Lynchburg Virginian. [volume] (Lynchburg [Va.]) 1829-185?, 1839-04-25

that belIsyr the b,ntin, ys,cu vou11 h. In , state
Of constant, ,nssrn,uy nntncb xo,iJ .,,he, b,,,L
the banks OF p,,y,p, ib,m fran ,,,,,nin, tho p,,a,
ends OF thc,r cs,abl,.bmr,,. ia, ~, nns, neye,
,otge'' mat oil baking depends on n moral probo
"''N' resulting tom confidence annihilaio The lat
ter aud the system per,,hcs. Hence on. of the
o'"g'ts resulting ifom the Legislation of hall cnlight
. ' ","n' ~ regard 10 tins snbJeci. They are sure TO
'"'n" W. every ,esi,iei'on, every clog which can be
"e''s."'sno"'" De thrown upon tho banks, not reilec-
'"s ',"' w'eh 'hey are mus tied down and Tram
"'c"eu' ''ey cease 10 produce good. But IN the
se''"o pace suppose the banks could siani against
NV 'P,''''ons ~ tue snb-tfrasufy scheme men Jet
"' ~ =" 'hey would be affected. In TIMES oi hgh
p''sp,''i' "hen confluence WIS great, government
"o"'" co''eel ~ specie tins specie would be dc-
Pos''eh WIN the sub -ifeasnrcrs or BIO exchanged for
notes ny .hoso oihetls, agents, otc., among whom
=" vas "'sou.seo-tN NOW, the moment there shou'u
,o"'e y '''"'s'on IN trade ana confidence should DC
aes,"ye"' ,ne stream would continue TO fow fro"
nv o'""s, "u teo"a nor tcf'n' nus suppose me
'esenu' S'o'ooo,ooo' In tines OF ,is'ed pros
i"'.y' "hon tue system ought II possible. 10 check
Wv o'""s' '"ey "onld DC nut niue affected, BECAUSE
o. tue R'ncio' conii1enee.- twenty millions oi dol-
lars "ou'u pe poured out, " twenty millions o' d"'-
'a's "ouio return ,put lei n pressure come, anu 'weh.
" il'll'ons would DO poured ont, not To return nnul
confidence was restored Ana wha''ei me ask, w"u'h
De the ch'ncc oil a restoration ol confidence WIN
so awful II dram on the system Thus You see that
this system woul9 affect the banks least when the
spifit OF speculation was highest and would tall
on ''e" WIN an irresistible gravity when me noun
OF pressure came Every 'hhh, VINO knows any ming
oi banking must know that TINS result Is greatly TO
De oepieeotcd'
on may ask. whether I do not consider ihnt
all these evils would not now from the special de.
poSitc system answer lhat | do not rightly com
prehend that plan. II the deposte is 10 be made in
the notes of specie paving banks, aud the identical
notes are pgain to he pad out. then, say that,
although the sytcm would be greatly uelerable to the
uub- rruau a. t Ia II .,,, 4. I.,uI .,,l, ,,,as I,,f
Ii would be better than the other system, because
you dispense with the PAYMENT IN specie, which
forms the lesser portion of the circulating medium,
nj the same time that II is the basis on which the
value of the other portion is established. But tho
scheme would labor under this d,sadyanlage-lt
would produce al the mischief oil the boarding
seheme.-Wuh "a large surplus revenue IL would
produce the most Tremendous oscillations IN the cur
rcncy and think would cndanger the whole banking
sysir+,. Suppose YOU should have n surplns, ms we late
" had, land insis, ON testing every scheme by that
state of things, which Ii sthrown so much odium on
the State bank system,1 this forty millions would
have been put on special dcpositc. That being
done, the banks, whose notes were thus hoa,ded, must
either stop their issues Tor fear olthosc boarded notes,
or they would 70 on To issue. IItlcy stopped ,ssu-
ing there would ba an enormous deficiency IN the
circulating medium, aud, consequently, there would
be a great many prcssn,es. II they continued to
issue, which would be tho probable result, they
might prevent the pressure for the present., by
Htl VS. NV ''''' ''''''
But the very FIST great disbursement which should
be made by the government, would produce n vastly
redundant currency, which, would, IN the end, en-
danger the whole banking system. Now, all these evils
are reduced To \ mini mum on the State bank trpos-
lie system tor, if you have n small revenue annually
discussed then there is no stimulus given 10 oyeifa-
ding. II your revenue becomes enormous then, al
though the banks will be stimulated. yet the natural
regulator viii soon operate on them, aud prevent an
expansion in proportion to the revenue. But on the
other two plans. the fluctuations will be entirely
without the control Of the natural regulator winch,
all. is the only one II at can regulate property
the operations of the banking system. One OF tho
great objections have to u United States Bank ~,
that it is an artificial regulator, which may Interfere
TOO much with the more wholesome operation OF the
natural regulator. Now YOU will readily perceive
from The view which | have presented, that II ncces-
sarily follows thai the ma eniiude of the government
dcposites, which most persons think the source OF
danger in Tie ordinary deposite system, IL the
very reason why that system should be prefer
10 either OF the Others. In some respects,
too, the great depositors are TO be preferred Ia the
small ones. The great dcposiiors have IL IN their
power, If they will only manage iudiciously. 10 stca-
dy the system. Aouf liltlc deposiiots are always
mercllcss IN q panic. The RolhSchilds and tile
Earrings are the men 10 sustain the banks IN a ciisis'
When the Bank OF England was pressed so hard IN
lS25, the company u hoihsch''os ou ese'y '''"s w
sustain, wii'e ihe ltile depos''off ana 'ne '''o "''c
holders were uo'"g every '"'"e !" '"e'r P'"'' :"
oieaH II, Tvs iue, II Tue government y, ~ Nv,
states shouiu wi'hufa" is oePos''es '"J"u'e'o"',''
during a money pressure ',e es'' may pe
greatly ausheh'eu pot on IL o'hc' manu-, ny J""
clons management, IL may efe''y '''e''''o IT,
l mere are sohle advantages WINCH government u
nos'tes present '"f BANKING yle'ue" ny no o'ne'''
l lRN nIp WIN feuIlIl1N- III III 4 nfu /