Lynchburg daily Virginian. [volume] (Lynchburg [Va.]) 1852-1861, 1856-02-19
Speech of john c Rui heifoord.
THE BANKING POLICY OF VIRGINIA,
OF GOoCHIAND. ON

OF GooCHLANp. on
THE BANKING POLICY OF VIRGINIA.
Delivered in the House OF Delegates of Virginia.
the OH Of February. 1856 upon the bill to or
tend the charter ri the Bank Of Virginia.
Dir. SPEAKER In proposing an amendment
which limits the extension of this charter to the
short period of four years, it has been my object
10 bring directly before, the House the question
whether the old banking sys stem Of Virginia shall
be perpetuated. ! desire To another and in
my opinion, better system Of banking gradual
" substituted in its stead. and therefore pro
pose short term for TIE extension of this char
ter
Thus the subject Of banking and currency. in
all its phases,is before US 1t is subject in which
all interesred-th rich and the poor, far
mers and merchants, lahorels nd capitalists.
With bad system Of banking. we can not have
sound currency and. wthoDt sound cur
renoy, we will have Mother sound credit nor
healthy commerce.. a circulating medium, nse-
cure, distrusted and huctuatng in value, is no,
only hostile to credit, enterprise aud solid com
mercia prosperity; it undermnes the morals ofa
people.
Let us pause, them and give our minds To a
full and fair investigation of this subject in all its
bearings,--let us study well the lessons Of the
past, and ponder long upon their application to
the eSigencies Of our present situation. The
consequences of laundering Legislation, now that
the character of currency {ur the future is to
be determined. may, for years, throw back our
Commonwealth in her march Of improvement,
and be disastrously felt by the people of Virginia
long after the grave has closed upon those who
did the mischief Government can commit
graver error than to tamper inconsderaely with
the sensitive springs of trade. and the financial
history Of our own country abounds in illusra-
tons Of the incalculable evils which have sprung
from unwise laws about banks aud currencv.--It
is them fearful responsibility that is before u.s.
in the task we have now 10 dis oharge.
But, happily. we have much 10 aid US. Expe.
rience gives as afood of light We oc oupy
vantage ground commanding the past and its err
rors; and these errors will guide Us 10 the truth.
We will find it il we seek it. free from bias, in
spirit of calm and candid enquiry.
| ask Il hearing, not for myself but for my
cause. have. it is true, deep interest in the
question, hut it is no other than what is common
TO the great body Of our farmers-it is the inter.
est of the people in u good currency, consisting
of gold and silver, or its equivalent-an interest
in comparison with which the interests of bank
stockholders capitalists and monied corporations
sink into utter insignifcance.
unfortunately. the subject, though Of such
great Importance, is not familiar 10 the public
mind. Intelligent men differ with regard to il,
and popular fallacies to the true functions OF
banks and currency are widely diilused, Let us
briefly review, then, the origin. history and Of
fects of banking institutions. Thus we will bet.
ter understand their true operntion,-thu we
may free our minds from prevailing illusions ON
the subject. and acquire a iuster PERCEPTION of
the true policy for Virginia in this crisis of her
financial history. Let US see what have been
the effects for good or for i'll, whether they ought
TO be restrained ar encouraged. what evils we
Sbpud punr1 against aul hat a..
we should avoid. Let Us determine the ends wa
should seek; let Us first deduce the principles to
guide % and then endeavor to apply them to the
question before as.
As, in the earlier stages of society. barter pre-.
coded money, so.with the progress of commerce.
credit followed upon money aud banks upon cred
it.
The necessity oi mutual exchange produced the
necessity for some medium of exchange Hence
the origin of money; and gold and silver, uniting
in the highest degree, all the requisites of gen
eral medium OF exchange, have become the mon
ely of all civilized nations. They have durability
they are capable OF minute snbdivisionand of re
ceiyng impressions gnd stamps; they have uni
formty of quality. and are sufficient bnt not too
abundant in quantity: they have, in addition to
these qualities. peculiarly fitting them to be me
dunn of exchange, the first aud indispensable re.
quisite of an intrinsic value ant one less Liable
than that of any other article to variations grow
ing out of changes in the proportion between sup
ply and demand.
Direct barter having given place to the employ
ment OF money, in many transactions the use OF
money, itself, came to be deferred or dispensed
with through leger entries, bonds and pronsso
ny notes, drafts, bills of exchange ,andother form
of credit. evidences of debt very different from
money. Merchants deposited their stock of mon
ey in safe hands.insead of keeping il about thei
persons or in their houses. Ii they had more q
it than their business demanded. they loaned it
if less, they borrowed it at Interest," and indivit
uals of wealth. credit and extensive business pc,
formed the part both of bankers and agents f,
otbers-deang in bills of exchange. receiving d.
posits.a and making loans and discounts. Such ",
the natural and hea'thful course of things in
commercial community.
But these indiviju al bankers and dealers in G
changes and loans and discounts cvinced a tie
sdency to unite in large companies and increa
their profits by avoiding competition. They we
willing to buy exclusive privileges from COVER
ment by bonuses and loans, and government W
always ready. for such considerations, TO $
them its protection. though to the detriment
their rivals and If the public. They purchase
thus. at last, the dangerous privilege of ssuiI
in exchange for coin, circulating medium, CO
sistiug Of their own bills. bearing no interest, q
though costing them nothing but the fabricnt
If their paper. yielding <hem the same profits
gold aud silver.
Banks Of dsposit. merely. we're first estsbli