Southern Argus. [volume] (Columbus, Miss.) 1834-1842, 1840-04-21

gree OF economy, IN the mean time,
be observed. I have sanguine hopes
that the Banks viii occupy their prop
er station in the estimation ofthe coun
try. That the Banks, in common
with all other classes, have extended
their business too far, I shall not deny,
Over-action has been. the vice of the
times. If the Banks have been intox-
icated, and committed follies, is it the
part of wise legislation, when they are
become sober, TO palsy their efforts to
recover their character, by using re-
proach contumely and punishment p
And at last, who are to be the victims
Not we who have committed the fault
but the great body of the community,
the Commonwealth of Virginia, and
the innocent stockholders of all des-
criptions of persons scattered over the
whole State. If, under the guise ofre-.
forming the system, these parties are to
be crippled, the sooner the stockhol-
ders convene and surrender their char
tiers, the better.
Sd and 18th. Charters are granted to
associated individuals for objects that
cannot otherwise be attained, and they
should never be granted but to pro-
mote public benefit. In this country,
few individuals are wealthy enough to
establish banks, railroads, canals, &c.
out of their own means; and it is only
from moderate contributions, by mum
Der of individuals who may be willing
to hazard a certain portion of their
means in such undertakings, that they
can be established at all. As an induce
ment to persons thus to contribute, the
conditions must be as liberal as a due
regard to public interest will admit of,
and they must be assured that, provi-
| ded they do not transcend those con-
ditions, their privileges must be protec
ted by law for the term specified
, They will not, and ought not, to be-
come members ola corporation that
may be annulled at the will of the LIE.
gislature, when they have faithfully
performed their part Of the contract;
and whether they shall have so done
, or not, must not be decided by one of
: the parties, but BY another tribunal
f Still [ would prefer that the Legisla-
5 ture should retain the power to repeal
: the charter Of the Bank with which /
: am connected, with all the objections
t such power may have, rather than
r be exposed to forfeiture under the ge-
n neral banking law, for acts that could
Il not be avoided without hazarding ruin
: to the institution, and enormous dis
e ress to the various interests of the couu
/. try.
At 5th. | do not think it of So much
d importance to preserve particular ulul
/ tiple of circulation on the specie in
s, hand. There are other and often bet
l. ter means of redeeming the circula-
ton than by specie; and it frequently
- happens that Bank will receive spe-
:, Gle, with small premium added, for
drafts or checks on other places /; but
y. the late suspensions prove thatit is not
Oh prudent to leave large balances in 9th
at CT Banks to be drawn on, and the poll
e cy now is to bring home such balances
y in specie, which will hereafter proba-
le bly, augment the proportion ofspecie
ID in the vaults. But the principle of q
re certain proportion of specie, compar-
G ed with the notes in circulation, ope.
y rates unequally. For instance, BanE
"a in the interior, especially in small
y town, seldom has any deposites of con
ne sequence, when it may have large
o. circulation. When person obtain.
a. loans IRON a country Bank, he doe,
Id not leave his money on deposite to b.
ey checked on, but takes with him sucl
r notes as viii answer bis purpose il
oil paying his debts, orin distributing il
e small sums for purchase. The Lynch
IL. burg Branch Of this Bank can safel,
ch circulate nearly as great an amount il
TO notes as the Mother Bank, which ha
1t three or four times more capital. Th
to notion of multiple of circulation OF
IN the specie held, is an antiquated one
'er Three Of circulation for one of buIlio
ry was the supposed ratio of the Bank @
he England-but in the course of III
IN last year, that Bank had eighteen mil
OF lions and upwards Of circulation, wit
ut less than two millions ofbullion; an,
so just before the suspension of that Ban
- in the time of Mr. Pitt, its bullion wa
n reduced to about half a million, wit
p an enormous circulation. Ny ow
at opinion is, that the safest restriction
IS to limit the loans at all times, favorabl
he and unfavorable, to certain increas
n on the capital. This will prever
oil great expansions during favorable b
81 lance Of trade, and preventsevere cor
n fractions when they can be least borne
ng By this course, Banks will seem t
IS make less profit, but they viii max
ar fewer bad debts. The Banks in Penn
e sylyania, | believe, have not more thai
C SO per cent. over their aggregate cap
ital loaned out, and yet they have a
ne suspended specie payment; but that
re presume, IS owing to the great humble
Ia of Banks in that State. Itwould b
ed a very safe Limitation on the Banks i
lat Virginia with the present amount
he canifal With the eyneria,,,,, - -