Martinsburg gazette. [volume] (Martinsburg, Va. [W. Va.]) 1833-1855, 1840-12-10

they accountants 10 such amount as 70 render our
banks generally debtors and TO make il inexpedi.
ent, il not impossible for them either TO continue
or to resume specie payments, without the co-ope-
ration Of the Banks Of the importing cities. IL IS
probable, also, that larger amount OF banking cap
than would suffice 10 accommodate more direct
foreign trade, while it Is certain that are now
subjected to the inconveniences and expenses OF
the modes, without enjoying to their full extent
the advantages of either.
The suspension Of specie payments by our Banks
which occurred prior the meeting Of the last Cen
eral Assembly, still continues. 1t is hoped that q
speedy and steady resumption will be rnade, ana u
is proper that the Legislature authority should take
steps TO facilitate and ensure so desirable and necss
sary result. The quarterly reports from these in
stitutians 10 the Executive required by the act Of
March, 1897. have been regularly made by most OF
them. The Merchant aud Mechanics Bank, not
having accepted the provisions OF the act OF March
1887, providing general regulations Tor me bahks
Of the Commonwealth, is not required to make these
REPORTS abatement Of The condition vt that Instr
tuition however, was received in July last, and VIII
be found with tho other reports accompanying tbs
communication.
Huyine received intelligence Of q serious deial-
cation aud embe zzleraent 10 the Bank Of Virginia,
in the month OF April last, deemed it my duty I'M
der the act Of March 1887, to appoint three Com
missoners 10 inspect and report the condition oil
of thgt institution. Their report, together with
the instructions under which they acted, and the
CORES pondence between this department and the
president OF the Bank Of Virginia, are herewith
submitted. Criminal prosecutions have been com
fnenced against some OF the parties implicated IN
this transactions. The report of these commits
sioncrs, and the subsequent action OF The stock
holders Of this bank, the only sources OF lnfor
nation "a to its condition, TO which have had
access. These Indicate very considerable loss to
the Institution, the effects Of which have been
verely felt by the commonwealth, as well as lndi
viduals TIE whole subject is one which will de-
mand your careful consideration The dividends
arising from the stock Of this bank, have hereto
fore constituted an important item W he hscal re-
sources Of the commonwealth, and suggest whe-
Their is not oxpedient to provide for their regular
continuance, II the condition Of the bank shall war
rant il, rather than to suspend them until the orr
sinal capital is restored. This will tend TO miti-
gate the Inconvenience which has resulted to The
State, and to individuals and may be accomplished
by adapting the present capital stock 10 the pre-
sent resources Of the bank There is no other nj
Tentative bu; TO suspend the dividends until tho
actual losses OF the institution have been repaired,
in which event il will be necessary to provide for
considerable deficiency in the public receipts from
other sources.
The occurrence Of so large defalcation in any
bank, without immediate detection, implies great
negligence in It's management, and furnishes an
other proof of the necessity for some additional
safeguards to protect the immense interest of So
ciety in these institutions 1t may be impossible
to prevent crime under any system, but it is not
very difficult to detect offenders of this class under
a vieilant application OF the general laws of the
land, and of the particular bylaws OF banking com
panies.
TIE condition of our Banks generally, for soTe
years past, has excited much and anxious inquiry
as to tho advantages and inconvenience OF the es
tablished system of credit. This system has been
exposed TO the dangers Of its own peculiar struc-
ture, and to those which incident to our system
of government. Tho conflicting agencies OF seven
and-tweniy governments each Of which has claim
ed and exercised the power Of legislation over this
subject continues 10 present difficulties which ex-
st no where beyond The limits of the United States
The number of local interests to be accommodated.
besides the political influences which have been
with this subject, do not permit the go
serument of any State to close its eyes upon the
surrounding which must, to some extent, IN
erfere with, If they d. not control its own policy
Our experience has often suggested the inquiry
many Of the inconvenience which we
have felt did not result necessarily from The poeu
liar forms of our government, and whether they
were not compensated by the benefits which we
enjoy as we'll as by the dangers which have been
avoided by limited and jealous concession OF pow
CT fiom the States to the Federal Government.
While the rover to regulate the currency, II dis
creety used by the Federal Government, might
save much inconvenience, the trainers OF our
Federal compact seem to have been aware that it
was one which might be abused for very different
purposes. As the power OF Government must OF
necessity be con6ded to fiai and fallible men, II is
better TO grant little than too much; and under
governments of prescribed, constitutional limits, 1t
safe to exercise any power which IS not clear
~ granted or necessarily implied. While we can
only influence the other States as they may niiucne
u.s. By force of example, and the Federal Govern
nent by voice constituinnally expressed as one
of it's constituents it is impossible for US to ioresee
yha, will be the action of either in references to
subject on which, as much as any other, the whole
Union Ia. a common interest. The Federal Go
vernment, in its fiscal relations with the Suites
must either employ its own means, or those OF the
States for the collection and disbursement of its
tevonuc; and whether it relies on national bank,
an independent treasury OF specie, or treasury
notes or of government credit in some other form,
or on the State Banks. to furnish The medium OF
of collection, and as general special repositories
of its revenue its influence must be felt to greater
or less extent by any system which the States can
adopt Each State. therefore, has duties as well as
Interests resulting from its intimate association
with the other States and with the Federal Govern
ment, which should not be disregarded in its dclib-
cratons on this subject. If we had absolute juris
diclion of this whole subject, if we wcte called
TO egisate on it as an original question, our views
and our duties might be very different But it is
proper for us to regard the condition of the country
as it really is, and not our imagination nigh, de-
pict it. When Banks were first introduced, they
we've intended TO be, what they ought now to be,
the means Of circulating paper always convertible
into specie at the will Of the holder. Their failure
to realize this Just expectation, whether il is to be
ascrbed TO errors Of legislation, to mi,manage-
men, Of the banks to both causes, has demon
strated the necessity for reform of abuses which
have been so extensively felt by society.
would suggest that here is necessity for more
direct and efficient responsibility in the agents OF
officers to whom the business of hanks is conf
ded. The present rate of bank profits on fair bust
ncss Ira nsnclinns rende1s il nlestinnahn MhelheI