The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1857-11-21
.ex.ser.,or B.nt on on the Banks.

Tn. National Iuteiiigencer contains a long letter
sroa, ex-senator BsNros on the banks and the cur.
re,ev ~ the country I; is not without tho indy
Ia ouo,i.m Of i,s venerable author. who with much
sefeomplaeency, refers TO the conspicuous part he
has played in past days upon these themes. lie
cams up the objects which II was the wish Of the
party to which he was attached to accomplish,
p ssollews:
81 To revive tho gold currency by correcting the
erroneous standard Of lT9i. 2. To create demand
for bard money by making II tho exclusive ourren,
CO Of the Federal Treasury. B. To make SUR VI
this hard money by keeping 1t In its own ueA s
ries To Empress all paper currency ehaeI
twenty dollars by stamp duty. .. 10 ~ina up
all aeaaitins banks by bankrupt la" against de-
: Maqnenis"
m 4as frst three Of these Ave. he says were accom-
pIishsd under the Administrations OF jackson and
Van buren, Bills to accomplish tho other Two ne
ssvs we're frequently brought into Congress, but
were defeated by the detection Of the paper money
\ wing of the Democratic party" lie urges the pro-
prte,y of passing these measures into laws at the
asproaehing Congress-. He contends that suspen-
,op of specie payments Is the result Of our defec-
tive systsn OF banking which tolsrates the exist
enes OF so many weak and unsound banks, aud
they drag down the strong and the sound ones.
The system he thinks, may be controlled, and the
calamity involving the solvent with the insolvent
avoided, by stamp duty on paper money, and
q bankrupt law against bankrupt banks.
The Ex-senator is vehement in his denunciations
of our paper money system; and as 1t Is undoubt-
EDDY very imperfect and in great degree corrupt.
10 lie says many things that are true. lie calls a.-
tentioa to the specie basis declared necessary in
England. Mr.. Horsley Palmer. President of tho
Bank OF England, testified in 81 before the Com
: mittee of Parliament, that the Bank deemed i,
Z prudent 10 keep In coin an amount equal to
third Of her liabilities, tacIupg drposts az rel as
circulation; aud Mr.. Norman, director of the
Bank, stated that il would be proper that the ip-
sutu,ion should have this basis of one-stfrd l. e.,
II It's deposits six millions and circulation
twenty one millions, then the pruelent amount Of
so ard bullion for Gu BIn % retain ,coad be nine
ss,Qions. This proportion tue Bank is required to
preserve.
The Ex- Senator asks, "bow different is this from
Backing in the United Ststes!" with u.s." he
. Gays, "psper on paper has become the vogue
Stocks and notes of other Banks are the SANDY
foundations upon which n large proportion of our
Banks are built" This IL very true. Among the
the best, the strongest required basis is oneffth
l. dollar in goid silver for every five IA
per dollars afoat. deposits are left out Of the
question.
The Ex-senator thinks there is plenty Of gold
IN the country, and that there is no excuse for the
present panic WHICH would hot have occurred. he
contends, but for our rotten banking ksystem. On
this point, make the following extract from his
letter: ....g.
I'm gland, the foremost manufacturing country
requires the greatest amount of money; and has il
% tct about eleven dollars bead; and kussia so
largely agricultural requires the least amount of
money. aud can empley bat about four dollars
head 60 the United States, in small part msnufsc-
turing and largely agricultural and planting would
md her maximum demand for money somewhere
hail way between the two-say, eight dollars
Mead; which, at the present amount of the white
population. (say twenty-five millions, would give
tWo hundred millions as the national demand;
always remembering that the great Day
mants are made with crops aud bills of ex-
Grange unded on the proceeds Uf iudustry-
Anf thus II becomes proposition demonstrated
that the United states since the correction of the
gold standard tWenty-three years ago have receiv
ed supply OF gold to four five times the amount
WITCH the business opera tioGs of the people cnuld
employ. OF that amount the leading banks estt,
nft two hundred and ninety millions to be re-
naming In the country, q. the commencement of
the present panic snd since that Time more than
twelve millions have arrived. and very little zone
out; 20 th,t three hundred millions would be the
psesent eetnate OF the amount Of gold and silver
IN IN" conntry-btiRG one hundred millions more
Than the bnsiness Of the country would emil Low
Three hundred milliuus is exactly fifteen times As
noh as the Cnited States Possessed in the tins Of
ths late Bank of the United States. Twenty mil
Mons was the whole amount at that time and that
se in tiiTer-not a particle of gold being then in
cfcI'Hti"n' and Il is exactly thirty times as
ianeh as the whole Union possessed at the time Cf
the termination Of the first National Rsnk-the
whole supply being then but ten millions, and that
ali silver"