Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1855-12-28

ceiing tom years thirfy-one of the fire.. bank i've
been closed by copri,oIir" bit that III '.Gl.im,
"ninc' free banks had been closed "Ey iEG'" o.:
stochh0'f,T", thus making thr larG, nGnb"r .. <
banks closed III III. sh"T! period 81 ten wears s.rN
Fillmore docs not assign the reasons wl.'h rcrc. (
III. shareholders 10 cln6e there nine Eauii', and -
are unable 10 say whether their coniuc; pr"I" -
al by the apprehension "t failure, nr hy """r'' -
;het banks o. this character were urrr";' 'r's--
Wkatevor motives controlled their acton, tic :a.t )
significant, and well calculated Ia aT2ksn d.:.r-.,
| alpl impair confidence We do not know hv" G-E"r
of the chu,!,,td bank. of New York fair'! b"iw"'a
1888 and lSiS, though wo suspect very ts~, II e''
| The ten years running from ISL to ] III 10 :: -
known 70 have beer mich more ha2rrd"us ,"r ~
banks, than the ten year, Intervening from - '
1878: vet we have the high authority of Mr. G! a. 8
for saving that, from 1881 10 lSil. OEty t%0 pu g.;
the n.nrty c4mt0tI GG"Ls oi New York ts.'.- IL
| ring that period thus leaving an cSc1ss 81 !a''' q:
amounting to twenty-nine again't the irG" eanh; ":
should like TO know how many more oi the "a i''s
Of Ne" York hare been closed by tho c"inP!i'!.: 2H
account "ifailurc and how nGnr others b. hi; '"'A
stockholders since the yoar lSis.
Washington Hunt. comptroller Of New io'ar 1.5i.7
in his report ui January, 1850, tha, 1.-TWO Iud.dg".
hnlk-rs have given n":icc Of th<4r ts''"t'e - y"
mp Msr business, aud havs reur ned pof;iIn :. '-!
circulation, TO wit, the Warren Comfy bi''H a'.i
the Franklin County Bank.' What next "D z
onr banIl failure occurred during the a.! -,
| usioJ This another Jits bank Il; u o.
| What happy soul was Mr.. Washington HoH'. -
tlud that he was able congratulate the i.r-at,:sa
OF New York upon fac; So unprecedented ana -
| marketable! No; c"'Gttnt with aanoGnciu: %" uiaa.
failure during the last year, he determined - <
cndc all doubt To the number" failure, sni ":tn
evident delish there was ''GHIy one.
Experience having fully convinced the pco.'e d:
New York that stock banks were nov emr'r'.'' -'.,
and needed Additional restraints. The Legislature, U-
ring the session "l 1873 H. in obedience - tns -
| Gurem, hts of the constitution ~ aincnd-i u. To-.
pa--ed making ,Ich Nor.to!i'r ~! IL" b' IS
| respons,We jor adi,o"a' amo"m '3na! 20 81:
,"rk hs may hold 10 be paid in tie erGntoi .a."i@"t
the bank 10 meet s liabilities. Those VIII, froo'n.nrn
the policy Of compelling all the banks OF '"s.IT ,:
r--organize and To ba'a their capital upon "Gr S.=';
stock, have relied upon the stock as amp!" .'':!.
aud have NOT yet proposed that IN. Lr@t'a;ure e.;
Virginia should 20 further and impose 4 prr-"u..i .'-
biy upon the Stockholders III the event Of the ':D
ot tn, banks. II the Legislature o Virginia '.,'.
| Notwithstanding the failure uf :" many i''e: L.i.- 4
New York, as well : in other States, follow Iiic 'eI
of New York upon the sub i"ct N all! why stop ~ 'S
haiwav house, Why not also require the r'..' ...-
al protection and security cxactcd by the late Gcl n
New York! Is this declined from the appfcA"n- !
that the people Of Virginia are not likely {" e.s ~
in bankng upon such conditions 7 or il il rnoh -
ground that medicine had better be admni'tcrcd -
| broken doscs 80.
The free bank law OF New York, a. passed IN -,
was designed To- advance the internal! imp,
ments uf New York, sustain the State crgi", H
Absorb, the State stock. This i!ea If %! nrre .e--a
origin From Is:sS until 1913. the L.,7iD!", ...
thOrized the free banks 10 bonds aac mon, ...
as well as the stocks Of the several Si"i"s rs las.
capital. In 1913, the law was changed @nd 81. -
ri,lnture required the bank rGpitl 70 consist - ..
York State stock aul bond, Gm,! mI:, ..."z. = >
Mr. Hunt, the Comptroller, inform. us. IA: a.. -.r
! was changed 20 allow ''"nr-EHJ ;hs G'.N...
stock sccHritirs deposited III THIS "i.i' u 'v.-.-.
| stocks of the United S'ars. Ii rr-ta"hH $50.
tined to succeed any whore they ought 10 -nm@' -
New York, because she Is the great cr"I'i"! So. b..
this cuniedcracy, and her comincrco hnd "on.:i Pa.
immense. Her hnhs are lees liable inGI 30
Virginia bn called upon 10 redeem thcr circ2.g 20.
and have greater facilities for ob'nriIc 49, ."
Notwithstanding these favorable cirrti!s'.n"r,, .
OF oirec.banks wur'' closed ny 'hr!! o'r sio'H"''
ers and thirty-one by the Comptroller. II c"i"."t.1
with law, in ihe short period uf ten years. 1t 'ssI
Things are evldcnc" oi the success of a hsuL'";
| sys;,m, wha kind OF evidence !s !eqy.rc" >
convict it oi failure ! Free banks, rs'E'nf np''
their stock their nl..n4!: socu!Ity. hccp ra S..
! less specie in prnlInrnr Ia their "'cUtn''G. 'l.r
tlr: chartered h'sI.n> having Ia spec" g., ..".'--
, On this account, the Tree Ranks " S.w lc's "~.I
deprived "f their specie and faln!r spCe3.' -
suel. They failed, not because tleir st"ra scc- =
WIS OF di-sinllar character az the stock u -
frrnr States, mortgages Nc., but because Thor yy,
their capital was rp; sptc.e. The caiI.. u! 50
tree Banks WIS not touched until ii. Bar!as :ri ...
aud tiirn their capital. alias the stock sergir-. Ec-S
sold tn redeem the hnn,rirCu!I;Io1. lhi 'a"ar
Banks been ba-ed upon the s"i Foundation :" ~,
instead ni their foundation OF snnd. they might, lGr
the chartered Bank OF Virginia. b. now III Sgi &c,
and il called upon lnnn mDLcyt Ia the Comm "e1, g.
W. have no disposition IN comment upon ii. nf-' "
injurious results experienced by n" po"r'. q Nr
York in con-equencs OF the failure nl 30 many g'-
This up,,-g.an tasl: may well be lett 10 the ,,h g!
of Mrssrs. Fillmore and Hunt. W" -iuer'.sy b. o.:
that none OF the free Bank u: N"r York hhv" ios-
during the last ir, years. 4" each -t"'kr""'"r 80
rrc"u,Iy been suti"rt'l !v law. 10 liability ":n W.
lent tu III. amount ui a. Ba! sinch, II iin: '
ur-su,n-d tlt this legal provision hls tended 8"
Incut the Vigilance o th" Stockholders. nni ;H"r'.!
ensure greater attention on The part 81 5anh "i! =
In consequence u this, Bari! failures hay. p.1"ai:
diminished.
We ,uay be told that ,incn lS3S. there have b",7
many failures among the chartered banks q! ".:g-
States, besides the failure Of the trecbaiks o: y -
York. We may admit the inct yet We contend i..;
il il entirely irrelevant in deciding the i":v. i..~
pending. 1t la. been asserted that lie .r'" i'.'
plan banking is GCitcr mud more re!:@!v ihH. i''
prevailing mode q! Virginia, and that ~ ou%hj p.
adopt The Erw York .ystem. Th" conpa:!aO~ -.
ted i not brtwcrn t- chartered banks oi o'''.i 81"
and rh. chartered banks of Virginia, but hc,"t.''
inter aud the stock banks OF S,w York. Tie y,...
puisun is b-tweon ;he free-bank- "t N"'v E,.-.
more than thirty OF which were pr"siY'od )" ''I
years and the chartered banks nj NircIiT. ~: -.
Of which ha. failed in fifty year. What "-r .a4 81;
vial complaints urged against the Virgin. H.. -. :
compnri.on with the serious loss SUSTAINED hy Ire pc.
pie, OF New York by the tniliire Of so man. b. -
The failure of many Stock Banks III tn : ."-
Western States in 1851, and the other iaInr," i".!
mentioned, do not encourage the belief that the st'-
holders of the chartered banks Of Virginia VII, b"
the OF the refusal OF the l."g.sinGrc 20 's''
their charters, accept my proposition ~ rc.crCfh-3
the present banks upon the stock basis. ilu,.'.'
men do not like TO try hazardous eSpc1.!n"":', 7--
especially where there are 10 chances or me-. =. =
under any circumstances OF late y.ars iH" l'l:
competition has tended tv reduce the profit 81 ban.
no matter how well managed. Stocks and socrs..:t:
were newer mere abuniaIt. When capin.:@ta 20
readily buy most stoc.- below their par yaiUr-"..
agricultural pursuits have increased in arao ..v-..'
and pruiit--why should the Stockholders IA the ''-
cpai banks Of the S,utv BE- expected 10 rc-7r,gnz5
aud adopt the New York syst"m, in The face o. 90
in despite Of the -olenm warning 90 mrr' ....,j
given by New York herself Co"NoH So -