BANKS. there are no records of ganized banks in Virginia before 1792, the bank ing business was known in the State for a century before. and was conducted by private individuals. The special act of 1777 prohibiting the issue of currency by private persons shows how common a practice it was. Lack of instru ments of exeliange forced the State to issue notes, and the nevessities of the Revolutionary War in creased their number, but the rapid depreciation of these notes left State without a stable currency. In 1792 the banks of Alexandria and of Richmond were established. In 1795 branches of the Bank of the United States were o-gaiuiZod. III the first two decades of the nineteenth century there developed half a dozen large banking insti tutions with a great number of branches all over the Ste te—altoget her over 40 branches. The issue \ strictly limited to three times their capital, and directors were made liable to loss. Because of the branch system, these banks were very strong and did a profitable business. This
called forth a large number of private or un ehartered banks of issue, but they were all pro hibited by the law of 1816. In 1837 a free bank ing law was passed and a large number of banks of issue organized under it, and a still larger number of banks of deposit and discount. In 1860 there were 24 banks of issue with 41 branches, and between 150 and 200 banks of de posit and discount. Not a bank survived the war. The national hank, however, Soon appeared. State banks began to reappear in 1869, after the new Constitution was adopted. There was no regulation at all of the State banks until 1885, when a law was passed requiring reports to the State Auditor. Not only the Legislature, but circuit courts are empowered to issue banking charters. After 1885 the number of State banks greatly increased.
The condition of the banks in 1902 is shown in the following table: