Wheeling times and advertiser. [volume] (Wheeling, Va. [W. Va.]) 1839-1849, 1840-12-08


extent the advantages Of eithcr
TIE Suspension of specie payments by our banks
whrh secured pnot 10 the meeting OF the last gvucr
si assembly. still continues IL Is ksped that speedy
a al steady resumption will be made. aad u IL proper
that tho Legislative authority sho'ld take steps Io IA
ella tate and ensure desirable and necessary result
The quarterly reports from these Institutions to the
executive. required b. the act OF March 1857, have
been rssulasly made by mos; Of then. The Mer
chants and Mechanics Bank,noi having accepted the
provisions OF the net sI March 1897 prov ijiny gen
eral regulations for the hunks OF the commonwealth
j. not required TO make these reports statement
%! the c"adscu Of that Institution. however re-
eevcd IA July last and will be EG.t With the other
repor's accompanying thi. communication.
Having received Intelligence OF serious deial' aon
and emhcrzlement IN the Sank OF Virginia. ia the
month Of April last. deemed II my duty under the
act Of March 1897. to appoint three commissioners
inspect and report the condition. OF that Institution
Their reP"ri. together w,tE tho Instructions under
which they acted, end the correspondence between
this department. and the president Of The Bank Uf Nir.
gina. herewith subaiIied Criminal prosecutions
have been commenced against Some of the pasiies
iinp licasd in this transaction The report at these
commissioners and the sbss queni action of tho sOe-
holders OF this bnk, the only OF infrml-
iInn t. its condition. 10 which have had acccSs-
These Indicate very considerable loss To the i,su-
i'"n the effects of which have been severely felt By
fthe commonwealth. we'll hdry deals The whole
subject ~ enc which will demand your careful onEsd-
Ire arising from The STOCK OF tins
bank. have heretofore constituted mpriast item
the fiscal resources of tic commonwealth. and suC.
gesi whether II Re not expedient provide for their
regular Continuance G The condition Of the hank shall
warrant H. rather than suspend ihcm until the erg-
ra capital is restored. This will tend to mitigate the
Inconvenience which has resulted To the state and To
individuals, and may tie accomplished by adapsc the
present capital stock 10 the present resources
bank. There Is o:her alternative but % suspend
the dividends until the acjGal losses of the institution
] h#lN.a kAnEa I'LL
sary 10 provide ioT considerable deficiency ia the
pablo epts from other sources
The occurrence of 81 large dellcarian any bank
wrhoni immediate detection implies great negligence
IN is management and furnishes ansiher proof OF the
necessity too susue additional safeguards To- Protect the
immeIse interCst OF society in the institutions I,
may he mPnSIhe Ia prevent crime under any system
but II - very difficult 10 detect Offenders of This
class under vglant application or the general laws
OF the l1nj and oi the particular bylaws OF banking
companies.
The condition nf our banks pcnrrlllv f,r some
years past has excited much and inq ury n To
the advantages and Inconvenience of the established
system o credit This system has been es poScd 10 the
dangers of its peculiar structure, and io Hose
which are incident To our plan Oi government The
conflicting age nces Of seven and twenty ge rurents
each of which has claimed and oIerri..rt Ure rover
of legislation this suhjeci continues To present
difficulties which exist where beyond the limits OF
the tn'iod Sidies. The number of local interests Ia
he accommodated. besides the political influences
which have been ctcneeI-I with th,s su hjcc do not
permit the government any To close its eyes
upon the surrounding which must 10 some eI
tent, interfere with. If they do not control It's own
policy. Our experience has often suggested the inuui-
~, whether many of the ncuav eneaces which we
have felt, did result necessarily foc the pecuIiar
forms OF our government. and whether they were not
compensated by the benefits which we eninv as we'll
n by the dangers which have been avoided by lin.
tied and jealous concessions Of pover from a. states 10
tha federal Nhtlp Il.e
the currency, fdiScreetly used 10y the federal govern
mcni, might save much inconvenience the tr,mers
o oui federal compact have been IN are that
lhli II was which might bc abused fer very diff:
ercut purposes As the power of government toust of
necessity be cunileG 10 ira end fIIlible men il is
beiicr 10 grant top h;ile Ihan too much: and under
gov crnmeaIs ol prescribed constitutional limits; II II.
not sale 10 exercise any foVer which Is not clearly
granted. ~ necessarily applied. While we can only
IniIvnrc tir uhr.s,acs as they may influence a. by
force Of example and Gtc federal government by Our
voice Cpn'tiu lnay expressed Of it, cunsiii-
uct' II Is impossible rUs resce wliaL,vill tie The
action OF either IN reference sub; ton which as
much any oIhrs Tie AvlC,S nun 1as common m
teTes Tse federal government, its fiscal relations
with the STATES mast either employ ne own means or
those at the states, ioJ rec collection aud disbursement
at ~ rcvenHc. and whether u relies on n naiisn1
hank an independent treasury of specie or of troas
~ not ~ government credit sotne other form
or on the state tanks. furnish the sedlu-n Of col
lection. and general special epsiiorics of lis rev
cnue, ia influence must he felt a greater or less "a,
tent 10y any system which the states adopt Each
slate, therefore, has duties well interests result
ing from MS intimate assOCIatinn with the 9th or STATES
and with the federal government which sbouH not
bc dsregared in its deliberations on Irssulect II
we had absolute jurisdiction OF this whole Subject or
n called to egisiae as an urrI,ra q,trs-
| ton. our views and duties might he very differ.
cni. But ~ proper for regard the condition of
The country really vs. AMI not ~ oar ifn1ginaions
might depici When ha rs were first Introduced
they were intended 10 be. what they uuii nny 20 h.
The "1cans Of circuln'ins paper always convertible
into specie ni the vii Of the holder Their failure
To realize This just expectation whether is be as
crihed To errors Of legslaiioS Encouragement Of
tie hanks or TO both causes, hns denlon the ne
ccssIy for reform Of abuses which have be en- 50 cx
| leHsiyely felt by society.
] would suggest that there IS necessity for more
direct and efficient resp visibility in the agents OF Off
GERS 10 whom the business Of banks Is conGed. The
present tate Of bank profits fair business transac-
lions, renders questionable whether stock holders can
he made personally liable wiihou destroying the sy.
tem but the responsibility Of directors greater es
tent than exists if it should require a pre-
MUM salary TO induce the acceptance of the office
would he practical cco-omy if il prevented only q
small portion Of The losses which frequently occur
The commissioners appointed To investigate the nfiirs
Of he Bank Of Virginia have expressed no opsnon rs
the liability Of the directors under the act of S37
and 1t is properly question for Judicial construction,
should 1t arise, iOrbear to express any opinion with
/ regard 10 q.
while It would be unjust and injurious tn the cor.
poraions and individuals unnecessarily To expose pri
yute credit publicity 10 the general results Of bank
business II calculated 10 render these institutions more
safe and useful The quarterly reports now required
of our banks have had the effect doubt moi. of in
crrasinr heir caution md vigilance. Though The
discretionary power u vested in the executive To ap-
| point n special commission Ia examine any Of che
| banks. II Is rover which apparently designed
Duy for emergencies end ne esy it's exercise
cannot well be known until che danger has occurred
10 j. therefore not remedial. permanent board of
competent commissioners. Organized 50 that "a pJroa
Of the members would be renewed annually. and c1-
aiming AZ the banks at irregular intervals, would
/ probably answer better
The efficacy Of iorieiiurc. md other penalties nov,
imposed o. prevent susper II specie payments
may we'll be quesioncd since they invariably re-.
leased ord cosd wcl 10 enforced without nd C.