Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1855-10-26
For the Enquirer.
SIATE BANKS.

AS ne cnnrtcrs oi most al The State B!nks VIII
s0on ux pirc, il will become the daty OF the next Le-
is!atr: 70 ccld whether The present system # hrnk
InS Hhhi. l." continued with slight notifications, ar
whether they shall be superseded Gy banks based up
on entirely ,iiilcran, prinrip lies.
The currency is sui 'cl o pervndn: interest and
the best mode u! organHn. State Banks i. delicate
and complicated question, demanding thorough in.
vcsii ,Hl" an! rrlu:ir. i:1;ire reflection. Abstract
reasoning an! Gll>ihlr theories n!n:lr, will be made
que and Unsatisfactory GUIDES iur those vino arc call
c upon 20 decide G':t -iiou which directly or in
rcc:ly concerns every freeman in tin, commonwealth
Exp.rsulrc, which III" ea.:l.o,!a iilrkc PRONOUNCED
tD be the wisc-t Z" teachers" on. II: 10 be consulted
:!:.. r,..g,r.ic IL u,v be ,.rl, D.: the ;,dvcutI.
ruu$ :!i. ~. yuil: the s.:I!.nr and the uu"rn nec:iH.
n,.t i; never has ben d,rc-ar.i.d hy cnu;inu, AMI
irU I statesmen ,,iirt,u, f a,ui,,iur the ,,t no.
lev
Virginia Au- lad chartered Rrrk. for murc ihar
Ei,!i Ii century. W.. believe thai not ui!r uf them
has eve hroG, and that during the last ,:itY years 40
Stat; in the Union IN, suffered hess from i;r c;t~up.i,
iu.iIrr, TO ;l, ,auir, svsi-,;, Tn. chartered Daks
i,,,,. rr ,uIv laid I.rll l,,,,,, md nI:cn i,.l;
n,.cni,.u dated the State by nau Lut they have paii
10 ,he STATE ..:lr dividends tEun >c has ever derived
from any other .,oc. Owned BY IN, CnI nnnwcalh.
That these Banks arc perfect, will not DC n-scr;cd.-
Nc"".1!rnd, ho"cTrr, tt'nt the banking system %!
Nr-Ii", "h'N J""S'1 NJ Ns pr''r''cM rcE"HS ~ t''
!0h" 'Nh "Iii conlpar" iaT"Enb!y with the Balhlh;
system o any "thcr Atetc IL "!il " 90 10 at'rihu'
the success nt our s. tea ilnl o' solely ~ te @o"l
c"aiuct ut Tie Bank officers ihc good conduct 81
Bank officers can never correct :hG Inherent ai!, rad
cal defects %! badly "rSanizcI Eank!ng system -
IL las recently been proposed Ia rrvolu!l0mzr
the established policy %; the State, and To create
Banks based upon State s;o,. The prominent rcn-
son assigned for fhI-, Is The expectation that there
wonId be mn increased demand i"f State stock am!
that its vGIu" would bc permanently enhanced. -
mach c:li"ac!";S plan Tor maintaining the value
=" State stock and preserving State cr"lt, can readily
he found, without recourse 10 comparatively uh'
tried sysiG'n oi Blnk!H2. hE "hstnihn@ rom cX'
irnvaGnht appropriations, ana r"rhil!i- ample !uh'S
through Increased iHA!'h ih-ch,' :" l'"-! 'p' NV
prompt ami pnnciuhl iHync o the SclnI-nlnuai III.
ierc't "h NE pn''t 'c"'' Is "e.. rs '"e P!rr"1 ~
maturity me l-cS'- -ii'uTc VII! 40 more /,
III" state credit man me "rthc!a! a''' cF'u,"us
mod" oi erecting H!',' >'h n'ihS r"'
II mas bee" H''i''h'i'''i' ''nl na.lh. n"s"r u"''
Ata'c s'"E ''IcS" gt'",r' s'a''!'.i al" -,
r ~ a ,h,' T,.I ,r:,,.
bafh- 80 nv '''''.'S ''r'' '''' ''' ~ -
~ c"'''u''' "a" cNF''t7. ''r ~ " =,
'rri'.h" necessary ann ts ntHs T''o - =
~ WI ~ ~ ,,,'I,ni,nI ,,o,, r.,,. ,nnrh
H"Fih, '''''" ,'''''H |'''''"'' "i''" 80 '
ihn'!rd Htnc S'"'" P''' - ~ ~
ln"n's "!i Pr"pt"'", "t WIN a. I" W.
hcc"I'ir "eI'S'"'! ,''" "' ''''' =. ~
Ga"E> ana pom 'nr 'h,.ii ~ "i'"' I',''
Issued, 'h""l' ne S"I' ne ''n ~ n,,,;,.s ~,
Er.inH sx per cent stock were thus Offered ''r sac
in New York: md, such was the I,precI"t"h' iha'
the stock sod rs I"", we 'h'''h' a. 80, nn''' WI
raj weeks Hhctuatrd Gct"e'h " ana f". We Ts
Ecv" iHAt Ine nt'e o' 'T@a i'T lo,t
III the credit nnd value" her stncK Nv III"
events I" "hicn we nave mus briefly niVer'ea w .
have some STATE bhhKs IN Virginia. p".'s .ie 'nS. s
ihi III" w'"'c!' "I'' 'tc'' NJ @ n, y; w,
'hc nPp:oHch'on ''i''' w" VI ms ~ :, ,
"rn 1rSna We're on ~" ferHc " S"s!c"n "o,
:" ,n rnr c,ni ,,nJ ,h.s of ,he nthcr nt
discount "i zen per cent, iihn th"se VI 'e %,
7;ili Grea'er discount! II Di'hS JUS" "pon
STOCKS suspt!h OF 'dlt i'"'i '',) P'tsHu'. '"'"p
raiircy rn sli@h' ns thnt ot 1871, no" can We
them 10 Withstand th"sr c"iilerCi ,e' "'s'o''' mn
We may Ent!clpac III nature! Ao"'hi"i ou, pteseH'
and tried system oi hahRihS' pass 'tt DAM ~"
establish many Banks upon Sta'c Stock' M" Whdt
may We anticipate! l. II h"1 Wci' "l""h '""' i'i"n
this character never nave nuvh specie VI "eii
because they rely upon th:ir SiHfr s'"r" as INC ",
m0'' "enr"y i"r me redGH'P'"n W '"''l "Is d.
When n commercial rcvulsi"n ensues, these 5ahKt
not only soon drained "t Their small supphes ol
specie. but their State sock lcr"'fr
sold Il; a great sacrifice: When 4 i''nry pressure
occurs, States are often in want oi m"hey rs "rI' q"
individuals, and If Virginia had the Slne st"ek
Bank in full blast. and wished 10 borrow money by
III. sale OF stock az the time when The STOCK owned
by some of Ike FREQ Banks was IN market Tor Inc
purpose of rclecmng their issues, the Common
wealth could not dispose oi sicr' Stock cAceP' Ill I"
grca, l"ss. u.,,,,,
We nrr invited Ia follow tHe rSaGpic Oh lhsSnchu-
sctts aud New York. III which States II mas Dceh aS'
serted that Banks bnseo upon ota'c st':N nav
cccdcd admirably. II So, the argument If moi cnllre
y conclusive. Virginia Is essentially an agriculture.
State, while MASSACHUSETTS, 'tu :'e" lnrN "Ie E'G"
commercial States. The extensive iorei5n ana 90
mc.c commerce carrich"h oS ;>c" ro'A """ n
ton, aiiort! Gfenl "'' anu
in: supplies Of specie n;'n thereby pro'cc.'he tie
Banks of New ork ana Mts'arnuSc''S "T,"nS' 'ne
ordinary fluctuations OF iradr. Hhch our bthks nfc
called uuu for specie is not thc specie almost lfarlh
4 ,n.nu n Nav York; But where Is Inc DTOrJ
that tho jits banhins system has succeeded Ill
New York! Did not the Governor of New York IN
hi. annual 20 the Legislature III iS33 or ln1l
cmuha; caly condemn the system, and warn the Lc-
,;sa,ur- against the creation ut amy more banks
buscd upnu State -t"ck' have not the message be
fore me- but il my memory IL not greatly III error,
urh ,yas the purport Of that part Of the ines'aSe.-
BE that MS II may ,'s.'lSuSH'u cI'iHcn VI :I
York, whose name and tame IRE cocAteilsi'c WIN
tho Union. and vino has long been c1nversart Win
sui ,c;s of finance aud Banking, has expressed "fl;-
ions which indicate III, great pnrtiaity inr h,nNs
founded upon State stock. Inc Free b"''h'"1 i-'"
ri New York was Passc'i itl 1922 I'c W. y" y. r.,
visions ni the law ~" "APi"iiEiu U: WI ~. Ui
TN III his work ~, !'.t,h9 ''. ,,,ny ;rn
notes ;Says Mr. ca which an? ":Soc'''i' may :, ~,
tn:ist b" prepared aild cuuh'e'aSncu " "0 .'"i,
tcncr al the STATE; and Ne Is hot u "cIie ~ n"
association, notes 10 Il greater amount NM ''it.
State stocks, ~ % mortgages pr, '""': -, "
with hm by me "'>"'''!'"s IJ g. !,o,,,;,',
N'"c"S' "'' 49, ~ i,. ,,r, !, q, ,;rruIutiuu nuu
the pay a.! lhv h"'cS p"t ''''o ; wy + Co.. ,i,,,
shall be sold accordingly "hr.T' 81 .,,,., ~
rurpAse. No ass"'iH'"A Sh".'' W. ."I rt,,r; r,.
twenty days, have less 'h'n 'Mc't "'!a "' IT,
cent. Ill specie ~ t!c "'hou''' ~ "> , ,
s,,bs, ,ict amendment III ihs law, ;hc provision
respcc,ia: spscjc Wa repealed: u,. .r,,.;on. o.
III is sufficiently APPARENT rom tic P'"'I,' ~
the act Gays Mr. "'a IIs; 's Iy thee the ob""s"us n
Associations, ii"us''' ""' .,r sI ,;pII.r +,
name 1 ~. sncruI charter have ail
;he essential and necessary attributes "i corpora
ton From the moment iSy wh sfG s cSar..rr @
ARE I, IN eI;ar' Thy nrc. as "t stock cunpnnes gov
erned in the :amg min%i a Ih w have t % .rrdy bcsn
inherent to Snr c'nI' i ",, "n,ne % Bower and pv.
mentioned; ihey nave same s st'S cb"s,. and r M oply