Lynchburg Virginian. [volume] (Lynchburg [Va.]) 1829-185?, 1839-04-08
EDITORS CORRESPONDENCE.
RICHMOND, April .. 1899

EDITORS CORRESPONDENCE
RICHMOND, April .. 1889.
To-day, the consideration Of the Bank law. pfovi-
ding for an increase Of the Banking capital of the
Comuonwe alih aud for other purposes, which as
sed the of House OF Delegates weeks since, and
which had undergone various changes (or cannot
call them amendments in the Senate TO most Of
which the House had disagreed aud TO which the
Senate adhered, was again resumed, the principal
points of the controversy between the two Houses
are, fst, the expediency OF prohibiting forthwith
the issue OF So notes; and secondly, the classical
ZION Of loans, compelling the directors in the first
Dlace to discount notes of the smallest class offered,
and then to proceed to act in rotation upon the Sc
cond, third and fourth, according 10 their means
that is say, the notes otthe lst class exhaust their
means those of the second class of course thrown
out and on from the lowest to the highest grades
with this additional provision that no individual
or firm shall any time be permitted to borrow
from Bank larger sum than $4,000. An animated
debate arose on these amendments, both OF which,
in the shape in which they came from the Senate,
were a gain rejected By the House, though in mod
fled form thcy were afterwards concurred in, as a
ground Of compromise, but certainly from no abate-
ment OF hostility on the part OF very large majority
Of the House tho principles which hey embodied.
The House insisted that the provision relative to the
So notes shall be deferred f5r year, and
that the classification clause OF the second a
inendment be stichen out altogether, retaining
that part of the latter which fixes the maXmam ol
borrowers MISUNDERSTANDING May was peculiar
ly elicitous and tofcble in exposing the crude CON
cets the subject Of Banking, which are row SO
current in certain political circles. He declared that
So notes constitute the most convenient part of our
circulating medium, and that their withdrawal would
be serious Inconvenience to the great mass of the
people an assertion which are sure will find few
persons TO contest it, beyond The immediate range Of
those political theorists, who have - fixed dea'
upon this subject, and who have mbibed the strange
couceit, which, so Car from being correct,
plausible, that their withdrawal from the circulation
will lead TO the increase of - hard money in the
country. twill indeed, cause of to flow in
the channels OF circulation : but whence must be
drawn! From foreign counties? Certainly not Il will
be drawn from the vaults ofthe Banks. The practical
effects of lis adoplon therefore, in This respect, will
be, not the augmentation OF specie in the country,
but lis transiercnce from the vaults of the banks TO
the desks ofindiydual. And if they prefer the s.
notes, in ninety nine cases in hundred, they will
do, ii puzzles me the utility Of the proposed
change. But it may be misclierous, fthe Banks are
suddenly required call in and cancel these notes,
which constitute SO large portion of their ctcula-
ton, by Draining them oftheir specie, and akenne
their capacity of usefulness if endangerng their
existence. Judge May remarked that he was not a
S;ockholder IN any Bank that he had subscribed
for a few shares in the Exchange Bank, for the pur-
pose ofputirg ii into operation, but that he had
since sold them, as he would rs soon think Of holding
slaves in the midst of Abolitioniss Bank stock
in State, one branch Of the Legislature Of which
held opinions entirely repugnant TO every correct
salutay principle of Banking. In reference to these
attempts to regulate the mnutest detail of Banking
operations by law the Judge said that certain gen
temen who had long been members of the Legs
laufe, seemed to think that they alone were worthy
of beng entrusted with Discretionary power.-lle
should not be surprised, indeed, to at
tempt made regulate The seasons By lar, it had
been somewhere proposed, OCCASION TO abol-
sh the dog days !-Remarking on lhe idea OF cassl-
flying the discounts, Judge Nj. demonstrated by stu
hing illustrations of some Of the evil consequences
that mig hit result from it, Usurers and gamblers might
absorb all the loans of the Bank by offering notes
for discount of the first or second classes, while
manllaCtufefS or merchants. having nunuieuS OIL
pcrsonsl their employment and requiring the aid
Of Banking facilities paw them their wages might
be rejected, and thus compelled suspend their op
eratlons and to withhold bread from their work
men, And yet this provision is ostensibIy designed
to secure to the poorer classes participation in the
benefits of the Banking system
Mr.. Witcher made some lorcble remarks il
opposition 10 the Senae's samendments--ln III,
course Of which he stated the authority of rumor
IN which however he placed the most entire reliance
that the President Of the Bank Of Virginia fwho j
hnowon to be advocate of The Sub Treasur
scheme,) is opposed TO the increase of Banking cap
al in this State, and tina, he is in favor Of the restrc
ZION engraited upon the Bank bill by the Senate NJ
Robertson, the City Delegate, remarked, that,
such was the FACT he was ignorant oft. Mr.. Witehe
ho"e'effe aft Irmed his belief in the accuracy Of III
statement.