Cooper's Clarksburg register. [volume] (Clarksburg, Va. [W. Va.]) 1851-1861, 1857-12-25

chan2s-that depends on the centre OF
trade. And the State that raises her In. |
terest above Others to draw capital, only
invites others 10 make profit outof her
people and to crush them with debt in aI
time of money pressure.
But what We have to do chiefly with,
in respect to the condition Of the North
western banks. Is that the most OF them
generated by the system OF internal i'm
provement by the general government,
and inflated BY the land Office specula-
ton have nohght to issue their notes up
on save our State bonds among other
stocks in their vaults. -. $50.
A glance at the report of the Secretary
ofthe Treasury will show the vast amount
of Virginia 6's in their hands. Banks
which have barely location aud q name
Ia La Crosse at La Crosse-and eireu-
lation without specie. will now wind up
by throwing our bonds upon tho market
at vas. depreciation .sa..
The deposit, Valley aud Northwestern
banks aud branches have in circulation an
average Of. 81 % Of notes for ono of sPs-
Gle.
The State Stock Banks have in eircula-
ton over Z. on an average OF notes, in
circulation for in specie.
Such is the condition OF our banks to
meet an immediate pressure. They were
wholly unable to do so, though they are
all. perhaps. ultimately solvent. But no
one can pronounce this state, and condi-
ton as at all sound or safe. The fault is
in the system itself; il is not restrictive
enough, and extends credit too far. and
requires to little specie and Responsible
~. But I. by all means. recommend to
give the banks time TO call in their assets
aud to convert them. or the people and
not the banks will be the sufferers. They
ought not to DO allowed 10 expand. but
ought not to be hurried into a premature
resumption Of specie payments. 4 relapse
nowUould be worse than the original dis
ease. We must be gradual in our meas
ures. bat tte.diIy pursue salutary re-
form. ... .-......- --. 49,.
The Immediate neanb were to the ion
mediate liabilities. on the LIST Of January
1857. Abou: AS IL 10 81. Now or on the
Ist Of October they wers about as t
1851. In thai proportion the condition o
cus banks has improved. though thei
specie has diminished nearly ono third
their liabilities having diminished also il
greater proportion. ....
II the question was an original one
whether Virginia should have banks o
circulation, 80 long as she has NO centr'
Of trade. it might we'll be argued that he
people could not bear the tax Of an issu
Of bank notes. at all. That an issue 0
bank notes is heavy burthen to Stat
without y centre Of trade, is demonstra
ted. 4 state SO situated is obliged &
keep out a circulation equal nearly tn
amount of her banking capital. An nc
two commerce alone can have q "clear
ing house." New York with 96 million
of capital. has but 81 millions Of cir
cuiation. and requires but l9 million
of specie. whilst Virginia with Is million
capital has nearly l9t millions of oireula
ton. and requires double the proportio
Of New York to her capital, or million
oil specie. The exchange is obliged
be in favor of the centre. Consequent
when our issues GO to the centres to pur
chase supplies. they then pay discount
and then are returned upon US to dra
specie. This double operation Of a ia
goes on against US quarterly, upon larg
per cent. Of our circulation. And this Ia
Is pail by our people chiefly for the &C
commodntion OF the traders Of the larg
in aud for the benefit of the dealer
bank paper immensely costly the issue
agricultural people. Il they issued +
i paper OF their own. the circulation Of Il
\ centres would supply the medium f
sentius our products TO market. II wou
be at par at its locality Of issue. and
would not return upon US for specie. b
wouldsrather draw specie for US. B
this is not now a debatable question.
is foregoue conclusion that We are
have banks 10 some form. The busine
Of banking is too profitable not to intere
capitalists in it's establishment. and q
habits of our people are fixed to hA
banks. Unfortunately, We have two '
1 rieties Of them. They are competir
With each other, md their collisions 81
jealousies are not the best influences
ease tue difficulties Of tho times. Wi.
out drawing auy invidious comparison b
tween them. | urge merely the fact th
the existence Of the two is not most
vorable to the harmony Of our mon.
system. Whichever be- best or Wors
either alone would work hotter. in n
opinion. than the two with an antag
nism exists aud will exist. Each of &
presently stems has its advocates and
oppossrs, aud neither recommends itsC
so me. NeiEbasjf fs"sa safe as at Drese,
organized, aud would compound a be-
ter OF the two. As the only solid four
dStlOn of banking. would revert mo,
close y than ever to the specie basis. TIL
new banks may be and probably are g
safe AS the old. as they both now exis
but both are but extensions of a purel
credit system to the utmost verge Of safe