Lynchburg Virginian. [volume] (Lynchburg [Va.]) 1829-185?, 1842-04-11


second hand
The question Of Peace CT Um will now, probably
son be settled.
THE BANKS
We continue the statements embodied in the Reports
Of the committees of the Senate and House Of Dele
gaes, during the last session Of the legislature for the
information oi cur readers, but few Of whom from
he Emitted numb printed, Otherwise have access 10
lhcm.
In deciding npn the ablity Of Tie Eanhs in oxtraor
binary times Ike these. 10 resume and maintain specie
Payments Is essential HAT their immediate means and
fatalities should be correctly ascerianed and by the
application Of this test 10 the Virginia Banks il will
b. Al once perceived, that although periods Of gene
ffl confidence, they have maintained specie payments
when the dePr portion between Their resources and thor
debts was much greater than it is HOW yet that when
dsttnsl aud suspicion universally prevail as at pre-
sent II would be ha2adans if not an impraccal, at
tempt When the charters Of the Banks were ernnfcd
larger thane amount oicolnthcy reqnrcdtokeepo
hand was oi course never contemplated tatley would
be prepared all occasions 10 redeem thcir notes. IN spc
cic. on douand, notw itstgnding tie rIrsc 50 10 do
On the face 81 each of those notes It was known
that ordinarily no such demand Woud lc made upon
fhem, aud ihinh il doubtful whether il was eyer even
suspected that period would arrive Wien their issues
would hc returned upon them in such quantities as 10 en-
danger their safety In ts view Of tie subject il seems
10 us that the Legislature imposed upon itself IL the
terms of lis own cnacments, obligation To protect the
Banks from the consequences ola general rush Of tlcr
notes for redemption in specie. whcn ilom reyulsions in
trade or Other CAUSES. panic should seize tie public
mind by which the very existence Of those institutions
might be Jeopariizrd
1t may b. proper to observe here, tlat the rc5mina
Banks in PHILADELPHIA, as we'll as th5se Of Baltimore.
which are TO resume the Isl Of May are in much
better condition. iaras Their circulation and their specie
Is concerned, than those Of Argnia-the Banks of Phil
adephia having about twodoars of specie one Of crcu
luton, while those of Baltimore haycaboui dollar for dol
lar. The condition oiour Banks is showuly the follow
Ing statements made up 10 January last:
Immediate habHtcs. Immediate means
Bank "I Virginia, s3IG70t3 ii 2SS.eSi
Farmers Bank, 3l36,75 lO1I ia
Exchange Bank, 3S5 jt9 40 occ
alley Bank, $40 lO7 40 297
y. Western Goak 6ol III 9s Ss' ~
NJ Nj. Il OIL lcaling, GooG2s 2oG 32l
In the term immediate Eabljiics' is included notes in
circulation, due to other banks due to other dcposiror
dividends and bonusn the term "iomcdiatc means.
Is included specie treasury notes. due from other banks
ana n,. ofolhcr inks. But in oder to render the
subject still more ntclnen,~, we s;ioin statement
showing at Glance the relative proportion Of la.tcs
and aud also of the circulation and specie in each
to Wit:
In the En1, # agina, the proportion of immediate
means to immediate liabilities is !; s. :! and of
coin 10 cr ,'laton is as 10 3 o.
Farmers ha,,,,. Proportion Of immediate means to
immediate liabilities is as - to $32 and Of coinlo cir
culation rs 10 $50
Erchongc fonh- Proportion Of immediate mcans L.
immediate liabilities as 81 to s3G5; and Of coin 5eir-
enlation as to2g5.
Bd"h 9t Tic toHcy-Proportion of INN, date means
10 immediate liabilities is 81 to 500; and Of coin to
circulation as to 2.72 From the available means
should probably be deducted 1872 3l3 it being the per
cent dividend on the 18th ofJanuary 1912 Which would
MAXI the means to liabilities as 81 to 2l7l
.Nornccsicin Bn'h.-poportion of immediate means
10 immediate liabilities is as /. to 120S; and Of coin to
circulation Us to Psi.
merchants and mechanics Bank Of JEhceling-
Proportion ol immediate to immediate Liabilities
Is AS s toS!9; and OF coin circulation as 81 10 U2
From these statements the people can Judge as well
as ourselves o the ability of the Banks to maintain spc
payments under existing circumstances is indeed
an historical fact that in specie paving times they
N' WPn IN much worse condition than they are now;
hui II Was heeatNe there Of confidence and
they knew that specie, 10 any large amount would not
be demandedthe holders OF their notes Icing content
10 know thai they could obtain thy asking. Now how
ever, TIE case is dfcrent-and the probability is that if
the Banks were to open their vaults, they would be
drained Of large amount Of the precious metals either
10 be hoardedhy the mld to be speculatcd upon by
The brokers; and the necessary effect would tie rapid
cnrtamcnt o their ISSUES, and dscontinuance loans
while the channels of circulation would not be filled with
the hard money distracted from their vaults The Banks
would he So crippled Ia be compelled cease business
while the cry ct ''hard times would be thousand
times louder than it now s-aud thousand times more
just.
Ha coefcve resumption of specie payments would have
The elect, rs all men believe it would Of compelling the
Banks, IN sell def, nee 10 withdraw It's not, fr, m crcu
aion both III exchanging them for coin and by the educ
ilen OF their outstanding debts one Of its most injurious
effects would fail upon the stockholders in the discontn
uance OF their yearly dividends and as the Common
wealth would be an immense loser by that operation it
may not be improper here to show to what extent it
would involve the necessity Of additional taxation The
Stale OWNS.
In the banN q, \ 'I-.nla 1896 shares.
- Farmer Bank $500
!" Bank Of the Valley $50
- Northwestern Bank ASIA
= Merchants 4 Mechanics Bank 2O,
= Exchange Bank SIP