Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1861-01-08

$3.50 N"S ~ = " IN pun. ~ IN ~
the conversation, were very much those that ar,
embodied in the paper TO which | have referred
and are set forth in three Of their resolutions
The first resolution sets forth y principle
which meets with my cordial appreciation. |
utterly dissent from the principles ayOwcL
and the doctrines asserted in the second and
third resolutions, and which are in my opinion
in direct conflict with the principle asserted in
the first. The policy recommended by the
Convention would result in placing the burden
Of providing for the State interest and the rc.
deuIption OF the debt, almost entirely upon the
deposit banks, and 10 that extent cmbarrass
the mercantile. commercial, mechanical and
manufacturing interests Of this city. The
banks as well as the citizens arc bound, Ivy
every consideration Of duty, to aid in prcserv.
ing the credit Of the State, and the burden
ought 10 bc made to bear, as near equally as
possible, upon all. \. policy which imposes
that burden upon one city in the. State, is in
my judgement unjust, and ! therefore declined
to recognize it. Nor did approve of the dis.
elimination which this resolution proposed 10
make between Virginia bondholders and 9TH
crs-in the first place, because il was unjust
10 our OWL citizens, and in the second place,
because such Il discrimination, il sanctioned,
was to he regarded as 4 declaration Of inability
Oh the part OF the State 10 meet her engage.
lnents, and must have injuriously Affected her
credit abroad. The preservation OF the States
credit is at all times an object Of the first i'm
portance. It il; especially important that she
shall maintain her credit HOW.
The third resolution demands "a uniform per
ccntagc upon the aggregate amount Of the cap
ital, circulation and deposits Of all the banks d
the Commonwealth on the first day Of October
last, excluding the States deposits" y single
illustration will te sufficient 10 demonstrate tbs
injustice Of this plan, as we'll us its impractical,
bility. The Bank Ct Richmond was chartered
at the last session, with u capital of not less
than one hundred thousand dollars and not more
than one million. When the minimum capital
was subscribed ard tie Lanl; WAS organized,
they applied for an issue Of notes TO the amount
OF twenty thousand dollars, having one-lourtb
that amount or live thousand dollars in specie.
According to the views embodied in this rcSolu,
ton, | would have been required to assess, in
this instance, seventeen per cent. upon one hun
dred and twenty thousand dollars, when the
bank never had Il circulation, exceeding twenty
thousand. Does not this Illustration clearly
demonstrate the injustice Of the rule laid down
b. the Convention: ! could not, therefore,
recognize either the justice or the policy Of this
recommendation.
Our banking system needs reformation. i nscv.
eral respects. We have two competing systems
Of banking in the State and have abundant
reason 10 know that jealousy and dislrust exist
between them. to Il serious extent. When the
late bank convention Was held in his rity, the
Virginia Bank, the Farmers Bank and the Elk.
change Bank were not United 10 participate in
the discussion and consideration Of the iIupor.
tant questions which had called the convention
together. When proposed 10 the committee
who waited upon the, that would invite the
officers nf those Institutions TO meet and confer
with then, The reply WAS, THAT the convention
had adjourned, and they had no power 10 alter
the policy fixed upon by that body" Ny OBJ
jcct in presenting This iIct, is 10 demonstrate
the cNis,encc Of 4 feeling of jealousy anal hos.
tIiity, which | regard as decidedly uniavorable
to harmonious section III our monetary system.
In 1857 my predecessor, in his message to the
Legislature, IN referring 10 the existence Of this
feeling, used this distinct and emphatic lam
guacc: ''rhcy arc competing with each other,
ANA their collisions AMI jealousies arc not the
best influences 10 ease the difficulties Of the
LINUS. W llilOul uIdNI VIZ HlN lHNIIlOIlS COll-
parison between them. l urge merely the fact
that the existence Of the two is not most favor
able to the harmony Of our money system
Which was the best Or worst, either alone
would be better, in MY opinion, than the two
with an aniagonisln between them. Amigo.
nisrn e~xis:s, and will exist" Ny experience
and observation, since the suspension Of specie
payments. confirms fully the accuracy Of this
statement. Why this is so, | am not prepared
to say, nor shall | undertake to determine who
is to blame for the existence of this state OF
things. Il is certainly pre- udiciaf to the inter
cSts If the State, and ought 10 be corrected, il
it can lie done, by legislation.
1t atf,rds nc SrcatSatisiac'!rn I" believe that
all our banks ate in 4 sound condition, and
that they arc responsible and reliable. In
times Of financial embarrassment and pressure,
such as we are now passing through, it be-
comes lis TO practice rs much iorbcarancc ms
possible in orr business intercourse and ar
rangc.nents, that the evil may not bc 'lnncccs-
sariIY aggravated. Confidence has been shaken
10 a great extent, but this was TO have been en-
rrctti. 1t is 4 plant Of slow growth, and cha
rity, iprbearaEce and prudence is required to
prevent it from being uprooted and destroyed.
In communities where the credit system pre-.
walls TO so great an extent as it does here, we
must he cautious, or we will involve all in a
common ruin.
Several reforms are necessary, in my opinion,
in our system Of banking. We ought 10 abo-
lish all notes Of Il less denomination than
twenty dollars; but this should be done by
degrees, and with the utmost caution. 1t is a
reform that will require time to accomplish;
but as it is 4 necessary reform, ctr attention
should he directed to ii, and it should DC pro.
vidrd for IN the renewal Of the charters Of the
banks. Its effect will be to inlusc n larger
amount Of specie into our circulation, and to
protect those in the community who, from
their want Of familiarity with bank paper, are
most liable to DC imposed upon by counterfeit
paper. From 1907 to 1919, a period Of twenty
two years, the one and two pound notes Of the
Bank Of England, were allowed to circulate,
and according 10 the returns made to "TarIla.
lncnt, it is asccrtaincd that the number Of pro-
Sccutions for counterfeiting or passing counter.
felt notes Of the Bank Of England, were 99S.
and of that number, there were BIB capital
convictions, $50 inferior convictions, and lJ5
acquittals. The enormous sum Of G2i9.00U
near 4 million and IL quarter Of doliaTSl was
expended by the bank in attending to these
prosecutions. The returns show that by lar
the greater proportion Of these prosecutions
were connected with the one and two pound
notes. The dcttctions Mt the bank, for 4 pc
riod Of little more than six years, from the lSt
day Of January, 1872, TO April 10th, 1878,
were Of one pound notes, l07,23S; o! t~0
pound notes, 17,7S7; Of .Nre pound notes,
$3.50; Of ten pound notes, 40; of tnsnty
pound notes, 81; and Of all above twsnty
pounds, 80. This covers only six years out OF
tie twenty-five; but it shows i Grightful exhibit
ton of crime connected with the small notes.
\ reference 10 any reliable counterfeit detect0r
will show that the cAitionS Of counterfeits in
the United States, Of local and State banks, Of
ten dollars aud under, arc more Than ten to one
Of the editions Of twenty dollars and upwards.
These striking facts arc extracted from u speech
made some years ago, 10y one Of our best in.
formed statesman, and they well deserve
Ia he I",ndcrcd in your consideration Of the ques,
ton. If YOU shall come to the conclusion that no
nu.cs cf :, less denomination than twenty dol