Lynchburg Virginian. [volume] (Lynchburg [Va.]) 1829-185?, 1839-12-30


ted siNty SIX millions Of dollars, and, excluding III
case ui ihe lac collector ~ New Ioik. the hgefcgat
s'nnuni 81 losses sustained IN the collection eanno
u Il believed, exceed sINty thousand dnllns II
dtlalcaiion Il the late collector NJ that onN, OF III
eNteut and circumstances Of which Congress la
been fully inform. ed through all The mod' - u
keeping the public money illei have been hitherto II
use. and WAS distinguished by aggravated dare
gard Of duty, TINT broke through the restraints q
every system aud oanntt therefore be uscul, rrier
red 10 asa test of The comparative safety III either
Additional information will also be furnished by III,
report ri the Secretary olthc Treasury In reply Ia
call made upon that officer by The House 81 Rrprc
sculases at The last session. requiring detailed IN
formation tn the subject of defaults by public Off
eeIs OF agents under each Administrations. tom l1s9
In 1857. This document will be submitted 10 YOU
IN atrw days The general results. tindtptndenl al
The lost Omcr, Which Is kept separately aud will he
slated hy se 10 iat they bear upon tins subject,
are, that the losses which have been aud are kei,
be sustained, by any class agents. have been Tic
eieaieslby banks, including, ,tquned IN the res
oiui"n, then derreciatcd paper received Tor public
dues; that the next largest have been by discussing
officers. and the casi by collections AID receivers.
II the losses on duty bonds included, they alone
Will be thf,ctold those by boil, collectors aud ret Ell
yets. Our whole experience, therefore, iufhisho :
the strongest evidence that The desncd Legislation 81
ougtcss Is alone wanting 10 insure, IN those opera
tons. the highest degree al secnrty and facility.
Such also appears 10 have been the experience of
other nations. From the results oi inquiries made
by the Secretary 81 the Treasury IN regard 10 Tho
praeuce among ihrm, | am enabled 10 stale that in
twenty tmoout Of lwenly.scven foreign Governments
irnm Which undonbt,u information has been obtain
ed. the public moneys are kept IN charge Of public
oihctis. This concurrence oi op,n,on III tavot oil
thai system perhaps NJ great as eksls on any ques-
ion Of internal administration.
In the modes oi business and oflic al restraints on
discussing officers legal change .sproducrdby
ne suspension OF specie payments, The report last
efcreJlo viii be egnd 10 con ain also much useful
IN collation. to This subject.
! have heretofore assigned 10 Congress my fca-
sons Tor believing that the establish mcuI OF an !ndr
pcndeui National Treasury, as contemplated by tho
opslnuton,is necessary 10 the sale action OF the Ed
ial Government. The suspension IN ID, the banks
lasng the cusiody of the public money, showed in
20 alarming degree our dependence those insii-
utoIs Tor the performance Of duties irquned by
aw, thai then recommended the entlic DISSOLUTION
II lhnt conncxion. THIS commentator has been
subjected, us ! drsnrd II should be, 10 severe scfu-
my aud animated discussion; aud allow myself 10
Iecve that notwithstanding The naiuIal dycr.tlcs
IT opinion which may be anlicipairdo on all sehjee
involving such important considerations, II has sr-
'urcd IN its favor az general concurrence Oh pub
&c sentiment could be expected on one Of such
magnitude.
Recent events have also continued 10 dcyclopo new
objections TO such cunncxIon. Seldom - any bank
indcr the EXISTING system and practice, able 10
meet demand all lis liabilities Tor depostes and
notes IN circulation II maintains specie payments,
md iransacis profitable business, only by the con
idence nf The Public IA its snlvrncy and whenever
his Is dcsoyed, the demands al tts dcposiiois and
more rapidly than II can make
olc Ctions from IT'S dcbtorsoIce II To pn9 inent--
This loss of confidence. with liz consequences. oc-
utrtd IN 1897, and afforded the apology OF the bank
~ lhelr suspension. The Public then acguirnced
u the 'slldly Of the excuse and. while the State
legislatures did not exact liom them their forfeited
halters, Congress. III accordance with The recon.
ncndaon Of the Executive, allowed them time 10
ay over the public money they held, although COM
clled 10 issue Treasury notesto supply the dcfcen-
y thps created.
II now appears that there are other natives ,hana
want Of public confidence uodrr which the banks
eek 10 justly themselves III refusal 10 nrei then
'bg atious. Scarcely were IT, country and Gov
rninent relieved, IN degree. from the difficulties
,ceasioned by the general suspension ol 1887 when
partial onc, occurring within thirty months oil the
nrmcr, produced new aud serious cmbarfassncnis,
hou2h it had no palliaon in such circumstances
rs were alleged IN justification of that which had
taken place. There was nothing IN The
ondnon Of The counrry TO end,ngcf well. managed
'anh ing institution commerce wins drranged by no
oreign war every branch OF manufacturing indus
~ was crowned with rich rewards and the more
han usua. abundance OF our harve.ts, after supply.
ng our domestic wants had left our granafcs and
'orehouses oiled with surplus ior expoflaiIon. 1t
IS IN the niJst OF this. that rredeomablc and de-
)recIaed paper currency is cniaed upon the Peo-
pie by large portion Of the banks. They are not
liycn 10 II by the exhibition oil lass Of public con
idence, OF OF a sudden pressure rum their deposi-
ols note holders, but they excuse themselves by
alleging that The current oibusiness, aud exchange
with foreign countries, which diaas the precious
metals from theIr vaults wonId rcqnuc in order 10
meet H. larger curtaIlmcnt of thor loans 10 com
patatIvely small portion OF the community, than II
viii be convenient for them TO bear perhaps safs
Tor the banks 10 exact. The plea has ceased To be
one of necessity. Convenience aud pnliey now
deemed sufficient 10 warrant these Institutions dis.
regarding then solemn obligations. such conduct
Is not mere injury to individual creditors, but II
IS a wrong To the whole community, from whose Ii
berallIy they hold most valuable prIvllcges-who.c
rights they violate, whose business they derangc,
and the value OF whose property they render unsia
BILE and insecure. 1t must be evident that this new
ground for bank suspensions. in reference To which
their action is only disconnected with, but wholly
independent Of that ol the Public, gives eiar,ater
10 their suspension. more alarming than any which
they exhibited before, and greatly increases the i'm
OF relying the bnks IN tho transactions
Of The Government.
A large aud highly respectable portion Of orr bank
ing institutions are, II affords me untegned pleasure
10 state, exempted from all blame on account Of this
second delinquency. They have, 10 Their great ere
dit, not only continued TO meet their engagements,
but have even repudlaed the grounds OF suspension
now resonedio. 1t is only by such eonIse that
the confidence and good will Of the community can
be preserved, and, in the sequel the best interests Of
the institutions themselves promoted.
New dangers 10 The banks also daily disclosed
from the extension OF that system oil cxtravagant
credit Of which they are the pillars. Formerly our
foreign commerce was principally founded on AN ex-