Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1858-04-06

etll some nope tnat Deuocratc HOUSE, IN view uf
the fatal effects Of the narrow policy of Thursday
action, will reconsider its vote and finally give is
sanction to the Senates bill At all events We rejoice
that the representatives of Virginia have carried out
the eknown wishes of the State by casting unan.
| imous vote for the immediate admission OF kansas.
THE NEW BANK ACT.
The following are the provisions of the law enact.
ell Friday last, by the General Assembly, to "pro.
vide for more uniform currency OF the Banks of the
State:"
!. BE it enacted by the General Assembly, That it
shall be the duty Of every branch of bank which is
now or may be hereafter authorized by law, in add-
ton to the redemption now required at such branch
TO redeem on demand all circulating notes issued
payable by such branch, which may be presented for
payment at the parent bank of such branch at rate
of discount not exceeding fourth of per cent
and for failure to redeem the same, the holder there
OF may recover the same damages and in the came
mode provided by law, for failure to pay in spe
Gle at the office bank where payable: provided,
that the other branches Of the Exchange Bank o.
Virginia shall redeem at the branch thereof estab.
lshed in the city Of Richmond, on like terms and
penalties.
Q. Every independent bank, which is now, or may
hereafter be authorized by law, shall establish an
agency for the redemption Of its circulating in
the city of Richmond or in Baltimore in the State of
Maryland In addition to the redemption now reauir
ed by law. The location of such agency shall be GER
titled by the President of the bank TO the Governor of
Virginia. with each quarterly report of the bank, and
shall be published with the For failure TO es.
ablish and report the agency, the bank shall forfeit
to the Commonwealth one hundred dollars for the
first offence, and five hundred dollars for each seps
rate violation Of the law thereafter.
3. II shall be the duty of the bank in addition to
the redemption now required by law, to redeem on
demand ali circulating notes issued by such bank, or
payable by the same, which may be presented for pay
ment at the agency thereof at rate of discount not
eIceedps one fourth Of per cent and for failure
to redeem the same, the holder thereof may recover
the same damages, and in the same mode provid.
ed by law for failure TO pay in specie at the bank
where payable.
4 Whenever the notes of any bank shall be pre-
sened for redemption at the bank where they are
payable, such bank or branch may redeem the snme
by specie draft al par for the amount upon the bank
or or agent in Richmond or Baltimore, where it has
made provision for the redemption Of iis notes pro.
vided the aggregate amount of the notes 30 presented
and held by the person shall exceed the cum OF
five hundred dollars; and the person refusing to
cept such draft in redemption of the notes held by
him. shall not be entitled to proceed against such bank
under the - section OF the chapter of the Code, or
under the provision in the charters Of the stock banks
requiring the Treasurer of the State to sell the iecur
ties held by such bank
5. No bank, or branch thereof, shall give any Ger.
ti6cate of deposit draft or other evidences Of debt,
which is not payable in specie.
6. No bank, or branch thereof shall pay out bills
or notes of any other bank or branch, except such
it will receive at par, in payment OF debts due the
bank.
7. No bank shall directly or indirectly loan s bills
notes for circulation to any person, persons or cor
poraton, under any agreement or understanding that
such persons corporation, shall protect or guaran-
tee the circulation Of suoh any other bills notes
issued by the bank, or redeem the same when pre-
sented for payment.
Here we have complete revolution. Hitherto
each bank has stood upon independent footing ;
each branch even being solely and entirely RESPONSE
BILE for the redemption Of its iown circulation at its
own counter. This is to he replaced by centrsll.
zing stem, and distinction Is to be drawn in favor
of Tor against y the independent banks.
Let US frat trace out the effects of the system
on the parent banks and their branohas The parent
banks Mt Richmond, and the Richmond branch OF
the Exchange Bank, are made The paying centres OF
in orRer words, the paying centre of all is at Rich
mond, except in case OF the Valley Bank, which has
i.s centre al Winchester. Why il ia that Winchester
and Richmond have thus been preferred 10 Norfolk
whose parent bank 1.-THE Exchange is thus converted
into a branch bank, we are unable to determine
The effect upon the branches and the centres is ap.
parent on the face Of the act. The branches may re-
deem their circulation in sums OF less than $500 eithe
at their own counters at par those of their
ire at discount Of one. fourth Of per cent at h,
option Of the noe-holders. They may redeem, in sums
greater than $5OO, either at their own counters a
par, or at their centres at similar discount at their
| orn option.
Thus the greater part of the specie will be
centralized at Richmond, which is made the
general clearing house. and the centre banks will be
sparing in the Issues of their notes, preerrng to
issue branch notes which they will redeem at dis.
count. A very profitable arrangement perhaps for
the banks. How will it suit their customers' How
for example, will il suit merchant in Norfolk, who
needs Immediately certain amount Of specie, to be
obliged to take, in lieu thereof, specie draft on
Richmond We find no objection to system which
would leave the place Of payment to the option Of the
note holder Such a system undoubtedly tends to
equalize currency and test the general soundness o
banks. But the countervaling privilege extended to
he banks, 10 more than commensurate with the frat
regulation, tends indeed TO subvert its effect, and
must prove oppressive to note holders, in many in
stances.
The entire arrangement must, we think, operate to
diminish the extent of accommodation which the
Banks now afford the public. They will be obliged
to curtail their circulation If this shall do no more
than 10 restrain them within the legal proportion of
circulation specie and capital. the effect will be good
But there ia some danger that the experiment may
prove too stringent in this respect 10 afford Just
profit to the Banks or sufficient accommodation to
the public. We sincerely trust that this new ma
chnery is neither calculated nor intended to cut Of
the accommodation at present extended by the Banks
| of liz rko Rut mi
confess that we are not altogether easy this point
We have witnessed the effective manner in which
financial arrangements have, of late years, been EN-.
ployed to obs,rucl internal improvements, nsomuch
that We are in repidation concerning the move
ments of certain "gift bearing Greeks"
Moreover, we are among that class of thinkers
who prefer simplicity of arrangement, and the new
system is frsught with too many complications,
! checks and sounter.checks to suit our taste com
mand our approval. For exampe-Richmond is
hereby supplied with an increased amount of specie
in the vaults of her Banks But all these centre
Banks and consequently will supply the people OF
Richmond only with the notes Of their several branch
es. To obtain specie for these notes, they must pay
premium of one quarter of one per cent. They have
a larger amount Of specie within their reach, but
ust pay an additional tax in consequence. This
looks like taking from Peter to pay Paul.
! But whatever objections may apply to the opera
ton of the new law on parent banks and their branch
es they are vastly surpassed by the operation of the
same law on the independent banks. Each of these
is obliged to establish paying agency, at Richmond
or at BALTIMORE! which agency shall redeem their
notes under the same regulations which apply to the
paying centres of branch banks. Thus, citizen
Virginia holding notes to the amount of $500, mus
first 20 TO an Independent bank in the valley (which
will undoubtedly select Baltimore ss It's paying cen
tre) there exchange his notes for specie draft OF
Baltimors-go or asnd to the latter place, and ther
transport his specie to Virginia. In other words,
nitzan Of Yirqna To ha aant outada the State e