The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1856-02-26
THE DAILY DISPATCH
m---s.~ ,s.ru,ps. February 20. 1885.


Tuesday Morning. February 70. lsoo:
--.~~--.@->>~~--~>~~
Paw Yosr Own Notes.-The Person"i L'"'
biiity Of Stockholders. .a.
There 10 only one difficulty in the way Oh u.s.
prompt re-charter of the Banks. and Una. nh
agreement between two partes-sne o'1 q, tho
party and party desiring material enA" e,n,. rir
banking system Of the Stase-on 'he'e y ,,., the
The party advocating changes oe" No., choir own
Banks shall be required 70 p.y 5. made indi
notes, and that the stockhoide. .,ock ,hev hold
..oo.bolder who owns thousaho
c. '""' - .,ock shall be bound to pay an
'onAi" .,-.~.ra In case the Bank breaks, and
"''"' .h., .hall be needed to pay its debts
" N 20 delegates this last feature was so
III t ,h.t those opposed to il made sort OIL
lotto which seemed 10 be very near inc
- ,.o,,r own notes requirement; but II Is very
,.r from {, 1T provides that the Bank" shaH pay
40, M loans or discounts in anything except sp'.
,n,es But what becomes of depositesf Ch"e'
chi. provision the current fund system VIII o"h
tinue with very little abatement s.,
In the Senate Il Is reported this compromise VIII
no, be satisfactory and that nothing snort OF re-
ouiring the Banks to pay out their own NOTES wiz
r,sat the views of that body. We think 1t proba-
h,o ,ba, a compromise might be effected, If the
Marty onposed to the personal liability feature
,voud agree to this without drawback or qualifca-
,;on We think they ought; and we think that the
on,os;te party ought, with such a concession as
,bis 70 surrender the personal liability feature.
Compel the banks to pay out their own notes,
and a muck greater degree of order and regularity
would prevail in their operations, and there would
be less disposition to expansions and contractons
Indeed 1t would be a check more efficient than any
other that could be applied as regulator of banks
The limitation to twice the capital on discounts
and i've times the specie on hand on circuiation'
would become merely formal and of no real impor-
lance What argument is there against this pro-
vision, The only one we have heard that even
sounds like an argument, is that used with such
emphasis by Mr.. EDMuNDs of Halifax, and which,
with all due Difference that talented legislator,
we consider based on an erroneous assumption
II is that the Banks, being required to pay out
their own notes. will receive none other in pay.
ments due them, or on deposite. This Assumption
is contradicted by experience in places where
Banks pay out their own notes, and is controVert.
ed by the plainest reasoning as to the policy ana
interest of the Banks. Does any man suppose
that Bank will oppose factious obstacle between
itself and its customers On the contrary, does
not every one believe, upon the slightest reflection
that it will be the interest and the policy of the
Banks to facilitate. ss much as they can, the pay
ment of notes due them No Bank, therefore,
will hesitate for a moment to receive in pawn emit
the notes of all sound, solvent specie paying
Banks, located in communities between which and
that where is located, there is any commerce at
all. Moreover, it will become the interest OF the
Bank paying out its own notes, to take in the cir
culation of other Banks, that its own may not be
diminished.
This is the true view of the policy of the Banks,
and it is sustained by the practice OF BANKS
Then the dealer with the Bank cannot meet with
those dificultes-the collection or shaving of his
Bank notes, before he can pay his note in Bank
dwelt upon SO emphaticaly by Mr. EDhUNDs.-
The Banks now throw out North Carolina money
and the notes of some of our State Banks, and we
do not believe they will throw out any more should
they be compelled to pay out their own notes.
Now as to the personal liability feature: there
il no necessity for it, certainly, with regard to our
old Banks; and if this pay your own notes require.
ment is adopted, they will be firmer and better
guarded than ever The stocks in these Banks are
owned by the people, emphatically; and they are
managed by men of integrity and reliability,
as is proved by their whole history
The people have placed their money in them
guardians have in them invested the money of
mnors-and, through series of years, they have
not received more than six and quarter per cent.
interest from the operations OF the Banks. 1t is
not reasonable to demand OF these people and these
infants that they shall be held to an accountable.
ty beyond their investment in the Bank. 1t is
enough to require that they shall lose all they
thus put in an institution to be used for CONNER
cial purposes, and too much to demand that they
shall be held bound to lose much more they
thus invest.
Thus viewing these two features, sought to be
engrafted on the charters of the Banks, we would
regard such a compromise as we indicate, as one
dictated by sound policy and justice: happy term
nation of yexed question.