Wheeling daily intelligencer. [volume] (Wheeling, Va. [W. Va.]) 1852-1859, 1855-11-05
Ranlks and banking.


In our absence from the city. few days SINCE
a communication appeared in. this paper in reply
to ours of the 18th. Weregret this Us we would
have preferred having cur remarks accompany tie
article in order that persons interested may see at
glance the W hole question, and the views OF the
advocates of the different systems. Now the tone
of our article plainly indicates ouI feelings to-
wards The Individual banks here, chartered on the
new system, while our judgment cannot approve
the system, as compared with the old and tried
system Of Virginia. We have no desire TO provoke
controversy. much less any Ill feeling on this cues
ton, while we do desire a candid examination into
the merits of the systems. In the first place we
object TO banking on STATE Debt, and that because
Of the principle involved, aud Of the :esnlt to the
State, in its encouragement Of reckless and inju-
dicious appropriations by the State. This IS The
cardlnal objection, and Of itself sufficient, on
grounds Of State policy, 10 make us oppose the
system without reference to equestion OF individ-
ualinterest arising on the detailsor working OF it.
Our correspondent takes exception 10 the follow
ing remark in our article, 'In relation 10 deposit
Tors the Sock system is certainly detective" and
quotes from the chatter of the old banks, aud of
the new, to show the comparative meIits OF the
systems in this particular. The old Bank charters,
ne admit, are siIeE: to deposiols, but make the
assets Of an insolvent Bank dstributable pro rata
amoug all its ereditOr0. The new Banks give
preference TO bill. holders, and then depostors must
come after them. 1t is argued that their safety lies
in the individual liability of the stockholders. lie
says the safety of the depositor then lies equally
! II No. 0So voFf he
old Banks and the Stock Banks; while the security
is wholly vito the Stock banks, the security being
the Individual liability OF the stockholders in
amount equal TO the capital stock of the Bank"
Now we will ask the writer in all candOr, is it true
that the ''secuity is with the stock banks7" The
security clause is that 'each and every stockhol-
der shall be liable rateaby, out of his private es-
tste for the circulation and express contract debts
of said Bank &C." Is the contract of Bank vita
denositor an ''erpress eOntraet?'' We shall not
answer this question but merely suggest it as one
for "ViFginis SIS" to answer. He IS mistaken in
assuming that we have attacked the Stock Banks.
We have nothing to say against them as they 0re,
but we oppose their substitution for the old Banks,
and must, as the issue is before the people of Viz
Einis, examine, for ourselves, candidly into thef
merits We DO not oppose what is, but " hat
asay be.
We proceed now to the further examination of
the merits of the two Systems, as to bill holders,
aud then as to the rea: need of the community
The safety Of circulation is of the objects, not
the cause OF The necessity producing Banks. They
originate in the wants Of the community, in the
cal! al times for more money than is afforded by
the specie basis of the country in particular local
tiles, and accommodate Of The greatest objects
Of a trading community by their capacity of grad
ual expansion above the actual stock basis of the
Bank, and thus Furnishing to the mechanic, the
tradesman, the artzaD, the stock dealer, merchant
and agricuIturalist, in times Of special demand,
that which the pu:e specie basis cannot do, LIST,
because insufficient in quantity, anu ID, deficient
in point Of convenience.
All will concede these propositions, and few
will conclude that dePositors any safer under
the new than unde: The old system. As the Banks
now exist We consider depositors safe under eth
er, and we may as well state that sufficient rea-
son appears to US in the prudent management at
present under both systems. Herein lies q great
secret in all good Banking, and one " hich credit
oTs and bill holders will IookIto with more safety
than to charters even.
But the real issue is deeper one than has been
yet named. II is not issue Jet,Deem the friends
OftGe tuDO systems. They need have no issue aud
would have none If lei alone. There need be no
antagouism between them, aad each would aid the
other in procuring, heretofore, special charters.
The issue is between the friends Of the Banks and
the wild internal improvement party, between par
ties interested in gigantic schemes for post nuOrtem
Railroads aud Canals, either lof land speculation
or city speculation, else to carry roads where
20 years ago they would have been made available
for the great ends Of trade aud travel, Tut which
can now never find the promised land then out
stretched before them.
1t is boldly pressed by anonymous pamphleteers
upon the Backs, as measure necessary and alb
Solntely essential 10 Virginia Improvement, aud
the Banks are called forward to support estate
credit" This is spectous appeal, but is buying
her bonds supporting her cIeditf Is aiding her
to run in dsbtth most likely way to uphold her
credit So long as Virginia IS are below par, so
long viii the Legislature be prudent and careful
about running her in debt; and just so soon as
these bonds rise above par Just SO soon will this
internal improvement party run its AIMS into the
treasury, log. roll and put through every scheme
proposed ft the purpose of obtaining votes to
their monster appropriations.
But why should the present owners of Bank
Stock be called upon to loan their money 10 the
State to squander in Internal Improvements. any
more than Gny other o.rasr Of so much money!
The widow and orphans little oil, left trust for
them and vested in Bank stock, is TO be dragged
INTO Intsrua! Improvement, while the owner of
all stocks, of lanus aud the lender Of money at
Yuinous rates Of interest, keeps his money in his
pocket, and is free at all times 10 invest as he
pleases. Such Legislation would moi be JUS. II
would be meking distinctions against one class of
the community, by asking and compelling them
alone 10 lend their money TO the State, lille other
cllizens Of the State, equally able, are exempt
II il asked for, fof the sole purpose Of raising the
prlce of Va bonds to their rate in 1852, and then
we will 3 again what was then attempted and
whIch partially succeeded, namely, railEoad bull
for almost every county, State money asked for
every thing aud often obtained for frivolous aud
Improbable objects.