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

| pended from time IL time, III every 7'SS' " 49,,
| General Assembly, during the long h." "''",a
.rn which followed The evil was -ilii iir'iirr
waited by the issue Of 81 notes unicr hHlho' ny "
aud III 1872. this most -nlutary pF"'lS"" ..o Lrc
| in circulation H. one of our act' eAiI""S'' ~, -,
proportion of gold and silver com tor me i ,u P
| change" was at last indefinitely suspended lhe Ia" ~
March, 1887, had imposed torfeitures anu en'y IT,,
| tics upon the banks Tor the non'payieht VI ,I
the suspension Of May nervening' III 'u.e y, Wv
same year, at that memorable extra se9sio"' tI =;
Of uul -specic paving banks were made rece'ao'e "
paymaut OF taxes; the t"rtcltures rethi''eu n @
penalties suspended until LIST ut MARCH, 1910 nn.
afterwards successfully RENTED anu suIpe"u'u a.
the session of '3S, 30 and III, untli inc ~" ",i''
| imposed them WAS finally repealed III MaFch, 1911.
| See vet, upon statute books hn"thtr "etP a'"
| iude!ibe mark which these banks nave uaceo mere
in characters that will externally TESTIFY !" ."e snu'c
of Srgnin. The Constitution OF Tie Chi'td State
| uro, drs that 10 State shall make anything but gold
and silver coin legal tender III payment o debts, "T
pass any law mpairing the obligation OF Contracts
1 Yet the General Assembly OF Virginia III l>'' anu
amin in 1888 passed act 10 stay the proceedings
on executions. trust deeds, and other demands, in
cases Of refusal 10 receive bank notes They first
released the banks from their contract obligations,
aud them sustain their credit stu further, passed Il
law Vet mo- iniTuuus and unconstitutional. to i'm.
mir The olG4, ~ Of contracts between individuals.
| They denied L. 20. great body of our citizens all l.-
gal remedies i recovery of their just debts; all
| recourse, by Law, In enforce payment of the hard
earned wages uf their honest industry, unless they
would receive, iilstcn, OF the gold and silver I"
which they entitled. under the organic law of
the land the deprecated paper money of insolveEt
corporations worthless pronSsory noics which tn:
makers had refused, and were exempted from the oh.
| legation To rcderm in money You may search in
vain your journals and your laws for such another
| blot upon the iair fame of our hnnored C"mIn"n-
wealth, rs these powerful monnpollrS, now ST. eu.O.
gized, have made in The dark chapters vi our banking
legislation. That legislation, confess excitcs not
merely my amazemcnr; it almost arouscs my awe by
r fearful evidence il affords uf the Tremendous intu-
cIrc that they exercised over the Tree representatives,
oi an agricultural people. Before legislative authority
had been obtained for their suspension al payment.
they had made withdrawals of their loans and vi their
circulation; they had begun the work Of preparing
for the redemption ut their notes in specie Bot this
| soon ceased when the Legislature began 10 Register
their edlcts. From year To year, they made no pre-
pnratiUn for a return 10 specie payments mud were
required IL make none. On the lst ui January, 1872
| the Bank of Virginia, the Farmers Bank and the
| Exrhang. Bank, owned less specie by the sum "i
S27 Sl % than they possessed the ls of January
1871: but while their -ecie was Decreasing they hal
Increased their circulation by the sum Ut S3S!'>} 81
Bnd their loans aud discounts by the I" :GD' ,lO2
81 cents. 1t Isa curious tact appearing III IL report
made IL the Bank Committee of the House at Dele
gates, that OF this same Increased outstanding debt
81 U7j loaned ~ t.tyfve members al the GriI-
raj Assembly. SIR, our banks would never in my
opinion. have Voluntarily RESUMED the payment "t
specie. IL only enforced. NJ last III Virginia, al.
all the other banks in the Union had resumed by
|
nanl-lumg suffering but unable Iungcr 10 suffer
and speaking nj length in tones which cowrd and sub.
| dued both tbs Legislature aud the banks-wlcli ST.
fenced even the protesting cries of monopoly, ana
enforced obedience upon hitherto unbrldeI corPo'
| raUiIS.
Many who hear me, older than myself, may have
personal experience and recollection OF the caaini-
ties OF this lons period %: su-p"nSlon ! will not
pause 10 attempt their inadequate description. liz
our commercial history, they s!nud out III gloomy re-
| L,.,. fn,
whose notes, III sixty days after thu first act oi sus'
pension. deprecated more than Sl,2Oe,OOO IN the
| hands Of their holders whose actual reputation
largely exceeded S2,DOOO1G, if You calculate five
years interest their Suspended debt payable on de-
nand to the holders OF their notes; whose expaiI.
sirns and contracUns Of credit involved IN hopeless
ruin thousands of our citizens We're innocent OF all
ni-chlet. We are required 10 believe that this sys-
TEN of banking has worked well for the State, when
We see these banks lending out nearly three times
their capital upon the Of repudlatlng their con.
tracts and making their largest dividends during the
period of their Reputation. II these institutions
have been always so admirably managed. why, letit
| be asked, did they not pay specie III 1910, Ike tue
| banks Of New England Why not, from 81 10 II,
lik. the banks OF Charleston Why continue their
| Reputation 81 much longer than the banks OF the
| neighhoring States Way continue it for more than
| four years after the banks OF New York nnd New
| England had permanently resumed specie payment!
Sir tins old system of banking has no. worked well
! in the past il does not work well now. a deprecated
| currency, annually expanding and contracting, ana
always distant from It's points Oi redemption, aests
that il is ailureand more, that /; is curse 10 our
people. Nor doe. i; meet the business wants oi
| merchants in cities For our trade Is made irIbu-
ary To the North BY the u,uIions dealings Of oGr
| banks in exchange; aud commercial enterprise
a,pu,s T.. Iauy dishes for the want III many millions
! of Virginia capital which they have loaned 4" North.
e,n SPECTATORS in our products. Five OF these old
banks sir NJ tie very .iTr The" they applied Tor re-
charicrs AT our last session, had I":H" e.r c:"i! Ia
| = q fI. IN
srrib.d by the CUic. Here WIS u violation III tIe
law repeated sIT"ur irnrn TIM" t1 tim" the most dis
a,:ruu> iis tendencies hi II pusa,h!c for these
banks to commit avula'i"n esteemed ~ dangerous
by the bank rcurmrrs Of 81 that, IN thu senrra law
Of that wear they declared that the directors ui bank
should ba labi" out a! their private fortunes, for a"y
excess oi their loans above the limits which are now
often exceeded. BY the report OF the Secretary I"
the century for SJ IL appears that. with banking
capital about f"Cr millions less than that Of South
Carolina, we he'd abost tie amount Of loans
and DISCOUNTS AMI with banking capital about equal
tn that of Georgia. neary donbiG fs unrs and dis
counts. BY the anmn report 1t appears that in every
ono of fifteen States embracing all the New Eng
land, Middle and Southern STATES ui the Onion.
the aggregate circulation of the banks was less
| than their aggregate capital, except III the States
| OF Virginia, North Carolina, Alabama aud Yer
mont. While the circulation i'll Virginia bore 10 The
capital :hc proportion -: about ~ To ~ was less
than hail lilo CAPITA IT New York. Massachusetts, !
and Rhode Island ia the proportion Z. ce"ri I" Il III
4 -
lima and Ia in Maryland II We have been With !
out revulson for fourteen or fifteen years we owe
H. Mr. Speaker. not 10 our banking system III IT.
,rin;a but 70 the bank reforms i'll London and New
York. the cent rci:e IF commerce IN the two "iI-
i.D,cre3 10 the mach Gba5cu indeFc,i:a! treasury,
aud 10 the large aud unprecedented augmentation" III
| The supply OF gold winch hive been tAr.!ist:cd b.
! Australia anu t'.inrl'la. !
But sir, we arr todd only that tho old banks OF
Virginia are the bert in the Union bat their excel.
encr is due to the existing system "t mother banks
and branches. What was the original purpose of
these branchcsl To give lis currency oi nnit"rin
vhi,. -cdr,rable not only by the parent banks. bat
by their hrs,rlir. ID, q! carts OF the STATE They
have not only failed 10 accomplish tl!@ "sse":. but
! have been used means To deprcc.ac our cur /
rrncv aud destroy It's cOnvcr;blIry The operations
! Of these branches neither controlled ny the |
Il other bank nor subject 10 the restrictions Of the
! Code. Examine tic detailed statement OF the !
| branch banks, Contained n the documents 81 The |
Int session, giving sixteen uarlrT ."i"r:.s o. tfrr
condition for the four years when preceded lac iS'
january, 1854 You will find numerous Instances III |
which their circulation il more than double Their cap
al, and in which both their circulation ana helr avs
counts greatly exceed the highest limits allowed ny
hs law. The circulation ot lie hrahr9 phiik OF IT.
yinia AZ EuchGnLri, or the lst July, ISL WAS more
than three times It's capital. tnr ai?0sl every r.,rh
throughout the period Ct four years Tie circulation
of the branches Of tho salc bank at 1anTiI!e buciI'
and Charleston, was more than douG'e INC cap
al; and the circulation OF the branch OF the t3ans oi
the Valley at S;aunOn often nearly three Tunes
! its CAPITAL. So it is, in numerous Sases with the
! branches vi the other banks BY each OF the tour
quarterly ferna ter $780, the discounts o the Drah"h
! Of the Bank of Virginia. at nany'lc exceeded three
times ,i... capital; nIl throughout iia :sho!" period
the discounts OF ia" branches OF this bank ut Dan
! VILE, Buchanan aud Charleston, largely eA"eets i"u
he the rariia The circulation Of the branch ot thc
Bank If Virginia ut Petersburg. Oh the Ut January,
1853 exceeded times lis specie, ana WAS again
rnarly seven times lis specie on the ist jan
( uayy .GJ.. the circulation vt lis branch at
| Portsmouth aiscIy e-ceeGrd eiy tim"s ia ape
Gle on lst Janunry AMI lat april, .h5:, an. let
January, 1891. In not few Other iEstancea the