Lynchburg Virginian. [volume] (Lynchburg [Va.]) 1829-185?, 1849-09-13

i lit t~-1I say.
.'The general results. (indeppndent of the Pcs, OFF,,
which is kept separately, and will be stated b, itseIf A.,
far as they bear upon this subject, are. that he Loss.
which have been aud are likely to be sustained. bv snn
class of agents, have been the greatest by banks. incI,'
ding, as required In the resolution, their depreciated n,
per received for public dues that the next LARGEST h..
been by discussing officers and the least by collectors ana
receivers.'
In opposition 10 this statement If The II esssye nl,.a
the flloNiag extract from The report Of the Secretary If
the Treasury, made in reference to this Identical mn
ton in 1884.
1T il gratifying to reflect. however. that the cre5i,
given by Government. whether II bank paper OF kaot
agents. has been accompanied by smaller l0sse, in H.,
ex peritnc under the system Of State banks. in this cnn.
try at their teorst periods aad under their serercst calam-
lilies. than any other kind Of credit the Government ba,
ever given in relation TO its pecunlary transactions
Hence, unless the States and the United States sh ud
both deem II proper, gradually, aud in The eaI entirely
10 sPense with the ptper system. and which event ia
mol anticipated, the Government cannot escape oecasinn-
al losses from that quarter, and can never hape 4, "a
cape all losses from banks as fiscal agents, except bv The
employment IN their place of other aud ind yidual agents
who Will probably be found less responsible, safe. conrs.
nient aud economical
And, as a most conclusive and Triumphant rern,aiion If
it, ! quote The following extract of a leltar from General
Jackson to William j. Duane. late Secretary of the
Treasury. dated b ston. June 26, 1898:
at is unjust t. the State banks (says he) ''o attri.
butte 10 them the embarrassmen's of The Government
and country, which led 10 the suspension Of specie pay
mems, and a deprecated paper currency; all those evils
are attributable to ether causes.
in consequence of combinations amonr men of wealth.
opposed t. The war, the requisite loans Of money could
not BE- procured disasters overtpnk our arms, for the
want of necessary supplies Of funds and others vera
threatened. IF patriotism ever actuate1 banks it was felt
in the operationso of manv of the cal banks at hat gloomy
period. At the ha=ard ottheir existence, they furnished
means Of raising armies aud maintaining hem in the field;
mud it was in their efforts To sustain The Government that
they so far crippled thems Ives as to be obliged to suspend
the payment Of specie. II The bank of the u. States had
then exis'ei. it must have done as he State banks lid,
or t would have tlfectcd nothing in support Of the Gov
ernmlnt. Ii il had not lined he combination against the
Government, il could not have furnished the funds which
the ex ipcncies Of the country rpolired, without suspend
ing the payment Of sperie. Instead of hostility and per-
seer ti1n the Government owed The State banks gratitude
and support. Their credit during the whole " ar was a,
good as its own: and without their AID he Treasury must
have s'opped payment"
| mirht quote further from this celebrated correspon-
denre. but it is unnecessary.
Now " hat is The " hole case Why, the Government.
heinz ennaned in an ardnOus and bloody war with one Of
the most powerful natiuns on earth, had no monep of its
own, n r sufficient ,redit TO obtain it,. Ii tiled Treasury
notes but they deprecated 10 50 great an extent tina.
they had become unavailable In this extremity the
banks rushed TO HE aid Of the Government. and so ey-
banded their issues as to compel them to resort to a sus-
pension. With this suspicion hanging over hem, like a
mass of dense clouds, their notes were worth more, aud
" ere more available to the Government than It's own
notes. In proof of this | cite the following les tlmopy of
James NInrr5
81 well remember. however, that when was called by
the President to the Department of War, on the 3lst Of
AUGUST. 1914. the certificates of the Treasury were SELL
inc at $50 in the 500. by which $40 were lost. II is
evident. that. if a reliance was placed on the sale of cerli-
feates only. a sill further decline would ensne, and that
the worst consequences might he apprrhended. The
coan,ry was invaded through the whole inland and mar
thine frontiers. and poveIfnl snuadrons were at the
mouth Of every bay and river leading 10 our PRINCIPAL
cities. which were ,hrea, ened with attack and ruin
the metropolis of our Union had been forced. and our rub
lie buildings DESTROYED. Such was the state of the coun-
try and the funds when | on, erfd the Department of War.
Under such circumstances. an appeal was made TO the
patriotism and interest of the cities, and the banks with
Ia them. by the Departm mt of Mar with the sanction of
the President. for loans of moneu necessary for their own
defence, for that Of the maritime frontier, and the Union.
For the first loan that was Obtained. one million Of dollars
from the city of New York. which took place a few DAYS
after | entered the ID partmenl, no price was fixed. As
Treasury notes were selling for $50 IN The 800, that
was claimed, but NOT accedeI to. 1t was left for subse-
qupnt adjustment, to be settled on fair principles. Several
millions of dollars were OBTAIN ed from The District Of
Columbia and pincipal cities throughout the Union and.
acc riding to my recollection, al par"
Thus, that which is now seized hold of to charge as a
loss To the Government, by the use Of deprecated bank
notes. was in reality a saving because, if the Govern
ment had used its own notes, they were more deprecated
and less avaiIirg than bank notes. Why is il that the
accurate iuves igation and lynx eyed sagacity of the Sc
notable loss to the Government by the use of deprecated