Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1855-09-11
FREE BANKING.

FREE
- The following features were proposed I" DC moor
poro,,d in the general banking law suggested by Mr.
rA,hcyf,ord in the report We have before alluded 20
y hL.t the general hunk;r. lnw OF Virginia GOTHAM
then snrh provisions as The t"iiowIns: that h"' W.
A,an twenty persons may, upon terms prescriDrt'
1wn mn association 10 carry Oh the business oi o"nh
hnC; that no such association shall commence ''o ~
Isiur.s OF banking, before u certificate s'!an " ~ 81,
S9Ey The president and directors, 10 he rec''"'u
n cjurk's office of the county where the oshh - ''""
ia, and 10 be filed III the office ct me ns"Su..a
which shall specify the name "i The panh' ~ ."nt
&ef The place where i; is located, the aahonn. W - 20
'storkflbscribed anu paid, ana the humber " u va So
Arh, Ssu,-, and places ui residence 81 lis stockh"iuets'
.y,od ,h. number of shares held by cach' ana TIC
amounr OF current coin in its possessions; nor before
Tho Governor, br.ug satisfied that II has III POSSESSIONS
IN cur!ai'; coin, at lcH't tw"''i'hs VI rs F"pi'", W. =, .h",
~sLnI issued proclamation declaring The i"c!, ana 'h"i
,hc bank j. authorized to commence operations; lfUui
III. treasurer shall issue II" circulating notes 10 any
slrl, n-soc;ati"n, until he has received. from IL ooh'S
Of the state vt Virginia. or bonds guaranteed oy Iie
StGic, ur stock of the United States. amounting III Ia.
aggregate 10 at least SlU0, GOO; that its ai'"tm'tm capi'
tai shall be $l00,DUN, and lts mHT'n"M e,pi'a'
Si.0di, UG): that when tho Capi.u! stock al a oaih'
once organized, ia afterwards incroased, II sha!l Detoy
vote of thret.four,hs of tho stuckhuiderS, and II new
certificate rs to suc!, Increased stock, similar 10 the
frat, shall be filed in the office of the treasurer: iia'
the treasurer shall not issue to any such nss"cialiot
circulating notes to an amount larger than the nliiouht
OF its capital stock. appearing by Tho certificate, h'"U
in his office, Ia have been actually HuostIloe'. ana
paid; that The shareholders IN every such ;'aSocihtici'
shall he individually liable 10 tho full amount 81 lhelG
respective subscriptions; that every bank snail oe "
banh OF discount and deposit, IT, well as OF circula-
itsn: that this shall be verified IN the reports require"
by law, by tho oaths ot the president ana Cashieti
that interest upon The securities deposited ny any
bank shall cease 10 he paid 10 1t, whichever II may ap-
4. through one Of its reports, or otherwise, that u
y merely q bank OF circulation, or that the specie III
its possession is less than one-nitii "i ITS c!rcuistioh'
q: as circulation greater than It's capital; ana mar
such associations shall be closed ana "wunnd up uv
ladiciui proceedings. when they fail 10 comply with
tie requirements OF the law, and their further continu
ancc il hazardous to the pubic.
There would he other provisions i'll the proposed
general law, Determining the proportion between The
specie in the vaults, the outstanding circulation. IN"
cspital, the debts, and the loanS and discounts ot the
hanks. and requiring freq uent aud iull reports ni tneir
transactions aud their condition 10 be pn1iislea'-
Such provisions, however, would not be pecuaar ~ Il
system OF free banking. There might be- causes
also. providing still more efrctraiiy tor Tie pr"ter-
tun OF tho public, BY Requiring the banks rs ia New
England, under the Suffolk bank system, ana IN New
York. by the law oi 1870, 10 keep specie funds at one
or more commercial points for tac re.iemp.!nii ol ':!eiT
circulation; by means Of the Unlimited responsibility
of the stockholders, rs IL Scotland; by Inning The
aggregate amount Ut the whole circulation, us IN Eng
land; AM by making the ioteio!dcrs preferred credI-
tors of II Lank, i'll case Of It's insolvency, Us has been
dune in the constitutions OF New lorL and Miehi-
gan
In the remarks we submitted Il few days a ~, we
oon;ented ourselves with n simple reference to tho
advantages Of free banking over the chartered lnStl'
tu;ions which now feed and tasten on the pubic, Win
utt any adequate return for the monopoly :Eev ENJOY
Thus far, We are free TO admit, these chartered lnstl-
iufiun- in our State have been presided over and CON
nolled by men Of high character and miblemished III
trsrity-and it is cl!icfy due to these fortunate CIR
ccmstances, that the evils OF chartered banking