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that three of dence, and years fear have created distrust in the and ability many of afford of the five Banks to maintain to specie keep money pay ents, unemployed, may from are those be inclined who can hoard the convinced coin they may by experiment withdraw that the banks, be permanently continued. specie payments indebtedness of the country to the towns cities The and of these towns to the Northern pros Virginia, premature attempt to resume may to the trate so great, the banks, that without any adequate bene fit community best estimate can make, " with indebtedness the aid From the well informed metchafts, the is at of some the of country our to the city of With Richmond 80 much alone. of their three millions of dollars our rehants are compelled to re on tal in the country the banks to enable them to carry sort to commercial the aid of transactions, and to meet agricultural their en their in the Nortbern cities. As the many gagements the country are brought to market, of the debts Northern products country of debts are liquidated, and, are by discharged, the exports in those products. the Berdes, without the facilities given and whole or in part. to some if the shipping merchants until the by the banks from the time of purchase manufacturers, available, they cannot, in many cases, their exports become for country produce, or carry would on seem pay a fair price with advantage It, therefore, of specie pay to business impolitic to attempt a resumption of tobacco be until after the exportation of the crop ments now beginning to come to market, and of our growing crop of wheat. then will require great abstemiousness the in the Even foreign article of consumption during of year, the use of considerable diminution of the discounts is not and a and that, to at a time when the country The present banks, for heavy pecumiary pressure. abundant, prepared our great staple, although yield crop of tobacco, those best qualified to judge, will not million of millions to is the thought State by as much as the previous dollars. crop It should by be reand half too. or two that about half of our State debt then has served been within collected few years disposed of abroad. and of receiving as a resource tanto. but that now instead we have to pay to for a theinterest reduction of the discounts of the In regard the language of Mr Gallatia a etrong banks, use 'The Legislature does not and cannot discounts sumptionist slow and gradual the diminution of aware must be, how in order that universal distress may not eue. Tender as the subject is, I must pay that slowest I should prac- be to sec such a diminution, by the of trade rejoiced persisted in until the balance shall be ticable process, in favor of Virginia, or at least become equal ized Unless this can be accomplished before a resumption commenced, I can see no security for the permanen- must in be specie. cy is of specie payments, inasmuch as the So long a balances buy discharged constantly value abroad than we sell, we cannot maintain three more in payments with a circulation of two or from specie paper for one in coin, when Massachusetts, lars in economical habits and well directed industry, can of her circulation of paper with perfect safety she keep up simply because she sells more than buys, eight for and one, her people are satisfied with their paper currency While for on domestic this point, purposes. avail myself of the privilege remark accorded in the 9th interrogatory, to hazard the shall bad as the general policy is, until Congress that, reduce the standard of silver in the fractional shall cause parts an so as to prevent exportation, and neces. abundant dollars, supply of such coin, it will be almost continued the use of small notes should be care after sary that the resumption of specie payments, for taking payments that such coin shall be legal tender and only in New England under ten dollars In York small notes are in common use without complaint or the part of those most concerned tc the seventh Question. Theansw Answer r is embraced essentially in the foregoing remarks. Answer the eighth Question. system of independent banks in the be in. If of branch banks, it would perhaps them betterior,inster ter that arrangements should be made between for the and the banks the great commercial banks, points because redemption of the notes of the interior redeem the latter failed to supply the funds to when the others would refuse to receive them, notes their with notes, the system of branch banks where inade the rebut all the departments are indiscriminately would be al. of ceivable in payment The of debts, statement such of plan the amounts most inoperative and circulation at the different periods of sus pension specie has already been furnished the committee by this bank. Respectfully submitted. JOHN BRC CKENBROUGH, Pres't To JOEL HOLLEMAN, Esq Chairman of the Committee on Banks TUESD NIGHT, 8th Feb. 1842 Sir-Having been engaged with the Board be. of Dear letter of this date did not reach me Directors, your and instead of formal answer to the quesa fore tion contained 3 clock, in it, beg leave to adopt the form of letter in reply some of my answers to the questions This pro I regret the the committee were not satisfactory some pounded by justly be attributed to the nature of BUS of think, the questions. may which do not appear to me to be ceptible of definite answers. sion It would in me to reply with con ,ave thing like d ginatical pret pend on circumstances fidence to that which ma ght reasonable to sup may vary every week hould lay down rules pose that the officers of esign before they of action to conduct difficult the hemy, as that oth aware of the movements of of the monetary and cers of bank,inth*present uld undertake country banking affairs curtailments and amount nounce the man stances be ecessary to commence may under all That slow and con. and : payments maintain requisite to thatend, tigued dimination of discounts it,but ! can I have already said, and I feel assured of the hazard an opinion 03 to the quantum, periods the not the mode of making that diminution. As custom to rather weaken we mav quantum, or we must ascertain what reduction than our strength eracan the institution; bear, or as to the periods, that must and depend the en coming in and value of the crops, and on the of the country to pay the debts to the town; of debtors-i classes means as to the mode, we must be regulated by ordinary the capability times of the the different readies way to reduce discounts by rejecting business it is paper, but when that is carried to any extent, is trade, and causes a decline in the prices of it embarras our agricultural products, by giving moderate all the dealers. advan tage reduction to the great of the capitalize accordonodation over the paper is the most desirable, A but that is slower in its operation, or we more suspended debt, and incur the heavy excreate of a multitude of lawsuits Much then must be left to the penses discretion of the Boards of Directors these points From the 1st February 1841, to the 5th April follow when the banks in Richmond persisted in had specie ing, after Baltimore and Philadelphia sus d payments, pended again the Bank of Virginia (1 mean the fourth- parent to 917, $638,096, bank) reduced its circulation upwards and the of one consequence $859, that was, is.from that the portion which was not brought in, for ceased to be general circulation, and was used only which were of drawing specie, while the notes of the purpose convertible, took 11. place in circulation convertible not notes, on the well established principle political economy that that circulations abortive unequal effort of two cannot exist together speci payments, our stock of months, to mainta only reduce about $50,000. but we parted with other was funds equiv to specie to make up the differ This fact shews that when resumption does ence. place, it must be by general co-operation of all be the banks of this and the adjacent States, or we shall undated with circulation of inferior quality would afford me gret pleasure to give the Commit but tee precise information oil all questions of fact, those which deem not susceptible of definite answers, off opinions " hich may
