Lynchburg daily Virginian. [volume] (Lynchburg [Va.]) 1852-1861, 1856-02-19

| Old system, double the capital l. the limit ana
in spite of the code. this limit IL often exceeded
! Under the new. with -uch provisions as have
| been referred to, tire limit is five sixihs of the
! cnpitaI, where there are no deposits. These
would under both systems. constitute, to some
| extent "A basis of loans. Thus, under the new
system. yoI require far larger capital than I'M
der the old TO sustain the same loans to the COM
/ nunity That such i the difference IN their
/ practical operations Is made manifest ny the
| bank returns, wherever The Two systems are
| compared.
Is il not clonr then thai under the proposed
! system. far better than under the old, you attain
! the two cardinal objects Of banking legislation
| first circulation secured aud restrained ana
/ newt the erection of barrier against expansions
| Of bank credit. To these great objects, the IN
terests Of stockholders and depo~i'ors are subor-
duate: for while deposits are voluntary. 'he use
of bank notes is unavoidable. But depositors
aud stockholders. also, are best guarded against
loss under the system which best secures the
noteholder. and best guards against excessive
nans to the community. The additional secu'
rites required to protect one class OF creditors
cnure to the benefit of ALL and the additional liml'
tutions upon loans and discounts must give in
creased stability To the bunk. 1t is in fact to
secure the hard earned deposits of the working
classes that savings banks in England and some
of tn States of the Union required to make
Investments not in mercantile piper but in per-
Inanont government securities: We have the
testimony of practical bankers. examined before
the Bank Committee of the House Of Commons
in England, in 30 that. IN times of emergency,
it always easier to obtain money on govern
mrnt securities than the best negotiable
blll-: and that no sy stem OF banking would, IN
their opinion. be safe. if the capital of the bank
were invested altogether in commercial bills.
But the advocates of the old banks object to
the limitations upon the loans well as to the
security for the circulation. We told that,
if the banks are not to be allowed to lend to the
community beyond their capital, that capital
might rs well have remained with those who sub
Scribcd it. to hr loaned or otherwise employed by
its individual proprietor-, aud that there will be
adj quatc profit retcrned to the bank. nor bus.
mess facilities afforded 10 the community.
Mr. speaker. it would. in my opinion, not only
be aS weil but far better, if the capital of banks
had never been diverted from those channels into
which, without the agency IF banks to lend and
distribute it. it would naturally have found It's
way. If the new system nearly apr cached
"unbunking the banks it would be,:o my mind,
its browning merit. But, sir. | fear that. in this
respect, it falls short of the position which the
advocates of the old banks would assign to it.
The banks under the new system, as we'll as I'M
der the old. would lend, though not to the same
extent their credit as well "a their capital They
may lay out their capital in interest bearing funis,
invest their circulation. equal or nearly equal TO
hnI At interest n l,,ge nor,i,n of tho money
e ,L; l.;, D. l;L 40 ;.x. :
paid.
Ought not such profits upon their capital-dou-
bic and more than double the legal interest upon
money, be sufficient to satisfy even the cormo-
rant appetite of banking corporation. Sir, al
ways aPprehcnd that something is wrong when
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al 80, 1T - ,., IS
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~ INNS :" .",'' ~"o .'.e's. '"'.n ""' a'r
WIZ" ~. Pr'"" !" ""f' 'A'e',' Is '"e oaP''"s
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"',' ~, ','''1 anu 'tc'lahies II nofro"'u cnl"-
I1 ~ '''p',' 'a,l' - Tue oo.isu.'y'
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I59, ~; NV O""'''s "'. 'n' sp'cu'"'''s IN
a. Wv VI 'PV'i' l'9 "'e"'s'
~, ~. - 1"'to nv ."o s'eo' o'nks III
i.,"T''"'' ''i' h""N % n',sin.' ana inc arm
,F1 DUR 10 make OUT lists pr the parties IN
=, !" '''''"' SP'thy i.'e me" Occupation us
! %,' -, -, '"' 1"'"1"' 81 'h,'r inaep'euh'ss'
~ H'C"'"'"u' '"e9e '"o oahks' win loans
""'u'''"7 70 more iaah i've ml'ion' h"d'
| v" '"' oJ"%s Vi "o,n 'ahA' not one me
'".''c any NUT niue turner's; ana the great
! "9'eui'ulai nh'eie>. OF the state constltu'
,"s ,"'f'-''ur'ns ol our Pop"la'l"n, nad the
1"p' ol no. even one 'li'ie,h part OF ther loans
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