Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1857-10-09
THE INDEPENDENT BANKS OF VIRGINIA


10 The Editors Of tie baltimore american
As there seems to be serious sppr-hensions In 'hI
public mind as 10 the security OF the circulation q
the independent State Stock Banks" OF virginia II
may not be amiss for the information Of the business
public TO submit the following statement
For every $l0O Of notes put 10 circulation, the I:oH-
snrer of the State holds for the security Of the
of said notes 800 Of the stock ot the Commonwealth
and, n addition to this, the law requires that "a ia
Bank sha retain in It'd vaults one dollar in speca ior
every IS in circulation. From the best iutornrton
get, there are about three millions OF these no''s
in the hands Of the people. based upon three milions
of State bonds and .DOU in spsrie. Al the prr
sent price of the bonds Of the State, tho three rc
lions are worth only s2,40O0OO. Ba: il We ade
thereto the specie by right supposed TO be in the va
rous vaults of these institutions, then The note bold
srs would appear to be fully secured But there aro
still to be added to this fund the surplus profits OF he
Banks which am sure have been annually set aside
further indemnity 10 the public agalnst loss on
their circulation. To recapitusts the dva'ldoc coz
dition of these Banks would seem to staEd thus
Circulation, s3,0OUQ0C
To secure which tho State
holds collateral securl-
ty her own bonds, $3,0OO.UUOU
At present value OF 80 cents
on the dollar 2,4OOGo0
Specie in yauts coo 00g
Contingent Fund, per ct. o0OOO
00O00-a1.GJJO 900
that in most instances, at least, this c'rcuIson sa
been put out in the ordinary way VI d.c0un!s-tl.r,
may be eIcsptions-but from the WRITERS kno.i-dsa
of the gentlemen comprising the direction oi fhsse
Banks, hs feels warranted In stating IL 20 be so.-
Then what follows Why. that we have, n addition
the foregoing, as guarantee TO our complete s.cu-
rity that psr which these discounts were made whe-
ther Il be in real estate public securities or persons
obligations. All this We may rate at ~ cents IN the
dollar Even then, upon candid review Of the scts.
the reader will find that there IL laid up, for the 81
curity of the $3D0D0U0 10 circulation, the ample co'
lateral Of 81, ,560,0O0 One would suppose the no.t
cautious could eek no more.
And yet Il s further TO be stated that ths LeSsla
ture in order to guard sgains reckless binkinR acc
to cave the conhdng public from the 'as' appreneD
sion oil loss, ba. pledged to the nrieholder le addi'
tional security Of PERSONAL Fs>hy o. epery "0cs'
holder TO the full erte ~ MS S"oscripione 20 tee ca
ptai stock OF the Bank to when ne mas suoscf'Dso
II s barely possible that tho stock may lose,
but s there The least for lesr OF loss TO ths nois
bolder7 II is 10 be regretted that the State Of VIZ
ginis has not before this converted the od Banks,
az they are termed, into "Ihd.pendent State S:ocF
Nsnks for il s obvious to any one who hss ttoug-t
correcty upon the subject, that the advantages te
yorsble to the public by the latter is far supeor 10
the former-nO only in the security OF their circuls
tion but in fact that because OF the absence 0.
branches their policy has been and 10 10 pay tkeII
opu aott, thus sfiording TO the receiver bona fds
ipece currency,
II the above statement be correct, then 1t s PLAN
that the discrimination beng made by the brokers
and bankers Of X .chmond. and ss q consequence
the brokers and bankers Of this city, in the shsps
Of an onerous discount on the one, and compare
tiTey moderate DISCOUNT on The other, 10 not only
unjust but immmentiy calculated to start the gus.
rlon IN the public mnd as 70 the sonndness OF all
banks. Eor ths circulation OF the State stock bsnks
OF Virginia 10 not secure. what " expect from
the re.t' The independent banks, it will be- seen
pronIss all the security TO be obtained from the ot
banks, with the addition OF SlUO in state bonds Tor
eaah slU0 in circulation. Tnen. again, thsre ia no
fear Of an over Issue by these banks-b.csuse the
Law ia peremptory in demanding Of the Treasurer Of
State, syho hold, in htS ?oJses'an ne o.ases y Tue
Gd that upon each note psid ont there Is to appear
the counter nature of tho same thus evncns that
complied with. Both officers OF the bank and the
Treasurer Of the State under heavy penalties tn
protect this feature OF the law. one oi which peagL.
ties s penientiay servics for Is years n case OF snJ
violation Of the same. b..