Weekly national intelligencer. [volume] (Washington [D.C.]) 1841-1869, 1851-06-07

Those who desired borrow would lose half their time IN
seeking for lenders ffound, he would have either too much
or too little for my purpose and the time might not suit
either of He might be unwilling to lend unless took
the money at twelve months might not need it for more
than sixty days. might want it at once, whilst no could
not advance it till some other borrower should pay him.
desired remit it to distant city, to pay what owed
there should be compelled to Garyi myself OF pay some
other to carry il for me. Then again. if individuals only
loaned usuy would be the indispensable consequence, the
profits loans Of small would at present rates be too
uncomfortable make them object and again, in the
daily transaction Of business the counting large
would be pofess borious, and in fact expensive in the
time which would require Nor is it to be forgotten that
from the nexpeence and tmidiy Of money holder espe
caly females and ducaies. large sums would be boarded,
for fear of fraud and loss and Of such boards would
be daily loss of interest to their owners and of nconve
nience to the community pitfi
ga bank on the other hand oein general and
convenient place Of dsposea ready offending we'll
Of borrowing, both amount time, and Of trans
mission and in the saving of time and trouble in these part
cuars, we'll in the settling of business transactions BY
checks and in other advantages which perhaps never be
appreciated anticipated until it shall be dispensed with
SUCH with other details need specify, the
nences and security which the public enjoys from the banks
they have become part and parcel OF the business OF the
world and, in form other, the public will have them
"But for these benefits the community the bankers must
be pad they must necessarily incur greater risks than nd
duas they lend greater sums and cannot be 80 careful in
getting security those who make small oans BESIDES they
give their notes payable demand and take the notes Of
longer me and this payment they get in not only lending
their money which costs something, but their credit which
costs nothing Whether banking be profitable losing
business depends many contingencies, and in its
machinery is costly that the wise Of country
have not esteemed an especial privilege, and in fact
history of banking shows that fools have lost than the
wise by the system At any rate the latter will proceed very
cautiously before they subject their capital possible profits
and certain perils; and come the to your
inquiry as to the free bank system. ,sar "a J.
asI have urged, the profit consists in the Of its credit
them that credit confined the sum of the State stock
deposited with the treasurer, it canno. hope for equal profit
with the present bank whose issues credits may extend to
five times its specie, Or you choose its stock capital
SIT receive but six per cent its State stock whilst up
the money to buy that stock the present bank
by sale Of exchange, frequent loans, and anticipated interest,"
would perhaps make one-hird more. ~
81 freely admit that its endorsed by the State would
give greater security to the holders of them than the
the present banks endorsed and will further admit
that all the States 10 the Union, and yo of the world,
would sgee that no bank should issue any other than notes
secured by the State it would give better paper
than has hitherto existed would materially advance the
teress of commerce, and to great the public
against the contractons and expansions which have in
measure grown out OF the present system Bot this hope
less in confedeacy, and upon the subject
as it Is And may safely be asserted upon all experience
that free bank in Virginia cannot keep it's issues long
enough to make them profitable. If they the only is
they would circulate freely would gold and silver;
but being the State guaranty equal 10 hem they would
have wider range. It is this very equality which would
prevent their circulation, and they would necessarily
to competition with the notes Of other banks not endorsed by
the State and therefore less secured and with the notes Of
other States which flow In upon because at dis
count compared with our own issues. ss5 q s5 sa "
"The erchonge between Virginia and the Northern Cities
particularly New York, is always against us and while it
continues specie paying notes must have very Limited crcu
laon. Our daily experience teaches that banks dare
not discount any except with the notes Of other
banks payable at remote points Il ID true that the free bank
could discount upon deposes and exchange
with other tree banks and thus pusa their notes beyond the
grasp the broker but seems that the charter expressly
confines them to their paper The terms Of the law se
that the bank G tho free bank) may sue ito notes Zen
dorsed by the Ste TO the full amount Of the soS deposited
with its State treasurer, and other, yhasoeys and the
spirit of the law accors with this literal construction when
is considered that ono Of the objects proposed by the new bank
to avoid the issues Of notes BY branch banks which from
locality necessarily discount Now If this was the
object could not be attained il such exchanges were
mtte and then should have the causes Of complaint
unremove and existing greater extent because there
some security in the community Of interest between bank
and its branches which would e1s, between two more
independent banks. ..,ss89 IA s5Bf
81 have not admitted the superiority ofthe notes Of the new
over the old hanks because Of any present dsrus Of the lat.
ter but because there Is necessarily greater security where the
Slate s responsible than where il 10 not and because as
principle 10 finance think that every State is bound fur
nsh It's people with sound currency which can only do by
its guaranty Money but contrivsnce to facilitate the ex
changes OF the products should ever have as
an approximation as possible to fixed standard To FIX a
stndaIo power and faith of the State Indispensable
WHAT'S the intrinsic value Of gold Far less than that Of
copper Or bras. bo. the State gives greater value to H. be.
cause il Il wefe at the proissoyv noa and ce6
of the State, and In fact Of the world tb., r. hi ~
1t entitled to as much labor il represents No man
would work day for another il he were to be maid bv HI;
of metal which he could neither eat drink nor wear and II
who had seen money offered such 10 PAYMENT
his first inquiry would be to its origin and il sa,se ~,
the State had issued IT. sign that the holder was eutiId
equal amount Of labor rendered by himself he womb
take to use il when his need required such labor But
would he have taken the money IL the payer only was
liable He would not would the payer have given Il,
except draft upon the State signed without recourse
Understanding IT, however, in this light the gives and
the other receives and thus the transaction closes speedily
and them, though the labor Is finally Paid
for until the coin gets back in the shape Of taxes other
tribute into the Golfers Of the State In word the holder
ia creditor Of the State the extent Of the gold be holds
and the general and perhaps just opinion IT, that the State
safer debtor than individual association Of indydu
ais called bank and that where the State endorses the bank
then the note is equal gold. This being admitted may
be asked what bank with such issues located IN State
against which exchange a~aysuns and in the face Of other
Issues Of less value, operate at all Aswel might you