Staunton spectator. [volume] (Staunton, Va.) 1849-1896, 1857-10-14
The Indenendent Banks of Virginia.


For every 300 of notes put in circulation, the
Treasurer of the State holds for the security OF
the owner of said notes 500 OF the stock OF the
Commonwealth and, in addition to- this the
law REQUIRES that each Bank shall retain in its
vaults one dollar in specie for every So in cir
culation. From the best information | can get,
there are about three millions of these notes in
the hands of the people, based upon the three
millions OF State bonds and the 100000 in spe-
Gle. At the present price of the bonds of the
State, the three millions are worth only 81 ,4OO,
900. But if we add thereto the specie, by right
supposed to be in the various vaults OF these IN
situations, then the note holders would appear to
be fully secured. But there are still to be added
to this fund the surplus profits of the Banks,
which am sure have been annually set aside as
further indemnity to the public against loss on
their circulation. To recapitulate the acaatdote
condition of these Banks would seem to stand
thus:
Circulation, ACKNOWLEDGEMENTS. .soVoV'ooV
To secure which the State
holds collateral securi
| ty her own bonds, SS,0OO,ooO
At present value of80 cents
en- the dollar, ...2,4OO,VVo
Specie in vaults, ............ 6OO,oo0
Contingent Fund, 2 per ct,.... 10000
s8,6oo,ooO ss,oOO,oOo
But we are not to stop here. 1t is plain TO
presume that in most instances, at least, this
circulation has been put out in the ordinary way
of dscounts-there may be exceptions-out
from the writer's knowledge of the gentlemen
comprising the direction of these Banks he feels
warranted in stating it to be SO. Then what
follows9 Why, that we have, in addition to the
foregoing. as q guarantee to our complete secu'
ritv that par at which these discounts were made
whether it be in real estate, public securities, or
personal obligations. All this we may rate at
| 30 cents in the dollar Even then upon can
did review of the facts. the reader will lind that
there is laid up for the security OF the $3,OOO,-
900 in circulation, the ample collateral OF $4,-
100000. One would suppose that the most
cautious would ask no more.
And yet it is further to be stated, that the
| Legislature, in order to guard against reckless
Banking and to save the confding public from
the least apprehension Of loss, has pledged to
the note-holder the additional security OF per-
sonal liability Of every stakeholder to the tutE er-
tent ofhis Subscriptions to the capital stocG OF
the Bank to which he has subscribed. 1t is
barely possible that the stockholders may lose,
but is there the least cause for fear of loss to the
note.holder9 1t is to be regretted that the State
of Virginia has rot before this converted the "old
Banks" as they are termed, into "lndependent
State Stock Banks" for it is obvious to any one
who has thought correctly upon the subject, that
the advantages favorable to the public by the
latter is far superior to the former-not only IN
the security of their circulation, but in fact be-
cause of the absence of branches, theirpolcy has
been and is to pay on their oon notes, thus al
furdng to the receiver bona. fde specie cafrea-
cy. :.
If the above statement be correct, then 1t Is
plain that the discrimination being made by the
brokers and bankers of Richmond, and as con-
sequence the brokers and bankers of this city,
in the shape of an onerous discount on the one,
and comparatively moderate discount on the
other, is not only unjust but imminently calcu-
lated to start the question in the public mind as
to the soundness Of all banks. For if the circu-
lation of the State stock banks of Virginia is not
secure, what are we to expect from the rest p
The independent banks, it will be seen, promise
all the security to be obtained from the "old
banks" with the addition of 800 in State bonds
for each 500 in circulation. Then, again, there
is no fear of an over issue by these banks-be-
cause the law is peremptory in demanding OF
the Treasurer of State aoh0 holds IN has posses
sion tile plates Of the bank, that upon each note
paid out there is to appear the counter signature
of the same, thus evincing that the terms OF the
charter in every particular have been complied
with Both officers of the bank and the Treas
urer of the State are under heavy penalties to
protect this feature of the law, one of which
penalties is penitentiary service for 10 years IN
case of any violation of the same. B*F.
CARSON VALLEY.-The people of this valley
have taken the initiative steps towards the form
alton of a new Territory from the Western por-
ton of Utah. A memorial to that end has been
addressed to Congress, and Judge j. NJ. Crane
appointed territorial agent to carry it to Wash
ington. The population of the Valley is rapidly
increasing, and strong reasons are presented in
the memorial why such Territory should be
organized. Indeed, they seem to US unanswer-
able. From Salt Lake City to Carson Valley
the distance is nearly or quite eight hundred
miles by the emigrant travel, and by any route
it is too distant to be governed by Governor
and Territorial Legislature located at Salt Lake
City. Particularly is this the case when we take
into consideration the fact that deserts intervene
Until they can obtain at the hands of Congress
an organized Territory, the people 10 those val
leys east of the Sierra Nevada must make and
administer their own laws. They are now lite
rally without government and without law
There is an additional and strong reason sug-
costing the propriety Of establishing the new
territory at the earliest possible day. The set
tiers of Carson Valley are inimical to the Nor
mons and the placing between Salt Lake and
California strong and growing settlement will
tend greatly to con6ne the power and curb the
growth of the great physical and moral monstros-
ity Of the age.
TIE UTAH EXPEDITION st. Louis Re-
publican has accounts from the rear detachment
of the expedition to Utah. They were in camp
at Blue River for the night, one hundred and
thirty -four miles from Fort Leavenworth. Up
to that point the march had been very pleasant
the weather being very fine and the road ex-
celent. The military force was under the CON-
mand of that veteran officer, Col. Cooke, and
numbered about four hundred privates, mount
ed, and eighty wagons. The Governor and suite
have six wagons and three carriages. 1t was
expected that all the gentlemen composing the
civil government of Utah would 60 out with this
escort, but only Governor Cumming and Secre-
tary Hartnett were with it. Judge Aikers and
the Postmaster at Salt Lake City had gone a
head and it is feared that the Others will not be
able to reach the Territory before the coming
winter The Utah expedition is likely to cost
the government pretty penny, but it will be
money well spent. The mules, it is estimated,
cost 5000 each, and the horses $3.50. The corn
| stores at due hlVer Cost So.lO pei uuehei, anu
the transportation to Fort Kearney and Fort
Laramie will increase in the same proportion
COL Sumner and a part of his command arrived
at Fort Leavenworth about the middle of week
before last.
THE MEssERs. HARPERs.-In relation to the
suspension of this house, the New York Courier
says:
The suspension of Harper Brothers on Thurs
day, is one of those events for which those who
know them best were not prepared, even in these
times. With bonds and mortgages on produc-
4..a ranl ostnta In this CITY for mora thnn fnnr