South Branch intelligencer. [volume] (Romney, Va. [W. Va.]) 1830-1896, 1837-05-06
05- We extract the following from the Win
chester Republican, at the request OF the au-
THE NEW BANK LAW OF VIRGINIA.

THE NEW BANK LAW OF VIRGINIA.
Our wise men of Gotham-if may SO call
the last Legislature of Virginia-have, In one
Of the longest Legislative sessions ever Known
in the State, among other Of their achieve
ments and acts of grace and favor to their con-
stituents given them an act misnamed San
act to increase the Banking Capital OF this
Commonwealth" 1t is devoutly to be hoped
that none of the old banks will accept this a
mendment to their charter, and that no new
bank will come into existence under it: should
they be so unwise certain it is neither of them
could exist under that charter. There IS one
provision in that law which would, OF itself,
compel those banks to stop payment in ashoTt
time; and that is the section which compels
the banks to redeem all their notes of the
smallest denomination they are authorized to
issue, in gold of the United States coinage.
That this single section would be fatal to ev-
ery bank which would 60 into operation TN
der such charter, must be evident to every
person Of common sense, on moments re-
Election. certainly there would be one
continued run upon the banks for this Amer
lean gold coin. The miser who cared little to
hoard silver would rush on with the utmost
ayidity to draw upon those beautiful, brilliant
gold coins, the color of which has so much
attraction for such characters; the emigrarit
i
all his cash into notes for which he could ex-
tract from the banks this gold coinage, which
he could carry with him with so much more
convenience than silver; the man who wish
ed to purchase cattle in the west could carry
# with him in his belt, believing that he would
purchase much cheaper for money OF that des-
cription, among the remote and sequestered
valleys, than for bank notes where the credit
which was due to those banks or their notes
was unknown; every panic which would a.
rise would produce a run for that kind Of coin,
and eyery man who wished to draw speciefo for
any purpose would seek this. This objection
cannot be answered by saying that twas on
" notes of the smallest denomination which
the banks issued for which this coin would be-
demanded, because great proportion OF the
issues Of almost all the banks are in these
notes of the smallest denomination, for this
reason; that they remain longer in circuia-
ton, being the most convenient circulating
medium they, therefore, do not retaTn as
soon upon the banks as notes OF larger de-
nominations
How could the banks obtain this United
States gold? 1t constitutes but small part
of the specie in the country, and is now only
to be obtained by paying premium for it.
Let those charters be accepted, and that pre-
MUM must rise very high; and when banks
have to redeem their paper with specie tor
which they have to pay q premium, they must
quickly wind up at loss. But the fact IS,
the quantity which would be necessary could
not be obtained on any terms. Such requi-
sition is unparalleled in the history of banks
There is another section in the new bank law
which ought to procure its rejection, but more
especially when taken in connection Hiththat
first mentioned and that is, that no bank
shall issue notes to greater amount than five
4. al he nd cilvo+ lie
session. Now it is fact that banks always
possess funds more or less, and sometimes toa
large amount, which are preferable to specie.
and on which it is perfectly safe to issue their
own notes, and which is preferred by persons
wishing to make an exchange to specie. For
instance, the inland banks may have notes of
the banks in the seaports OF drafts upon themi
or the banks in one sea port may have notes
or drafts upon another, which persons wish
ing to make an exchange would prefer to spe-
Gle but by this section those funds are made
as unavailable as if the banks possessed none
such. They will have tendency to lock up
the specie in the banks more tightly than ever.
In fact, the new bank law breathes the spirit
of Bentonsm as much as if Thomas H. Ben
ton, who seeks to build his popularity on an
attempt to destroy all banks, had penned the
law himself
But it is in vain to exercise such charlatan%
~ in this day, il is absurd to think that the
business of this country can be done with
specie alone. The experiment would arrest
its prosperity and paralize all those energies
hv which it has hitherto SO rapidly advanced.
1hare must be circulating medium sufficient
for the exchange of property from hand to
hand. Where that is deficient the country
must sink rapidly into decay, just as the hui
man frame would when there is not blood e.
nough in the system 10 circulate through ey-
ery part. The whole specie in the country
would not supply one fourth of the demand
The specie in England would not supply the
demand there, where there is more in propor-
ton to the population than in any other coua-
try In the world; even there it would not be
extravagant to say that there was three times
the amount in bank notes IN circulation that
there is in speciei In fact, all the mines OIL
precious metals in the world which have been
hitherto discovered, would not come near TO
supply the necessary circulating medium for
the business of the world, If bank credit was
excluded. And what value does gold and sill
yer possess more than the credit which CIV
en- them by universal consent as the represent
tatives of propeftyi Was iron equally as
scarce, it would be Of great deal more vallie,
as it is in real utility than gold or silver. This
deficiency, then, in the circulating medium
must be supplied by giving credit to some
thing else as such. Now what better substl-
/ tute can we fave than the notes Of solvent
banks? And these we must have, in spite Of
all the humbuggery and slang to the contrary
used by artful and designing demagogues to
advance their own ambitious pfojects,by tax
ing advantage of popular prejudice. IL IS
true that when the bank issues are greater
than what is necessary to do the real bona
iide business of the country, whereby men are
led to enter into wild speculations which 9th
erwise they would not, then there is danger.
And that danger has been Produced in the u
nited States by putting down the United
States Bank, which regulated the necessary
amount of the circulating Medium exactly.
By suppressing that institution, Gen; Jackson
heaped lip combuatibies for condagraton's
by calling soO.neW banks iato existence which