The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1857-12-08

yer the u<sctencv OF their ts,nctttat. =
sss;s y their total means. lsss ss
ana the balance against the whole
hoftnsastern eleven states. due to
Aoa osner ine,naiss 5snks a.; s7s,..2
them. the surplus Of their total n,eans
@ oIsr tue ,aei.1e''cy Of their immediate
Or. upon the of their total means es's ~
Is only little over one par cent ON
their sum total Of meansi
Inen We have shown clearly that the
four importing centres Of the north
east were grossly deficient in i'm me-
ddN means to meet money pres
sure and that the whole combined
are Indebted TO other banks" "......... 6T55 AL
And that the whole of this balanc- 10
que from tho centre at New York the
remainder OF her Indebtedness being
Que 70 the ten states around her, te
Her sole balance due to other ststes,D
And now .s ,:;,i :s -; 49,; 1884 s5t
what part of this balance was due TO Virginia:
| Table No. g. will be found on pages 20 and p OF
House Reports
have grouped Virginia, North Carolina, Ten.
he'see and ks.tucky together, because they have
| no centre common to each, aud no centre of their
own, aud because >they have q homogeneity OF
| trade. And We see that they have a balance in
their favor .'due by other banks" of $4,S65I I39
AND, including that balance in their
favor, the surplus of their total
means over the deficiency Of their
| immediate means, is s71sI37o
| UT. tneif surplus is 6M per cent ON
| their sum total of means, slIl 665 9e4
| Ascompared witPNew York their surplus ia as elh
| 10 per cent. With Massach usetts, as 65 to 22I5
| win the two combinedas ia oe3<. With the FIVE
New England states, without centres, as e1l to 81
| With New York and the six New England states
as "a to IA. With Pennsylvania and Maryland
as ga TO no surplus Of total means orer deficiency OF
| immediate msdns. With New Jersey and Delaware
as "a to less than "a. With Pennsylvania Mary.
land, New Jersey and Delaware combined us or
- to less than no surplus! As compared with the
four northeastern states With centres. Massachusetts,
| New york, Pennsylvania and Maryland, as 6IS to
I. And a. compared with the whole Il northeast
ern states combined, as 6lZ to one per cent. only
OF surplus of total means over their deficiency of
| immediate means This shows that this group of
states has undoubtedly a large portion due them
OF the balance due by the great centre of New
| iofk' and that in their means, individually and
collectively, tsey far above the average strength
of the states with which they trade, and that the
portion
| And the whole comparison shows.
| tho centres
ID That il focs there In snita of tba yol,,cs of
| trade.
ID. 1t shows that this very fact of q balance in
SVor OF the states producing the materials,
against the commercial centres. instead of being
| sFehstn, Is weakness in times of a money pres
| sure. And
4th Above all. it shows that the best defence a
state or people can have against the tax Of paying
exchange to centres all around them, and against
| the danger and dsmay of having their surplus or
| oHiahce OF trade caught under the dead fall of
naro times in centres outside of their control is
u 6ud up centres trdIe for Themselves ,ctti,1 their
o'oR ftnaus. If Virginia, North Carolina and Ten
nesSee and Kentucky had united to build up ther
own centre, they would not now have all their
surplus or balances tied up in the vaults of New
iork, Philadelphia and Baltimore-cities which
wiz OF course take care OF their own people or
themselves first. How centres of trade is to be
to fraa fOf artlr n,Hnr
| the head of state improvements. Those improve
nents will show are the greatest ultimate relief
and defence.
The surplus capital will flow to the centre be-
cause commerce is there most active the dollar
there can be turned over oftenest and make the
most profit. There is the great storehouse Of sup
| ply, aud there is the great congregation of de-
rnand Ind this is spite Of The balance of trade or
the rate Of interest Ge use of naoney No matter
what is the rate of interest in New York bill of
exchange on that city will draw q premium from
any place on this continent because 1t is the centre
Of trade. Money is more valuable there than else
where Some suppose that money is drawn from
virginia for example, because the rate of interest
there Is seeen, and our rate is sir. II that be
cause, why does San Francisco, where interest is
| 80 per annum, not draw the money from the seven
| IN New York! TN the contrary. know that q
| bill at San Francisco on New York will always
command about two per cent. premium.
To come nearer-the banking interest in Ohio is
from II to Is per cent. Khy don't that rate draw
from New York; 1t is because Ne4U FORK is the cen
ire, lrsre lmportGti0s are made. 1Uers sappes are
obtained, 1cisre nioneyis most in demand
so, some suppose that the balance oftrade against
the centre will draw money away from the centre
| On the contrary, it lsares the money there. Thus
when a merchant or producer here at Richmond
sends 1000 worth of flour tobacco to Now York
and purchases only $1,000 worth of merchandise,
he has balance of course in his favor of 81 600
What does he do with that balance? WHY
| if be has head on his shoulders fit to manage
money he will leave it there and not bring il home
with him: because whsn he gets here he ob
tain premium from bank or banker here for
bill of exchange on New York-d thing iChich is tao
| much rated "specie funds" The bank here
which buys in ordinary times gets its full equivs
lent. But it issues notes to buy it, which have to
be redeemed. And when pressure comes, the notes
| are presented for redemption here and to get the
specie to redeem WITH the bank has to present the
| bill of exchange in New York and when it goes
there in crisis it finds the drawer has suspended
or failed. At all events, the very means it count
ed on as specie, turns into protested pdperpr
ed the centre for balance due the circumference
| Again-I take the trade in the Valley and West
OF Virginia. legitimate business certainly of our
people there IS to raise purchase live stock for
| the markets of Baltimore, Philadelphia and New
| York. drover or graZier goes to the Bank OF
| the Valley or of Rockingham, and borrows $4,000
| In their notes to purchase cattle at 80 days. BY
the time his note has mstured he has his cattle in
| market at Baltimore, say, and has sold them for
$4,000. He has made a balance of 81 900 for him
| self, and Baltimore ewes the $4,000 He gives the
u u
Baltimore for the So 000 and pays his note Of S. 600
and takes the notes of the bank for the balance of
| 1000. And by this time the notes which our
bank issued have gone to Baltimore to pdy discount
| for supplies, aud fall into the hands of brokers
there. And just then comes the crisis of suspen-
sion of specie payments. The banks in Baltimore
suspend-tte balance Of trade found in their hands
and tie notes Of our bGHks IN the hands Of thea.
brokers' The latter have notice first of suspension,
and start earliest in the race for specie Seeing
them coming, the bank in the Valley sends to Bal
| timore for the cattle money-the tuhoie has been
left there-and it finds the door shut in the face
of the drovers and gra2ier's bills. Shall 1t allow
the centres brokers TO get all the specie too for
the netes which were issued for these very bills,
No, say |. No, says Justice and fair dealing. No,
says selfpreservation No, will say our hard work
ing drovers and graziers. No, our tax payers and
| note holders at home. No. said our country banks
They suspended, and did right. 1t was for the
| protection of our own people, whose means were
all tied up in the bags Of the centre Of trade When
these bags are opened again. aud they will let ont
our balances due and accumulated there
then We will redeem notes and have The
specie. full handed, to do honestly aud without
sacrificing our own merchants and traders and
| mechanics, and tax payers and drovers and
gra7iers and laborers No. the provincia
ized states-proyinciaiized, because they have nu
centres of trade--have suffered this swnde long
| enough of getting all their means first into the
hands of tue debtor communities and then calling
upon them to pay in specie. They in reason
ought to be the first to suspend, For though AZ
between individuals, "the lender holds the Dor
| rover by the purse strings, yet as between ma
tiens and communities it is the reverse. The peo
pie who hold all the balances and accumulated
fluids of the rest, hold them by the purse strings
1t is no truisIn. in time of suspension, to say
| that "tbe balance holders hold the balances" in
such timesi We did right TO hold on at all events
to what specie We had LETT. Fer this reason, wheT
the first of our banks suspended, calmly awaited
the result, and declined TO issue a proclamation
prohibiting the receipt OF their notes in payment
of the public dues. Ihs deposit banks refused tt
receive them and place them to the credit of the
commonwealth, because they would, at the end o
fifteen days from the receipt, be compelable tt
redeem them in specie, and because they arr
bound by law to recsiye only the notes of speci,