Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1856-06-03

this capital II Distributed, ana so "'' jyonc-s
,ecn truly said: 10 ''prcvcnt pern"'e.' Jns,rv
bv capinl;sis for the promotion al h7t" ,,',. If
and 10 facilitate und encourage those ci''l If sn.
money lea- beneficial to the genera! '''' forabe
rrty." But cOnreic that, under me nv" Activity
circumstances, they give to chp'ia' e, saving oi
and n more useful direction, and eiirct .h.nner
the precious metals by the substitution W dip,i IN
f,r a more expensive currency. IheSr AZ ,h,r only
,h.ir .,rony.st advocates arr their hishcS'' n..i
legitimate functions. and, under the ni, ri both
there is fu!! scope for the accom- nnIrr It's provi.
th-s. objects The banks, organized UNI i ,hav may
,ions may lend out their whole capi'h'' "n rapcr
,L.,i,u,, +, the full amount Of that c"p' o,,,ips,
currency ibut not before the puoiIc - anJ silver
,,s d.prrcia,iunl /. The pIacc OF G"I'' Ira, When
What more than this should the BANKS I;r c,niraI
"""' " ,h. community beyond 'he'i , :p.
s,,ck they are lending not their money of these
IL, Nd whut have been the cuh'e4ue lis nf the
c,pan-jons OF bank credit! ne ,.-,yiId spccu-
FAR, table i'm the business at coHh'i ;nunr,utions
lhtioh-rAu"t - burden of foreign iiideoteu''oa
ana, WIN m cnnm.rcul and tinanc'al l'iuoPT"
d.,uca And with what ihVnF"'G;u b.en fol.
10y on. of these credit eHp,,,,r,;nnnt, r..
ere'y .mnu,r or later, by proper ''" ht.
i"" r', Those who object to the he" Iao',,,,,,,
Vuiso T., limitations upon loans anu H's. ,,,
.nus' ~ f,rrottcn the recent teachihEs " W.
,,r Ascending to Mr. CanorclLns' ego ,o
two yenrs Of profound peace; oi. sr,Ss Of partial
wv lss Than eight revulsons or Per!ous ~ p' ;,
n'u nu ,r,tiou of trade and suspension ~ '"uo
" o' ' ,abr which exhibits tile cohu''l'" W ''
I'D ~ th. United States for the l"s' my
Wu s,.. f,.1urut ebbngs anu h""'hSs VI o tL ,ad
lou eun ,h.., ebbngs and huwnS- the who,e "aue
" ~ H. onntry has been violently moved oach""'u'
VI I' fwnrds and widespread rum anu distress a'e
m,d mon every rcvulsion. In 1871 oa''n '' .,s
=; m. United States amounted 10 o1i Hi''o",, ~
,L.v had reached the sum ut 90 inillon, VI ioi' ~
t.iJ h.,.n rnIuced TO 2j4 millions. Wha' '"'u'he
40 srrh ti.,ures Disclose They tell OF ex'ravnG"nce,
and nverrradns and speculation, 6rw cen 1913 anu
IS17 uuuarallrrd since the days ut Juh Law III Tue
history of modern times; aud, during 'hr "a,
vrats of the period, they tell sad ta'e III u'T ~
.nunv unpsrnlleled: trade paraiyzcd-no circulating
., r,nfd,pc.-no credit-a government EN-
~ rr,ss.d TO meet ITS current expenditures, WIN
.snrnlus of forly-two millions aud nan ana !"
brrng population. without employment, IN country
ENJOYING une1nmped physical prosperity: III jar
nary 1897 the loans and discouuts "i me Bhiik
~ Vrpiuia and the Farmers Bank OF Virginia,
uossrssiuy cApItaI Of about five millions, amounted
10 about fifteen millions Of dollars Here was al ex'
mansion Of bank credit Ia three times The banking
capital Here were "husIness facilities 10 the COM
munity with a vengeance, and here were glorious
nru6ts 10 the stockholders. But, within the short
SPACE OF five months thereafter, the Bank ol NirSi'
min alone had made Withdrawals OF between one aud
two million of These loans, and had in the same tune,
reduced its circulation from S3,?6o,I o3 To S?''J,6'O
GO cents and no later than the ensuing May both vi
these hunks stopped pnymSm oi thsr NOTES! And
how were they now 10 effect Il resumption oi specie
payments In the opinion vi sHgacious men, exam
med before the Bank Committee of the House OF
Drlegates-"by reducing The amount OF Tho Bank
looms 10 very tle more than the amount OF their
spective capitals" Beyond this sir, under the pro.
visions of the general banking law referred It" they
could never have gone; and such restrictions upon
bank loans had they existed prior tO 1871 would have
saved Us from the most disastrous rcvuSiun which
has Yet, in time Of peace, visited any country
upon earth.
I ,,y al Mr. Snoaknr n cs blls IN
the propositions which, in the foregoing remarks |
have attempted to prove, then ii must be admitted
that the old banking systrmo Of Virginia ought not 10
be perpetuated. ii, rs have endeavorcd 10 show,
the separation Of tile issue from the banking depart
ment and the provisions of a trust fund Ia secure
the circulation in the mode proposed, will add safety
10 CURRENCY, health TO our commerce, anu stauii.
~ banks then II must be conceded mat IL VIII
brng uearer than We are to that hard inuhey cur
r-ncy intended in our Federal COnst!tu.Ion-and
that if il does not remove, il will AT least mitigate,
the evils OF system against which Washington, JET
t.rson, Taylor Of Caroline, and al the great men
of Virginia have in times past, uttered their voice OF
warning.
But | advocate no sudden or violent revolution
in our system Of banking. We should leSisiate, III
this delicate matter, with cautious regard to the
peculiar circumstances Of our situation ana 10 'he
important interests involved, and take care 10 produce
no evils in the transition that may outweigh Tie maj
benefits of the chanse-to give no shock to com
nrrc. and create Is little disturbance rs posSioe III
the business habits and relations OF the community.
would not require all the old banks, - is urged 10y
some upon the expiration Of their charters, in Do
10 orr anize under the provisions OF general law,
md to deposit public stocks rs security Tor
their circulation. fear that this would involve
either withdrawal Of loans ana discounts to
un extent disastrous to the community, ar al ~
crease in banging capital in Virginia greater than il'
condition ut the money market YOU'D allow.
would bo willing. with additional st3!c;lHEs and pros
pective provisions for gradual chaEcS Ia TIE iGiarc'
to extend their chartors fer short periods and to diI'
ter.It dates. But let authorize no more banking
capital in Virginia except under PROVISIONS winch al
ford adequate safeguards for The security oi our pa
per circulaUu; let bring the existing independent
banks at the State under the additional rrsirlcii"i>
tils session ana H. - 80 Icslnc that the system nj
banking which it cmbodies i::ny gradually take the
place ui ;ha; now existing III Virginia"
Ii We DO this. let u ut least reform those OBJ
yious abuses in the old system which So urgently de-
rnand correction. Let separate the State from the
banks-let US extirpate the 'curreht JHndS system,
rs it is called-let Us make Gur bangs specie paying
like the banks Of our sister St"tes-lut Us require
them all, old and new, mother banks ana brahcheS
10 pny out no notes rrdeemabe at their counters
and let us break I'D their runous practice Of dis.
counting time acceptances from the North except al
short dates in preference TO the business paper OF our
own Giti. EN-. It may be wise, in the future, though
not expedent at se.u :" do yet more IN the cause
Df Dnllk rtlDrln-lD FtCN' ''' '''" ~
time the minimum denomination VI bank hGie.-to
disseyer mother banks and branchcs-tO lilnt the
aggregate paper circulation, rs in England III
,irnntey TO have an 'Iudepenicnt Treasury for our
State "a wG,! q. for National Government.
But, bowcYer we lay dlorr rs I" The reforms 'nh'
may te needed, Row i:ere0fei J.. u al Ieat Keep
these powerful corporations a!""js Eit"' Te"~; I"
the Amending hund Of reform, sni lei us E'2n i"h2
lense of power ard privilege neither 10 the GanE Of
Virginia. now before n", nci to sny other ~ me state
might stop here, Mr.. Speaker, but 10! ne s:sres,
sivc warfare that has been waged IN advance np"'i
the banking system which have advocated From
the beginning of this session the potent Influence OF
all tic e. 81. banks If the State, with their Brhreali
brauches has SssG srrpyed against 1t III active ana
unceasiug hostility, At every ar. hAs been violent
w. necdl.ssly, unfairly attacked. In cu.Ei!'.e ana
out of committee. on the nuor and in the uhhlcd os
this House, in private aud in public, II as been me
thslne ct constant aud unmeasur"d vituperaon' baih
Presidents inc IL tLie LGpitcl nssaed II before me
assembled Legislature BAH pamphlets, dehouhc'hG
it, have covered desk and orr bQicij arc uuhf+'
ing houses have huen filled with lusukrlo+s pr2Gic'
tiuns Of the unnumbtrcd Woes that tree b"'+ih,
would bring upon our heads. Why Oil TINS sr'',
warfare upon the Sid, aud none upon The oneF'
Sir il is easy To understand it, The cold distractions
If general law have been opposed t"n banded most
of nGIeys4 corporations, seilshly struggling Tor
perpeuatGn OF iiiei to%c:. The great prilcpieS U,
general aud equal Legislation employ - agents ho
pay no salaries; and the exhctng cries or monopoly
always louder and more frequent but iet US "ops
not always more influential and persuasive than i6
calm voice of equal rights and abstract truth. For
one sir am ready to meet the issue which has been
made, and il iced be. to carry the war into Africa
Confess sir, that AIN tired Of hearing the stere'
otypei ard Oft repeated cry the; tie old banking sys-
TEN of Virginia Should remain unchanged teCause 1t
has worked we'll for fifty years. It involves pre-.
sumptlon Of enormous ignorance upon :he part OF
those to whom it il addressed. &" back "a ,"I he
forty years, open the i.,-na of this House. aud what
do you see:-he Legislature OF Virginia convened oy
Gov. Nicholas i'll extraordinary session, Oh account OF
the td Of the banks redeem the notes which they
had isslsd I.ioE3y TO the people of the Common
wealth. Read this message !ic-G lie letter dated
;}lh OF August, lSlG, freIl the presdeat: o. TIE
Bank of Virginia and the Farmers Bank OF Virginia,
in which they represent that if required to resume
scrcie payment by the 10th Of November OF the
same yea. every dollar would be drawn from their