American union. [volume] (Morgantown, Va. [W. Va.]) 1855-1859, 1857-12-25

Cenlic aHu ItS sdteiliteFi 6nU, second
ly, that"the Northwestern banks were
in the worst conditions of all.
Hence,the Message proceeds next 40
note" what it styles "the empiricism oj'
attempting to drap capital from othsr
States by raising the rate Of interest on
nancy. In the Northwest chiefly that
attempt has been made. The result is
to discover the truth. thut tie draaoing
Of money there upon usury scas not tie
dcqatsttten bat the loss ofcapital. This
flows from the other Truth that money
sent abroad is but serraat hired Eor tie
aroft IF its oVaer. 1t goes TO make
profit eut of the community which
draws it and far tho community which
sends it. Therefore, of communities
as ofindividuals, those in the end tArtce
most who contract in time Of enpansion
and espand in time Of contraction. The
rate QJ interest and tie balance of trade
haze little to do NTH exchange: that de.
Pends on the centre Of trade. And the
Stale that raises her interest above 9th.
ers to draw capital, only Invites others
to make profit out of her people and
to crush them with debt in time of
money pressure.
Next follows synopsis ofth condi-
'ion OF our own banks, according to
their late roturns, showing in detail the
a'nm edtate means aud the immediate Ii.
abilities on the 1st of October last. and
their specie aud circulation We give
only the conclusion, which is, that the
total ofimmediate means of all the banks
was $4,dG0,333; the total Of immediate
liabilities, SIG, ,799, l53; total specie ,S2,-
lS4,6Sl; total calculation 50 969, ,632.
such being their condition, they were
wholly unable To meet an immediate
pressure. though all, perhaps, Ultimate. :.
~ Solvent. but no one can pronounce
their condition at all S0und or safe. The
ianlt is In the system itself; it is not re-
stricilve enough, extends credi, too far,
and requires too little specie aud res
ponsibiii,y. But the Message, by all
means, recommends giving the banks
time to call in and Convert their assets,
or the people and not the banks will be
the sufferers. They ought not to be al
l"w"d I" expand, but ought no, to be
hurried into premature resump,ion."
Their condition has improved from
the lsl OF January TO the lst of October
last. At the former date the imnedi.
ate means were 10 the immediate liza.
bilities, as i to l9t; at the latter date
as IL to lG4. jill.
1t the question was an original one,
whether Virginia should have banks Of
circulation, having no centre of trade.
the governor would be against them.
upon The ground that they are tax up.
on her people. Such State is obi.
ged TO keep out a circulation equal near
ly to its banking capital-an active com.
merce alone being able to have 'cIear.
ing house." This circulation she is
obliged to send at discount to the ceu
tre OF trade for supplies, and then to re.
deem IL in specie. But this is not now
debateable question. "The business
OF banking is too profitable MOTTO inter
est capitalists in its establishment, and
me habits OF our people are fixed TO
have banks" Unfortunately they are
OF two kinds, competing with each 9th.
er, and with collisions and iealousies
not at all suited to ease the difficu,ti,s
Of the times. Whichever be bes, or
worst,--either alone would, in tho Gov.
ernor's opinion, work better. Neither
recommends itself TO him, and he would
compound better af the two. He
would revert more closely than ever to
The specie basis. The new banks NAV
be, aud probably are, 40 safe as the old.
as they both now exist, yet as the pin,
cipoi OF the old has been longest estab.
Iished, and is best known, he would
prefer to adopt il, but with much strop4
ger Limitations than have therefore
been imposed. The new sys,em re.
qnires more capital for tho same amount
OF accom- notation. Moreover, il con.
meets public credit too much and too
directly with the fluctuations Of banking
operations. But its Independent, feat.
ure is sound, and under no sys,em
would he establish mother bank and
branches.
He recommends. if the Legislature
takes up the sobject ola genenal bank
ing law:
lst. Tha, but one plan of banking be
adopted.
2d. That no branches he allowed.
3D.. That an issue Of two for one on
~ OF capital be the limit.
4th. And Of three for one Of specie,
under a forfeiture Of chatter
6lh. All issues to be redeemed in spo.
Gle.
9th. To require a registry Of oil
notes issued in some government Of.
fee. ana
7th. No issue Of notes under $40.
9Th. TO be separate f,om the State
aud its finances, except for the ncqo-
tiation Of loans ahd the deposit Of pub.
lie funds
9th. A limit of dividends to 7por
cent - auy excess to be- ree.,v.J G., .