The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1857-10-04

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chsses. The notes of her hanks have consequently
gone forward In lieu of this deficit In the aales al
| Der cattle and produce; and these notes, coming
back upon her banks for coin in the hands of
brokers have produced sn enormous drain OF specie
from these institutions. On the back OF this state
CT Things came the suspension in Baltimore, the city
with which the trade of twothrds Of Western Viz
gina is done; OF course Gaping the climax of her
msiortunes, and resulting Ia the suspension Of her
banks a'sO.
Except this state of things, peculiar TO the west
ern portion Of this State, there is noshing in tho
condition OF he people or the banks Of Virginia TO
cause or justify suspension. The banks are in a
sonnder condition than they have been In for half a
dozen years; and the people, thanks TO the high
prices of tobacco, wheat and negroes, have been
ianly reyeigg in prosperity. Our trade is,
% "GSd S,ns up wh New Yo1f and .Ss
North, that general SUSPENSION OF specie payments
there would inevitao, carry along with i. suspen-
son by our banks here in pite Of their stannch and
sonC cobditon but IA h0pes are now beginning to
| be entertained that New York and New England
VIII weather the storm, there can be little cause for
app,ehsne.ns giving way by any moIe Of our
The Farmers, the Virginia, and the Exchange
banks are, IN fact obliged TO maintain specie pay
ments until the last gasp, by the following provision
of the Code, which explains the reason of the stout
stand they have rakeD against suspension. anu ac-
counts very satisfactorily for the milk in their cocoa
| nut -
| Code Ch IS, SEQ 20 on the moneys pa,4 into tho
pu lcueAspry OF The st.e. thru shall depositsd
In the PsaS of Virsnis orc third In the FArmon,
Psrk cf Virginia. End third In ihe oice OF discount
ami depos Or The Exchsegs a,nk Of Virginia Rchmpnd
IL oh'r of Alt banks shai any lima refsss redeem
III bills notes IN gold ver I'm further deposits
OF pubtc money sbs be maze therein but depsis
tha In he Otter Two or one OF hem II they OF either
70 redeem 9or bills ard noes in sp~oIe ADD n
nett er 40 coniirt " the treasurer shA aoy limo
hsyo gee saure e believe injury viii be sustained by
ihe Slate from having la money deposit In ,ad
banks, or ny or tnera, ne ahaIl ! written communi
eAaos 10 the governor on the srhjc nd .heeafer s
Keep the public money n such rpsoe paying TANK such
ostr place ss The Governor may direct rnt farther pro.
vision be made by law.
Thus not only arc these three institutions supplied
by The commonwealth with the stamina for main
tanning stiff backbone, but they furnished also
with u strou gest possible inducement for maintain
| ing policy. departure from which you'd entail
very Injurious consequences. The average Gepo-ts
OF he State IN the three banks Vt Richmond for the
| quarter OF The year nos commenced, and tor The
INST quarter OF the coming year, will average we
suppose, million of dcllsrs. Now, the aggregate
circulation Of the three Richmond Ing siIn.ioDs does
not amount t. that sum aud we do nor think IL ey
dences very high degree OF financial talent tor
these repositories OF million OF dollars Of public
money TO be able TO Sustain run for three quarters
ot million OF outstanding circulation, Nor does
the psfriotjsm need tc ha refined whch prompts
these institu ions % sintaD specie payments, in
the face OF penalty in The Gaze of failure to do
so, of losing re custody Of million such mat
ter of pubic dollars.
With the substantial backbone thus supplied these
three Richmond Installations. we do not doubt that
they VIII not only lie able ~ ta1e care o, tnem-
selves. but als0 10 make motheIy provision os the
provincial institutions Of Ssh thty the ps rents.
Probably v may now be stated 3 a fact that all the
banks Of Virginia are suspended except those be-
longing 10 the family of banks Of which those hold
Jag the deposits OF the Commonwealth are part.
In this view OF the case we not DISPOSED o join
III the eot Of ignorant people TO extol upduy these
three institutions their caught aud sisters and
to oecry hl the o'her banks % the Common wealth
to extol ~" paplei ano 10 necry the unfortunates
pf OIL gftut aud er,r,
belly full OF pub ic pr O. der
On the contrary VIII ee regret the prec'pisansy
with which 81 me of tie non-rap-fed banks have
suspended specie payments we believe ali the Vir-
ginia banks perfectly and equally sound.
NGrKs or TEs r'> ip.spg.~ B,trs
very industrious fffo,t is mide BY the 5.a'e de-
postt hanks ara their per 10 discredt the notes
~ the Independents banks ybch have suspended.
But we ave eled to see that the merchants Of Rich
mond have not yielded 10 this unworthy movement.
The specie IN the vat- of these ind penrens banks
equal iu every case IN me tth or twenty per cent
OF the notes they have in circulation; and S.afe
bonds are pledged for the full amount Of this crcu-
latnn. state bonds command from eilhty i've ID
nnefy do lars every Gay in Richmond; aud bus the
bolders OF these noes have am lie security for their
REDEMPTION III substantial coin and 81, ate bonds.
Not only this lat the individual estates OF the
Stockholders sf these banks are pledged for their
clrcuiauon TO an amount equal to the par value
OF the stares they hold IA their cayital stock
Besides all this the nogo liable paper ~rien these
institutions have under discount IL another fund
standing reacy as IL matures 10 meet the redemption
OF these notes. Thus. te bolders Of he uotes Of
these banks are secured hreefod against los. first
in specie and state bonds; second in 'hs assets OF
the hanks; tiird, in the individual .stites pf the
stockholders.
rbe effort to discrsd' the notes of ,he indeoend.
tnt banks, made by the old banks, Viii h nave no
State stocks pledged 10 rect their circulation the
estates o. whose individual shareholders are Dot
pledged 10 meet their obgt'ions aud fr the faith
ini application OF whose assets 10 the payment of
fbSi not bQ Gfahn hava
as wanton snd malicious "a J, s treacherons To the
comm onwealth on whose funds they are r,ding
By throwing out the notes OF there banks ia Rich
mond, and discre dtipg them by every agency 1,
their power. they may deprive them of the fanc-
tion OF currency md prevent their free clfcu aton
among the deuded people; but il IL impossible that
they can succ6 ed IN depriviny them Of their mira
SIC value, dollar for dollar, Of what they promise on
their face.
II the pressu.e continues 70 be successfully With
stood In New York and other quarters Of the North,
there doubt that the ndeper dent banks of V,r-
glna will iesume specie payments in few days.
They are allowed by tbe Law ten days after pro-
est 70 resume, and fortunately the quarter day for
making up their quarterly returns occnrs within this
period We, therefore, confidently look for sresump-
ton OF specie pay ments by ese institutions within
the time legally allotted 70 them for toat purp1se
Those OF Eastern Virginia ess eciay viii do tins,
unless the troubles az the North bresk Oh, afresh in
sheh case, not only will trey not resume eu' esen
the banks which have the states deposits ~ill find
II difficult 10 weather TIE storm.
RrcaMosD cIrv BASHp.
Fr,m The ksbc,rDd Wing. Ocl
Our city tspks sll held On irony bso"enout yessss-
dsy, and Toe belief IT, thrk that unsy vii bold
ous 70 the ead Provided the mercantile snd ousluess
community arc nci subjected 10 serious ,nosssamsns
and rctn vsols the refn al Of peoxs
specie rsy nenu wheo ~ rsry rsp ming ese-
vhcro, would De rcehov ir her cAps nsrrsf Or, and
would tend ssasiy To s,vrrrthen the csnrdeo ~
people II hone and shroar their sovepcy and y,spcr
nsnsscmeri There va. no ron o. The osaks he.- yes
hruay, ESQ Tire feeling in the " murM, ~ evlIsndy
upnxs Il hN bnu uks IA n
mcdsfe chsn,s nbi busircs, meo sod es lne
people do MI tcy n sustain the banss he re-
sri ifeHul storm VII 5000 pas avay and ths no1ssAry
~o,ld be es,y sgsn
We has al sn,s cr lying tess,s ssio ies.
rNobes are lying owe. no nry, vhiv ne publi,
sn'nd he on their guard about brokers sha pess
iD rrhbly ranic mshcr.
KENTUCKY.
Prom the Lolsvlle nelnscras, seJt 20
IRE ~ The evts ttat all ana FEEL the vnr'hloss
irssh q foreitn uspss at have found her 'no ms
0ty, In he VI esent cnsreeacy, requires batksr "