180 



THE FAKMERS* REGISTER. 



almost bankrupt elates, as all ihese bankite ar- 

 guers or asserlors counted on, for five years more 

 at least, (as assured by the previous law of Penn- 

 sylvania,) resumption was suddenly and unexpect- 

 edly required and ejiforced ; and, as we predicted, 

 not a word more was said byourbankiie orators and 

 editors about reeumplion in Pennsylvania and 

 Maryland bein^ the only requisite lor resumption 

 in Virginia. The lie and the I'raud had served its 

 purpose up to that time — and the high digniiariee 

 who had used i', and their most slavish and 

 basest tools who had been continually proclaiming 

 this alleged sole excuse and reason for suspension, 

 quietly dropped it and made no more mention of 

 it than if it had never been used at all to ward off 

 resumption of payments. In the bill then before 

 the legislature there was a provision that in case 

 the banks of Philadelphia and Baltimore should 

 resume payment, the banks of Virginia should 

 also be compelled to resume within 60 days there- 

 after. This provision was very well while no 

 such contingency was deemed possible ; and 

 would have served admirably to keep up the de- 

 lusion, and give countenance to the bank falsehood 

 and fraud founded on the suspension of northern 

 banks. But while the bill was yet in progress, 

 the legislatures of these two states actually passed 

 their laws to compel their banks to resume — and 

 our legislature therefore ox once struck out the 

 provision founded thereon. It could no longer 

 serve its designed purpose of deceiving the public. 

 The recent bank relief laws require the banks 

 to resume payment on the first day of next No- 

 vember. But, unless other extraneous circum- 

 stances shall before that time arise to enforce the 

 requisition, there will be no real resumption then 

 but only such pretended and falsely asserted re- 

 sumption and continuation of specie payments, as 

 existed in February and March, 1841. The 

 branch bank system of Virginia, (which alone 

 would serve to render any banks irresponsible, 

 and therefore corrupt and dishonest,) of itself 

 will suffice to protect the banks from paying any 

 thing worth notice for a month, or for several 

 months. And within one month the legislature 

 will be in session, and ready to grant any desired 

 relief to the banks, and continued indulgence to 

 suspension. Long before November shall arrive, 

 as formerly, the notes of the different branches 

 will be so exchanged that it will be very rare to 

 see any bank note in circulation near the branch 

 where only it promises to be payable. The 

 Wytheville notes will be issued in Norfolk, and 

 Norfolk notes in Clarksburg, &c. The banks 

 will claim not to pay deposiles except in " current 

 funds," which terra means the worst bank notes 



that the bank may choose to receive at that time 

 and for that purpose ; and though this impudent 

 pretension and claim has no legal validity whatever, 

 still in practice it will be maintained by the banks. 

 Still further, the merchants are the drawers of 

 nearly all the checks presented — and they will 

 draw them only for " current funds." With 

 these several strong means of protection against 

 paying their honest debts, the banks could keep 

 of! any considerable practical resumption of pay- 

 ments, as well as they now avoid paying their 

 notes for one and two dollars, which are now by 

 law payable in specie, and which they take care 

 to issue far away from the place of payment. 



So it is, and we grieve to admit it — that the 

 banking system of Virginia, as permitted and 

 sanctioned by the legislature, is now more de- 

 graded in regard to honesty, and in reputation, 

 than any we know o<' in all the Atlantic and most 

 of even the western states. And there remains 

 no hope for relief^ either in the banks' forbearance 

 to continue their frauds, or in the legislature en- 

 forcing sufficient penalties to prevent bank frauds. 

 And full and sufficient causes of this deplorable 

 prostration of the character of this once noble 

 and universally honored commonwealth, are to be 

 found in the existing partnership of banks and 

 state in the trade of fraud, and the enormous in- 

 debtedness of the body of bank directors and also 

 of members of the legislature to the banks. 

 The reports of the bank committees recently 

 made to both houses of the legislature sufficiently 

 expose these astounding and deplorable truths. 



From these reports appear the following im- 

 portant and curious facts ; and for more full proof 

 of all, and of more than we have time to charge, 

 we refer to the two reports, and earnestly wish 

 that they could be read by every honest citizen : 



That 55 members of the last General Assembly 

 of Virginia were then debtors to banks, in the 

 gross sum of ^111,675 : 



That the bank directors (so far as reported, and 

 the reports not being complete,) were indebted to 

 the banks, as principals and endorsers, individual- 

 ly or as members of commercial firms, ^2,321,080, 

 or nearly one fourth of all the capital of all the 

 banks in the state. 



The directors of the lately established Ex- 

 change Bank deserve especial notice and applause, 

 (considering that they are such new hands at the 

 liusiness,) lor their expertness in getting the lion's 

 share of the spoils. The reports to the legisla- 

 ture show the following amount of loans and 

 liabilities : 

 Capital of the Exchange Bank and its 



branches, . - . . ^1,782,037 

 Loans to and liabilities of its directors 734,930 



Or more than two- fifths of the whole capital. • 



