Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1854-01-17
FARMERS, RANK OF VIRGINIA.


4, o annual meeting OF the Stockholders of The Farm.
s, nix Of Virginia. the President, Win. II. Mdcfarllni
rso after presenting report upon the state OF tho BinE
submI his views upon The eypedIcncy oil applying TO the
avisI,l.Ic for -wlereupon resolution "as
adop,ed unanimously thanking him therefor, and requesting
that he would them for publication They were as
follows
Gr:TLrMgS Sr0cxnolr Ill is net pfena tire a! this
merrjnu decide whether application shall DC mace 10
Ibe Legislature continue tic Bank beyond The period 10
which It limited by law The charter will expire. az do
those other Leading Banks the Stale on the hrst OF
April 1851; and lis management In the nte'm oush 10 DC
influenced by the consideration whether 1t Is 10 end then OF
be continued
Ts question Of closing continuing the leading Banks
Of The State il profound interest to the community
and Suy klaidcs, but not 10 each in the same degree
70 the Stockholders il ID interesting as involving Inc lae
OF an investment hitherto found 10 be safe and reasonably
pro6lablc Dscted may be- il is in their power 10 c5
innate pccuniay consequences OF The decision 10 them,
selves 70 do So il might suffice TO examine HE state OF
the nks exhibited in the reports and TO form an opn
ion c tic probable profits of banking Tor the future For
although The wiiceprcad embarrassment which would eusue
upon closing the Banks would eadaDger The collection OF
debts regarded as available" AID the eeImalcd value OF
Bank stock would be thereby reduced yet the loss would
probably be fully made By s enhanced value OF capital
Shopd the assets Of the Banks when distributed prove less
than was antc paed the ratio OF the deficiency would be in
the ratio of the decline U The price Of other descriptions OF
property leaving in the power O Stockholders ~ lndem
nlfs themselves for any nominal loss The surplus or con.
tupen fund amounting 10 more than ongnnth Ul the capt.
la without estimating for the loss OF notes likely prove
considerable item may dspe uneasness about the ISSUE If
The Stockholders decided 10 close this Institution
Tho INJURY respecting the profits OF banking hereafter.
does not Of course admit Of precise and satisfactory an
swer wsui be safe to determine II oy simple re-
ference TO the experience OF the past Our lu'ue VIII De
unlike the ST. in many particulars, likely 10 Affect mate
ri,y the safety ard profits Of banka. One feature Of dis
similarity Of no uncomfortable slgnclncy Is the ten
dency TO increase the Of banks founded upon basis
new dnu,ried by US In the proportion OF their
number Is The circulation which any one BANK may expect
10 furnish and a!ntan ind is well known That oar old
banks ba We been indebted formerly IMAM recently 10
their circulation good part oil their profits Nor II The
effect of number OF banks to curta the circulation oil ans
onc which Ia The only indeed the main matter ID be con.
s!dered in determining tho results OF banking hereafter
According 10 their number and they be distributed
through the community is the danger OF banking TO excess
AMI an Of banking Is hazardous MOI only 10 e DanEs
which may BE- betrayed into it, but To those that haVu been
cautious ar; discreet and the whole community. No
thing is more mchrvUus 10 the true Interest and progress
of tie State tuu multitude Of banks, rivang one ano
ther in their efforts expand helr business Inc ederaYe
feature which Glsag uishe this and the other leading banks
of the State furnishes perhaps the best II not The only at
,ainable security, against running into EXCESS by IT,
,hrnucb tic means OF branch legitimate demands OF
uny location can be provided for without Inc liabilities 10
abuse incident 10 multiplying the number OF banks
fear then that you cannot rely hereafter upon he safety
or the profs which you haze hitherto enjoyed Sllr u
may be your interest 10 continue the Institution snail
be The pleasure Of Legislature 10 grant oeIa CHARTER
There for your so Deciding not pertaining 70 n
orof: and LOGS view OF The subject which, am sure. will
weigh with the stockholders Of this institution IL cannot
be questioned that banks have hccn, and are en
| .r
Than tucir pas, utility and necessity now, In some orm
TIN. ,lnury and exaune al erctY country worthy q n9'ys
Slight attention that ihey lower interest d'usg
wealth. assist cncrpsng, and cheap agents in ad
lusluc balances home and 5brOad Their utility appa
in the end and object Of their being AS long credit
element in ;he schemes and business OF men, and nIe
be paid for the OF capital surely Is all meal
cuIabe advantage TO community 10 have In i's midst in
sttutions whose occupation is TO make advances. And
those who contribute their capital 10 be thus employed
| public beurficurs.
Bu hu considerations which appeal the stockholders
with force refer 10 the condition in which the State
would be left ii the leading banks permitted expire
What that condition would be- this geneailon hoped
will be called 10 experience II may &c found tina
State and individual credit would both be overwhelmed
We should be forced into crisis OF nnexamped Scarcity
time other States rejoicing ia the evidences OF
stable and increasing prosperity. debt Of more than
twenty million called for in The lace OF rapidly contract
Ing currency the class OF lenders gone away those La
bic from ccmcncy than ligor would reduce US to
extremity, which the stockholders in their humanity per-
mitlcd will avert 1t will be perceived that the remark be-
fore made that the State more Interested Than The stock
holders In continuing the banks amply sustained They
might be indifferent 10 the ISSUE If they confined their at
10 their interest as corporaors and louked not to
their exposure citizens; but ID the State 1t is affair Of
policy second none 10 It's bearings upon public and nd
vidua enterprise and progress.
1t may be said, that other banks would DO Instituted 10
occupy the places of the OLD and that The disasters which
unprecedented might through their agency be aver'ed-
True new banking SYSTEM nalogOus have
nigh s useful Offices but il IL be supposed,
tina disposition exists I" destroy system for the plea
Of reconstructlng it, And The opInun NAY be hazldcd
safc the community and stockholders uni capable Of diff
using its advantages broadly and mparti,Y may be
safely assumed that The scheme Of founding banks upon
Stale stocks, concediDg that IL within
src,cd limits, is not such substitute II obnoxious 10
The pupabe objection that 1t requires iuordnatc increase
of capital 10 accomplish The eads accommodated by ono IA
nur sys:cn AMI there for fearing thar the
CURLY pledged for ,he circulation would prove lusory il it
become necessary 10 resort 10
The demand for stock, State Other Is limited with
The scheme of making il basis Of banking grows Out Of
absence CT demand and is designed 10 supply by
ting fictitious want All such schemes are upon their
face dcIusvc What assurances have we. have
means indulge ii, will sprlag Into being the moment it
needed enable the Banks fulfill obligations Is
thsic rather fear that the necessity for
sale implying arrangement OF the currency, less
extensive vii! ale monicd univorub!Y towards every
subject OF domestic credit The fact be remembered
that some fourteen years SINCE when The Stale debt was
small it sold at about eighty CENT paid for in bank notes
redeemed 10 specie. Yet II is supposed that the
Stale debt 10 large aud will be larger that it is reliable
curiy for the speedy redemption vi bank Issues Tho scheme
may anawer Ia New York, where the stock Of the Stale Is
in such demand "a 10 command high and advancing
premium and hr Banks supply themselves by purchasing
In the market. Bat such Is mol fortunate condition. aud
the diasnarity is quite enough 10 discourage any close
Imitation Of her policy.
These nigh, be extended but the stock
hclcrs not likely 10 exchange tried and approved sys
TEN for any novelty II unnecessary pursue his inquiry
Thesc views gentlemen deemed it my duty TO submit,
LEGISLATURE OF VIRGINIA.