Lynchburg daily Virginian. [volume] (Lynchburg [Va.]) 1852-1861, 1856-02-23


bern s.lhiectod 10 the ordeal which could alone
p.tabli al il, wisdom Webayc had no such er!s-
i, a. that for which il j. Designed -none since II
wa introduced which the banks of our country
generally have not met, without any material de-
partare from their ordinary course OF deanng,-
The most that can be said III ITS favor Is that
there are banks on the stock basis, there may be
many. which have gained and retain Inc Poohc
confidence. So may it be said of agencies, con-
tessedIv inappropriate and unsafe, that OCCASION
ally they have succeeded for "a time, But II there
h, banks on this basis which have not d'sappoiht-
ed their founders. the public. there are DINERS
which hive sunk under trlHl, neither adverse nor
formid able in ordinary bank experience VI 'his
latter class. the examples have been 81 numerous
that il might almost be said, they constitute 'iie
rule rather than the exception. His friend, the
President Of the Virginia Bank, in his very lucid
exposition before the Committee, had exilibitea
II long list of failures, supplied by the reports from
Indiana. New Jersey, New York and elsewhere.
So short was the interval during which many OF
them sustained doubtful existence, ana SO
slight were the contests for which they were
found unequ y, that the inherent inhrnty OF their
organization will alone explain their failure.
1t now appears that the demand Tor our oohaS'
some three years since, did rot altogether, or e.
ven mainly. originate in any increase OF prohts
and wealth which alone can supply reliable ana
safe demand, but was in great degree at least
the offspring ola sudden inclination for banking,
excited by the delusve attractions OF novel
aud plausible scheme. 1t wasa fictitious or ar
ticial demand, and we now experience It's natn-
raj affects, in the depression OF the very prlces'
which for time it advanced. The price OF our
State bond, has been depreeated,hy the amounts
which the stock banks have had to force upon the
market; and the price is still kept down. by the
apprehension that other banks must yield to the
snine necessity. II may be said that the opinion
now, of banking on stock, with reference to It's
effect i'll maintaining the price OF state bonds Is
as generally adverse. as 1t was favorable III the
beginning
The advocates Of the scheme rely on the xPe-
riencc of the large banks Ut the city of New York
which have preserved unaffected their credit and
usefulness. notwithstanding their consent To the
stock basis. They overlook the differences, both
prominent and material, which distinguish the
banks of that city from our own. In virtue Of
her distinction, as the great centre OF commerce
and trade, her banks possess resources far beyond
what is enjoyed by our banks elsewhere 1t Is on
their immense deposits, not ON their circnlat'on
they rely to sustain their discounts and loans, ana
Tor their profits of course; and though their dep"s
| its fiuctune, as the times are propltious or adj
-, yet they are always large aud (atact which
deserves to ne especially noticed) are lArger. re-
| latiyely, in periods OF general nneaslntss and
embarrassment. As capital becomes more valil-
able, it is the more attracted TO the conmerciai
H., - 4,si, bo o,,,t,v
! ,LS, - ,t..i - tl;L tl, arb I'LL
=; y Wv = - tbat
~ Ne" 1ipiiop ~ 1''i - ''a
of it. Besides, the relative capital absorbed by
/ the investment, which the New FORK city banks
i''''i II 'c''''i - 'ii'in'' "'' "c'
con con 49, Nv, 10" wa "'''r ~ '.qU''u VI va,
MIN lucy n'''"'' t'y on o'''u"''''i' ":'
"'.' 'N'''" 1T any 'u.i' NV ""''0"' ~ -.
e''i' IL i'ty ne pa 'o"h al "'''n' "n"-"',no 'ne
e'P'.',T o't ''5 oi'eui''l'n Vi our """S' - 60
s' '''. o'''" 80 '"'a' ''a '"' t'Too' anu - 'I9''
II, III u" ""' ~ 'i' Fp ''' r"P,,''a' nv
~" "'M '"'iNs win o. eisao.e" lo' '"''' INV
os'i"' "''''S' anu iai f'H s"'e an" s'o''F' II
l,''' means "''e i9eNf9 up III investments y
ant 'N''"' P'"P"sea 10 90 eA"c'eo Vi "ui oanNs'
ny ""''" P'''''' "''o''''N ~ sun T'''e' '''v.A
e9Fu'a'""' Id'lef ihah submit |" such cohu1-
'o,'' -
-N-H''' NV" i",N ula ~. f'q"i'o "'i oahN' !"
! NV o''s99 o'''o''T VI ''s'''' i -, ~.
laeA % 90" y purchasers. lh' Is SuPp'eheh'
I, ae' Scn' me- III "aleh inc NEW Is an our OWN
enc S'''u'" T'"'As' ne' own oonus' an" l'e
o''n"N "' ''' Ou''F" 9'ht'H' ""'cn W're' al 'iie
I'"o' :" u, , al hish P''9's ~ ho''e anu u
w o'oJH ~ " ~" "'''e a'0 o'i ''''o
"oHos, 'n'''"slCa''s as Na'ud3le as any o.ntt' we
az P'F"'ou ~ ii'''st an" liia',''"'i, ou' VI"
'.1"''"''9 o','" PAT anu ""'cn wiz u'c'i'ie
i - W. AMOUR, "I nv ~ ''',
nc Wv ti''eH' !" o's wiz" ''"qA
i'o ", 'N''f' 81 '"S'' 'r''e'"'"6 !"
" '' guy III 'AP' Tta''''' VI "'"ia',u
~ ~, ~ ~ "o"'" " "sru'" "ou'a
ava 20 J'G''''an "y nv eAp"Pe o' ne" iorN'
,ha ',t' "'l N.Y. T""''oH' ny
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