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

balance OF trade.
Sd. That this very feet of balances q
trade in favor If the State producing The
raw materials against the commercial cen.
tres, instead Of being q strength, is a weak
ness, in times Of money pressure.
/ 9TH. And above an, that our Best defence
against the tax Of paying exchange to these
centres all around US, and against the dan
ger and dFsmay of having our surplus
caught under the dead fall Of hard times IN
centres outside Of our control, sis to build
up centre Of trade in our own limits.
How such centre is to be built up Is
shown under the head Of State improve
ments-which are the greatest ultino re-
lief and defence
"Ile surplus capital ssyill Gov to the cen
tire because commerce il there most active !;
the dollar there can 81 t ~ arer oftenest
ana make the moss gs5f. And his IL
spite Of the balance Of trade or the rate Of
iiHtercst On the Of money. 10 matter
what is the rate OF interest IN New York, a
bill of exchange on that city will draw a
premium from any place on this continent,
because it is the centre of trade" Nor will
the balance of trade against the centre draw
the money away, "on the contrary, it leaves
the money there" Thi, is illustrated BY
the late instance of our tobacconists The
profits making balance Of trade in our
favor, were all left in New York in the
shape of debts due from their factors. They
were merely represented here by bills Of ex-
change Oh their factors, held by our banks
and ''too much rated as specie fands." Thus
the very means counted On by tie banks as
specie, when the pressure came, turned in
to protested paper, leaving the specie really
at the centre from which lie balance was
due:
THIS, when 4 money slfsis cores the
balance Of trade is found in the hands Of the
centres Of trade, and the notes Of our banks
in the hands Of their brokers'. These brok-
crs, having notice first Of the suspension in
the centres, start earliest in the race for
specie. Having already the specie repre-
sented by the protested bills on the centres,
their object is to secure tlso the specie for
our bank notes issued id the purchase of
those very bills. This he suspension of
our banks prevented them from doing, and
the Governor vehemenly Insists did 50
rightly. We ought to have held on at all
events to what specie w had Left For
this reason, when our banks first suspended
he calmly awaited the result and declined to
issue proclamation prohibiting the receipt
Of their notes III paymentof the public dues.
The deposit banks refused to receive them
yet deeming the law to fs permissiye and
not imperative to prohibit tlloir receipt, he
still declined to issue proclamation.
La relation to the course Of the suspended
banks in declining to comply with the Gov
lernors call upon then. ii redeem their notes
here in fifteen days from their receipt, lie
says their reasons Were explained to him BY
deputation. 1t szas=fn sspsse,st the .eantar-
ing of all the specie in tAe Commonwealth
at Kchmcnd. Seeing this objection to be
Isound, and the suspended banks pledging
to redeem their notes in the hands Of the
Treasurer in bankable funds, and to meet
the demands Of the Commonwealth for their
proportion of specie To pay the interest on
! the public debt; and knowing that the col
lection Of the revenue could not be made
and that the taxpayers would be made to
suffer, without receiving the notes Of the
suspended banks, he determined not to
prohibit the receipt of any SO long as there
was no evidence OF fraud, and so long as
there was an evident bona ticle intent and
apparent ability to protect our own people
and our public credit.
The Governor regretted to be compelled
to prohibit the receipt of the notes Of the
/ X H,,ty Knit
confidence i'll it's officers. It's assets we're
owned out Of the State large PARTON Of
them were removed for collection out Of
reach Of our process much Of chem was in
the hands OF the Dhio Tresss Company and
our revenue was at risk without any profit
to any portion Of our people. A full in
lvestigation will show that the reclamation
sury.
The deposit banks have suspended also
iand there being no longer a spocie-paying
bank left in which to deposit the public funds,
the Governoz, IN tie exercise Of This duty
to direct in what oslre@ phase they should be
kept" decided that still they should not be
removed. This was, first. because no ether
place was deemed at all more secure, and,
secondly, because the Commonwealth hav-
ing issued paper money too, in shape OF
treasury notes, and the law allowing them
to ''be resolved by way Of set-off in liqui-
tdation of all taxes and debts due 10 the Com
monwealth after the Both Of September SO
the banks might have handed these to the
Treasurer upon his demand for the deposits.
In, ~, = rs al,
posites, there would have been only pay
ment Of a part Of the floating debt at the
cost of the revenue necessary for current ex-
Ipenses. The removal, without being avail
able to any good end of safety or even of
example, would have only added to- the a.
larm and panic already fearfully existing.
But. above all, tie Commissioners of the
Sinking Fund had advertised to redeem
S1S4, 900 Of the public debby whicl, Of
course, required SPECIE and the interest On
the pablis debt wss 20 be net in SPECIE and
the only agents to accomplish that end which
the State could employ in these times, were
her own banks, and chiefly the deposit
banks. They had done all in their power
to- maintain the States credit, we're willing
still TO do so, and it was still dependent on
them. The Governor, therefore, not feel
ing it imperative on HIM to discredit them
under such circumstances, did net choose to
do SO, and accordingly gave finaf order te
the Treasurer to continue to deposite the
nnhl;c finds in the three depOsitories. as