The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1857-10-02
DAILY DISPATCH.
z 1e57
The Position of Virginia Banks
WIth Aegnrd TO the Suspenston.

aiscus1oh uufihe the past week, and very little
seems to be known about it, even by business
men. who have every day transactions with the
banks. The following from the Alexandria Sem
tinel Is good condensation of the laws APPLYING
70 anu an explanation Of the position occupied by
the banks:
| The Banking system of Virginia is Of a mixed
| character, some Of the banks being upon the ola
plan. so-caiied. and others upon the new system
oi deposte OF State stocks with the Treasurer of
| circulation. " '
The old banks received an extension of tbeir
charters from the Legislature of ls55-6 The ex-
tension ID Tor six years from the lst of April 1887
pne names e Oh the banks thus exteudsd ars the
bahh Oh lrgin1a, Farmers Bank of Virginia Ex-
ehange BANK OF Virginia Merchants and Mecban-
iCs bahk OF wheeling Bank of the Valley in yir-
ginia' Northwestsrn Bank Of Virginia and the
oana VI hana"ha' These banks have established
numerous branches throughout the State and laws
afelh force, but not yet availed Of authorizing
the establishment Of number of Others.
me new banks are generally independent. or
bai,r, ~ the only exception We know of
! Deing the recently established branch of the Old
pomihion bank,at Pearisburg in Giles county. Ths
principal OF them are the Old Dominion Rank nj
ale4ahdria, with its branch as aforesaid Bank of
IolAHierGe' fredericksburg; Central Bank Staun-
| ton; Bank of Howardsvflle: Bank of EoctincIa,
narrsonourg Bank of Danyille; Monticello RanL
! charlottesville. A number of Others bava he.n
operations.
| In the present aspect of monetary sffairs !. ,;r
DC interesting to know the responsibilities attaching
| 10 the proposed suspension of specie payments and
vac Le9trlctiohS upon the measures usually regard
ed as supplementary to that policy
The Bank OF Virginia, Farmers Bank of VIRGINIA.
ahu 'he biahch OF Exchange Bank at Richmond
are nlaus the deposltories of the States funds If
I feiuse 70 redeem Its notes in specie, the pub
nc money IS required to be deposited with the 9th
ers II all refuse, the Governor shall sasct go
othef place OF deposte until further provision he
mace by law Code chap 5s %
new and old: va 0 "'nNs'
ii any bank refuse to redeem its notes with snecia
the Governor may, by proclamation nrab;bit
me notes Of said bank from being received as taxes
The party presenting the note NAV on motion or
| oy warrant, recover the amount with Interest vt
Il per cent from the date of refusaI-provideJ tbs
p@i.! oounplaihlilS be not bank company itself
In suspension. lChap. 5S 2l5l
In the OF the new banks rcircrl,; -
cured Dy deposte OF stocks in trust with the
treasurer, the holder of note for which .nac; ia
reluseu may cause 1t to be protested for non-pay-
nehti ana the state Treasurer on receiving nntics
thereof, shall warn the bank to pay the same and
IL II be not done in ten days shall give motto.
through the papers, that all the notes of said bank
whether protested or not, will be redeemed out of
! the trust property in his hands, to which end ba
may dispose OF said trust property in such wav "a
best to protect the interests of the bill-hoders
/ Stockholders III the new banks are also liabI.
| lar and
debts of the bank in proportion to tbs -asnaot;a
amounts of their stock
Banks are allowed to have in circulation tbair
r notes 10 an amount equal to five times the oman.
MY OF specie money on hand. They are not nj
: lowed to Issue notes, or pay checks or drafts sn
part OF which Is printed-of less than five do1lar
Inc act proi0nging the charters of the old banks
PROVIDED that they should thenceforth issue hill,
Vi no other denominations than five dollars ter
dollars, and multples of ten dollars "
: Inc legislature reserves the right To reneal
alter, or modify the charter of any bank at Meas
+ ufe. lCode chap. 5S q 3I.1 f
1t will thus be seen that susnans;o, ,ou a,
banks under heavy responsibilities and nyitas th
exercise OF legislative power that is perfectly a
soiute. but yet public policy, and We will saw M
ehIi9htened equity, require that they should no
{ be harshly dealt with. We know much is said a
the untalr4ess of making them an exception +
. otner debtors. Why not make them pay or fail
as individuals have to do2" In the first 1lac, n
othef ueotors occupy such relation to the public
no other Is permitted TO circulate his obligations
money Ihe law makes the evidences of debt whicI
Oanh may Issue, the circulating medium of tn
people. Destroy this and business operations ar
suspended. Inc public have interest in tn
question over and beyond that of the bank whicl
Issues the note and the individual who holds II
: again: Inc banks, III putting out their notes 8,
vastly beyond their meaus of instant redemption
and thus placing themselves at the mercy of q snd
den demand, do and have done only what The ,nI
lie, through the Law, have authorized and invite,
ana encouraged them to do. The inevitable rasuI
) follows The suspension of the banks becomes no
cessary to protect that very public from evils .t
greater. They are entitled therefore. to indui
Sence both from the public and the law
Dut IL Is proper time to improve the system
which is Obliged to yield such fruit The su.pen
sion invites the thorough review of the wbol su h
ject of banking. The power Of the LevisIatnre ia
l absolute While we now submit to what We have
brought upon ourselves let US look To better pro-
vIsiens for the future.
The Fredericksburg Herald on the same subject.
has comprehensive article, from which we ex-
tract the following:
The banks created by the general banking law,
and known general as Independent Banks being
based upon the bonds of the state OF Virginia is.
suing Sl0O OF currency for every BOO of State
STOCK they own, aud circulating S. in notes for
every 81 OF specie IN their vaults, were the first
or among the first to lead off in the suspension Of
specie payments in our State,
These banks, as heretofore stated, are based upon
! State Stock. This stock was purchased by them
at from sioo TO $lU5 for every hundred dollars
worth IN their possession. When most Of them COM
menced operations, State Stocks whch now sell, at
$40. commanded premium.
There is over three millions of State Stock held
by these various Banking institutions, and il ii
were all forced into the market, it would decline
/ to still lower fgure-possibly to $50.
We mean to look at the subject in its very worst
aspect for note holders because it is rs well "a
take the bull by the horns and face the music at
once. Ii then the market be forced, and state
stock falls to $50, each nOte-holder starts with
fifty cents i'll each dollar of the promises to paw
| he may hold The profits each Bank has made
tnd which have been set aside as a sort Of contin
gent fund.- can scarcaly be less than ten cents on
each dollar of notes issued This increases the
fund for liquidation TO to cents every dollar
Now, each bank has securities in the way of colat
eral direct for every dollar they have discount
ed. If onehaf OF these securities should fail, "a
most improbable proportion, even then fty cents
in every dollar would be realized, and thus til.
note holder be fully secured, and an excess Of ten
, per cent. remain over and above to cover all ex
penses.
But should even this resource fail the note
: holder has additional security, in that the pri
vate fortune of every stakeholder is pledged to the
extent of his subscription TO the capital stock, viz
| If Mr. b. owns $5UO worth of stock, then Mr.. b Z
private fortune pledged to the redemption of $500
worth of the notes. The private stockholders ma
lose, but note holders well secured as hu
man sagacity can devise.
The public have security against over issues
which they have not in other The plates Of
the various independent banks kept in the pos
session of the State Treasurer. 1t is the duty O
this officer TO have the notes struck of print
ed It Is his duty TO register every note, TO sign
every note, and TO issue no more, and TO greater
extent, than the bank has state stock deposited
with him as collateral security. Not only Is the
State Treasurer, but the officers of each bank, are
under heavy penalties 10 prevent violation of thi,
feature of which provides a service in the pen
itentiary for frem five TO fifteen years for its viola
Con.
NEW PLAY BY AN AMERICAN AUTHoR.-After eight
morths' labor, Oliver s. Leland, of Boston, hai
completed fiye-sct play, entitled False and True,
the scene of which is laid in England, and whose
hero is an Italian adventurer. 1t will probably bC
produced st Wallack's, New York, in about three
weeks, and has already been accepted by DIR, Bar
ry for the Boston Theatre, Mr. L. l.. Davenport fol
! the Arch Street Theatre, Philadelphia, and by Ar
Forbes, of Providence.
The CoLoRKD PEOPLE IN CASApA.-James Sharp,
colored man, who has been engaged in laborin,
for the relief aud edncation Of the colored people
Of Canada, addresses communication Of consid
cradle length TO 'The CieTgymen andGod's People
the Church., in behalf of the suffering fugitive
who are now in Canada. Many Of them, he states
are living in the woods, without money, and with
out the benefit of Christian teaching,