Alexandria gazette. [volume] (Alexandria, D.C.) 1834-1974, 1858-10-18
The Ranks in Virginia.

We hear good deal of complaint IN our
citv as we'll as in cur exchanges, because the
Ranks in Richmond refuse to receive IN pay
ment. or on deposit, the Issues OF the indie
nendent interior Banks. There is no legal
ALLEGATION to require them to do go, and 1t
would be q stretch of courtesy and liberallty
that no one could expect, for the Richmond
Banks to redeem the issues of the interior
Banks, which they would be virtually doing
in receiving them on deposit or in payment.
All business transactions are made upon a
specie basis, and the "bills payable" grow
ing out of such transactions, are due only IN
specie, and no tender of payment in any
thing else is legal. Tue Banks, in acceptiD 6
bank bills, or promises in payment of indl-
vdual bills or promises, either previously
discounted by them or lodged with them tor
collection, merely exchange one class OF pro-
misses for another, and to get the money for
the latter, the risk and expense OF the mail
or private messenger must be incurred; and
if received on deposit, the risk and expense
are the same-a rick and expense which 1t is
unreasonable to ask any one, with or with
out corporate privileges, to incur gratuitous-
". Of the same class of unreasonable de-
mands is the collection of negotiable paper,
payable at interior points, through our Banks,
without compensation. If our merchants
will but reflect moment, they will see the
I'M ds.ice of the demand.
We notice in our exchanges that one or
more of the independent interior Banks re-
fuse to discount for merchants, except un'
der promise that the proceeds should moi
be used 10 Richmond. We know that the
two systems of Banking extant in our State
are antagopistic, and their antagonlsm Is
likely to exhibit itself occasionally in just
such petty acts OF spite.
At the last session of the Legislature, an
act was passed to secure moro unltorm cur
rency, one of the provisions of which require:
the branches of the Virginia, Farmers, and
Exchange Banks, to redeem their issues IL
Richmond, at q discount Of not over quar-
ter of one per cent. BY the same act, the
independent Banks are required to establish
agencies, either in Richmond or Baltimore
TO redeem their issues at Il discount, not over
a quarter of one per cent. This is taking
one step ia the right direction. We hope II
will be the pleasure Of the Legislature, at It's
next session, to amend the law, by requiring
| the interior Banks to redeem in Richmond, a!
par. and that the Legislature will not stop IN
its Bank reforms, until We shall have but one
system of banking, and that resting upon
broad specie basis, and requiring redemption
as contemplated By the act above referred to,
with the amendment We have suggested, AID
surrounded by such safeguards as the past
experience of our own State and others may
suggest The fourfold increase of the Bank;
in this State, in the last four or five years
will give our citizens az experience that viii
bring about the reforms we hope for, at
much earlier period than if charters bad not
in late years, been 81 freely granted. Near
ly all the new Banks (fron forty to fifty IL
number) have been located in rural dis
tricts, whore, in most cases, they we're mo-
needed. In some cases, they certainly were
needed.
These, and other evils which we nigh
name, resulting from the establishment o.
Banks 10 agricultural districts. will brine
about change in our legislation in regard
to Banks and Banking, that will, we have
no doubt, greatly reduce the Der, anC
give to those that remain, broader base anC
safer charters -R,chm0nd Enquirer.