Wheeling daily intelligencer. [volume] (Wheeling, Va. [W. Va.]) 1852-1859, 1855-10-24

s.Banlzs and Banking"


Ma. EDrToR :: ID your leading editorial Of the
10Th inst. Oh the above topic you say: 'In relu-
ton to depJsitors the stock bank system is certain
ly defective. All the real funds are pledged to
the note holders. They ale the preferred credit
orS. In case Of failure the deposition must be sat-
isfed with what Is left" We pro; OSe, IN the pre-
sent article, 10 examine the two systems of bank
ing, SO far as the deposltor and notehoder are af
fected thereby-that portion of the public, by the
way, most interested IN asceraming which'is the
safest, and by consequence, for them the best Sys-
TEN of banking
To yoIr position we unhestatingy tuke excep-
ton, as inconsistent with the true stale of the
facts. The general law 10 which all Me banks OF
our State, stock as well as ''the old banks" are
subject, says: ''Any bank authorized to carry OH
business as bank of circulation, deposit and DIS
count, may receive money to keep Tor deposors:
buy or sell bullion" &c. &C., see code, chap SIS,
sec. 8. The 10th section specifying what oh
legations on the bank, says "All bills, notes or
other paper of bank, signed by the President
and cuuntersigned by the Cashier, promising or
directing the payment of money, shall he obIlga-
tory on the bank In the charters of all The
shock banks, there is the following additional
clause: "Each and every stakeholder in SAID bank
HLall be liable, rataby, cut Of his private estate
tor the circulation aud express contact debts Of
said bank, to the amount of stock held by him,
upon failure of said bank to redeem its notes OF
pay its debts"
Now, deposit either is, or is not, debt Of the
bank. Ifitis not a debt, then the only safety of
the deposition is in the capacity aud integrity of
these conducting the bank, that his money will
not be misappied OF perverted, but be forthcom-
ing when wanted, and the depostor in this re-
spect must be his own judge. fits a d:bt, it
is certainly not Of the class provided for under the
general law and obligatory OH the old banks, while
it Is recognized and provided for i'll the charter Of
the stock banks. The safety of the jepositor
then lies equally in the capacity and integrity of
the officers Of 'Ghe old banks" aud the stock
banks; while the security is wholly with the stock
banks; tue security being the individual liability
of the STOCKHOLDERS in amount equal 20 the cap
ital stock OF the bank. Thus the depoSitor eau
see, in case Of the failure Of stock bank, tchat
could be left, but in tie case Of n failure of one
of the oid banks we opine it would be little
more difficult.
The note holder by your own showing is well
provided for, having both State and individual Sc
Guilty in addition to the bills receivable, or notes
Of individuals discounted by the bank; winch,
with the debts due from other banks aud the coin
in their vaults, an equal amount Of which in pro-
portion to their circulation is required by the gem
Orai law TO be kept by both classes of banks, are
the whole assets of the old banks.
We do not intend to refer 10 other parts of your
article, to which exceptions might reasonably be
taken, unless compelled 10 do so hereafter. We
have only to express In conclusion our gret that
10 your desire to give ''aid and comfOrp' TO the
old banks, you found it necessary to attack the
stock banks. We are earnestly the friend Of the
old banks. and as such desire their re. charter
They have done we'll, and we have no doubt, if
re, chartered, will continue to do well; and we
shall deeply regret ii any thing we may I. Ell our
selves compelled to say in defense of truth aud
justice, shall be construed as having been done in
opposition to their re.chaFter.
We say again we belleye The system on which
the old bsHks have been conducted to be a safe
and good one, but for the deposilor and note hold
ct, no saEer nor better than that based on
VIKalSM 6's.