Richmond daily Whig. [volume] (Richmond, Va.) 1842-1861, 1854-02-16
How the Poor may Bank.

Two years ago, when the bill for the creation Of Free
Banks was before the Legislature we were opposed to
it. In reply to our objections, twas said that it was
Democratic measure, intended for the purpose o.
enabling poor people TO participate in the profits o
banking! We thought the argument smacked Of alb
surdty, for could not understand how people who
had no money to carry on banking operations
| The Trans Allegheny Bank explains the mystery -
| Ii man can manage 10 get the blind side Of the
Board ofPublic Works, andeither become State Bank
or or borrow $4,000 worth of State stock from them
81 900 would be enough. he can speedily have Z
banking capital of 100000 to operate WITH
Take his one thousand dollars of stock TO the
rrcasurer-get him to give hun notes to that
amount-go anl buy thousand more of stock
with these notes bring that again to the Treasurer
and again get notes and continue the opei alton TIL the
whole amount alowedby the charter is obtained. In
thirty days, by little relcriy of movement, capital
stock Of $780, 600 million could be created out Of
the one thousand This would enable those, who had
little or nothing, to share the profits OF banking at
big figure We were not in the secret at the time
had never dreamed Of such an ingenious, selfcrea-
ting, safeguarding process-ani now confess our
error
The only condition precedent to success in this new
and unparalleled scheme of bankirgis not money not
al all. Ii you member of the Board of Public
WORKS. and er-e6cio privileged to handle State stock
if you could prevail upon that Board to let you
have few hundreds OF stock your fortune is made
One hundred by virtue OF the Treasures signature,
could in three days be converted into hundred thou
slnd-or II he could write his name fast enough, into
a million.
The existing laws, if We are not misinfor,ncl, i'm
pose restrictions upon the Board Of Public Works
except oath, by which they bind themselves not to
b. concerned directly indirectly in any contract for
any public work. They not prohibited, nor are
they sworn not TO loanth State stock to Others nor
TO use it themselves esther in these Free Banks or
otherwise. They may, for aught that the law con-
ta!ns, apply the whole State stock in their hands 10
these banss Ii rumor be true, member of the firm
which hey have employed as bankers for the
State, Is already partner in the Trans>Aleshany
Bank
Does not the Legislature see to what consequences
this sy stem may lead 1t Is not illegal for the Board
to use the stock themselves for banking or to loan
to others for tie same purpose! Now with officials
As general rule whatever is not prohibited Jy lar
is right and proper. Their idea of the NAHUM per Sc
is derived from the maiam prohiJit,m The law is
VIC VII! recognised restraint upon their action If
you do not bind them down by laws and penalties
thcy consider themselves not bound ut all.
Now, the Board of Public Works is in this condi,
ton They may the State stock for their own
interest or they may loan i, to o,hersand 90 snacks
in the profits. They may invest as much Of i, as
they please i'll these Free Banks-not much will be
necessary, as little possesses the self:propaga-
ting principle in as great degree as ami
ma'culc, and in short time they may have a
bank Of million afoa BY Their position, they NAV
give the issues of these banks n greater currency
tlan all the other banks in the State-they NAV fiji
all the channels Of circulation with them-.ut the mar
ke, cause them to deprecate then buy them up for
song-the'r o'rn notes in fact, and make princely
fortune by the operation There is nothing positive
y against Law or their oaths in the proceeding And
their salary including travelling expenses, is limited
t. slI5O cach-enough for a man who is content TO
work for the public for the pleasure of III, hng-bu
not more than enough to pay the.expenses of a man.
who, If lie performs his duty, must be in Richmond
or on the road ten months in the year. Poverty on
one side, and bourdless wealth on the other;-the
temptation is too great for poor human nature