Lynchburg daily Virginian. [volume] (Lynchburg [Va.]) 1852-1861, 1855-12-05

"' iuhs' Nhlch, II continued, no bank that is
fues paper money payable on demand csn ever
resist. and which soon put it out Of the power Of
'hose OF this city to sustain specie payments The
vAah'p'e was followed by the banks throughout
me whole country. with much rapidity as the
news OF the suspension in New York reached
mem, Without waiting for an actual ruiland prin.
cipniiy u not exclusively on the alleged ground
"i the fleets 10 be apprehended from such sus
pension Thus whilst the New York CITY hank,
are utmost diained If their specie, those in other
places we'd the amount which they held be-
lore lie final catastrophe
Sueh are The reasons ASST gned ut that day;and
may we not reasonably expect that similar caus-
81 viii produce similar result, in future
Since then and up TO the present time, we
nave had frequent expansions aud contraetions
| IN the money market, bordering on suspension
ct specie payments by the banks, which has only
been prevented iy the almost miraculous influx
! OF gold from California. This alone has proven
| ted repetition OF the scene of 1897. Indeed
hufo this timely apparent interpostiou of Prov
! 'iehce, there Is abundant reasontp believe tina,
every bank IN the country would ere this have
suspended, and that we should now he laugn,h
| ing under n heavy monetary pressure This
| fortunate occurrence, thus opportlnelv inter
| posed, had not even n remote connection with
| tbs paper system, except SO far To invite US
TO substitute currency, intrinsically valuable
and permanent in its character for ono value
less in itself. and deceptive on its face
Ills well established fact. and advert to it
! with pleasure, that the State banks If Virginia
have generally been iudciou-ly conducted and
will compare favorahly with any similar nsti,u-
tinns OF other States. 1t may he said. that Vir-
! gina has made the most of Il bad system; and yet
| the effect has been to raise and depress ut shnrt
intervals not on y the price of labor. but of eve
| ry article the lal,orer is compelled to purchase
for the subsistence Of himself and family. TO
give fictitious value TO every species of prop
erty, 10 multiply and enlarge schemes of specu-
lation, and thereby foster and encourage an ar
tiicial and transient prosperity. by which tho
unwary have been betrayed into M enlarge.
ment of business and increased Indebtedness aud
when the time for complying with their obligp-
! lions came, the banks have found it necessary to
curtail aud withhold accommodations. or to sus-
! pend specie payment altogether The inc vitahle
! consequence in spch must toe a deprecia-
! ton in the value If property and the bar kruptcy
of many of citizens. Nor is this the only
evil 1t is well ascerteined fact in political
economy, that increased paper circulation leads
to the expnrtation ut the precious me tai; drives
| II from CALCULATIONS: lessons the capaeit of bank
| tn redeem their notes, and thereby forces upon
| the public doubtful and deprecated currency,
from which relief is obtained only by those con-
| yulsions ind monetary revolutions which at short
! intervals have visited our country.
The above views on the subject of ban Ring and
paper currency have long been entert, ined by
me- They are presented with some esiiancy,
| with great Difference, and but little hope of NEE
ting coincidence of sentiment on the part of the
Legislature.
The great question. however, for our decis-
! ion is. shall Virginia continue TO rely upon a
| system thus defective. without effort at i'm
proyement, and how shall that Improvement be
effected! | am not prepared to urge an mmed.
ate radical change in system of currency, be
lieving as do that all sudden CHI ges in none
tary affairs tend TO derange the general la VS. of
| trade, and unsettle the business arrangements of
the country; and, therefore, any attempt at
change should be by cautious and gradual pro.
cess; vet if effected at all, it must have a com
menccnent, md probably ,htl will never be Il
more proptious time than the present TO enter
| upon such change.
The influx Of gold and silver from California,
| Australia and elsewhere, is without a parallel in
the monetary history of any country, and prof
fers corrective, which, if rejected, will entail
upon our people II currency upon which they
cannot and ought not to rely But should the
Legislature dissent from these views, and pro-
coed to reorganizp the banking systeneither up,
on the old plan of "a mother bank with branches,
or that Of independent banks, based upon State
securities. | respectfully suggest the following
changes ar amendments 10 any charter now in
force, or hereafter to be ,ted-That all notes
in circulation be made payable at the counter of
| the bank from which they are issued that each
! stakeholder be held pers' nally liable Tor the
debts of the corporation to the amount of his or
her stock lie spectivey. also recommend u pro-
| Inhibition nf the issue or circulation after Il spec-
fed time, of any bank note of less denomination
than ten dollars. BY making the measure pros
pective god and silver will speedily sup
! ply the vacuum caused by the withdrawal of
the prohibited bills. Like the aot of the last
,l,.. ali, ,1.,,ta # nnfa
under five dollars, tho whole some change
will be speedily and impercepibiy Affected
| and thus. hv wise and gradual process,
| mites of higher grade may be excinded, until.
at no distant dav, the country have the benefit Of
II snand constitutional currency sufficient Tor all
| ordinary dealings, aud a sure basis uron which
| Ia found bank issues aud paper currency ~ Il
| higher grade, should the wants Of the community
demand it, The adoption of these suggestions
would, it Is believed, greatly improve our none
| tary SYSTEM especially if sanctioned and prac'
tied by neghhoring States. several Of whom
have strangely Indicated preference for some
similar policy.
In this connection hog leave 10 call your atten-
ton "a The repe., az ali laws on the subject of usury,
! . subject heh has recently attracted public no
| tirc III this and the adjoining States. However
necessary restrictive measures of this character may
have been in former times there is obviously strong
! prejudice against them At present. All experience
ha> shown that every effort TO keep down the rate OF
interest b. legislative attachments has proved aoor-
| tive ami failed accomplish the end. That the
prize ol moneg, like every other commodity IN the
| market, will be ceguatedby demand aud supply ana
thai aEy laws intended To control 1t are constantly
violated eisregarded or evaded the tendency being
to denoralize society by inducing an habitual aisre-
card - the laws of the State II Is, moreover, con-
fdently believed that the laws now IN foree tehd 10
increase rather than diminish the rate OF interest
paid and operate to the prejudice of the borrowers
IL DIV rla