Richmond daily times. [volume] (Richmond [Va.]) 1850-1853, 1851-03-12

t@ of the subject. show, by very simple illustration,
how such Bank we have described may not lose
il IL tail to make money. The capital $l00W0, we
nave SEEM Is an interest bearing fund and Yields
Suppose the bank TO be authorized to issue notes
only to the amount of S75 900 the ordinary in
teEest on which will be. Observation-Disclosures. 4,50O
The net income then is. l0, 500
But we have seen the Bank is required to keep on
hand certain amount OF specie (say one third OF the
amount OF its circulaonJ the interest which is a
- charge to the bank amounting to. 500
Expenses Salaries OF officers, &C.. 5000
Total expenses oil the Bank. 81 500
which leaves balance still in its favor of just six thou
SAND dollars the interest on the deposit.
This calculation is based upon the principle OF SIM
pie interest, and does not, therefore give correct
hbit of the profit, resulting from banking interest The
profits TO the stockholders must be large because the
larger portion OF the capital OF the banks will yield an
interest approximating compound interest-the State
paying per cent the capital Independent of the pro.
fits resulting from banking.
And now, it may be inquired, what will be the proba-
BILE effects OF the adoption of this sysen Why, this
inevitably State Stocks will appreciate in value, and
the millions OF State obligations scattered over the
Union and in the hands of European Capitalists, WILDE
drawn back and enter into the basis Of these banks
The thousand annually paid to capitalists on: of
the State will be retained at home, and our business
men will he afforded facilities commensurate with ther
wants. Agriculture, Commerce and Manufactures will
be made to feelthe quickehng impulse; Trade and the
Mechanic Arts will flourish; real will in the par
lance of the auction room, Ego up, and that long anti
eipated but yet realized period, yclept Good
Times" reign in the Old Dominion.
A late number oflhe Baltimore American, however,
contains some views and reflections upon this subject
| L 81. =. Ii
to the Free Banking System to any extent. TO enable
those Immediately charged with this subject, to
profit by the reflections of the American we insert it's
article:
"The prevalence of genera disposition to expand the
currency is we'll calculated to render system arac
tive yet long specie is made the basis of currency
and the stan dard by which values are to be ultimately
measured, the obligations imposed by that be
taken into strict account IL estimating the tendencies
and results the system in question.
"In profferng to bill holders the security ofhypote-
Gated stocks to the full amount OF bills issued securi-
ty is doubtless provided which the case of United
States stock the stocks of solvent, interest paying
State, will be substantially and eventually good. But
while specie romains commodity subject TO the laws
OF trade which may compel its exporation and while
the tendency OF paper issues is to dspace specie from
Giro ulaton and for time make its loss unelt the
danger OF sudden recurrence to the specie standard
which currency is always liable, is too serious TO be
looked. In the face OF large imporations creating and
accommodating balances against and affecting unav-
orably the rates Of foreign exchange, the danger
currency panic and Of precipuae return to the rigid
specie standard become still imminent and more
farming.
One hundred thousand dollars in stocks Of the United
States may be regarded affordng ample security
for the amount ofbank bills for the redempt on Of
which tie stocks are pledged But il the attempt should
be made to convert these stocks into during
steady ebb ofspece from the country and the necessi
of realizing specie TO redeem bank issues founded upon
stocks should become general, in the OF pam
c, it probably would he, them in proportion to the pre-
valence of the currency system founded would be
the revusion that would dcprecae property by the
rfce of meet the memorable acquisitions OF an i'm
pract cable standard
| "These results belong to the first principles of
mixed currency composed is OF two constituent
elements, specie and paper, the tendency OF one of
which is to dspiace the other-whe the displaced
continues to form the actual Of value, which
becomes higher and higher IN proportion 10 its disap
pearance from the currency. Large importations and
an expanded currency OF paper compelled the expora-
ton OF spec and the suspension OF the Banks in 1881
few months after Gen. Jackson had announced, on
his retirement from the Presidency, that he left this
great people prosperous aud happy" Immense sacrif
ces OF popery the forced expectation OF products to be
sold at any price, diminished mportaons for want Of
me credit to make them, General Bankrupt
law-these measures of depletion reduced the sudden
plethora which proceeded that terrible collapse; and the
Tariff of 1912 resuctated the productive energies of the
country and started the nation OF
prosperity The recollection OF our period OF ADVERSE
ty, however, might be useful Just now.
show tar the introduction OF large amounts OF gold
from California may operate TO maintain specie basis
for expanding paper currency, and thus TO put off
avert the reaction which ms impending, depend
upon other things than the golden acquisitions them
selves. Increased amounts of gold bought from Caors
mia may renlauin the country may 90 to Europe,
cofdpg production and the laws OF uade shall direct
The country that produces most combinations oil intel
gence with industry--most in actual valuescan al
ways command gold silver, whether dug up original
ly on its own soil or on that OF another country"