Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1856-01-29
BAN KS.

BANKS.
Public rumor is current that a majority OF the 1e-
rslaure is in favor Of extending the charters ot the
old Banks, with some material modifcations-one OF
which, We learn is, that they will bc required to
transact their business ON specie basis that is, that
all their obligations must be paid in specie, or its
equivalent, and, indeed, nothing short of this is lc
Ultimate banking. We would fan hope, however,
that better and wiser counseis might prevail and that
tho Legislature would avail itself OF the present ia-
vorabe moment to repair her financial disabilities,
and place herself more in position Of ease and
independence, BY requiring all our banking '"sff"-
tions az future to proceed the State stock b0sts-
This will do more for the finances Of the State than
sp. thing and every thing else that may be attempt
ed TO accomplish so desirable ali end. 1t, however
the State would profit to the full extent OF the change
surrested that change must be RADICAL and it must
ho mad. al once. 1t must be done nor, or never
The opportunity to effect this change and bring about
,hs financial prosperity Of the State 80 greatly de-
;red bv every good citizen, will have passed away
forever with the termination of the present Legisla-
,ure. Let that body, then, we beseech it, look well
TO this matter. If, however tho present favorable
advantages are suffered to eludo its grasp we can be-
hold nothing in the future to encourage our hopes TINT
the STATE credit il to be revived, Or tho rays 0nd
mean. provided 10 complete the important lines Of
public improvements now under way
Next to the plan above proposed, for amply pro-
viding the State with means, and for withdrawing all
her bonds from the market, is the one which we now
propose. II the entire Banking system Of the State
cannot be changed to the one requiring Bank issues
70 be based on State stocks, would suggest tina;
the change be made far circumstances will ad-
NIT, and that General Banking Law DO passed by
the LEGISLATURE which shall in its terms offer some
inducements to companies to organize on the Eirg'
MIA State stocks by proposing to release such Banks
from the usual State tar n0c pad by @maar iHSf""
tons 1t would probably induce sufficient nuInb'r
to organize, to absorb several millions of dollars :"
State bonds The amount thus taken up by such
Banks, would, no doubt, very sensibly aiect the
value of State securities and consequently to that eX
tent Improve not only the finances, but the crtdf o
the State and surely these are motives OF the hrs
importance for such action the part of the legs
| lature.
| Thi. remission of the State tax would be nothing
more than fair equivalent; for requiring such Bank
10 procure all their bonds from the State al P"r es
pecally as such bonds can be had from other sources
at from six to per cent. nader par. Ii Is n"
unlikely, with such inducements held out to new
Banks to organize under general law, that many
might be induced to accept the terms, and commence
their operations; but without them rery tr would dc
80; and noae If compelled to take bonds from the
State at par-for to such, they would be required II
pay at the outset for State bonds what would be cqu
valen; to bonus Of about six seven per cent.
their capital for their charters.
The additional consideration too, that the capital Of
the stock Bank is loaned to the State and that the
State has the use of this money during the entire pc
Rod of the Banks existence is strong reason why
the State should not impose the ordinary tax upon
the new Banks. 1t may he urged that the State pays
the interest on the money 30 lodged with her, and
that that is an equivalent for its use Whether this
be true or not very certain the State cannot get
money for such consideration, else she would not
now occupy the humiliating position of an unsuccess-
ul solicitor Of capital-she cannot obtain 1t either al
home or abroad upon such terms. The truth Is,
money is worth more than ak per cent. per an
mum in current business; and Banking companies
to bo induced to organize on tho stock basis
should, at least be permitted to receive Mat much
on their funds in the hands of the State without hav-
reduce it to ive and half per cent II not the loan
at six per cent to the State sufficient concession Oh
the part Of the Stock Banks without being hected
also to the State tax Of half of one per cent! The
State would no doubt, be thought doing we'll 1t she
could borrow money her six per cent bonds Al p"r
WHY OF then take it from such Banks disposed to
organize Oil the stock principle, and pay them six per
cent for it, without inhcting the tax of half of one
per cent. aud thus reducing the rate Of interest re-
csiving from the State to five aud half per cent
We repeat, that this policy would, no doubt, bring
into the State Treasury several millions Of dollars
which otherwise will be lost to it and we huinbly
conceive that every effort should be made by the
State IN the present depressed condition of her imam
cee to secure all the money she can at six per cent.
especially if her bonds, by doing, can be kept in
the State.
A suspension of the public improvements of the
State would be public calamity, from which we
would not Immediately recover. The announcement
of such fact would further depreciate State credit,
and, to greater extent embarrass her finances. Yet
these are evils which must inevitably befa us, un-
less the means are provided to resuscitatS Tho State
Treasury.
We would, however, take occasion to remark, that
unless the old Banks shall be required by the Legls-
lature to pay coin for all demands upon them, and
thus put an end to the "current funds" system by
which specie payments are now constantly eVaded'
very little if any good be expected to accrue t."
the State Treasury in the way we have suggested for
very few, if any. Banks will organize on aspecie
basis in the same community with the old Banks
which, now, do not pay specie. The odds against
the specie Banks in such cases are great that even
the remission of the State tax will not compensate
this disadvantage as to them.
We would sugges. that the old Banks, if they arc
to be rechartered be required to pay specie for all de-
nands upon them, like the Banks, both North anu
South of US, save in North Carona,) and remit the
tax to the stock Banks as recompense for procuring
bonds from the State at par, and we think the State
Treasury will realize the truth OF our prophecy
that such policy on the part OF the State ID poth
wise and beneficial.
TIE WuJE uJGN0REDn -