Lynchburg daily Virginian. [volume] (Lynchburg [Va.]) 1852-1861, 1856-02-20

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pendent banks, and the question recors; would
he large hank Itself be safer under one indie
pendsnt government than under many different
| ioards of directors, dispersed throughout the
State and neither controlled by any central hu-
iharity nor by the salutary restraints of the code
| challenge then, the advocates of these branch
es 10 point out n solitary good which they effect
/ cannot now take the time, but ON some future
| oeension NAV endeavor Ia exhibit more fully
their oyils--a deprecated currency, never ciicu
| laiinp where il il redeemable-ocal expansions
| and cnntractons. oyertradng and reyulson--
/ bnnks where banks nre not needed nor accessible
"A progressive increase in the power and priv
| leges Of mammoth monied corporaiinns-a GA
! cusion of competition and perpeiuation oi mon
/ opoly.
The hour admonishes me TO the brief in reply
70 the attacks upon free banking. No one, who
has examined and truly understands the proyi-
sions Of the general law reported by our bank
committee, will apprehend for moment that it
will give rise as has been urged by some, to too
much banking in Virginia. 1t contains valuable
guards and restrictions which will be found in
the charters of none Of the independent banks of
the State, and for the want Of which have ever
voted against them. Previous Ia the last session
we had granted thirty five of these charters
Yet by the report of the Treasurer in January,
1854. only ten banks had organized under these
thirty five charters, with circulation Of Sl,-
$40, 235 o. secured by State stocks, valued at
3 ,9J93ll &C. Since then. up to the 10th De-
cember last, by the Tredsurer's report of that
date but three banks in addition have gone into
operation under all the charters and the aggre
gate circulation OF tho independent banks has
been increased only TO S2,297 ,7h7 90, and the
aggregate amount of their securities to S2lI7,-
i39 sc. Yet bnnks might be- organized under
The better guarded provisions of the Til referred
to. Under the free banking law Of Mas,achu-
sets, no banks at all have been established, be-
cause charters more favorable TO the extension
of banking facilities were still to be obtained from
the Legislature, and notwithstanding the grnrr-
al banking law of NV Jersey, the struggle for
charters, less string, at, is AS fierce before.
There is more plausiblty in the opposite OBJ
jnoion founded upon the checks and restraints
which it impose. upon loans and discounts. But
it is on account of these very restraints that |
give Tiny cordial support. Under this system
YOU will have no tributary offices Of diseonn and
issue at points not found upon the map If NusI-
nin But csl inl viii be paid up and banks or
gained wherever banks are needed aud fast on
nugh certainly. i not too fast for the true infer
esls Of our cliz2ns. In New York, unlike New
,Jerse,,and Massachusetts the con stitution closed
the doors 10 oil applications for special charters
of Incorporation; and the recent history Of bank
ing in that State fully confirms what is said by
the Superintendent fthe Banking Department
in his report for 1853; "thut notwithstanding the
high price of storks and the difficulty of procur.
my them, the increase of banking capital has
been fully equal to the legitimate wants of the
community" Since 1913 the increase of hank
ing capital under the free banking law of New
York has amounted 10 upwards aiferty millions
of dollars; while under the SANE law, from 1913
10 Isis, before the influx at California gold com
mcnced, it was only $735i5l2
Tie general lnw of New York and its opera
finn in tLnf Stotp h1ve h4pu grossly mi srtnrp-
scented, will not now repeat the explanation of
This law, tina. gave upon a former occasion, OF
its original defects, their subsequent rrnoHal IN
whole or in part and It's present complete and
triumphant success. 1t i o9on t. improve
ment, admit, and some manifest defects remain
IN IT which the general law reported f. this
House does not contain. But, with an unbiased
mind, have honestly soughl for reformation as
10 lis practical W. rkng, and at every Joint, cyl
dcuee and anthnrity have untodto testify IN 4ts
favor. II i, trne that under ia" law, Ms original
" framed, mere banks at circulation, established
Tor that puroose alone, sprung uP in some places
in New ork. This abuse j. now prevented
there, and is still more earthly guarded against
ia the bill before us. The only luS>es which
notehodtrs have sustained in New York have
bees through these bogus" banks, as they call
them. They have been small md would never
! have occurred even with the LOCUS" banks but
Tor class Of defective securities, which should
never have been received BY the report of the
Superintendent for 1855, it appears that The
mortgage securities, allowed 10y the law oi New
York, have Mt averaged more than - per cent.
ia cash, IN their par value. But the stock srca
! r,tes Of New York, commanding always pre-
fnnm, have lcs>cnPd the nrr crntag" oi loss | IL
! der the general law, says the Superintendent IN
! 1893, mot II failure has occurred of any legit.
mn'e bank banker within the past eight
! years, the circulating notes of which have not
! been redeemed at par" Not 50 with the moor
poratcd hanks. BY the Report Of the Superin-
trndent for january 1855, itnpprar- that, during
the year 1854 two banks in Nov York allowed
their notes to be protested One was an moor.
pnratcd bank. No securities were held by the
superintendent. and iii is to he feared, he say,
that the bills will be almost a total loss to the
| holders" he other was a bank under III" gen
raj INV of IS; and in this cn~c, there were st
carliics IN the hands ofihe Supcrinten lent which
he sold under the law. Tho mortgage securities,
Directive a usaUl brought hat 90 per cent,
IN cash on ticir par yaGr; the stock So
eur|t,es sold at IA premium. \ dividend "t ~
Per cent was paid t, the stockholders, who still
had recourse not only upon ia" general assets -:
the hnnF, bat against the property 81 lts stock,
holder, to the fall amount Gifts capital The pres
ent Superintendent says. in his report at las,
month"; There has no bank failed in this State,
having circulation secured wholly be public
stocks of this state and of III" United States,
tn" circulation of which has not been redeem
ed at the par value thereof and in such manner,
without interruption, that the notes lost nothing
ot their efficiency aud value in circulation until
actual rrdemptou." The system now. as a
whole, he says again. "opcrates admirably well.
furnishes paper currency equal to any IN tae
world aud has answered the most sauauine eX.
roctatops Of its friends. In all New York,
havo yet TO hear of the first denial that this
settlement Is true. Divided into sccts and fac.
ions and iSms. all parties in New York agree in
commenting tine saluiary chanCe which The free