Daily Richmond Whig. [volume] (Richmond, Va.) 1840-1842, 1841-12-07

| ~ the propositions which were submitted 10 invei
congress with the power of creating corporation,
Apart from these considerations, the insupcrabl
objections which have ever been entertained by
large portion of the American PEOPLE either upoi
the ground of constitutionali,y or Of Cxpcdicpcy
should forbid the exercise by congress of the poc
10 incorporate bank, OF To establish CORY ration
either for fiscal or any other purposes The opin
ION seems 10 be gaining ground that such an instu
ton - not indispensable n regulator OF the cur
rency, and that the fiscal affairs of the nation ma,
he conveniently managed without its agency. Tn,
| conduct OF the late bank of the United States
which has proved ruinous TO the country and
81 corrupting ana dcmoroliEing ia its influences
IN all It's ramfcations is well calculated strength
en- this impression. An increased circulation o
the precious metals is Indispensable To a sound cur
rency. To attain this object, and TO improve the
currency throughout the union, it becomes the i'm.
pcTious duty OF each mcmtrr of the contcdcracy
10y proper regulations, Iigdy and peTscvcrngly en-
forced to reform its banking institutions and en-
sure speedy resumption of specie payments a
durable basis
The attention Of the Legislature respectfully in
vItcd To the several acts Of Assembly which direct
that the notes of State Banks shall bc received in
payment Of taxes and dues TO the Commonwealth,
and which prescribe the authority OF the Executive in
relation to the deposits of the public revenue The
Bank of Virginia and the Farmers Bank of Virginia
the repositories designated by law have both refused
TO receive general dcpositc the notes of the North
western Bank of Virginia and tine Merchants and
Mechanics Bank Of Wheeling. They assign as the
reason for this refusal their inability To make any "a
tisiactory arrangements with the Wheeling Banks for
the redemption or exchange of their notes and the
loss they must consequently encounter. The failure
the pa of the dcpOsIte banks receive these notes
and their depreciation in the eastern portion of the
State, which may hc partly attributable To that cause
induced an application To the Executive from the she
mi of the county NJ Hcnrico either direct that the
notes should not he received IN payment of the pubic
dues that the places of dcsic OF the public rcvc-
nue. should he changed. The correspondence on this
subject i herewith communicated. Whether the
Executive has the power direct the shCrs refuse
the notes Of any Of the State Banks in payment Of
taxes, l. question about which there l. some differ
cncc of opinion. But after the most mature dcihc-
ration, think that fair Interpretation of the law
conicrs the authority and that the Executive NAV pro
hnit hv Proclamation their reception Under this IN
tcrprctation should not have h,statcd 10 exercise
this AUTHORITY If had been satisfied that such course
was demanded hy due rcgardt 10 the interests of the
Commonwealth and that twoult have been consistent
with justice to the Banks The difficulty IN which the
shenis would be- placed, by being required by law To
receive notes for taxes which when tcndcrcdtothc de-
posite banks would be refused has received due conSd-
Grafton have also Niousy wCrhcdthC probable los
the Commonwealth would sustain y the receipt hv her
officers Of portion of the revenue in tins deprecated
papCr-a loss aggravated II was believed Il would
be, by individual purchases for payment into the
Treasury. But other considerations demanded atten-
ton. The statements which from time 70 time had
been furnished this department exhibiting the condi-
ton of the Wheeling Banks, afforded no reason TO
doubt it, sovcncy. The Commonwealth has large
interest IN the stock Of those institutions. As a
stOckh0licr she has every indictment to sustain
them far practicable The prohibition 10 receive
their notes, 10y diminishing public confidence might
tend to their proSiraton. But. above all the ncon-
venIepce, II not oppression, which such measure
under existing circumstances, would have inflicted
upon large portion Of the people, who are main
ly dependent on those Banks iJT a circulating
medium, and who have other means Of paving
their taxes operated strongly prevent interference
the part IF the Executive. The mere depreciation
Of the paper of those Banks in Eastern Virginia is
not sufficient for prohibiting it, reception
IL may have been the esulI Of causes in no way
connected with the management Of those instltu-
tons. Il may have been the result OF state Of cN
changes consequent upon the balance Of trade which
they could, IN wise, counteract. 80 long they
continue solvent, it Is difficult to determine what
of discount or depreciation should subject their
notes TO prescription. II the fact Of deprccia-
ton Is TO be regarded there Is not bank IN the
State which would have been received in payment
Of the revenue The notes Of all our banks have
been for some time pastat discount compared with
specie. The lcpositc banks themselves IN the month
OF July, allowed three per cent in paying the inte
rest the State debt, 10 make their notes equI-
Valent TO specie. With these views, ! am clearly
of opinion that the depreciation Of the notes OF
bank in one portion OF the State, while the same
notes pass currently, and IN good credit
IN another portion ought not 10 sub ect them 20 the
ban OF the Governors Proclamation IT, how
ever, the depreciation should become great and &c
neral and the reduced price OF the stock OF Bank
with other unflvorabe Indications should lead to
serious appTehensions to its sOlyencv then case
! would be presented which in my opinion, would
impcTiously require the interference Of the E1ecu-
tive. On full consideration Of the Sherh7s com
munCailOn, and Of all the facts OF the within
the knowledge Of this department, the reasons adj
duced did not appear sufficient justify the inter-
diction asked for The right Of the Executive to
exercise this high discretionary power having been
questioned, and as similar cases may arise in future
| | respectfully recommend that such declaratury
enactments be made as will remove all doubt
| upon the subject. have thought It most advisable
10 leave to the wisdom of the General Assembly the
decision Of the question whether the places Of de.
| po.te should be changed Your early attention TO
| the subject Is earnestly invited.
/ submit herewith the report Of the Aijutant
| General showing the strength Of the MItln, and
presenting his views several subjects connected
| with It's organization. The Importance Of rescuinC
this of our defence from It's almost useless coz.
dion, urges the serious consideration Of every pro-
| position for It's improvement While every other
subject that engages public attention par,akcs %
the spirit Of Improvement which marks the age.
this alone h. permitted 20 anguish and become the
object Of rdlcuir and IerrOach. The low repute
INTO which the whole system has fallen, seems 10
have deprived It OF whajegCr interest II formerly ox
cited. Nothing more plainly illustrates this cOndi-
i ton than the Indifference with which commissions
are accepted the short period they retained and
] the readiness with which they are surrcnJcrcd.-
| Few persons uuacqusIn'ed with the particulars
would credit the number Of rrsIunaliDns rendered
. and number Of CONNEXIONS issued every wear. Of
fcers az first UHiniOruCl who DO not retain their
commissions long enough 10 become acgu1intcd
with their duty, cannot Of course Impan instruction
. 70 others. Under such circumstance, the subject
become dIs'--."'ul % themselves and 10 those IN
/ Der their command For though the law Fcquifca
three years service from csCIy commissioned Officer
teiIfe he acquire the night % resign yet al thr
public can receive Iir'io benefit from those who ha,e
no inclination for The service 10 will rarely happen
that sIgnaiIDns will Do rejected While ihisarsthv
continues 40 dIscipiInCIs destroyed and di5oTgauI
. z1tIOn b. the necessary consequence. Such sy.
TEN must be progressively Inefficient, and yet the
duties % imposes are Hurdens1fnc 90 iir re1rIl
without an equivalent Advantage. a1I the cy
pcnsc with which Do BE- attended greatly exceed.
any benefit II cJD'rrs Some innovation rs ul.
cc-ag 40 mplr fy D. new iiic and ygUr -
In au CuieayUr 20 rgune some Of d. o.
fHrF bog leave tD offer few suggestions fIr goui
consideration. j. may well b, questioned whether tIl
present mole of eier'iur YirHr- provided Ny o., ar
Of i-i has not urou productive OF ruurr IlIurg thar
uufy-whe'hor Itsny' iae fruitful source Of intrigue
Decentralization ard relaxation nj d .rIpln, iUcur
T-irut Ithiho true spirit and efficiency 0f mIHttu
operations In time of var especially. u would seen
10 Da Hi Fnranrr with every principle By which th'
movements yi go army a'a regulated. But even 10
time Of peace bCsidDsihrss objections the aessular
OF the pagpo Instance boz tlDr ouu
frg aiIrrDrs riiIUrs wrrrgi eject 0Trors mus
Do O. source Of great anHyyarer Tl.g feel Io ~.
pet for iHr system arc generally indifferent aa ~ fI
s,IHTfunuf ulErnr- HuH fHIruHIrrf Irnrrs instance
sefus f1 Hr fU bring b. into rHruir and cguf,Huyt
Tho Jaw Ig fH.a particular Iaa been attended with r
perrGssHr haralt. hlt 's d.sadvanrgos orc oHslDu
and numerous