Republican vindicator. [volume] (Staunton, Va.) 1849-1857, 1856-01-12
From the Richmond Enquirer.
10 ~1r,,,o

0anhHi6.
The most superficial observer must oe
sensible OF the connection which exIs's De-
tween the currency OF country ana us IN
dustry. 10 what extent eold ana s''Vef
may be substituted oy paper money-"ne'h-
EeF the latter should De regulated by law
and what are the pest MODES OF reguiauon'
are questions OF great Importance 10 every
civilized society. Until recently the oPin-
ion was almost universal, thstu was pest
10 allow paper money TO be issued oy char-
tered Banks, sub]eet to such limitations
as the Legislature might prescribe. Inc
currency of this country consists mainly oil
paper money: and, although bank, notes are
not legal tender, yet practically men feel
obliged to receive what other people agree
10 regard as money. The community has
deeper interest IN the stability and sound
ness OF Banks than IN the solvency OF ordi-
nary traders, and it is the duty OF govern
ment TO use all proper means to prevent
Bank failures.
The subject OF Banking should never De
considered upon party grounds, or be Dien-
ded with questions foreign to it. Banks
are designsl to aid commercial enterprise
and the business transactions OF society," by
loans and discounts. Ihe preservation oil
State credit is not their duty-the purchase
OF State stock not their mission. Les's'a.
tive compulsion may unite Banking ana
State stock, but no permanent good is IKE,
~ to result from an involuntary union 81
disc ordant elements.
1t is somewhat remarkable, that wneh
any change is proposed IN the Constitution
and laws oil Vlrg ma, the advocates OF IN
noyatIon almost invariably seek 10
strengthen themselves aud silence opPosi-
ton by quoting and recommending the
example oil Massachusetts aud New I ork.
IL we need the political guardianship oil
other States at all, does il not become us to
reflect soberly and seriously before we he
eide whose example we should follow =
Has Massachusetts evlnced sIch hdelIty TO
constitutional and legal obligations; tas
New York acquired such an uhnyalled
reputation for legislative wisdom, political
principle, disinterested patriotism and pr.
vate virtue, as to give those States especial
and peculiar claims to our consideration
whenever any change is proposed In the
legislation Of Virginia Are the people
and legislature Of Virginia SO ignorant OF
the science OF government--so little con-
versant with the varied interests aud wants
o. the Siate-so destitute OF political expe-
rience and sagacity. and SO devoid OF pat
riotism as to be incapable OF independent
legislation I
we have had Chartered Banks III VIZ
gina Tor more thar hall century. Not
one has failed during that long period
The charters are about TO expire, and, for
the accomplishment OF another OBJECT, IL Is
now proposed TO revolutIonise Banking
system sanctioned by experience and 10
ADOPT another OF mover character ana
winch so lar as !! mas oeen 'estr ,o IN I'VE"
lofk. mas prove" a ia''ute' l"e i'e"
foik system OF Stock banking mas peeh
extoiled as The best system ever devised oy
the VII OF mah,ahd' anoef ex1s'ihg c'lcum,
stances II deserves some hotiee. we snali
refer TO evidence given oy eitizes oil New
YORK, and communicated to the Rouse OF
Representatives IN 1871 oy Tue secretary
OF the Treasury, in Document NO. %.
ION the condition OF the Banks I'D 'he
United States" The original OF the iree-
bank law OF New York is explained ny the
IL. 4
Hon. MIliiard Fillmore Compttoiier oil
New York, in his report oil december,
1913. So cot rupt had become the poll
ties OF New York, that MIR. Fillmore IN
ioIms US, IN tins report tsee Doc. No. oo.
page l3O, } that Bank charters were ere
garded as part OF the spoits belonging to
the victorious party, and were dealt out as
rewards for par'izan services This prac-
tiee became SO shameless and corrupt that
II could be endured no longer. and IN 1888
the legislature sought remedy III the gen.
eral banking law. This was the origin OF
the Tree banking system" The free
bank law was, then, not passed by legls-
latufe honestly intent upon devIsing The
best system, but because corruption was SO
prevalent that the people could not con-
hde suinc'ently IN the integrity oil 'he'r
representatives to allow them to grant any
more BANK charters foitun"tsiy tue
people OF Virginia are not reduced TO the
same necessity The en''shtened and up
right Albert Gallatin was then living IN
New York, and in his work On currency
when commenting upon this law ne OBJ
serves mat The act bears in'erna' EVIL
dence 'has II oas prepared oy specu.a'ors'
VINO look advantage oil 'ns opportunity LOT