The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1854-12-12
T.E ,,AILY DISPATCH

THE DALI DlSrAlgn
TIiEsDsY MOUNTING prcEssEx .: ~:
40. prks.uaE The pressure which mas
49,. Cor some time very severely ie1 anu
IN. s hssrv heavily upon the people, has soms
. -. about Il which are worthy
100 In 1887, people were mot 80 Wen ON
:. they are now; there was not 20 mucn 'nol-
v;dusi wealth; andsas soon - the BANKS %
..n - cnrtail the business men suecumoed
and their affairs went into liquidation. Inc
preaent year the curtailment has not pro-
duead such disastrous results. The extent o.
thu cursailment now We are not able to give;
hut II must be considerable. This being the
c,se. we are led to believe that should there
be no further pecuniary disaster Of msgni-
tude, after January there win be N improve
ment. The great body Of merchants and
manufacturers have weathered the storm
amazingly. and in this Is the proof OF the
superior condition of the people at this time
compared with 1887.
To construct works OF public Improvement
the States have been sending forth large
amounts of State Stocks which have absorb-
ed CAPITAL and thus have beenincurred heavy
STATE Debts, the interest on which is payable
In Nsw York True there were States deeply
II dshk In 1887; but they were few. The
other States had small debts, and the inter
est ON them was generally payable at their
capitals. These large issues OF stock appear
20 have suggested the establishment OF nu-
merous stock banks, whose circulation Is
secured by State Stock. This new plan OF
banking has operated disastrously, as II
brought about the necessity Of forced sales
of their securities and put down the price OF
State Stocks. The immense issues of State
Stock. had they been absorbed by the real
capital of the country would not per Sc have
brought trouble upon US, provided the States
--as was the case with Virginia-made ar
rsugements for the ultimate redemption OF
the principal pari passu with the assumption
of the debt, and paid their interest promptly.
But when the stock became the basis of
Bank circulation q temptation was offered
that has proved highly disastrous. Banking
institutions were tempted to buy lat very
high premium State Stock with their notes.
and depositing that stock to obtain other
notes, again bought other stock wherewith to
repeat the operation. This was not the case
with all-it was certainly not the case with a
few in this State; but even the most prudent
hardly reserved enough of their capital in
specie to protect their circulation. SO that
when demand for money came to iquidate
the foreign balance of trade against US, the
demand for which was the more rigid be-
cause of the requirements of the great war in
Europe, their notes were returned more
rapidly than they could meet them, except
by Withdrawing their stocks from the custo-
dian who had charge ofthem, and selling them
1t heavy loss. for what they would fetch in
the market. This of course helped to in
crease the pressure; for when undoubted
stocks 20 down, as they are the thermometer
of monetary matters, there is a similar de-
preston in all departments of trade.
This Stock Banking has operated injuri-
ously in another way. The notes it issued
swelled the paper currency, which went to
increase the value of everything and stimu-
late extravaganza and the consumption of
foreign goods. The revulsion has forced
them into market in search OF gold to
keep them from breaking; and it is estimated
that they have taken slo,OoO,ooO from New
York within the year. These Banks and the
Foreign Importers have been struggling 10
Wall street. one party to carry gold into the
interior, the other to send it abroad. New
York is the point Of accumulation rs well as
distribution. The gold that is to be distribu-
ted has to be accumulated there. Hence
New York had to obtain her supply else
where Therefore the notes of Banks have
been returned upon them for collection,
either in Northern Funds or specie, with per.
haps unprecedented rapidity; because our
railroads furnish facilities not enjoyed by
brokers in other days; and the Banks having
TO curtail their discounts all engaged in bust
ness requiring Bank aid have suffered, and
should the pressure 60 far enough everybody
else must share the affection in the diminish.
cd value Of real estate as well as exchange.
able commodities. There is good deal to
be said ON this new mode of Banking; but it
is not our purpose to speak oft now.
What are the prospects? The excess of
our imports the past year over our exports is
s26,a2e, 3l7. tits true this is not fair re-.
Presentation of the excess, as part must be
ofsetted by the resources of our fisheries. 1t
10 manifest that the amount, however, is
large-larger than can safely be continued
30 large that the duties on importations
are overlooking the treasury while the PEG
pie ere oppressed. If we can settle the
balance and diminish our importations we
may get along better; but even then we
must avoid improper systems of Banking On
any thing but bona fide money-any other
kind of Banking viii prove disastrous. yir.
ginia particularly will have to take into &C.
count the interest on the State debt in her
purchases abroad. Some 500, 900 20 out of
the State annually to pay that interest-to
that extent we must appropriate our pro.
ducts. II We do moi, the balance of trade will
beso much the more against us, and the
money Affairs suffer embarrassment