Lynchburg Virginian. [volume] (Lynchburg [Va.]) 1829-185?, 1838-10-01

~ e-fAtdFfs EiH Wv $3.50
tralian. emnhaiicali, declaredin an otheisl Refoii
To the Senate in case a. the nen-renewai Of the
charter Of the Bank Of the L. =. Tho State Banks
NAV. and mnsf be used by the Treasury These
Institutions present every guarantee that could be
| desired for the ssfets Of The public revenue-thoir
weekly returns 10 he Treasury of amounts 81 pub
lac money 10 flisif possession furnish The most o1se-
nal check on any maliessance or inhdelIts Of the
public oolleciors-at the sams lime. from the sena-
rate diaoct0ns aud the sovereign State supervision
10 which they are subjected, they ran neither enter
into political combinations, nor be made the medium
or the instruments oil any influence Of the ! cdctal
Executive adverse TO the public Liberty. The ores-
tunes of. and under the constant conifoul, ofthe State
Legislatures. II they should. At any time. forget ihftr
duties. OF lend themselves to an improper purpose,
the abuse would be instantly detected and vigorous
~ redress.i bs these jealous AID natohful guardians
Of the public liberty. and Of the nights Of the people
and the States. 10 shout. the Conservatives hold. in
The language Of what was then considered as an an-
thori4liyc exposition Of the creed Of the whole parry
by the organ Of the administration IN November 1884
-" thai The system of ~deposiics Of the public money
10 the State Banks, reguaied by law, rs II will be,
: as good FOR safety. and The ieasf liable 10 abuse bg
The Eroostre IF any uchioh The an Of man can
conoeire."
THIS system. however. is now sad by those who
I'll lately. wrre ~ s,utdicst champions, TO have tat
81. How taiedf Vas II a tniue. to have accom-
plished. land often under circumstances ofthe great
est diihcuity,) The important ends Tor winch II was
Instituted, 80 a manners 50 signally succes'iul.that the
President. Generalization aud tle Secretary oithe
Treasury, came. year after year, from 1888 to 1887,
IN theif Official messages aud reports to Congress,
celebrating as complete sHccess-appcaliug triumph
anily TO The experience Of each succeeding wear as
demonstrating beyond the possibility of controversy.
a the capacity of the State Banks to perform the du-
ties OF fiscal agents for the government" aud Ia
supply all the wants of the community, IN relation 10
currency and exchange. IN q manner The most pc feet
" satisfdcf0Ty DO tie facts. So seduiously brought
fofuatJ aud with such just applause, BY General
Jackson 10 his very last annual message to Congress
that the neposIte Banks, IN lulo more than a
wear preceding the date OF hs message had. " Nth
the greatest Jrompitade and regularity" and free OF
all charge 10 the government, made transfers oi the
public money iof II 10 the amount OF S59, 26s, -!i4,
imofe than hily nine millions OF dollafs) while the
whole amount transferred by the Bank OF the |. :.
IN 1922. was only S1e,000,0 600, tsiNecn millions
and that The amount OF domestic exchanges perform
cd by them was, atlo1si, one third greater, and done
Al lower rates, than hid been negotiated by " the
Bank 81 he Is. and as tueatg-hte brdBcies,' du-
rlng an equal period OF tlme-do these facts shew a
failure OF his much mIsfepresentcd system! Far
very lar otherwise.
But IN The month of May, 1887, under an extra
ordinary combination Of adverse circumstances, the
Banks, throughout the whole uuion, suspended, for
a time, the redemption Of Their notes IN spfcie
aad 'hts suspension Is SADLY those, who take ooun-
sci OF tbeir passions aud pTcJud,ces, and appeal 10
the pdhsiubs dHh IitJuuttts 81 tlhtlH, muCb more
than they consult tlelf own understandings of ad-
dress The pubic judgment, To constitute a fragrant
failure Of the slato Bank Deposltc System 1.-THE
Drposite Banks, III common with all The other Banks
oil the eeunu,, under the peculiar circumstances
aforementioned, deemed IT a measure both Of pru-
dencc aud safety to suspend Spec7e payments, tot a
time, then real solvcnoy was never, Tor a moment,
doubtlul-ih'y continued to meet their responsible
ties TO the government by payments To the puolic
creditors IN a manner entirely satisfactory To those
were TO receive hem-the balance due TO the
government las been reduced By these payments 10
the mercsi trifc, and II Is now well understood that
the government will not sustain the loss OF a cent by
WIh What fairness, tllen. can i, be said thai, the
State Bank nepos,te System his fdiicil The
Bank al England suspended payments ia specie, ior
ffeHty taur suceessjce geafs, through a period both
ot peace aud war. lltd IT ever enter INTO the mind
OF any pcIsnnt To contend, on that account, that the
pnhry III 4 Bank had proved itself a failure IN En-
gland ! On the contrary, Ms charter has been re
new ed, BY general consent, since, aud II Is now IN the
lull vIgnr al renovated existence. la regard to the
suspension Of specie pay ments by the Banks IN tins
country IN MAY, 1887, we run no tlsk III saving that
there Is not a rejecting mind IN the nation, convcis-
ant with such subjects, which does not now admit
that, al the tima II was determined upon, and in The
circumstances, both lofeien aud domestic, winch
then surrounded the Backs, II was a wise and ne
cessaiy measure, aud that IT'S operation has been
benchc1al to the whole country III avefting far great |
er %calamltes which must, otherwise, have fallen UPON
II.
But The State Banks have now, by n general and
spontaneous movement, resumed specie pay lneuts.
" thin fftten months after their suspensions, they
forward, aud proclaim their readiness 10 meet
all Their liabilities IN the strict tegdi currency of the
country. So speedy aud thorough a recovery, IN
spite at all The difficulties thrown III their way, fur
nlshcs the best proof OF the general souudpcss OF
their coalition, and affords a triumphant vindlcation
oil the policy OF those who have sought to sustain u
public confidence IN them, and who 20
%oriiIelr employmeni, rs public repositories, in de-
cldcd preference 10 either OF the other systems pro-
posed, This resumption, ~deprives the advocates
OF both OF the rival systems-the Sub Treasury aud
the National Bank-ott the strong ground on which
they lave hitherto stood. The partisans OF each
have relied mainly upon a distrust OF the State Banks,
to sustain then respective schemes. II reference
be had TO the discussions which Immediately niece
dcd the establishment OF the late Bank of the UNI
ted States IN 1910, II will be seen that the main al
gument Of its advocates, and almost the sole one,
with its able and distinguished protector, Nj. DAB
las,) was that, without both the aud and coercion of
such an Institution, the State Banks could not be
brought back To Sp6cle payments. They have now
resumed specie payments without it, and have
shown such a regulator to be, so tan, unneccs-
sary, In like manner, The iavorlte and most eff
cient topic urged by the sub IfeaSWryiteS, in recon-
mendation Of their scheme. has been derived from
the alleged iaithlessness. corruption and insecurity
Of the State Banks. Their prompt resumption OF
specis- pay mcuts. in the face OF all the discourage
ments and difficulties which have been opposed to
them, is a signal RECITATION OF these chalges, and
levels at oace the strong hold other Sub Ireasury
opponents.
The policy OF the Conservatives, then, stands
forth, AT present, in the clearest and most imposing
attitude. The RESUMPTION OF specie payments has