Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1859-12-06

engagements for putting a bank into operation.
! Freed from this section, and no duty imposed
; upn'i the Treasurer such aS that imposed BY
this section on the Governor, this fraud was
perpetrated which put into circulation some one
hundred thousand dollars Of notes, without at
any time having in reality one thousand dollars
in current coin. Ii is due to the Directors To say,
that they brought the wrong TO the attention
of the Executive, and caused it TO be arrested.
The Treasurer very nationally explains his part
in the transaction. But some one or two Of
the parties to it, il: my opinion, were ieloniouS-
~ guilty, aud ought to he prosecuted to the en-
tent Of the law. | ask IN investigation Of this
case, with II view more especially to Il review Of
all the special charters, and making them con
form to a .neral and uniform law; and | call
YOUR especial attention Ia the accompanying
lists of banks which lave been chartered and
NAV 20 into operation If the acts are rot re-
pcaled. The number of those now III opera
ton ought To be reduced, and | hope that 10
more charters will be- granted until the number
Of banks is considerably diminished.
The crisis Of 1897 was characterized hv two
most significant and suggestive facts:
Isl. Prices did not fall; and
ID. Debtors were not compelled 10 pay oil
their debts.
Suspension aud resumption of specie pay
ments took place, aud the condition of debt ami
credit and price remained the same daring anu
after a before the crisis. This non-settlemcnt
of debts at home, amt caSy escape from the
embarrassment ot the times, were aided in 4
great measure 10y the sudden arrest Of iinpor-
tationS. The value of import" fell rom i1o
millions II 2io millions III on" year, and thus
the nome trade WAS relieved and tie home
debtors were INDUCED. But, the next Year the
lmportations increased again toabont What they
were before Suspension. and an expansion is
now going on at the expense OF Our specie
and another crash Of credit may he looked for,
| unless there be create, vigilance and caution.
We have need now to contract instead Of en-
panding; and that is my advice to the banks
and to individuals.
unhesitatinclv recommend the repeal of
the act passed April I'd, 1888, entitled IAN act
providing for a more uniform currency of the
hanks of the State" IL is wrong in principle
and i, nractice
LEI /, d;,,,r,,,S nh rim. rotrS of hro,,ch
b,pls redr,n,hI. At the m,ren, banks, and all
the notes Of indeoendeut banks r,iccmab!c n,
agan.i,.s onc-rourth Of one p.r cent. below par.
The law should allow oi no redemption below
mar and mike AL notes uayahlr N specie ON
demand WHEREVER nayahle a; all.
o,1 II makes ,h,. no,eholJcr. the creditor.
my ~ rho hank the debtor , discount for ~.
domino ;ts own notes
"a i, nroy;rc;oI;yo, nm, u,,nl. n 4 deersi.
inc. sense by sending them in certain and fire..
,,.nt c,se. IN Baltimor. ont oi orr Jurisdiction
and make, them pay the expense Of gong
there, and a discount after %cettin. there, where
our laws can l,av, no sanction whatever for the
enforcement of local remedies. for the collection
of debts and promises 10 ,av a, home. which
the laws had made redc,mahic AZ lar in specie.
l,h II wakes mn, u.unl. forfeit remedies ar
homo und.r RI. ljtL sa,,;op oc the 18Th chan.
- r,da - ,h..,. 4, mn, in ,,.,,,in casn.
.a"oro ,nan mb.ra hanI, notes ,re n,v,'
p, nna nn, ~ ,h, S,ot. IN ,cd.rm ,hem -,
-, ~; ". ,sn "a
~, ~ 80 ,hi. I,yx rho -,b
- IL :, no. an ;rtnIcr,hlr evil -
49, - ho' Esorno;r.nl in #. in.
aIaS -, ,ara,, ;,,,arc. l., b.. made
,Sn 49, 49, ~" md ;,i.n.r,jcm, l.nks les ohIc
:. -, 3D.. g ,,,n,.r. ui,hout at all
a"s,,".",ol s,,nrr, bon;na ,h. na-ent hsnts
a., oa.r,.;as ~ r.t,.u In mos, coseS ,hc
hr,ncIa. and indcnen8cn, banh, have not sent
IN. S,oc;. 70 n,rc,,, hanks and AGENCIES 10 meet
,Lo .,,n,,n, ,r tb.,, ,,,.-. md tho redemu.
,;n, hin, onn,,,cor, ,h.,. IA. ,,rent banks
.n'i on.1.:c. hovn boon ,o.n,.,j.d Ia re.
",n;.. a.. ..,n,,m,Jo,; n,. - th,,r own LOCAL..
49, ~, ,on. hos on.rat.I >,ri,c.ntlv a,
ricb,oonI v;,hou, ,lru vim. ,r..ie 10 the cen.
- -. raS avnsc,sd
~ +, i Iay fmr ,l.. h.octi, Of broke
.,ono +, dr.wn IL. hroLcr. Gnr m. nromot;on
vs. ID. -, ;na.' :; III ,n, h,va o,rr,tcd
n"'a,e' ~. =, ,h.,, r., ;jr,..r,,.. T.kc
,hmsaan",;a:. - ,Ta %or,a. w,,,e,n R,nl for
.x,m,i.. -, W;.,iiu, The act upcrates only
- oil 49,. j., r.inyo;no ri,c notes of tha,
W,"I .":.;., , ~. -. tha >, nee because il
h,, ever bee, one ri the soundr,, in the State.
This has h..,, do::.,. | AIN informed. - a disaS.
,r,uS and c,;nnl;pr cyt,nt The MAI .facturers
n; Whrcl;ng ar. co,nnelled 10 s.ll their articles
in conformity with pittSburr their ,i:al. on a
credit Of six months. These sales are made TO
rcr.onS living i'm Kentucky, Indiana, Missouri,
illinois. Ohio. and all the Western States. The
manufacturers draw upon the persons to whom
they sell, AT six months, and must have their
bills discounted. The chief business of the
North. western Bank has been the discount Of
these bills, which is necessary Tor the existence
Of The manufacturers. When the bank dis.
counts such bills. thew are sen: to a friendly
bank near the residence Of the party upon
whom the bills are drawn. They are then paid
in the honk notes or currency of that locality,
and put to the credit Of the Northwestern Bank
ut Wheeling. tEdcr this law, by the 9TH sec.
ton. that Bank cannot draw for these funds
cyccnt nv a check in coin. the consequence
is, that no Bank will collect these bills for the
Wheeling Bank in currency or bank notes. and
he liable for = check in coin. This compcls the
Wb,rl;o, Bank. to avoid these bills, and the
manufacturers have to sell them to brokers at
n heavy discount. Section 9Th has the same
IT.,
f,h J,,. .u,;,.. hi,j IN effect makes the note.
hoIi.r ,,Ls L,ars instead of sncc;e and makes
-, ~. :, ,no. nnJ i, l. denonstr,hlo tin,
,naoia .r,;;co,.. ~. M he,tcr than nothing in
, crisis for ,hry y,aken the security for ,c.
,iem,.;on