Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1859-01-07

The Objectionable feature in the statement,
is the expansion in the loans, to Sl27, 3l9,
while the specie reserve is only S27, l29. I25.
The increase in deposits, on which this eSpan-
sion of loans is mainly based, may he consid-
cred as only temporary; because, AS soon as
the Spring trade fully opens, and merchants
find more active employment for money, they
will begin to Withdraw their deposits. which
loans, and thus produce 4 reaction or check in
trade. at the very moment when they should
be able to afford il the greatest facilities.
The deposits are bound to experience some
diminution in a few weeks. whether trade re-
wives OF not. The call by the Secretary Of the
Treasury for a $40. 600, 900 loan, will withdraw
when takeny large sums from the Banks.
either in the form Of Treasury Notes, or OF
specie, but chiefly the latter. Other sums Will
he withdrawn by depositors for the purpose OF
making permanent investments in the better
class Of State and Railroad bonds. Hence. the
policy Of expanding loans at this season of the
wear, and in the face Of SO many future contin-
gencies is very unwise.
The banks which have conducted the safest
and most conservative business, as a general
thing. have made the smallest dividends. Thus
the Bank Of America which has u capital OF
So. 0O0, 900 and 5000, S22 on deposit, and
l 1885, sos in specie, had only outstanding
loans. at the last report, Of $4,000, 600. This
bank has always been conducted on strictly
conservative principles. and hence. its recent
semi.annual dividend was only - per cent.
against ) for the same period in 1857. There
are only three other banks which exceed it in
| capital. and none which exceed it in the amount
Of specie and deposits held by it in proportion
to its capital, if, perhaps the Bank Of the Re
public be excepted. Yet several institutions,
which show a less strong position, have recent
" made / and per cent. semi-annual dividends.
The Bank of Commerce has q capital OF
SIS. 600, 600, the largest Of any other in the city,
vet her average amount Of specie in the last re-
port was only about g., 00o, 600, and her de-
posts Sc, 3lG. s4s, vet her loans were about
Sl2. 600, 600. The condition and management
of the Chemical Bank forms an anomalous ex-
ception to all the other banks Of the city.
Ii has a capital of only $500. 600 and 4 specie
reserve of $40 00 and deposits 10 the
amount Of 81. 9o5. 500, while its loans amount
10 only 81, T29, 7l6. and it has only $l3S.000
in circulation. This institution is measurably
owned BY a few wealthy families residing in
'vpper tendom," such as the Schemerhorns,
the Roosevelts, Jones and others, who, have to
a large extent intermarried, and whose incomes,
including rent rolls. &c, are very large. Their
| fortunes in many cases, are the inhcritanceS oil
old Knickerbocker families. whose farms were
COMMITTED into gold in the form of city lots
The Chemical is the recipient Of their deposits
and the control Of which they keepin the FAM,
". John @. Jones has long been its president
and energetic manager as cashier, and IN whom
the family" rcpose the greatest confidence
The last sales Of its stock were at $3.50, on the
par of 300. It's last quarterly dividend was
6 per cent. or at the rate Of "a per cent per
annum. Thus, the wealthy families owning
it. actually. in about five years or less. receive
| 100 per cent Of the capital they have invested
in it.
The Bank Of the Republic has 81, 200 COS
capital. $4,511, 000 on deposit, and $l.566,Oit
in specie, while its loans amount TO S4.6lI.931'
This bank does a large amount Of Southern
business, and made five per cent. semi
annual dividend. It's president is Robert
Souter. a native of Norfolk, Virginia. The
Bank of the State Of New York has $1,000, oo'
CAPITAL, s3. 1856, $40 in deposits, Sl,5o2.59 IL
spccic. and f. 30,4 0l out in loans. oi thu
hank Reubin WitherS, q native OF Virginia, Il
president.
The banks in this city depend chiefly upoI
the amount of their deposits for their profits
Their circulation, in the aggregate, Is a mer'
6aqatelle, never exceeding, for the 81 banks o
the city, an average Of about $4,000 600 t.
81, 800. 900. Some Of them, such as the city.
of which Moses Taylor is president. have 10
bills in circulation. and the Bank Of Commerce
has only sl,975. Thu State and United States
bonds deposited ut Albany are only held al
guarantees for the protection Of bill holders o.
for the redemption of the circulating notes o
the banks. Depositors receive no protection
from the State beyond the assets of capital
which includes real estate and the individual
liability Of stockholders; hence the n%ecessit!
Of some legislation which shall compel tn
banks to limit their loan, to a scale commcnsu
rate with the specie held by them. In othe
words, the specie should never be less than -
per cent of their loans, which would give bet
ter protection to depositors. We give the fol
lowing as a comparative condition of the 5
banks Of New York, for the periods named
with the amount in the Sub Treasury: