Staunton vindicator. (Staunton, Augusta County, Va.) 1858-1858, 1858-01-02


| At this time it was thought that by tho
18th Of December there would be at leas
81 zoe, 900 Of the revenue collected in tho
notes of the country banks, of which a.
mount so per cent, would probably have te
/ be converted into specie in order to meet the
interest on the public debt due the LIST oil
January next Notice was given to these
banks accordingly, and has been so well OBJ
served That as early as the Odd November
the treasury Office reported -
Specie Of its equivalent, $3.50, 454 10
On special deposit, 75,499 76
lsevenue received, S1,2O6, o53 95
/ 70 credit rf Com
muawoa1sh, ssfsTes; nno az,
| To credits Of Lit
| erary .f,.ud, 2f,TSO Sc
/ 70 credit of
! Board of Pub
| lie Works, 56.23O12
70 credit of Sink
ing Fund, All 1854 %
81, 20e 1858 IS
BY the 18th December this amount will
be increased to nearly million
Here the Message goes into series Of
tabulur statements, intended to ''show our
other relations to and dependencies upon the
general banking condition Of the United
States" from all which the Governor de-
duces the conclusions, first, that .sthe ex-
port centre with its satellites was in better
condition to meet money crisis than the
import centre and its satellites = and Sc
condly, that the Northwestern banks were
in the worst condition of ALL
Hence, the Message proceeds next ito
note what it styles ''the empiricism of at
tempting to draw capital from other States
by raising the rate Of interest on money
In the Northwest chiefly these attempts have
been made. The result is to discover the
truth, that the drawing of money there up
on usury was not the acquisition but the
loss of capital This flows from the other
truth that money sent abroad is but SER
want hired for the profit of its owner. 1t
goes to make profit ont Of the community
which draws it and for the community which
sends it. Therefore, Of commnnitics, as OF
individuals, those in the end thrive most
who contract in time Of expansion, and ex-
pand in time Of contraction. The rate of
interest and the balance Of trade have little
to do with exchange; that depends on the
centre Of trade. And the State that raises
her interest above others to draw capital,
only invites others to make a profit out of
her people and to crush them WITH debt in a
time Of money pressure.
Next follows synopsis Of the condition
Of our own banks according to their late re-
turns showing in detail the immediate means
and the immediate liabilities on the 1st &C.
tober last, and their specie sid csr.ssation
We give only the conclusion, which is, that
the total of immediate means of all the
banks was S4t,400, 1913 the total Of ;mme-
diate liabilities, $40, 100, 1853; total specie,
81, 1871 ,6Sl; total circulation, 80, 900, 632
Such being their condition, they were
wholly unable to meet an immediate press
ure, though all perhaps, ultimately solvent
"But no one caM pronounce their condition
at all sound or safe The faufs is in the
system itself it is not restrictive enough,
extends credit too far and requires too little
specie and responsibility. But the Mes
! sage, Ivy all means, recommends giving the
banks time to call in and convert their as
sets, or the people ard not the banks will be
the sufferers They Ought not to be allow
ed to expaud, but ought not to he hurried
into y premature resumption"
Their condition has improved from the
lst Of January to the LIST of October last.
At the former date the immediate means
were to the Immediate liabilities, as A to
19a; at the latter date as a to 1Gl
IF the question Has an original one,
whether Virginia should have banks of cir
culation, having NO centre of trade, the
Governor would be against them, epon the
ground that they are Il tag upon her people
| Such State is obliged to keep out circu-
laton equal nearly to its banking capital
an active commerce alone being able to have
clearing house" This circulation she is
fobliged to send at q discount to the centre
Of trasse eor supplies. sntf then to redeem it
lin specie. But this is not now debatea-
BILE question. ''Thc business Of banking is
too profitable not to interest capitalists in
it's establishment, and the habits of our peo-
pie are fixed to have banks" Unfortunate
ly they are of two kinds, competing with
each other and with collisions and jealous
les got at all suited 90 ease tie difficulties
of the TIRES Whichever be best or worst,
EITHER alone would In the Governor opin-
ion, work better. Neither recommends it.
SELF to him, and he would compound bet
ter Of the two. He would revert more
closely than ever to the specie basis The
new banks, nsy BE, and probably are, as
safe as the CID, as they bosle now exist, vet
as the principle of the old las been longest
established and is best known, he would
prefer to adopt it, hut with much stronger
limitations than have heretofore been mlpo-
sed. The new system requires more CAPT
tai fer the same amount Of accommodation
Moreover it connects public credit too
much and SOC directly with the fluctuations
Of banking operations. But its indepen-
dent feature is sound, and under no system
would he establish a mother bank and
! branches
He recommends, if the Legislature takes
up the subject of general banking law.
1st That but one plan Of banking be a.
dopted
Zsf. Fiat nc branches be allowed
/ Sd. That an issue of two for one only q
capital be the limit
/ Eth. Ana Ct three for one Of specie n,as
der forfeiture Of charter
| 9th. All issues to be. re1selned in specie
9th. 10 require a registry Of all notes is-
sued in some government Office.