Staunton spectator, and general advertiser. [volume] (Staunton, Va.) 183?-1849, 1841-09-02

a'ouSdhu uoiiarS, as the rate oil exchange ma
happen to be five or ten per cent? am awar
that this state of things could not continue mel
manently. but 1t Is always the case upon an
sudden and violent rcvulson in the business q
the country which disturbs the currency and de
ranges the exchanges. May not this view of tn
subject furnish some clew to the reason whicl
governed the votes of the different sections OF tin
Union in 1916! Our Northern brethren ar
shrewd and sagacious in seeing their interests
and ifthey found that the arrangement of the cur
rency was 'inuring to their benefit" is it matte
OF surprise that they should be opposed to bank
which would restore uniform currency end @
9uaiize the exchanges, and deprive the swarm O
brokers' and money changers, who always rear
In the field of deranged currency of the rich har
vest which they were gathering. The Middl,
country occupied position of comparative neu
trality, and hence you find that the representa-
ton from that country was almost equally divid
ed, whilst the South and West, who were tho
principal sufferers, were the warmest advocates
OF bank and its Consequences sound curren
cy and equal exchanges. If this view of the sub.
ect be correct in regard to the year 1871 is it not
equally correct in regard to the present time =
And call upon members from the South and
West to say whether the interests of their con-
stltuents do not imperiously require that they
should NOW GO for a bank
Having thus presented an outline Of the polti-
cal history of the bank, Ipropose to submit a few
observations in regard to it as connected with the
currency and business of the country. have al
ready adverted TO the effects of the bank of 1891
III restoring TO The country a sound currency, and
shall not return to that early period of our his
tory. But wish to look at the state of things
which followed the dissolution of the hank of
1911. Gentlemen here founded their objections n
the bank on their hostility to the paper currency
system. Now, sir, i wish it TO be understood
that no man can be more hostile TO our present
nnreguia'ed banking system than ! am. But
am friend to the credit system properly guarded
go Tor currency which is somewhat assimilat-
ed TO our political institutions. 90 for a local
currency Tor local purposes, and a general or
national currency for thepurpose oftrade between
the several States. This can only be effected by
means OF National Bank, as the experience of
the country from the foundation of the Govern
ment has shown. Before the Bank of 1891 was
estaoiished' we had degraded currency and
PROSTATE credit That institution re-established
both, and they continued in sound condition as
long as the bank existed. AS soon as it went
down, we again had the currency degraded the
exchanges deranged; general suspension of
specie payments; emissions of Treasury notes,
and floods of shinplasters through the whole
country. The bank of 1916 caused the State
banks to resume specie payments--restored
sound currency and equal exchanges, and brought
back prosperity to the country, which continued
uhil the expiration of the charter in 1885,
Scarcely had 1t ceased to exist before precisely
the same results which had ensued upon the de-
stIucton OF the bank in 1911 again took place.
we again have general suspensions Of specie
payments; again new emissions of Treasury
notes; again new floods of shinplasters; deranpe-
ment oil the exchanges, and distress and ruin
throughout the land. am for applying the same
remedy now which gave efficient relief under
similar circumstances in 1916. But we are told
by the gentleman from North Carolina mir.
SAUNDERs) that the bank did not regulate the ex-
changes OF the country, nor did it aid in the re-
sumption OF specie payments. TO the first asser-
ton oppose the official tables ACCOMMODATING
MIR. McDufie's report OF $780, from which it ap-
pears that the average rate of exchange DURING
the existence OF the bank was from one-fourth to
one-half OF one per cent, instead of from five
ten per cent, as 1t has been for the last tire,
years. And add the further fact, stated by Mr.
GallatIn In has pamphlet on Banking, that, in
1892, the amount of exchanges negotiated by the
Bank OF the United States was two hundred and
forty -womllions of dollars, at an average rate Of
one-eleventh OF one per cent.
| 10 the latter assertion, made by the gentleman
from North Carolina, (Mr SAUNDERS / oppose
the statement OF MIR. Calhoun, contained in the
following extract from speech delivered by him
In the Senate in 1892;
81 might say with truth that the bank owes as
much to me as to any other individual in the coun-
try; and might even add that had it not been
Tor my efforts 1t would not have been chartered.
81 must content myself with saying, having
been on the political stage without interruption
from That day to this, (haviDg been an attentive
observer OF the question of the currency through.
out the whole Perlod,) that the bank has been an
indispensable agent in the restoration of specie
payments; that without it the restoration coulC
not have been effected short Of the utter prosra
ton OF all the moneyed institutions of the country
and an entire depreciation of bank paper; anu
that 1t has not only restored specie payments, bu
has gwen currency far more uniform, between
the extremes OF the country, than was anticipated
or ever dreamed of, at the time of its creation"
But, to Illustrate my views Of this subject still
more clearly, will submit few statistical Ia
bles, which will show the effect of a Nationa
Bank In Keeping check upon the State Banks
! and the wild excuses into which they must inev
itaby run whenever that check is removed.
In 1911 the whole number of banks was So.
Capital s52.5lO. 90
Circulation % .OOO. 90
Specie I5.OCO 90
In 1916 the whole number of banks was 24a.
Capital 81 900. 90
Circulation 66 500. 60
Specie 10000, 90
Thus it will be that in the brief period
five years which interviewed between the banks
1911 and 1916, the number of banks was nearl
trcblcd-the circulation was increased in the san
ratio, or thirty eight millions of dollars, Will
the specie augmented but four millions
dollars,
Pursuing this view of the subject still ft.r:he
it will be found that in 1880, the whole Numb
! of banks was $50.
r Capital SI35. 900 o,
Discounts 200, 00O.Ot
Circulation 81, GOO OF
, in 1888 the whole number Csee Racquet ,
, I ~