, on the con.
,hev were in fact admonshed to give increased
ooiation towards facilitating the sale oil the grow
:2ps
legislature, in adopting this course, were no
N Id 10 believe that our Banks were in situation
anne specie payments, 30 soon as the Banks North
would open their vaults for that purpose. In
toresaw they would be disappointed; as did not
g. nor Go | now believe, that general resump-
i 4, specie payments Will take place before coercive
res are adopted for that purpose.
s,oy now, that we are not to have United States
;, ,as, for a considerable time TO come, the ope-
i, d; which hoped would have had some tenden-
b.nr The State Banking Institutions into some
). and 10 restore q sound currency, | deem 1t OF
,p,or,ance that each State Legislature should en-
,,u- 70 restore sound currency, by due attention
n. conduct of lis own Banking Institutions.
heard II suggested, that good crops would enable
Ranks. without any coercion, TO resume specie
nsn.s Of themselves, by enabling planters and
~ 10 paw their debts to the merchants, and the
chlnis. in turn, 10 pay theirs to the Banks. !
y mol. therefore, that we shall, long, hear that
gcrease Of deb, due to the Banks, since the LIST
last, is owing TO the short crop of wheat made IN
State. mean not TO assert, that short crops are
N evil. but DO mean to assert, that it is a most
,ous idea to believe that, without any coercion,
crops would have the effect of enabling our
!. 10 resume specie payments.
.ver,ing to the experience of my past life, am
:a, that in times Of prosperity we launch out into
bier expenses, and into new adventures, requiring
BIZ. pecunlary means than the profits of past year
;arnsh; whereas, in times of difficulty and EN-.
immen,, all sober minded men are disposed to re-
ca expenses and to avoid new engagements.
I'D therefore ex pect great deal more from coerced
aans and industry, than from any voluntary re-
a:aments.
i ny opnion, a nst regard 20 the situation of the
o,s themselves requires that our Banks should
'llst into regular curtalment of the outstanding
due TO them, 10 be continued without ceasing till
arsenabled 10 resume specie payments; and that
! night be effected with as little distress to the
o,. themselves as possible. would advise that the
ias be restrained from making any new loans, be-
/, resumption takes place, and that curtail should
.aiotced every sixty days, on all paper, save and
= PIP, only sach, where the debtors, TO obtain some
oOnenen, thereof, would give farther security for
o.! amounts they respectively owe. By these means,
s.sve, that debts noc doubtful would be secured,
TIA. the debtors themselves seeing that they alone
.ned all the accommodation which the Banks could
l. ID would exert themselves to comply with the de-
/! made upon them: he who owed but little would
/ enabled 10 meet the curtal demanded, from the
II 'gs Of economy; he who owed more would find It
necessary 10 dispose of articles he might well
':nse with and the man in possession OF an
he, which IN reality he ought not to have, would
i necessary 10 dispose Of il, and thus, at the same
e. % tree himself from expenses, which, IN his
saasauces, he ough. not to have incurred. In re.
10 the commercial debtors, they would see the
ss'y Of drawing in their affairs, and OF content'ng
oe!ves with procuring such necessary articles, as
gu Dc indispensable for the supply of their GUS
na'' IN much shorter time, in my opinion, than it
= 's effected By any other means, would resump-
axe place, and principles of industry and economy,
Iosuiuied for those Of reckless extravagance and
4gaa,y
nay be asked, what is 10 become Of the stockhold-
many Of them widows and orphans, while this cur
gong on To this my reply is, that feel more
.'.fn Tor their stock than for their dividends; but
,@-F might suffer as little inconvenience as posi-
would suggest that half yearly dividends of two
rent on the stock be made in the mean time; and
'tma'S tina, larger amount Of nett profit than
aou'o accrue TO the Banks from their operations
:, !. .ne cu'ta,i was going From the preceding
,' oe seen that | am far from recomme nding suci
1,es Us would have an injurious tendency even or
s's''s 70 The Bank, or on the Banks themselves
.sH s'ockhoiders; for it is my opinion, that, IN
vi ahe than rs generally believed, the adoption o
Use would enable the Banks to resume, and per
Example oil Virginia, might induce other States
S'i'iaf measures, which, by producing simIla
J. esult
aware mat many will believe, whilst this curtai
"s w. mat The prices of produce and other pro
w " seriously affected by it. This believe Il
sa' mistake Tor so far the expectation of oul
ea.''ea on, we'll know that much the creates
o' . exported without the aid of Bank CAPT
s o the business being done by means
\, 1p'a' belonging to the exporters themselves
b., .'s sale OF bills Of exchange the Banks are al
~, "Oas 70 procure for their own accommodation
Planters and farmers need apprehend no difficult
sac 81 Their cfops after they are fairly in mar
a. IN may he asked, when, according to my