Republican vindicator. [volume] (Staunton, Va.) 1849-1857, 1854-12-04
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: From the Washington Sentjl


GEkrLnMES :-Arecent editorial IN your
paper. upon, theasubject of the currency,
contained an alluslon 10 the independent
Virginia banks, which requires some no.
ticc. Ihsve 10 fault ID find with theatone
Of the article referred to--cspscially as
you have since corrected ar error into
which you had evidently fallen in regard
to thos. institutions; nor do design to
reply to the objections you urge against
the, policy which has made the evidences
Of State debt q guaranty paper cnrren-
cy-although tla.ter myself that ii can be
abundantly shown that such policy is sound
in itself, and that IT'S legitimate results adj
vantageously effect the interests of the
State, the bank, and the bill-holders. OF
course, refer to those institutions alone
Who follow the only safe rule Of every
day business life, and are governed in all
their transactions BY the dictates Of pru-
dence and integrity. A bank, as an ind-
vidual has its position 10 attain, its char
acter to establish. and its credit TO pre-
serve. All these depend upon its manage
mtnt far more than upon the system on
which it may be based--,hough undoubt-
eddy wrong systems Of banking must inju-
riousIy affect SO sensitive matter as that
OF the currency.
| My object now, however, is not to dis.
cuss this subject, but, With your permits
SION, TO correct Misrepresentation, some
what widely prevailing IN regard TO the
new Virginia Banks.
| The money articles" Of several very
respectable papers have recently referred
to these iDstitutions as the Free Banks"
of Virginia. II may somewhat surprise
the financial cities to learn what. they
should have long since known, that nei-
Their in name nor in fact are there any
Free Banks" in Virginia. There is
nothing in the character, the organization,
or the management Of these banks, to en-
title them to such designation. They
are in nothing freer than. the old banks, but
are in some particulars more circumscrib.
ed and guarded in their powers, while all
have special and distinct charters.
There is no general law here, as in 9TH
err States, which, upon compliance with
certain provisions eonfeis upon any man,
or set OF men banking privileges. Each
bank is created by its own individual
charter-every application for such char
ter rests upon ITS own merita-and, every
act of Incorporation contains whatever
stsingeDs provisions the care or jealousy of
che legislature may prescribe. The only
law referring at all generally TO banks, is
that which governs both the old and the
new--and relates solely to the detail Of
their organization and management, after
having been created by speeml charters.
1t is therefore an error to believe that
there are free banks in Virginia, or that u
bank can be established in any other mode
than by the old fashioned plan-of first
determining whether 1t may be instituted
at any particular point, and then fixing
the terms and conditions Of its existence by
legislative enactment. a4
There is another error in regard to these
banks which has prompted proper APP
probation OF their tue characters. It has
arisen from confounding them with those
institutions in other States-fn some IN.
stances specially chartered in others or
ganlzed under free banking law, when
the deposit Of stocks is the only basis OF
redemption. and the character Of those
stocks is not limited and prescribed. Our
system is totally and essentially DIFFERENT
The only bonds allowed are Virginia SKIES,
either coupin Or registered; and these are
not made the basis Of circulation, but are
held in trust, or as collateral security for
the redemption of issue. For example a
bank has capital OF one hundred thousand
dollars subscribed and paid in with it
State bonds to the amount Of one hundred
thousand dollars are purchased, and, upon
filing those bonds in the treasury Of Vir.
ginis, the treasurer - authorized to coun-
trrseisn the notes Of the bank 10 thu,
What is the effect Of this provision /! Sim.
ply that OH the REDEEM ption Of every $780,.
900 Of circulation. there is pledged $780,.
600 in Virginia bonds aud $4,000 ia
coin, in addition to the par funds and gen.
ersl assets # the bank. But not satis6et
with this security, the law has gone fu..
i. Their. and enacted, that every stockholde
. shall be 'liable ratably out Of his privat,
estate for the circulation and express con
tract debts" of the bank, upon It's failur
TO redeem its notes or pay its debts"
Not to take up more Of your time ANT
: space. may not safely ask whether Their
& could be better guaranteed circulation
\ than that Of the Independent Banks il
Virginia. With specie for ITS basis. Stat
!. bonds its security, and the character an.
estates Of stockholders pledged for its re
! demptioD, can the community desire sa
!. fer currency than the notes Of an hon
est, fair. aud upright bank upon this sys
tenn
My object, however was merely to show
briefy-1,t. That there Is no banking sys
TEN. in Virginia; and ID, That the cir.
cula.ion Of those banks. improperly calico
+ free, is as should BE-. based upon specie ant
not upon State stock. v.
}. Nov. Fl. 1854. s5
pTHE BATTLES ON THE CRIMEA AND IN
I MExico.-George W. Kendall, in Fecrn
letter TO the Plea, une, contrasts the losss.
at the battle Of the Alma with those in
some Of the actions during the Mexican
war, and shows that alongside these. the
much Wanted Crimesn affairs sink into
significance, III point Of desperation. A,
Alma the Russians had some 1000 men
unoaUpd AGAINST nm puiial fnrca IF tho al