Lynchburg daily Virginian. [volume] (Lynchburg [Va.]) 1852-1861, 1852-09-03
The Editor is absent for a few days.
The Merchants Bank of virginia.

The Legislature of Virginia, mas chartered
an Institution by this name, 10 be located in
Lynchburg.
We are informed that the books of sub
s%cription have been opened, and stock to the
amount of about $4,000 already subscribed,
leaving only $4,000 wanting, before it can be
organized and go into operation.
AS the system proposed by this charter, is
novel in many of its features, we propose
making n few suggestions on the subject. with
the hope, that they may elicit further inquiry
and investigation.
The propriety Of establishing an indepen-
dent bank in this place, would seem to depend
upon an affirmative answer to the three qnes.
tons following:
LIST. Is more Bank capital required to meet
the demands of trade present and prospective 7
I'd. Will tho notes of the Bank pass current
%importi
Bird. Will an investment in the stock, be ju-
dietary and safe to the stockholders
We believe that the entire business comnn-
nifty concurin the opionion, that Lynchburg has
for some years past been, and is now, made
quately supplied with monied facilities for
commercial enterprises, and that with more
capital within her reach, her operations would
be greatly enhanced
We have here branches Of the Virginia and
Farmers Bank with each a capital, we believe,
Of 100000, with permission TO issue twice that
amount, SO that the entire home circulation
does not extend much, if any beyond 81, 20O,-
600. And, when we loolt at the single fact,
that there will be paid out by our buyers Of
Tobacco, for that article alone. for the present
year. from $500, 600 to $l,Ooo,O00 we can
readily see hat money facilities can be strin-
gent here, when at the same time, they are I'm.
usually free and easy in every other city, of
which we have heard aught on the subject.
1t not therefore, surprising that these branch
es are unable to meet the demand of trade,
they have been willing and accommodating;
but, they have not the power-they have not
the capital. Out Of this demand on the one
hand and inability on the other, has sprung up
The Savings institutions ofthe city. which, by
tHy thSiSohH VII bCIJObiltS1 HAS utITdCJp0
some additional capital and made it subservi.
ent to the wants of trade. and at tho same
time. ander judicious fnanciering, Welded a
handsome per centage TO the Stockholders
Combining these two sources ofcapital, expert
ence has proved that there remains a large
vacuum to be filled, a large demand to be com.
piled with, and which all will agree, ought to
be met by a home institution. Moreover. if
such be the present state OF things, will not
the disparity between the demand and supply,
grow wider every year? Is not our city in
creasIng steadily in population. and rapidly in
her mechanical, manufacturing and mercantile
oPerational Will not the completion of the Vir-
ginla and Tennessee Railroad. add much to her
wealth and prosperity 7 Such, surely is the
sentiment of every thinking man. And, with
these evidences of increasing prosperity. will
come as a matter ofnecessity, a largerdemand
for capital and monied facilities-a demand
which can only be met by a new Bank.
What amount Traditional capital is reouir-
ed now, and what will be in a few wears. ws
cannot pretend to say; but, are well assured
that an Independent Bank located here. could
from the start, use actively a capital of $500.
600, and perhaps, when well established. twice
or thrice that amount.
2nd. by the charter. the State Stock do.
posted with the treasurer, is mortgaged as a
guaranty that the notes of the bank will be
promptly redeemed in specie. For example.
"A is thebolder of a note on the bank for 500
he knows that there is mortgaged one share of
State Stock for the payment of the note in sne.