Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1855-12-14

FREE. itASlSIN(;.

rhEf bANNlNb.
Having taken our position upon tii. question, we
feel il duo to Ourselves and 10 tie public sui all
the facts coming into our possession, calculated 10
throw light upon the subject and 10 relieve the ap.
prehensiums Of those who entertain fear. respecting
the effects upon existing institutions AMI the public Il,
large, at the proposed Chhn;r. Satisfied ol the cor
rcctiess OF onr own conclusions, we did not hesitate
SOME time since to take the ground that the ur--.nr
Legislature should adopt II general Free Banking
law, the great feature Of which is the businr o! all
bank issue' upon State stock. From time 10 time We
nave "nhHi'n orr r"asnns for this sIggestiun-nune
oi which, VIC iee! assured, can he attributed 10 any
hostility to the present system other han that which
results from decided conviction that the Free Bank
System is, in many important particulars, much the
better for individuals and tho State.
DESIRING 70 obtain reliable information respecting
the F'"c'""s working Of the Free Bank Inv in tn;
ssa'eot New York. where that law has been for some
years III successful operation we ailryssod letters
t" "eorge l.. Sampson, Esd, tn" cashier If the Long
Island Bank Of Brooklyn New York, asking for such
'h'"r''a''"n IN 'nr enquiries, Mr. Samp,on -ha,
made the following frank and intelligent responses,
when We submit, with great deal OF plonsuro to
our readers is scarcely necessary Tor us 10 say 10
Our ri'y readers that Mr. Sampson wns formerly re-
slieht OF Richmond, a merchant of standing hero
and Director in tho Bank Of Virginia. To all we
eau Say! without Eesi;atiOn thu; hn is gentleman of
undouOtsd character and large experience in Bank
IIg hia'tes. His letters speak for themselves, and
will demonstrate whether h. i. qunli:iod 20 give
cnrac and intelligent information in tho prunsrs.--
sal Of this testimony has been altoge:Eo- favorable 10
our previous Impressions upon the subject, and We
can sRy, now, that convictions respecting, not
only the proprety but tho Importance Of such lar
IA Virginia. NOR, positive aud deeply rooted than
ever. We subn!; Mr. Samps0n's letters without fur
tEcr Comment to-day:
Lose ISLAND liANK, !
BRcohLYN, 2Jth Novembrr, 1854.
| lfm. r. RrchIs, EY:
Dear SIR have your favor OF the 18th inst from
New York, aud feel pleasure in communicating tp
You the result o nv experience in regard 20 the ope-
ration OF the Free Barking Inv OF Hi, State.
Tins Ban; WAS chartered i'll lS2U, aud the ri.ar...r
was once EXTENDED expr!.,s t: llth June. 1873.
Preliminary /" going under The general Inv OF this
State, an organization WAS formed, embracing iif-t
The o.! stOckhnldes far they chose Ia subscribe.
! The socl; OF tie nrw Ba:ik promptly taken by n
subscription ol 81 per cent. on the part OF tho old
shareholders, and Il Per cent. by new subscrhrrs.-
| T!iu-c not subscribing over We're chiefly executors
and OILERS who had doubts as IN iiIrr powers to ~
The entre capital would have h:en readily sub-
sGrlbel by stockholders, had m opportunity been
Offered.
~ .pon "a the new Bank was OF gained, a COM
uter Oi conference was appointed 10 meet similar
| Cnm.ntt-c on The part o. the old Bank. The asset.
, Vi th- Old Bank were carefully Examined. and I.
uut-conintc" reported that II WAS e.pedirn that Il
sale gnd purchase Of the entire assets, iucudiDg the
banking house, should be made.
! Powers given tn the committees. and they ar
ranged basis ci sale aud purchase, 10 The effect ha:
The new Bank should purchase ~ the old nj the bji'F
recevab. deemed good a: their lace, drGa".iny IN
tercs,. au all other GG~;5 IL gir valuation. liz
Arrangement was speedily colisgirrar:G I" III" ga:ls
faction of Hil pariio-. On lin June, lSij, ;Er oil!
Bank closed IT. doors al O'Clock usual. Ga r.rr
! l"h Jr:,, the sa.n. doors were cgnnnd. erd huSiae
ws- resUmrd a. usra! ani ln I,' believe that H"v
customer oi III" Bank was aware o: any chang: tar:
saw the sane Officers in tho ramr bliI!in.-, nni r.
c.v.l h lalnn ai;-nti"L and iac::ie. TO. the '.a:a
! action Of their business.
| Internally there wAs a change, known only 10 th3
ufcr.s. There nov set oi books, hn: :" Irr ~
the interests Il The public CONCERNED, ih"v wcr'
| the same. Tie BaGk assumed the drro.t;, ih'
circulation unpaid Dividends &c. Of the old, add In
new hooks we:e 80 far n transcript. "' .lr OIL! In
bu-ints, nj thr R,rk went on without interruption
;hr Old stockholders, who had subscribed over, re
c.ivei new crrtificnc- th: surrender o. the Did
and paYnrnt of III" surplus profits IN cssh, Will
the par valu. ami surplus pai! III ca.h 10 n"n
subscribers prrscuIn!i0n ol their cert Ec-:s %
stock An aiowancn Was ia.de tp the Old Etnii iui
circulating notes suprossd 10 Inv. hesn l-stroye'
AMI which w1u,i pr"ag5ly never appear for reiemp
ton. und ;ic old notes ZEN, tn Albany una d."
stroyed inst rs they appeared the :i"cs OF the ne"
Bank taking !h"!r plgce.
TIE features q: thn general Banking law. con~!de
good, with the sin, lie exception Of 1he authority I,
receive bonds and mortgages "a basis of circuii
ton. Their value il always uncertain they ere moi
easily convertible, and -o Tar as my observation gors
they have rarely il ever brought their face whrn
sale was ncrnssary. 4 poundcr banking system thai
that OF this Sn:e, it purgrd OF the bond and
mortgage feature, does not exist. The drpOstr %
United Siatra or New York State stocks furnishes
perfectly safe aud reliable security convertible nj any
moment into cg-h.
or course much will depend on the management o
the fiscal Of nt!rr States Hs 70 the convtr
Uty Of their stocks into ca-h. Were STATE siOck
deposited as security for circulating notes al their ul
cash vnlue, not to eXcrcd par and so kept, cannot
conceive OF q better security to blll-holies. Dapos
ors need no such srcurity: they will take caro- d
place their funds in Il safe institution; but the bill!
holder, who will receive any wel.eSecutsdn note oler
ed needs protection. and the certificate of the prpc;
State officer the face uf the note, that II Ia secured
b. dcposlte OF United States or STATE s'"cES' Il h
protection.
The Bunk obtains, in this way, the interest OH lis
investment in rtocks aad, in addition, the Interest Oh
the note. received therefor and loaned t" the commu
nitv, while the advantages 10 the State OF snch
market iuf her securities arc Of rntire any lnte
rent mind can we'll estimate.
Anxious 10 do any thing / can for the Interests "i
the State Of my early adoption towards which all my
sympnthies still tend You will find Inc ready nj an
tune to give you any information in my power.
uui, dear sir, yours. very truly,
GEO. L. SAMPSON.
Itmay be proper to state, thnt tho second letter
from NJ. Sampson was written in answ Ell to special
enquiry from respecting the effect oi the pr"p"'ed
change in our banking system upon jraHct hanHs.-
In our first letter to Mr. Sampson we omitted to in.
tcrroyae him upon this part OF the subject but aubse
oucnt reflection induced the conclusion that would
be only just 70 all parties concerned that hs expert
ence uri views in This particular should be laid be
fore the public. Consequently we addressed him Il
letter TO that effect and the following is his reply
LONG ISLAND BANK, I
BRoOKLYN, November 80, 1879.
WV. r. RiTcHiE, Esq:
Denr Sr;-I have your favor of 9TH inst. The
Ranks of this State are each independent having no
branches and the system is found 10 work well.
NV oEly experience III regard to Braicl: Banks
WIS ua,hr.ct! While was director OF the Bank oi
Virginia, and al! my observation was aganst the sys-
tenn. We could always make money III Richmond,
but some Of the branches were dead weight, aud
have an idea that, had the ASSETS Of some Of them
been realized ia my day, the capital would not have
bcru found whole. For over seventeen years hHT"
known nothing about 'lc"i.
You will perceive that Gm no. very well qualified
10 speak in regard to this subject, but ny views are
very much ut Your service, for what yoI may cul-
alder them worth. If your branchrs really need
ed, there can bc no difficulty III getting the stock
subscribed Ii they not needed, the sooner they
are wound up the better. would by ali means and
without any sor; Of comparison, prefer independent
Banks and we're there sri! red,rmlng their notes IN
Richmond, AZ say onecighil per cent. discount, snd
the Richmond Banks rcdeemng i'll Baltimore III say
onr-lourth per cent. DISCOUNT you misht have Hn "a
cellen circulation, and be relieved, except III very
pressing times from all fear Of brokers' who used 10
be sucl, terror in my day. With handsomely en-
pravcd notes, under such an arrangement yOu might
get circulation throughout the entire West and l
believe the wcr,i-, " Secured by Virginia State
S,orks" would give confidence not inspired by