Wheeling daily intelligencer. [volume] (Wheeling, Va. [W. Va.]) 1852-1859, 1855-10-19
Ranka and Ranking.

been long eonHerSant Win Tue OI'I sue H4t IH"c
tested system of Virginia banking. run astray az
ter the new hobby. We regard the new system as
well caicuatedt 10 promote reckless Internal I'm
movement schemes in Virginia, and hence the zeal
manifested in its behalf. We should oppose this
system for this iffor no other reason, as our debt
and taxes are already high enough, but otherwise
we were inclined to let the system alone, satisfied
that they whn desired such charters should have
them, while the old system should continue as
heretofore. The friends Of the system, OF
1arner the friends of reckless appropriations far In
irrnaI Improvements, have seen fit TO raise the
issue, and TO insist that the next Legislature Of
Virginia should refuse the e-chartvrs of the old
Banks, and IN their stead organize general syS.
TEN OF Banking in Virginia upon STATE indebted
ness. This is the real issue, and we are induced
thereby to express our views upon the question in
cJmmon With the press Of the State.
The amount of bank note circulation in any
particular region, should be limited and controlled
BY thu necessities of the business nf that region.
To illustrate this proposition: In this neIghbOr-
hood, or example, at the proper every year,
there is brisk demand for the wool grown Upon
our larms, The houses who deal in that article
need bank notes TO enable them To make their pur-
chases. In three cases out OF four, the notes are
mure convenient to them than coin, crafts CERT
icates of deposit. A natural demand tor bank
notes arises, aud the effect is felt at once the
circulation of our banks. A prudent banker finds
he may safely Increase his circulation to the extent
required by his business. The community, espe-
ciaIly the farmer, is benefited; as he is by every
thing. the tendency of which is 10 facilitate the
purchase of his products, and increase the compe-
luton among buyers.
The same effect IS Produced when the season
arrives for dtsposng of the wheat, -four, corn, to-
bacco, hogs, cattle, or any of the principal pro-
ducts OF this region. The purchase Of these pro-
ducts, and their transportation, create in greater
or less degree natural demand for bank notes.
But the current soon changes to different di-
rection. These purchases have been elected
The notes thus put IN circulation, at least cln-
siderable amount of them, are then no longer re-
quirel by the business of the neighborLood. They
have answered their purposes fot the time, as the
representative of money, and the funds are now
needed in a rlffert mt form. They must be redeem-
ed by The banks which issued them. The dry
goods or hardware merchants, the shoe and lea h.
er Dealer the grUcer &C., &c. must replenSh tEler
stocks. The bank notes which they have received
from their customers must be converted into funds
with which they can purchase at the East or at
New Orleans, the articles they deaIiH. The par
ties who desire to purchase western lands must
conve,t their bank notes into coin. To secure
the prompt amt easy conyerIibty of bank note
circulstion into such other funds as the commune
ty requires in the ordinary course OF business, is
us not only requisite 10 facilitate the operations
of trade, but furnishes the most practical and ef
fec,iye check 10 excessive issues of such circula
ton.
In any system Of banking there are then, it
would seem, two results to be aimed at; first, TO
furnish 10 tie nrighborhood such amount of bank
notes as its business requires; and second, to Sc
cure the prompt and easy convertibty Of such
circulation: to state both propositions in one,
the amount Of such circulation should, as have
already said, he controlled by the necessities OF
t:ade.
Let us test the State stock system of banking by
these principles, and we lind its effect 10 be eX-
ucliy lh- reverse.
Under the stock system the Eamount Of circua-
ton IS regulated by The amount oil State indebted
ness. As the State governments run i'll debt, these
banks and bank note circulation will increase
An over issue of bonds by State will depEeSs
theiI market value, and naturally lead TO their BE-,
lng bought up by capitalists at cheap rae, tor
the purpose of banking on them. poIiticalpar-
~ which has obtained the control Of llle State
government, and is pushing her credit 10 the very
brink Of reputation, will be led to encourage by
all possible means the multiplication of these
b. ms, which absorb SO much Of the State debt.
To maintain a sinking crsLil, and Uphold party
supremacy which would be lost perhaps when the
crash came, unusual legislative privileges would
lie granted, aud every temptation held out 10 cap
it1nsls 10 invest III State securities; aud inst III
proportion as State finances became more and
IN, re involved, would banks and bank notes in
crease.
Can it be doubted why this system has of late.
in spue of tie warning afforded by lis recent ex
oson in Indiana, found favor in certain quarters.
Is il not supported with view 10 facilitate the
doubling OF the State debt1 Is itnot rather the
real aim Of its friends, to carry through by the aid
of State bombs and State credit. certain mammoth
schemes Of internal improvements, than 10 furnish
bank note circulation founded upon and
uolIsd and limited by the actual necessities Of
trade.
Bat II, when State finances become involved,
and the Indebtedness of the State governments is
increasing. it would naturally lead TO the encour-
agemsnt and increase of banks and bank notes
under this system; on the other hand as such debt
is paid OF, hank note circulation must decrease
with it; and If the debt should ever (Which event
perhaps not very likely to occur, though allhope
frit) lie paid or in full, the stock system of
banking must fall, FORTS foundation will then be
gone. It's advocates evidently contemplate, tho
they do not avnw 1t, the establishment of per-
monrnt public debt alter the English fashion, and
1t must lead 10 that result.
The banks, under this system. have generally
been of small capital. Throughout the country
wherever the system has prevailed it will be found
that the number of such banks, with capitals of
over hundred thousand dollars is not eou to the