Wheeling daily intelligencer. [volume] (Wheeling, Va. [W. Va.]) 1852-1859, 1857-09-25
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p,vryus ,xp BKokERs IN TINS SrATE.-"No
one Mt MI conyersant with the daily operations
between the Banks and the Brokers tnr0ug"" .,l
Virginis can be ignorant Of the fact that the
Rockers have managed to establish amongst
themselves a system by means oil "hlch tie
Banks arc kept ina state OF constant ANNOYANCE
The system referred to is perfect network,
~ onoIics tbe Brokers to control to a large eX-
tent the circulation OF every Bank IN the COM
monwea!th. In fact, it is nothing more or less
than N 4rily run ui0R tie BqnkS for specie OF
N; equivalent This is done by playing INTO
each others hands, and thus gathering up inc
notes Of the different Banks; and then making
constant demands upon them for specie or a or-
,l,prn exchange Tire effect Of this is that
,.b;latbe law reouires only that the Banks should
keen one fifth of their circulation in specie,
fbeiy entire circulation $50 far as the Brokers
can concentrate it in their hands, is liable to
daily call, which can only be met by paying the
4 or per cent, exchange
Such u state of things certainly was not CON
templated by the Legislature in establishing
snec;.. having, Banks All that could have been
intended even by the most radical opponent of
the Banking SYSTEM was TO guard private IN
diyi1uals and the public ut large, against the
failure of the Banks to redeem their circulation
M, every reasonable demand but surely not to
nut it in the power of a few monied establish
ments to cripple and worry them as they are
now doing. Some of the Banks have Sought 70
relieve themselves of this annoyance by making
arrangements with the Brokers to keep their
notes in circulation; bnt these arrangements arc
ALWAYS Mt n ruinOus loss tn tine Banks, amount
ing as have been credibly informed, to the
use. Without interest, of 100000, and IN some
cases $33 900, for one or more years! ms Is
beautiful operation to the Broker; put Is ue;.'n
to the poor Banks. The game has been carried s
50 far. that those Banks which have refused 70
ST, n orrnDUpment. nave Deeu put
under the ban by the Brokers, who nave taken
pains on that account to annoy them more thah
ever. a,.
The present writer is not director or officer
in any Bank, nor does he own dollars worth
of stock, except few shares In a Savings BANK
which is in no way affected by the operation re-
fered to. But he has means of information
which satisfy lin that the system in question
is GENERATING most iniuriously upon the banks,
and that those who conduct them are looking
about for some remedy for the evil. 1t Is OH
this account that he thinks the following Sng'
,estions may be worthy ofpubhc consideration
1st-Iet the Legislature pass a law prohibit
inn under heavy penalties, any Bank from enter
ing into arrangements with Brokers or others to
keep their notes in circulation. This regard
as an important movement.
I'd. Let the Legislature put the Brokers on
the same footing with HuctioneerS, merchants
and others who have to pay license TOR doing
DuSi0eSStnlt is 10 say, leL IuelIIlCeIlsc eAlGlu
no further than the place where their offices are
kept As at present regulated, broker in
at.s,;,, 81 ,.;iIy F SD do business (he
ia, and yet pay but little more than first class
auctioneer, whose business is confined to one
place. merchant who has two stores in the
same county or town must pay n separate tax
for each; while the broker tcho makes dollars
1ohere tie merchant males ceRts. has the run
of the whole State for his single license of 5000
Ihave heard it suggested that the tax on the
broker should be increased, so as to amount to
a prohibition. Bat this is not, as think, the
proper remedy. To a certain extent, and for
certain purposes, they are useful enough Only
let them use their privilege without abusing it.
The opponents of banks throughout Virginia
have been chuckling over the success Of the
brokers in "kceping the banks in check" as
they cxultingiy speak of it But unless some
legal restrictions are put upon these self consti-
tuted regulators, they will soon become as tY-
ranincal, and as much the objects of public
Ddium as other regulators and vigilance commit
tees have uniformly become sooner or later.