The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1857-11-30
THE DISPATCH.
fONDAX MUhNINVss..ss. ~ = ' 80
NOTICE no ADvERTIsERs.

W,NpAY M0RNINd........kovEMB -. isH
notice 10 ADvERTIsERs.
Advertisements for the prspArcE must Be hand
g., In by SIR So,ock h ~ sfa~,snsn, IN order - up
scar the Aers day The heavy pressure o. sn''r.
ttsemeass upoa ~ columns Of eur pApsr yin a''
sAnit q shstr receptions after the hour n>~s'-
rae Banks.
n. p,nkins sy,,.m Of this STATE Is a"Nssivs IN
usny reer~cts The organization OF tns cio DshAs
9TH Branches 10 venerable, and commands respect
. q, ~. ,rtegrty with which IL has eesn CONDUCT
rS. az .ystem Of State Stock Banks II too
800 a have developed ell ih peeuliarites--
.h,ls m. general suspension shields IL from the
nnc...,,y Of Offering an illustration Of OF the
affections to IT, viz; The sale Of the stocks Of the
state under pressure, thus sacrificing their own
sc.nr!tios, and farther depressing the value Of
susie stocks In the market, by throwing theirs
r.0a e.
Mother the old nor the new are really specie
paying Banks, In the proper aceersation OF 'he
meaning Of specie payments. The ola iAhks hAa
long pursuea the system Of paying CHEEKS in sur
rent funds" and the new readily adop'en H. .o'
while II 10 one which should not be r"sof.ed 10 oy
old and substantial institutions, IL !" n'ghy m'o
rsb,. 70 the easy and suecessfnl Inauguration OF
ones linus tuc oto ''eS"' $1,000 w -"
s.ook Ranks. whom they regarded with disfsvcr
,,,s admirable facility doing q large business on
avail c.nitsls under cover OF that shield against
.p.cls demands which they had erected for them.
selves!
With u.s. one OF the greatest objections TO the
old Ranks, Is the Branch system. The branches
are 80 many places Of retreat from responsibility
They supply the issues for the mother In
s.itu,ons, and all pay out notes that they do not
redeem The object seems to be to utter notes at
the fsrthest possible point from that whose date
thsy bear This il at war with the rules Of sound
banking and robs the public Of great safeguard.
the convenient and prompt convertibility OF
Bank notes. It 10 true. the system OF swapping
notes may be pursued by Banks without branches,
but not 40 efsectuslly and conveniently.
Under the branch System the means Of bank
become too much scattered, and are subject to the
control Of too many boards. We have seen how
disAstrously this has operated. When = bank has
no branch all its means under its direct con
troll and its administration can be Of the most
ergetic and systematic character. Capitalists de
string to invest their means In Bank stock could
se!sc. their locality and would know that their
funds would not be at the mercy Of Numerous
boards and liable TO the perils Of local abuses and
those wild manias for speculation, which sometimes
infa.t neighborhoods, and which lead unwise di.
reetories into a loose system of discounts. under
which respectable suspended debts are soon run up.
We are sure that IL will not be denied that under
the branch system sope towns and villages in
this State have been cursed with more capital than
their commerce required. We say cursed, because
it ia curse Of quiet and happy village, to erect
n bank within it's limits. There is hardIya village
without one wherein he people not generally
apA. in hatF cir ms IN rinu
no, more than they can pay surrounded by plenty
aud comfort, pursuing their quiet avoca'ons. with
nothing to disturb the contentmont Of 'h"c n
ter. ffeside or their summers shade. Bring the
bank amongs. these happy people, and in two
wears there Is hardly a solvent man among st them.
Tho Directors must lend the capital. Every body
commences "pro+pecting"-the :" immense con
Germ mania gets possession Of the merchants
The ambition for fne houses and splendid farms,
s.ir- up the village AMI neighborh,el-real estate
r:aos-lshnr becomes more costly-an business
goes ahesd Money is gotten out of the bank for
al q pnSas, and hy everybody II not in A
twelve inoBih, ~ least in two returns Of the
SEASONS there il fearful collapse in that village
iIoa1s that have been undisturbed are turned and
distracted BY increasing tIonbles-hearts that
nsver knew distress, are made miserable The
harvest for the shaver is ripethe sheriff is busy
lawyers who have increased in numbers, find oc
eupation-and the happy village, of two years ago
cen hardly boast a quiet m nd, save amongst the
children. who are ignorant of the nature of the
gre<i ;aatsmorphosis that has taken place.
The branch Bank system affords facilities for Is
tablishng raaaa in such localities, which wouIf
NJ. sy;st without them. Means are used throush
saa ;.l.slstnre, which aEu, in their nature, some
what coercise, and we are sure that the old Bank,
have yielded to policy rather than good Judgment
in establishing some Of their branches.
lfevery place had to furnish its own bsnkin,
capital, and had to pay 1t in money before it's baDh
eommsnced operations, there are some that no r
have banks tina. would be without them. 1t would
be all the better for them. There are those aspi
ring to the dignity OF having Banks OF Issue and
discount that would And little Savings Bank en-
tirsly sufficient for all their purposes.
The Stock Bank system We have never favored
We have never believed In aIy sort of Banking that
wss basel upon debt 1t Is one of the family OF
inventions 10 avoid the real and solid foundation
mnney-for bank. which have found real estate
railroads, ana .nost every thing by turns to have
a short I3sed existence. winding up with grand
cxrsiar and general bankruptcy. Tho stock
- ZEN Is the bantling OF q conjunction
-. ine state and stock;jobbing interests. The
States desired To sell their bonds to carry their
works of internal improvements-the stock specu
lators desired either TO go to paper money manu-
ncsuring upon the hypothecation Of their bonds
or to profit by the ready sale at good prices Of
Fate stocks that would be in demand for banking
10 these powerfu parties, with their powerful mo
tfves carried out the scheme in the Ssrth which
has been copied In Virginia and which in time
viii be abandoned.
We do not believe that ordinarily the du
piication of interest on an evidence Of debt can
be successfnliy accomplished. man may lend
another, who Is hard pushed bis State stock
60 be used collateral to secure a loan, and may
charge him six per cent more for Its use in that
way; but that is the same as charging per cent
for endorsing note and Is the result of case oi
great necessity sort of violent remedy A bank
may put its stock In the hands of the State for so
much in Bank notes; bat If it conducts a right Up
and down Banking busiDess-paying out its own
notes, and considering ali checks specie, 1t will
have to keep so large reserve In solid metal that
is interest on the stock will fall far short Of being
DO ahled. Indeed upon the plan of our prese
current fund Banking, some Of these banks have
had TO make sacrifices to keep ont their paper. 1t
is the duplication OF interest that afforded great
temptation and the result will be disappointment
Anabuse which mig and We doubt not has been
prsotised by the stock banking system. i. the mul
DUPLICATION Of the circulation by buying State
stock with the notes issued upon deposite of such
stocks with the Treasurer and then depositing the
stocks so purchased for another issue Of notes
This process may be continued till the maximum
limit Of the capital is attained while the real CAPT
tai is but small part of 1t.
There should be no basis Of Banking that is not
solid and Of permanent existence and value State
stocks not this sort Of basis They are not Of
permanent value, as We see nor can it be assumed
shat they are To be Of permanent existence. For
we have already adopted sinking fund system
which is to annitiate the deot in thirty years. What
becomes Of the basis then!