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

performing that function they should be careful TO
avoid any that may lead 10 deterioration Of
The currency OF ilie connity The injury which The
country snslains lraln tie present eoufse 81 Back
ing Is Attributable ~ giest measure 10 The ptae=
nee of extending loans 10 Of favorable bal
snce Of trade and IN reducing them IN TINES Of an
adverse current. instead ofkecping up steady aud
neatly uniform amount Of discounts. tbs my he
safe aud judicioas policy ~ private eonitutgciai
hoase bur banks are public Institutions en1ued viii
the privilege Of AIDING 10 The currency 81 lie eoun-
ny and lave other fJactions to perform ihan thai
% making profit. When specie is flowing into the
country fot our surplus products the banks brc"ne
stronger and arc tempted 10 tSpgnd winch eeeonf
ages speculation anil eHtfaFagaLee, as vii IS nsrlo
rufrfHtrs ss AID whrn the lidc turns lheY aie MOI
ulenared fof.hr dflus thai follnw aud arc compel
led 10 resort to euuaIlnents Hhen thet de tors
ate LEAST allie 10 hear them. Bnsiuess Of all kinds
then faes-flares follow, aud the banks themselves
re exposed Ia the pcecessay ot suspension. tie
great ropruaeh al he tEsiem, excessive expansions
and fuinous contfsctIous, might be avoided by hus-
banding the means afforded 10 good tunes 10 give re
lief Ia times less prosperous. The banks would noi
be profitable, but tie currency would be KEEP
more squabe aud lhe domesnc exchanges more
uniform. How tins reform Is 10 be brought sabout
among hundreds Of banks established under diitrf-
eut laws It svsty difficult TO detorml g. y0'uu-
iary change Of the system By The banks tlemseI'es
would accomplish ths desirable oud, bat doubtless
legislative control would m some Gases be requisite
Under tho prevalent course Of banking ia The
United States, there IS always danger thai suspca-
sion IN enc quarter vii produce stinllaf effect IN
others nulcss indeed sonic happy circumstance shall
cause decided balance II trade IN favor Of he
hitter - Mas The ease with the New England states
duung tie last war and l., now The case with New
y ora and Boston. In Vifcina We can seldom ex.
peer such advantages. Like ,ome other producing
states have within lhe last few years owing 10 ile
failure oi crops. Consumed more OF foreign manu-
a.
aud the balance against US has been hqnljdted BY
the loans of tie stale taken abroad an other words
by bulfoeIng.) aud by the disposal OF much OF our
abourne capital 20 the tuttnn and sugar paBtcis nt
the south. Both these resources are now cut off of
greatly reduced aud lave 10 rely culiIeh on our
own industry and economy Tor prolcenou.# Happily,
The crop. OF lie present yeai are un0saliy abundan
and ouf surplus prudaGIs may speedily rive relief 10
the country and may enable the banks resume hrir
cash payments without any corJciyc measures on
ht part 81 the senrfl assembly. Bul Sill nnlfaN the
hBr tlug operations oi he United States be modified
b, erutrll consent, SOME efhCf Way. there can
bc o9 permanent secuiit} Tor keeping the circulating
uedinn oi lie country = sound condition. The
experience Of tho bank # the late years, and due
regard of thor Interest," and even for their beng
may be nationally hoped, will be adequate 10
induce thcm - to lmlt Their operations 10
icuGcI all seycT" fcstuctons and penalties OF law
unnecessary, That the banks Of Nugmid would
how maintained Specie payments had not tie
efe4 as''a1o"s' III me h'Ise'oei'.s s''i's 5ua'
49, - ho t5A''9n' ann ~ h'"' 'o' N1ao2m
o. al' Eso''d 'sseWaS II "ee''o ""eth'I enaef
me h'so'n'aeces o. 'tf case l'y were Jo'iihed III
tie measure they adopted. II Tor the reasons as
signed II be decided allrmaively, they, look With
'oe"'aec 'ethe legislature iof lo'i'i fpn TIE pen.
"ats 10 ""teh my may be liable us banh viii
'befHplY "b,"' ne taie common Ia The Other 'nsi-
"lahs oi eA'aifoai 1t may nj be improper to oh
s'''e VI" ,haie arc Two circumstances attending tbs