Republican vindicator. [volume] (Staunton, Va.) 1849-1857, 1854-12-11
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Banks and Ba hiking,

ing the present untowaru, and to some de-
gree, unnecessary pecuniary panic. 1t is
from want of confidence, more than eny
other cause, that existing embarrassments
are produced.
We have always believed, and are now
confident in that belief: that the pecuniary
stress was confined to the cities and towns
where Spectators run hap-hazard into ev-
cry scheme that is presented thus throwing
themselves upon a fictitious capital, and
trusting to the mutations OF trade and the
markets to extrcate themselves. The far
ming community are comparatively easy in
their pecuniary affairs; and the only en-
barrassment they experience is from the
ineessant application 10 borrow, by the
spectators. Spectators having thus alb
sorbed ten times their own capital if there
is the least .tagnation in trade. or down.
ward tendency in prices, the result is a
magnificent failure, and the embarrassment,
if not the ruin of the unsuspecting aud
credulous 1t is this overriding Of CAPT.
tai that has produced the present Stress
Men who confine themselves to Legitimate
channels of trade, are made to suffer from
the over-reaching Of their nei9hbors, be-
cause this very speculative enterprise gives
a false basis and stimulant TO trade-indu-
ducing the most judlcious to sell on pro-
misc to pay, to men who are considered
solvent. but whose proper and legitimate
pccuniary level, Is far below public esti-
mate. A revulsion, in this way, with spec
uIators, eifec is every man who depends
upon trade for his profits. Men are thrown
back upon their real, bona fide capital.
trade, like water, seeks its level, and
those who have foated on an excited cur
rent, sink by the very law Of gravita.ion--
involving maxy in the disa ster and serious.
" .i1ccting almost every business man.
Such, in our view, is The great CONNER
clal elroI Of the day, which. like all ..ivrs,
in the course Of time, NUT correct ITSELF
1t is this false stimulant given to trade BY
spectators, that has embarrassed our own
community, and from the very law ofcause
and effect, shaken the confidence Of Banks
and the monivd men. Whilst our banks
Nave discounted with liberaIity and cur
tailed with leniency certainly not sur
passed by any others in the State, their OPP
erations have not been sufficient to relieve
the community, and the result is great
deal OF uneasiness, and in some instances
suffering. This course ON the part Of our
Banks has been essentially necessary in or
der to maintain their present high reputa-
ton, and continue to enjoy the confidence
OF the public. No banks are conducted with
more judicious liberality, and meie out
their favors with more general benefit and
impartiality than those OF this place but
their operations Of late have been limited,
the prudence aud wisdom of which are
suggested By the very nature Of things sur
rounding us. " hat will be done in future.
we cannot tell. But we are sure whatever
can be done within the limits Of prudence
aud safety to themselves, will h- done BY
the Banks to relieve the wants of the bus
mess community.
At one time, without much reAection,w we
were about to advocate suspension ofspe.
Gle payment by the Banks Of Virginia.
But now we perceive that the result would
be ruinous TO the business Of the State, and
oblise us to suffer JUST such discount OH
our money and State bonds as Northern
dealers might chose to impose. New York,
at this time, we candidly believe, could
control the question Of suspension Of specie
payment throughout the country. She is
the great centre trade, and if her Banks
were to suspend specie pay ments, it could
then become general throughout the States.
But even then Bank stock and paper, and
State stock by which some paper is secured
would deprrciatr at luinons ratio, and
the consequence would be that note hold
ers, and merchants generally would have
TO bear this loss. Procuring notes at home
at par value they would have to suffer the
market depreciation at the North, which
of necessity would cause general suspen-
SION of business. Hence a suspension Of
specie payment is almost impossible, with
out running half the business men of the
country unless, indeed, Congress would
under the clause Of the Constitution EN-.
powering il to regulate commerce between
the States, pass law fixing rate Of dis
count. OF course this would be almost, if
not quite,as objectionable as the U. States
Bank and would be as vehemently oppos-
ed. So il seems that suspension is impos-
sible without running the many; and even
were this not so, it could not be- done with
out seriously injuring the few who have
had no part nor lot in bringing about this
state OF affairs. Truly crisis is at hand.
1t envelopes US. We can neither progress,
retrograde nor remain stationary, without
meeting it face to face. But it is one oil
the legitimate incidents OF banking. So
long as anv system of banking is pursued,
false value must be given to property,
and fictitious and mutable basis to trade,