Republican vindicator. [volume] (Staunton, Va.) 1849-1857, 1857-10-10

But the throwing Of three millions of
State bonds into the market within any pc
riod within which the Treasurer might think
it incumbent upon him to sell them. would
tend to deEr IS their prices below their
pr esent market prices aSa90 in Rich
mond and 7Sa80 in New York There are
now about $50, 000, 900 Of Virginia bonds,
direct and guaranteed outstanding, The
effect of three millions Of this paper simply
changing hands would not be at all as great
in deprecating its price as is usually sup
posed. Indeed, a prudent management of
the transaction by the Treasurer Of the State
might bring it thfo' at a very small depreci-
alton of the market price of the stocks, pos
elhly without any depreciation at all
However, for the sake of argument, let
us estimate that the bonds in the hands Of
the Treasurer would not produce more than
seventy per cent. of their par value. There
would in that case be loss of thirty per
cent. on the $4,000 300 held by him as
surety for the circulation of the State Stock
banks, or $3.50, 1897 which should be de-
Quoted from the aggregate assets of So
19l ,e12, shown above, and would leave as
the available cash assets of these banks a.
921 ,425, against $3, 147,734 of liabilities
But the charters of these State Stock
banks made their individual stockholders la
BILE in their individual estates for their obi
cations to the amount severally of the par
value of the shares they hold in the capital
stock of these banks so that the notehold-
ers and deposltors of these institutions have
an additional security for their claims upon
them to the amount Of their capital stock
or 50, 542, $50. The statement of the fund
available to meet the obligations of these
banks corrected upon these data, would
be thus:
Negotiable paper discounted, So, 425, 512
Proceeds of State Bonds held
by the Treasurer, at 20 per
cent, 2,03o.903
Specie, 465 900
Estates of individual subscribers. 2.642. $50
Total resources available to
claimants, s. ,564, 265
Total liabilities to claimants, Silt 1874
Surplus of funds available to
claimants over and above
their claims, 4,416, 53l
These facts, we think any man of common
sense will admit, to be entirely conclusive
on the question of the solyency of the in
dependent banks.
Considered merely as currency, and not
with reference to the security pledged for
them, the notes Of these banks are perfectly
good inthe hands of the public. The pub
lie owe the State Stock banks So, 425 SIP,
in payment Of which their notes are certain
ly available; and yet the total amount of
these notes in circulation is only S. 203,-
055--nearly quarter of millolfless in
amount than the debts they are available to
pay.
In view of these facts, these indisputable
facts which 10 sophistry or falsehood what
ever can gainsay, we think We are justified
in declaring that any man who sells a note
of State Stock bank for shave, deserves
to be cheated out of not merely hail, but
out of the whole of it for his stupidity and
ignorance and that any man who maintains
that these notes are Rot coed for the face to
the holder is either a hopeless ignoramus or
a deliberate svinaier.
We are sorry for the silly people who have
not the gumption 10 see SO plain fact as
these figures disclose and who are doakcys
enough, because the old banks decry the cir
culation Of the Stock banls, to part with
their notes al shave Whoever submits
to shave on these notes ought to appropri-
ate the proceeds lie realizes to the purchase
of couple Of long ears Tor the appropriate
ornamentation OF fhe two sides Of his era
mum.
Why, then, ii may be asked, is it that
they are discredited by the banks Of the
Old system. The immediate reason is that
several of these State Stock banks, like
several Of the banks of the cid system have
suspended specie payments. Aud this rea-
son, while it exists, is valid reason; the
refusal of other banks to receive these notes
on the same footing as their own beiag at
least excusable. This reason is not destined,
however, we trust, to last very long .-RtcA.
Examiner