Richmond daily Whig. [volume] (Richmond, Va.) 1842-1861, 1856-03-01

fifty thousand dollars OF tho note. of broken
banks, Sir. did such thing happen under the
good old system OF Virginia bankingy Ask your Audi.
tor and Your Tcasurer the OF the State ever
suffered dollars loss under that SYSTEM And vet un.
der the delusve idea OF better securing the notchocr
we are asked to cast aside that system and try 9th
| CT.
Indiana tempted into the seductive system, with
her own stocks and those Of Virginia Kentucky Tonnes
see "eorga Louisiana, Ohio and Missouri, it, basis
States whose boundlcss and their sovency
undoubed There brood OF 81 of these free banks was
Matched, and of that number than one half are
gone, "tcing tale OF ruin not to the bill holder only
but to every interest OF that young but hourhng State
quote from the message OF Gov. Wright TO tho Legsa.
turc, Jan. 4. 1855:
"rhc law upon the subject OF general banking has fail
ed to accomplish the purpose for which t WAS enacted
IL has NOT furnished tor the OF the people, so.nd
\ circulating Boii.pH."
And the audtorgcnera OF the State in his rcpor, of
Nov !, 1881, on the subject of the free banks AFTER
drawing graphic picture OF the distress ruin which
had resulted from the explosion OF the system SAYS;
The tact that the of the Indiana banks under
the general banking law secured by intcrcstpay
ing bonds OF the everal States OF the Union and in
many instances by the very hes, securities that
issues seenefto Be Of rdi, in the estimate pui up
o" ihr,r notes 6y the public. 4 general depreciation
| &" eaSacti"
Yes "a general depreciation ens,.od" That is-tbc
note holders throughout State-the rich and the Door
aike-the wealthy planter and merchant and the hard
to'ng mechanic and poor borer gether-sucreda loss
on the bank notes they respectively held And vet gen
umcn invite for the special benefit the poor man. To
substitute such system this that tried one of ours
which, Tor nifty years and MORE has furnished the people
currency 81 sound that of citizens was ever
yet found to ask for a discount on its notes
Illinois, too, ventured upon the sys.cm and with like
results Under her teebankng law. some o. banks
sprung into beiug the basis Virginia Missouri and
other State securities, and already of them are i'm.
solvent leaving the holderthat class which so
strongly exees the sympaihies of the gentleman
uoochand-to mourn the day that the stock system
ofbankng was devised. From late Chicago paper
dnd that recently eight OF these banks have closed three
withdasa their securities aud been sold on, bv the
In kInN Inv oil l.s.f,a.
eraions and VII. the three Withdrew their securities -
Because surely, however plausible the scheme scenes, m
be, experience had shown it to bc bad one Aud why
et me further ask, were the FIVE sold by the auditor
Because 81 far security the holders CON
crrned the system had proved fAilure-iu abortion.-
lhsg hat not b>en able the demand, Of the mote
hoid,rs, an" therefore, aud therefore only eV rere sold
ont.
What commentary on this system and STILL with
all its disastrous workings before US are urged to adopt
IT, and adopt "a lieu oft, the good old Virginia system
"hich challenges TO itself the endorsement of halt cent
rvs triumphant trial.
There is nothing then in the practical operson of
tue stock system commend it our favor Experience.
i downright against it, But alas Sir in these last avs
innovation argument from experience is vita some a,
least, no argument at all.
Sir IL grated harshly my ear that declaration of the
gentleman from GOochland, that fifty years experience
was argument for him, in favor of the old banks
can Ouly say that he and read from a different man.
ual Of craftsmanship. heard in my childhood that ex
pcrcEcc is the best OF all human teachers learned when
schoolboy, that all the truths OF science evolved by
test OuNs ana applying this OF
-ies to the subject OF ethics had supposed that tor
whatever of excellence shall attain in human insiitu
tons must be indebted experience and experience
only.
Sir, the principles Of the American Revolution
because experience has taught that are founded in
eternal truth and eternal liberty. venefatc this blessed
Union OF ours, because experience has taught me that il
il strength and safety home aud our power AMI
glory abroad. love that glorious Constitution of ours
the hand-work of Washington and compatriot states
because experience has shown that it is the best
form of government under which the DESTINY of man wa.
cast. hold in veneration the ancient trial by iurv
because experience has demonstrated to the world that il
- the best ordeal for the determination of human
right cling fondy the great Magma Chalta writ of
the Habeas Corpus because experience has proved that
It Is the great bawark OF the personal liberty of the c
zen And just as stand by the principles of the Ame
can Revolution, the American Union or the trial Ii,
jury so do stand by this old banking system of ours
because more than Fifty years experience has satisfied
banking tried upon the earth.
Bat It i said, and in spirit of vlunt that in New
York the system has proved successful and triaphs
there are relied on rs conclusive inducement adop-
| ton here.
Sir what regret have from the example OF
New York. have always understood that in all reason
oang from analogy, the circumstances be substan-
tally II not precisely parallel else the conclusions will Ice
ilacious and deceptive Now ask TO be informed what
sort of ntule there il between the position of New
York and that OF virginia. Sir the circumstances are
widely different tha banking system might be entirely
successful in New York. which would prove Hccessar
'ilure in Virginia. New York is the great Commercial
Il
mercaly tributary 10 her. She ia the mistress E1-
change Her domestic and foreign trade have given
her Superabundance Of cash wealth, which takes the
form Of bank deposits and going into the Keeping OF the
banks oim for them the basis otcans and discounts These
deposits amounted in 1912 sos 600 and in 1884 10
S's,OOhoo0 while the deposits in Virginia owing her
want OF Commerce and diversified pursuit comparative
nothing Now here is variance enough to DESTROY
the soundne' OF all reasoning from New York To Virgin.
Ia system might work well in the former which would
be an abortion in the latter. In proof OF it, it is well
known fact that some OF the banks in the city York
do on their deposits large business without having out
| a dollar OF circulation.
Equally fallacous must be all reasoning from New York
TO virginia stock-, basis of banking operations for
here too the variance is marked. Not long since New
York six per cent stocks were at 81 per premium
though now much lower, while those Of Virginia are
per cent below their par value The reason is apparent
New ok has supendous system OF Internal improve
mrnts completed aud in active operation poriiou of
which gives the State magnificent revenue independent
the resource OF taxation and which, of course furnishes
her the means for meeting promptly the annual interest
on her loans aud all Of which, united have added hun.
dreds oil millions TO the wealth OF her citizens and aug
mened necessarily, her general assets consequent
ability TO pay. One grand canal with three million in.
come and three great trunks Of railway commanding for
heF the trade Of the Lakes and the farther west give her
basis Of credit which other State in the Uron D.
-cs-es aud 70 her stocks value which attaches to the
stocks OF no other Commonwealth in the confederacy-
IL 09' u be 80 m virginia and bad She lie her I'm.
pre sister, finished her canal aud carried her
eru railroad 10 the Mississippi and her Central railway 10
the ONO, her position and destiny would have eet
would have been added to the value of her lands and OF
course, To her available her financial condition
would be one Ui instead OF pressure and her stocks
at par or premium. But alas Such not our happy
lot! Our canal, which IT connected the eastern and
"c'ern waters, would he pouring flood Of revenue into
our hsc fingers seidi-tant between its allotted trnni
We have no completed railway connexions with the great
west and South-Ses 20 bring through territory that
vast trade which has made Now York rich and mig
scarce finished work it, developing wealth.
creating power contributes 10 the supplies of our Trn.
'ny We want, 10 fine, limcntablc want that basis OF
credit which New York has and hence our stocks are
much les valuable than hers. Therefore il il. repeat
That you cannot reason from New York 10 Virgina
stocks, blsis q binking-the ono might generally
| be ample security to the note-hoider while the other
might be- wholly inadequate.
But even New York stocks D,igbf provo unreliable
SOUND as they now are, general commercial pressure
changing the current Of cnpal aud disturbing the great
law Oi supply aud dcrnnnd, might aud almost certainly
would greatly reduce their value and their ready con.
Fcfiihhy into ca.h Aud be- it noted that since the In.
PRODUCTION Of the ecbankng system in New York there
has been commercial rcvulson no great financial chi
III, u test ts operation under circumstances Of an adj