Staunton vindicator. [volume] (Staunton, Va.) 1860-1896, 1870-02-18
TFor the Yindicator.7

For the Ylndlcator.
Mr.. ED1ToR.-Sr Your correspondent
~"Staunton,' whose communication, APP
peared in a recent number of your excellent
paper. takes the ground Tin which 1 fully
concur) that men of capital and 'nanufactur-
ing experience will not invest their means in
manufacturing enterprises in q community,
where money commands 2, 3 and even 0
per cent. per month as it does here, and IN
order to make our town q manufacturing
place a change in the management Of our
banks, or other Banking capital secured,
must take place.
Holding the views do, that, in order to
make us a thrifty, prosperous and happy
people, we must establish manufactures,
and taking the views Of ''Staunton" to be
correct, we must have more Banking Capt.
tai, and at lower rates of interest. If the
present high rates of interest now demanded
by our Banks cannot be reduced, (and 1
must confess that the chances are slim under
their present management we must secure
additional Banking facilities. Now how is
this to be done Some suggest a savings IN
stitution. Well, if one can be established
with sufficient capital, and placed in the
hands of men who will manage its affairs IN
the interest of the legitimate business of the
town and county, and not be controlled by
the ''shylocks," who would take the pound
of flesh" I say all right, but there is, I think,
an institution already established In our
town, which, if properly fostered and patron
lied by our business men, can be made to
answer our purpose I mean the Virginia
Insurance Company, which now has q capt.
tai of about $l25, 000-s50, 900 Of which
has been paid in, leaving a balance Of about
1915, 900 unpaid, which is secured by stock
notes, the holders of which, in many cases,
would sell their stock to new stockholders,
in order to convert the whole capital stock
into a cash fund of $l25, 900.
Suppose our merchants, mechanics and
men Of small means take the balance Of this
stock, (Which they can easily do as the shares
are only S25 each,) or SO much OF it as
these share holders are willing to sell, which
would make a paid up capital of say $780,
600, which would give the company a CAPT
tai stock equal to either Of our present Ma
tional Banks, and, if used for the benefit Of
our business men, at rates they could pay,
giving in all gases the preference to policy
holders and depositors, would in a short
time secure to the company a deposit line of
at least $3.50, 600, which, with the paid up
capital, would give US a Banking capital of
$3.50, 900. The profits upon this if proper
ly managed, at 6 per cent, would yield to
the stockholders an annual dividend of not
less than 10 per cent on their investment,
to say nothing about the insurance depart
ment, which pays all the expenses Of the
company, they being provided for in their
charges on life insurance. The depositor is
perfectly safe, as the charter Of the Com
pany provides that under no circumstances
are the deposits liable for losses incurred by
the insurance department.
Taking for example the many prosperous
life companies known to the public, it is
plain that a large business in life insurance
can be done here. By an actual calculation,
based upon tables known to be reliable, the
issue Of 500 life policies per annum aver
aging $4,000 each, "a low estimate as com.
pared with other good companies,) would
add to the capital of the company, if proper
ly managed, in FIVE years, not less than
$500, 900, a large proportion of which would
be drawn from distant communities and
therefore an actual increase to the capital of
our town. That added to what would be
made by the Banking department would, in
five years, make a cash capital On hand of at
least 500, 600, including deposits, all Of
which would be avilable for Banking pur-
poses.
Taking the above statements to be true
(and l haye carefully considered the subject,
and, with the information at hand, am con-
WINGED that I do not over state the case,) is
it not plain that it is to the interest Of our
business men to examine into the subject
before they undertake a new project.
Now I wish it to be distinctly understood
that I have no personal interest in this
company, not owning one dollar of its stock,
nor do l know hat l ever shall, as | have
no means to invest in stocks of any kind,
but I desire to zee our merchants, farmers,
mechanics and manufacturers all prosper,
and feeling and knowing that no legitimate
business can prosper in a community where
money rates are as high as they are here,
therefore let me urge our business men to
make some effort to build up this institution,
and thereby induce men Of means and ex-
p~erience to invest their capital in manufac-
turing enterprises in our town, which as l
have endeavored, in two former communca
ton on this subject, to show is the sure road
to material prosperity and happiness:
A CITIZEN.