Martinsburg gazette. [volume] (Martinsburg, Va. [W. Va.]) 1833-1855, 1841-12-23
NUMBER 13.

uuppt hlN " tHS FtopoSitionS WHICH were
submitted to invest congress with the pow
er OF creating corporations. Apart from
these considerations, the insuperable Oh
~iections which have eyer been entertained
by a large portion of the American PEG.
pie, either upon the ground Of constitu.
tionaliiy or Of expediency, should forbid
the exercise by congress of the power 10
incorporate a bank, or to establish corpo-
%ra;ions either for fiscal or any other por-
poses. The opinion seems to be gaining
ground that such an institution is mo-, in
dispensable as regulator of the currency,
and that the fiscal atfairs Of the nation
may be conveniently managed without its
agency. The con6uct Of the late bank
Of the United States, which has proved so
%ruinous to the country, and so %corrupting
and demoralizing in its influences, in oil
It's ramiications is well calculated TO
strengthen this impression. An increased
circulation Of the precious metals is indis-
pensable to a sound currency. To attain
this object, and TO improve the currency
throughout the Union, it becomes the i'm.
p~erious duty Of each member OF the con-
federacy, by proper regulations. rigidly
and perseveringly enforced, to reform its
banking Institutions, and to ensure a
speedy resumption Of specie payments on
a durable basis.
The attention Of the Legislature is fes
specially invited to the several acts of As.
sembly, which direct that tho notes Of our
State Banks shall be received in payment
OF taxes and dues to the Commonwealth,
and which prescribe the authority OF the
Executive in relation to the deposites Of
The public revenue. The Bank OF vir-
GINA and the Farmers Bank Of Virginia,
the repositories designated by law, have
both refused to receive on general depos.
lite the notes Of the North western Bank
Of Virginia and the Merchants and Me-
chanics' Bank Of Wheeling. They as.
sign as the reason for this refusal, their
inability to make any satisfactory ar
engagements with the Wheeling Banks for
the redemption or exchange Of their notes,
and the loss they must consequently IN.
counter. The failure on the part of the
dcposi,e banks to receive these notes, and
their depreciation in the eastern portion
Of the State, which may be partly attribu-
table TO tha, cause, induced an application
TO the Executive from the sheriff OF the
county Of llenrico, either TO direct hat
the notes should not be received in pay
ment Of the public dues, or that the places
Of deposi,e Of the public revenuc should
be changed. The correspondence on this
subject is herewith communicated. Whe.
Their the Executive has the power to di-
rect the sheriiIs 10 refuse the notes Of any
Of the State Banks IN payment OF taxes. is
a question about which there is some diff
ference Of opinion. But, after the most
mature delberatlon, ! think that a fair in.
depreciation Of the law confers the author
ity, and that the Executive may prohibit
by proclamation their reception. Under
this Interpretation, | should not have hes
itated to exercise this authority, if had
been satisfied that such course was de.
manded by due regard to the interests Of
the Commonwealth, and that It would
have been consistent with justice to the
Banks. The difficulty in which the sher-
IFS would be placed, by being required
by law TO receive notes for taxes, which,
when rendered to the deposite banks,
would be refused, has received due con-
sideralion. have also anxiously weigh
ed the probable lass the Commonwealth
would sustain by the receipt by her offi-
GERS Of a portion of the revenue ia this
deprecated paper-a loss aggravated, as
it was believed it would be, by individual
purchases for payment into the Treasury.
But other considerations demanded atten.
ton. The statements which from time
to time had heen furnished this depart.
lnent, exhibiting the condition Of the
Wheeling Banks, afforded no reason TO
doubt their soIvency. The Commonwealth
has a large interest in the stock Of those
institutions. As a s~tockhoIder, she has
every inducement TO sustain them as far
as practicable. The prohibition 70 receive
their notes, by diminishing public conf
dence, might tend TO their prostration.
But, above all, the Inconvenience, If not
oppression, which such q measure, under
existing circumstances, would have in.
ficted upon a large portion Of the people,
who are mainly dependent on those Banks
for a circulating medium, and who have
20 other means Of paying their taxes, ope-
rated strongly to prevent interference on
the part Of the Executive. The mere de-
probation Of the paper Of those Banks in
Eastern Virginia, is not a sufficient rea-
son for prohibiting its reception. 1t may
have been the result of causes in no way
connected with the management Of those
institutions. 1t may have been the re.
suit of a state Of exchanges consequent
upon the balance Of trade which they
could, in no wise, counterfeit. So lorg
as they continue solvent, it is difficult to
determine what rates Of discount or de.
probation should subject their notes TO
prescription. IL the mere fact Of depre.
citation is to be regarded, there is not a
bank note in the State which would have
been received in payment Of the revenue.
The notes Of all our banks have been for
some time past at a discount compared with
The deposite banks themselves,
in the month of July, allowed three per
cent. in paying the interest on the State
debt, to make their notes equivalent to
specie. With these views, ! am clearly
of opinion hat the depreciation Of the
notes Of a bank in one portion Of the state,
while the same notes pass currently, ana
are in good credit in another portion, ought
not to subject them 10 the ban ofihe Gov
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