The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1867-04-18

CREDIr.-A short time Since tneIe Wei q uhoi
quite rife in this community about efforts py
certain persons TO depreciate the value OF
| State stock for interes ted purposes. Ihese ru-
| mors attracted the notice OF the Nirginia lie,
gislature, and the House OF Delegates oraereo
an investigation into the facts, TO see II any
omSers OF the public repositories had been
euiity OF such efforts. As will be seen by the
proceedings in the House of Delegates yester-
uay, tne committee on Banks, after full
examination and the hearing of much testi-
mony, came TO the unanimous conclusion that
there was no ground for suspecting that any
| of the officers of the deposit banks had essayed
| to impair the State credit. A letter from Mr.
Fant, of the First National Bank, was read
in committee, and IL is proper under the cir
cumstances that 1t should be published
FIRST NATIONAL BASx,,
RIcHNoSp, April Il, 1867. )
Hon. X M Bentley, Chairman Committee on Banks,
House of DeiegntsS:
Sir,-I received your request to appear be-
fore your committee to testify as to certain
opinions said TO have been expressed by OIL
GERS Of national banks tending to depreciate
the credit Of the State.
have to state that I know OF no officer of
any national bank, directly or indirectly, dis
crediting the credit of the State did, how
ever, hear the opinion expressed by officers OF
national banks the q werner, Auditor, mem
bers of the Legislature, md others, who va
lue the credit of the State, that 1t would nave
been better and not so hard upon the people
had the payment of the interest commenced
on the lst IF January, 1868, instead OF July !,
1867. expressed the same opinion, and freely
gave it rs my Judgment that IL would have
streng ngthened the credit of the State had the
payment of the interest been deferred until
the last-named day, rs recommended by the
Auditor in his annual report. BY that period
the people would have realized on their to-
bacco and wheat crop, which would have ena-
bled them 10 meet the tax for the payment OF
interest without feeling it a burden, and which
would have left no doubt on the mind of any
one rs to the future payments.
1t is estimated that it will require 100000
to pay the interest on the lst of July, 1867.
The current expenses of the State added to the
expenses imposed under the reconstruction
law, will probably swell the amount above
r., ,0OO. 900 TO he provided for by the lst OF
January, 1865. On the lst of April the State
Treasurer had about 1880 900. which is on de.
posit with the banks, leaving Sl,6O,ooo TO b.
collected from the people 10 meet the interest
and expenses 10 lst of July, lS0i, and January
| !, ls6S. That which is due the lst OF July
next Is now in process of collection, the she
riffs having been granted sixty days extension
| by the Legislature, which | understand ex-
pired on the Sd instant. Two thirds OF the
/ interest, in my opinion, viii go directly or In
/ directly out of the State; hence, thought
1 and said that the practical effect Of withdraw
| ing so large an amount OF money ut TINS time
| from circulation would materially affect our
already depressed finances, and / feared the
scarcity OF money which il would necessarily
occasion might 10 some extent imperil com
mprcial credit.
| This city would be less affected as the bulk
| of the money has yet TO come from other por-
/ tions OF the State. The bank of which 1 am
| president has on deposit of State money-S16,-
! SoS .67--whch we have always been and still
are ready TO pay on the warrant OF the lrea-
! surer, without notice. To let go out OF the
/ State so large an amount OF money rs Is re-
quired for the payment of the interest on the
/ lst of July would force the banks throughout
/ the State to call in their loans. The commits
! sion merchants in turn would be compelled TO
! curtail their accommodations TO the farmers )
and this, | apprehend. would produce finan-
cial distress (; all of which, expressed the
| opinion, could have been avoided had the pay.
! meut of the interest been deferred until the
/ crops referred To could have been realized
| upon Nor would this delay have affected the
! credit of the State any more than ii affects the
other Ten excluded States which have not pro-
yided for the interest on their State debt. l
do not think the credit of a great State like
| this can be affected BY loose and careless opin-
! ions expressed in private conversations. The
State stock has already advanced ten per cent
| upon the passage of the bill and when the
| Legislature shall have passed tax law to
meet the interest, l think the STOCK VIII appre-
| ciate still more.
The bank of which l am president owns a
! large amount of the stock OF the State, and II
is not likely that ] would depreciate its value.
| ! thought then and still think, its value would
have been enhunced had the interest been de-
| ferred until January, lebs, ana tax law
| IN SScd to pay the same. / nave unbOUndsd
| TAI th in the honor and integrity of the people
| OF Virginia, and however heavy IL may BE-,
! they will shoulder any bdrden which the Le-
| gislature may feel bound 10 impose upon them
| in its eudeuyor 10 discharge its obligations 10
| the State.
In conclusion, permit me to add that the
| bank over which preside made loan 10 the
| State when il was needed, and when il was
not convenient for the then repositories to do
so and it has loaned TO the people of the
| State in the aggregate S36s7 tj4.2 % since its
| orgauiZa tiOn, and not n dollar has been loan
Ell at IA rate above six per cent. per annum 1t
has also contributed, by loans, TO the estab-
| lishmeut of four other national banks IN
other portions of the State. II my private
opinions as | have detailed above shall re
suit in causing your committee 10 report III
favor of anuulling the order OF the Governor
designating this bank as one OF the deposlto
ries of State money, | shall regret 1t but
cannot believe that such &C tion VIII be taken
| by the Legislative department OF the great
| State OF Virginia for opinions privately eN-
| pressed. which in no sense can be tortured
| into "A diSparagement of the credit OF the Com
| monWealth. No Government, whether repup-
| lican monarchical. or autOcratic, however de
| spOtic. has ever denied 10 its citizens The pri-
| yilege of freely canyasSing In their private
| conversations the effect of public measures OF
| finance upon the credit OF It's securities; ana l
! should be- sorry If a precedent should ever De
| established by any State OF this Union.
If your committee desire me 10 answer any
| inquiries not embraced in this letter, WIil
promptly appear before you.
Very respectfully,
Your obedient servant
| IA. q. FAINT, President.