Staunton vindicator and general advertiser. (Staunton, Augusta County, Va.) 1858-1860, 1858-04-10
THE NEW RANK ACT.


law enacted on Friday last, by the General
Assembly, to provide for more uniform
currency Of the Banks Of the State
/. BE 1t enacted by the General Assem-
bly,, That it shall be the duty Of every
branch of bank which is now or may be
hereafter authorized by law, ia addition to
the redemption now required atssuch branch,
to redeem on demand all circulating notes
issued or payable by such branch. which
may be presented for payment at the parent
bank OF such branch, at q rate Of discount
not exceeding one fourth Of one per cent,
and for failure to redeem the same, the
holder thereof may recover the same dam
ages, andIan the same mode now provided
BY law. for failure to pay in specie at the
office or bank where payable: provided, that
the other branches Of tae Exchange Bank
lot Virginia shall redeem at the branch there
Of established in the city Of Richmond, on
like terms and penalties
/ 2. Every independent bank, which is-how,
Eor may hereafter be authorized by law, shall
establish an agency for the redemption Of
its circulating notesin the city of Richmond,
or in Baltimore. in the State of Maryland,
in addition to the redemption now required
by law. The location Of such agency shall
be certified by the President Of the bank to
the Governor Of Virginia, with each quar-
terly report Of the bank, and shall be pub
lished with the same. For failure, to es-
tablish and report the agency, the bank
shall forfeit to the Commonwealth one hun
dred dollars for the FIRST offence, and FIVE
hundred dollars for each separate violation
Of the law thereafter.
3 It shall be the distg Of the bank, in ad-
dition to the redemption now required by
law, to redeem on demand all circulating
notes issued by such bank, or payable by
the same, which may be presented for pay
mcnt at the agency thereof, at rate 81
discount not exceeding one fourth Of one
per cent, and for failure to redeem the
same, the holder thereof may recover the
same damages, and in the same node now
provided by law for failure to pay ia specie
at the bank whore payable.
4. Whenever the notes of any bank shall
1 be presented for redemption at the bank
where they are payable, such bank Or branch
may redeem the same by specie draft at
par for the amount upon the banker or agent
in Richmond er Baltimore, where it has
made provision for tie redemption of its
notes: provided the aggregate amount OF
the notes SO presented and held by the same
person shall exceed tie sum Of Eve hundred
dollars; and the person refusing to accept
lsuch 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 securi-
ties held by such bank.
5. No bank, or branch thereof, shall give
any certificate of deposit, draft or other evil
dences Of debt, which is no. payable ID
specie.
/ 8. No bank, or branch thereof, shall pay
out bills or notes of any other bank or
branch, except such as it will receive at par
in payment Of debts due the bank.
! z. No bank shall directly or Indirectly
loan its bills or notes for circulation to any
person, or persons CT corporation, under
any agreement or understanding that such
persons or corporation, shall protect or
/, guarantee the circulation Of such or any
other bills or notes issued by the bank, or
redeem the same when presented for pay
tment
Here we Fave d complete revolution. WV
Hitherto each bank has stood upon an in
dependent footing; each branch even being
solely and entirely responsible for the re-
demption Of its own circulation at its own
counter. This is to be replaced by cen
/ Trailing system and distinction is to Be
drawn in favor Of Cor agansty the indepen-
dent banks.
Lett s Grst trace out the effects of the
new system On the parent banks and their
branches. The parent banks at Richmond,
and the Richmond branch Of the Exchange,
are made the paying centres, or in other
words, the paying centre Of al is at Rich
gmond, except in case Of tie Valley Bank,
which has its centre at Winchester. Why
| it is that Winchester and Richmond have
thus been preferred to Norfolk, whose pa
rent bank (the Exchange is thus converted
into a branch bank, we are unable to de-
termiae. The effect upon the branches and
the centres is apparent on the face of the
/ 1aC1. nc EIaaHSHSo uidy IcuetN LucT CIT
culation in sunas Of less than $500. either
at their own counters, at par, Or at those of
their centre at discount Of cne-fourth of
one per cent, at the option Of the note-hola-
ters. They may redeem, in sums greater
than $500, either at their own counters at
par, or at their centres at similar discount,
| at their oacn option.
Thus the greater part Of the specie will
be centralized at Richmond, which is made
the general clearing hoase, and the centre
banks will be sparing in the issue of their
own notes, pseferriag to issue branch notes
which they will redeem at discount. A
very profitable arrangement perhaps for the
banks How will it snit their customers
How, fer example, will il suita merchant in
Norfolk, who needs Immediately certain
amount Of specie, to be obliged Ia. take, in
lieu thereof, specie draft on Richmond
We find no objection to a system which
would leave the. place Of payment tosthe op-
ton Of the note-holder. Such a system IN
aoahtedlJ tends sto- equalizc currency and
test the general soundness Of banks. But
the countervailing privilege extended to the
banks, is more than Commensurate with the
first regulation, tends indeed TO subyert it's
effect, and must prove oppressive to note
hot1