Lynchburg daily Virginian. [volume] (Lynchburg [Va.]) 1852-1861, 1856-02-22

>uch should be- the result. net aniv indi,i1,.a
oBt the State herself would suffer.
There i another thing which | have bee,,
persons very often speak about and about wbicl
fought. perbaps.to expfes- my vews:and thai !
that all new bank. ought tn b. fore ID to redee,
their notes at some prominent and particpls,
| point upon specific terms.
Well, sir, If the Legislature sees fit 10 ado.
that course. | think it may not he netting unw,.s,
ly in doing ! am sure that ~ far a. Es.t.r,
Virginia il concrrned. there would bc no ,l.;.o
ton 10 such plan. because the burtirn woaIs
he upon the banks located in the Interior and :,
the same extent would be relief To the bsnk,
located Mt the commercial points. Whv sir
what Is called the Sutf"lk system. was gotten m
for the purpose of compelling banks located !.
me interior. ~ redeem their circulation in r.,
ton The Boston banks found that with TN,
deposit money which was limited, aud witb,,nt,
far share IN the circulation. their pr,tiit. v.r.
on an average, only about five Der cent viii
country banks were making seven or .igh, No.,
cent. 10 eqnaIize the profits and for publ C ron.
venirnee. each Of the banks in Boston aer.o5 y.
place with the Suffolk Bank n certain :"
capital To be employed in taking in and .a,i:., ~
home tor redemption the notes of The ;n,ar;'1'
banks. by which means they have eoualizad a..
profits of the city and country bank. ''''
In the State Of New York, by law they bevo,.
ken measures Ia produce The same efpc, H., can,
pelins all the banks of the State 10 redeem tn
notes in New York city. Albany or Troy. Al
certain fixed rate. As before. the notes i'll
payable at Bufao. were at one rate Of a;.c,,,,,,
those in the centre of New York snv .RncLe.,"r'
SYRACUSE Utica and Schenectady at n aiera,,.
rate md those upon the North River. DO, l;,a,,s
than Albany and lr"y.at iuwrr rate Of Discount
Of course, than those other place, rrt4rred ,,th,
risk, expense and time necce,,arv in s.o,r;,',.
their redemption, being NJ much greairy han
the latter in proportion t. the greater distance
The New En- .lanl banks thought thy acc,,n
plished to object, BY adopting the Suffolk Hant
system. BY di-crediiing the notes of any b,nI
that did not provide the fond- to redeem ,h.;
notes they GOT rid OF What they call bogus hanks
and they very SPEEDILY detected hnnl : tho, ,".
likely 10 fail.
beg the Con lnittee will look well into ,bes.
facts. If they were to adopt the system Of mn.
king the banks in Virginia, by renewal of thai,
charters base their circulation by the hvp,,b.
ecationof State stocks do not know how tho.
can adjust the mode 10 operate upon ,b4iy bant.
ADD their several branches It ,e,,n. to me there
will be insnpanble difficulties in peiecting ri.
sysiem. Bank, in thu cities will be able 10 face
thtir circulation by "a comparatively small atnopn,
of stocks having ALWAYS "a considerable amoant
of diSpo~it money while, banks in the inferior
have u large circulation and conparatiyelv ,,o.n
amount of deposit money. Take the Bank of .be
' stance IA n Gy Il
2i5UW. it, circulation amounts To- 81. s5- MN
It's loans and disc ,unts Under the limit prescribed
by law may amount To 80 1870 o0a. We'll now
>ir, face its circulation by The denosit of ,,nol
and what will be the result /, mus, call in If
its lpans and discounts mn amount c.ceedn.
81 .StuOOO and it wonld only lenya nhen, sfDO
oo0 for loans and aiscopnis. The cireulutin,
of the bank, located in tho interior always -,
eeed the amount Of their canita}. How On, ,his
matter be adjusted nn,er our oresent .v.,an1
! believe in no other ,ysy ,han nv co,n,,lif
thr old jnstitpti,tns 10 wind mn andle NOW on.
Ia foymrd. Wopl3 mot thn enn..oaanco. =
that disaster, wopI1 r..ult :, he Stafe md A..
vithnnt .,,, ,,,,,.s.,,.,,,lo,. Lo,
st
thank the Co,om;ttco lor tho ot,o,.,.y. nm.
nar in which ,hav baya l;.t.,ed =, tba.a Sac, -
connected ramart. dia NO, c.n,o hora -.
,Inee the COMMITTEE To- y.cbart.r ,has. ha,t.
unless they think :, yonIa h.. gr ,h,, ;,toy.,.., 6
the community that tbs, sbo,la A, 80 Tb,l;.,a
the ,toeknolder, wonlj. if tbs hn.;nsss IS ,bo
hank i; ,vo,,,d ~, ga s'
,beir canitol to ns much aud IA, haIJ, ,,,,.. al
yaDta0e rb4, have NOT a,,n;,,al NO 70 ~
do anVtbiu,. in tlis ,,a,,ax Ia., ;,.1aa1 ~
- '''i' p" '''i'"' ''N'"- Guy "Pi"''hN 'hi""eh