Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1856-01-15
NUMBER 72.

dorsed by bin or il. and discounted a; l, SIR, L.;
VIII exceed fifty 'h"u,'nI! tp!ia.s."
- bF "hat process "t Reasoning the !i.cr ors = :
Dank' cnr disregard entirely these two ,,c:,r- an
al a loss to determine. These lni,su,r. t., the ..
iion OF tho Bank, il scruDuiousy a!,r~-rl -, =
nave hhl beneficial effect in i>.ei.r ,h. g., = y,.
sali!ag from the discount Of sterling cr; a.....'.,
bills. !! IL held however, that the Eth s.,.', ,9.es
not apply 10 sterling bills, and tie cashier of sl .
has the power t. cash hrm without sgt,c.;i.;4 N
To the Board OF Directors. !; will L.. y,,o,,; :, q
those fnmlIar with The discussions an ic.s;I =. :, \
Bank OF the United States ,a; %. The great s,u.
ol power by that Bank was in regard 10 Ills "..v
matter, ot bills oi exchange These bill, "t x ,-i.e
~ere discounted by committ-. Of thr.t d. ~. l
from which committee the gnyrrrm. .ut G.c-:ar. :. 20
excluded. And here in Virginia We See ms .rn:
power ol discountng sterling bills taken irrr, , ~
recicfs and surrendered 10 the iuviaiy iG... .
cashier. Aud thus by construction are .ss '"r -.
Fisions, devised bE the wisdom Of the Le,- tur.,
checks and safeguards against sxcessy, un,
tue granting ~ one cass OF paper undue aGvaE;as,
entirely set at nought.
lhe reason for this preference of domestic ard a.
reign bills over bills on good personal secr.;iy LIS
been udvcrted ~. The preference is .tourL, ,.,i
IN the prtJudces of those who orcupy places az -,
Board, flor am unwilling 10 attribute suv se'rf.,,
motive TO hen,l and who have grown Old, and i; '4y
be rich, III course Of merchandise. s!s:c,r# :.y
means OF domestic and foreign bill. vii metal
their sincerity nor the purity of their mn,;v.s Egt
all men urc liable to be influenced By consiGe,a,Ja.
OF scit'lnt"rest, and it 50 happens that u,ao.y q,
every directory ia Composed ~ uon hn i!.,uA tn,-
own particular interest business would be- h So
taneu Dy TIE present system NJ hGnkiug, su6 .,.: y
OF them think change in that sysem would o,l..
certain rum I" thon ana UtiIers similarly silG4...!
lLeludgmen's and op!nipa, IT such Mo. cn.Wo. -
Looked on rs ntal!ib!e And il wilI br sill wp,r. y
leave the subject entire y To the discretion s;.n
directory, ul!cns with view 10 prrpetuar :aa PEE
sent injurious system.
An argument, in favor Of the present syst,r,. Z
sometimes made on the street, that tie Bark anrat
afford to relInqush the profts arisin. rrln ir a..
coiInt q" bills. Ii this bs TO- then either abrish q
Banks or rise the rat. OF interest rather il7u
so great q wrong To The direct trSHc, the maui.
turer', the internal improvements ana, III l"ri.
The great aud substantial Interests OF ti.u South, ::
perpetuated.
Another argument adiuced in higher qurrtcr, =,
that the discounng OF these bills gives the Bank. syp-
cIe iun1s win winch to redeem their !otr-. ~
mestIc bills and sterling funds are sent on To |: s
in New York, and are the basis Of credit Il, IT,, -
gnla Banks. upon which they can draw si&h; che. =
III redemption vi their notes. Tie Banks. IN in.rr,
practice on large scale the SYSTEM %; rm...
ing Northern agents tO transact their hG-,=r i'-
them; ann they too, in turn, deposit their
" strengthen the Banks Uf New iuGk. n" th,t-
sands Of dollars of bills arc sent to tho New
Banks for collection aud these bills are suc"c-.
" pnid. the money becomes u deposit in tne ~
1ork Banks to the credit of our Virginia Bank. @aI
instead Of our Banks here having in specie l!.,5u
funds nj home they remain till drasI on = s!rW'3,
en- the New York Banks True, that tie b:..- Il Y
mature are soon drawn on, but others oo!-c..r
maturing, 10 us to preserve perennial rg-nn! y!
wealth. The aggregate Of these d,p"sI;s r r'ry
large, and accordingly the New York ljaLks w.'" :.
circulation scarce one.hnf of IFS specie r,.p. ~,
tud their great profit i'll discouuting i!,r .'.s.
A SOUTHERN NA!.