Richmond daily Whig. [volume] (Richmond, Va.) 1842-1861, 1854-01-14
FARMERs' BANK OF yIRGINI,

ers Bank Of Virginia, the President VIM. H. Mcfarland
ESQ., after presenting report upon tho Of the Bank
submitted his views upon the expedency of applying
the Legislature for new charter-whereupon a resou.
ton was adopted unanimously thanking him therefor and
requesting that he would write them out for publication
They wore as follows:
GrSrLrNEs srockHoLprRs 1t is not premature at this
meeuhg 10 decide whether application shall be made
10 the Legislature TO continue the Bank beyond the
% 20 which Is now limited by law The charter will
e.pne' as do those OF the other leading Banks in the
Ste, on the hrst oil April 1857 and its in
the inier ought to be influenced by the copsdora lion
whether It Is to end then or be continued
s g.esuon OF closing or continuing the leading
the slate one OF profound interest TO the conn
muniy and Stockholder not to each in the same de-
gree. ~
10 the Stockholders Is interesting as involving Tho
fate Of an investment hitherto found 10 he saf, and
sonaby profitable Decided it may be- IL Il In their
to estimate the pecunary of the dec
sion to themselves To do il might suffice To Byzantine
the state Of the Banks exhibited In the renorts and 10
form opinion of the probable profits of banking for Tho
inture For, although the widespread embarrassment
which would ensue upon closing the banks would endan
ger me collection OF debts regarded available and
the estimated value Of bank stock would be thereby
dnced yet the loss wond probably be fully made IN by
the enhanced valve OF CAPITAL Should tho ,sse,. nr ~
banks when distributed prove less than WINS anticn,od
the ratio of the deficiency would be in the ratio of The do
cline OF the price Of other descriptions property eay
ing In the power of Stockholders to indemnify them
selves for any nominal loss The surplus or contingent
fund.- amounting to than ninth of ,e eanItai
without estimating for the loss of notes. likely to prove
considerable item, may dspe uneasiness aon, ,hp ;s
II the Stockholders decided TO close this instituon
The inquiry respecting the profits of banking hereafter
does not OF course admit of precise satisfactory an
swer IL would not be safe to determine il by simnIo
reference to the experience of the past Our future win
be unlike the past in many particulars likely to affect ma
teraly the safety aud profits Of banks One feature of
dssmilary, OF no nconsiderabe signfcancy Ia the
dency to increase the number OF banks fonnded nno
basis new and uned by In the reverse pronnrtion
OF their number, will be the circulation which any
hanE ms paNna IN
known that old banks have been ndebtej mora To-
merly than recently, to their circulation for good mar,
OF their profits. Nor is it the effect of number of hanks
~ curtai the circulation OF one which il the only
or indeed the main matter to be considered in teteymr
ing the results Of banking hereafter According 10 ,hci
number and as they may he distributed through the com
munity Is the danger OF banking excess and an or
Of banking hazardous only to the hanks bi
be betrayed into it, but those that have been
uous and discreet and to the whole community Nothing
IS more mschevous to the interest and ~
the State than multitude Of banks rvane one ano,ber
in their efforts to expand their business The federave
feature which distinguishes this and the other leading
banks oil the State furnishes perhaps the best f not tho
only atainabe security against running into excess Ry
it, through the means ola branch the legitimate demands
OF any location can be provided for without the liabilities
to abuse incident to multiplying the number of banks
fear them that you cannot rely hereafter upon tho
safety or the profits which you have hitherto enioved
Sti, may be your interest to continue the instu.
tuition, II 1t shall be the pleasure of the Legislature TO
grant liberal charter There are reasons for yonr az
deciding not pertaining to the profit loss view of the
subject which am sure will weigh with the stockholders
of this institution
1t cannot be seriously questioned that banks have been
ana are om'nen,y useful There Is no conclus ion
assented 70 with more unaEmiy, by the enlightened
opinion oil the world than their past utility and necessity
now in some form. The theory and example of eyery
country worthy oil notice. are in respect this matter
IN harmony requires but slight attention to see that
they lower interest dase wealth. assist the ent.rnrsn
and are cheap agents in adjusting balances at home and
abroad Their utility apparent in Che end and object of
their being. As long as credit is element Elm the
N mn anil tp...
Tor the use OF capital surely 1t is ncacuabe adyan
tage 10 community to have in IL midst institutions whose
occupation Is 10 make advances And those who contrib
ute their capital TO be thus employed are public benec
tors.
But the considerations which appeal to the stockholders
with most force refer to the condition in which the State
would be le IL the leading banks permitted TO OF.
piTe. What that condition would be- this generation IL
ia hoped, will not be called experience II nav no
feared That state and individual credit would boil, be over
whelmei We should be forced into a crisis of unexsm
Piled severity, nj the time other States were reioicny l.;
the evidences Of stable and prosperity Al,
oil more than twenty millions called for in the face on
rapidly contracting currency and the class of lenders
gone away, more liable TO err from cemency than rico
would reduce ns TO an extremity, which the stockholde
in their humanity, IL permitted, will avert
1t will be perceived that the rem,rk before made that
the State Is more interested than the stockholders In con-
tinuing the banks, is amply sustained They might
indifferent to the ISSUE II they confined their attention to
their interest "a copoators and looked not 10 their
posure az citizens but to the State ia affair of pocv
second 70 none in s bearings upon public and Individual
enterprise anu progress
Itmay be said that other banks would be Instituted 10
places OF the old and that the disasters which
arc apprehendca might through their be nycred
True, banking system analogous to the one We have
might execute ts useful Offices II not L, no unnoscd
that dispersion exists TO destroy system for the pleasure
OF reconstructngt And the opinion MAJ he hazarded t
no substitute can DO devised for the present system IA
safe to community and stockholdcis capable of DIFF
nsng s advantages 70 broadly and imparialy IL NAV he
safely assumed that the scheme Of founding banks npon
state stocks eoncedng that may answer within
strlced limits ~ notsuch substitute II s obnoxious TO
tho palpabe objection, that II requires an nordnae in
crease OF capital to accomplish the ends accommodated nv
familiar system and there are reasons for fearing
that the security pledged for the circulation would ptoye
ilusory, " II become necessary TO resort to IT,
The demand for stock State or other il Limited With
us The scheme OF making II a basis of banking grows
Of this absence Of demand and il designed 10 nnI
IL by creating Fictitious want All snch schemes are
upon their face, deusye Whs, assurances have Ue n,
have that the disposition To inyeat In onr socks
along with the means to indulge IT, will spring into be-
ing nc the moment Il IL needed TO enable the banks IN
fulfil their oblgalions2 IL there not rather reason N
fear that the very necessity for sale implying eranoe
ment OF the currency, more les4 extensive will aTect
moned men uniayOrAbly towards every subject of doea
TIC credtT Inc TACT mast be remembered, that some
fourteen years since, when the State debt was ANAL n
sold at about eighty per cent paid for in hank notes M,
then redeemed in specie. Yet IL snpposd noy ,at
the State debt Is large and will be larger that is ,elia
BILE security for the speedy redemption Of bank issues
The scheme may IN New York. whore The sooL NJ
the State Is In such demand 10 command biph and
advancing premium, and the banks supply Inv
purchasing In the market But such Is not our fortunate
condition. and the d'simary quite enough 10 dsconr
age any close imitation Of her policy.
These observations might be extended hut "a tho
sockh, lders are not likely exchange tried and ap.
proved system for any novelty ts to pursue
this inquiry.
Those views, gentlemen, deemed It my duty to submit