American union. [volume] (Morgantown, Va. [W. Va.]) 1855-1859, 1855-12-08

catastrophe"
Such arc the resons assigned at that
day aud may wennt reasonably expect
that similar causes will produce similar
results in future.
Since then. up TO the present time
we have had frequent expansions and
contractions in the money market. bor-
derDg on suspension of specie pay
ments by the banks, Which has only
been prevented by the almost mracu.
lous influx of gold from California;
This alone has prevented repetition of
scenes of 1897. Indeed but for this
timely apparent interposition of Provi-
dence, there is abundant reason 10 be-
lieve that every bank in the country
wovld ere this have been suspended, IL
that we should now be languisting un-
der heavy mnatary pressure. This
fortunate occurrence, thus OPPORTUNITY
interposed, had not even remote con.
neciion with the paper system, except
| SO lar as to invite us To substitute a cur
rency, intiinsically valuable and pcrma-
nent in in its character, for one value
less in itself, aud deceptive on It's face.
1t is we'll established fact, and add
vert to it with pleasure, tina, the state
banks of Virginia have generally been
judiciously conducted, aud will compare
tavorably with any similar Institutions
of other states. 1t may be said that
Virginia has made the most of a bad
system; aud yet tho effect has beeu to
raise and depress, at short intervals, no,
only the price of labor but of every ar
ticle the laborer Is compelled to pur-
chase for the substance Of himself and
family. To give fictitious value to
every species of property, tn multiply
aud enlarge schemes Of specula alton, and
thereby foster and encourage an aitifi-
ciai and TRANSIENT prosperiety, by which
the unwary have been betrayed into an
enlargement of business and increased
Indebtedness, and when the time for
complying with their obligations came,
the banks have found it necessary to
curtail and withhold recommendations,
or to suspend special payment altoge!
Their. The inevitable consequence in
such cases must be depreciation in the
value of property and the bankruptcy
of many cilizens. Nor is this the only
evil. 1t is n well ascertained fact in po-
litcal economy, that increased paper
circulation leads tn the expectation of
the precious metal; drives it from cir
culation; lessons the capacity of banks
to redeem their notes, aud thereby for
ces upon the public doubtful and de-
preciated currency, from which relief
is obtained only by those convuI sions &
monetary revolutions which at short in-
tervals have visited our country.
The above views on the subject of
bank ing and paper currency have long
been entertained by me. They are pre-
seuted with hesi,ancy, with great de!ar-
ence, and but litrle hope of meeting a CO.
incidence ofsentiment on the part Of the
Legislature.
The great question, however, for your
decision is, shall Virginia continue to
rely upon a system thus defective, with
out an clfnrt ut improvement. and how
shall that Improvement be effected ?
am not prepared to urge an immediate
radical change in our system of curren+
cy, believing as | do that all sudden
changes in monetary affairs tend to de-
range the general laws OF trade, aud an
settle the business arrangements of the
country; and therefore. any attempt at
change should be- by a cautious q grad
ual process; yet, If effected at all, il
must have a commencement, and prob
ably there will never be- more propi-
tious time than the present to enter npon
such change.
The influx Of gold and silver from
California, Australia, and elsewhere,
is without parallel in the monetary
history of any country, and proffcrs a
corrective, which if rejected will entail
upon people a currency upon which they
cannot and ought not to rely. But
should the legislature dissent from these
views, and proceed to reorganize the
banking system, either upon the old
plan of a mother bank, with branches
or that of independent banks, based
upon state securities, respectfully
suggest the following changes or amend
mcnts to any charter now in force, or
hereafter to be granted. That all
notes in circulation be made payable at
the counter Of the bank from which
they are issued; that each stakeholder
is held personally liable for the debts
of this corporation to the amount of his
or her stock respectively. [ also rec
commend prohibition of the issue or
circulation after a specified time of any
bank note Of less denomination than
ten dollars. BY making the measures
prospective, gold and silver will spedi-
ly supply the vacuem caused by the
withdrawal Of the prohibited, bills
Like the acts of the last session, to
prevent the circulation Of notes under
five dollars, the wholesome change will
be speedily and impcrceptibly effected;
and thus, by a wise and gradual pro-
cess, notes of a higher grade may be
excluded, until, at no distant day, the
! Country will hnNn thn hnnnGt &c q nnnnl