Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1859-05-17
e,ista II is impossjble for the State to act without

It's hanQ9 anu paralyltS iS eS@o,
the occasion presents itself, which demands
legislative action to coerce the banks 10 meet
their engagements.
While i is thus with the banks, how is il
with the people-the toiling and hard working
millions? When they are unable to meet their
cneacements-to pay their debts-thc result
is distress and failure. When the common
debtor cannot pay, he is at once wound up-a
summons is issued, judgment is obtained, exc
cution is levied, and though the last horse OF
bed be sold, the uttermost farthing must be
paid. Can you see a reason why a suspension
of spccic payments by the banks should be
localized, and a suspension by the laborine
men of the nation should not he ~legalized also
1t is said there is not specie enough in Virgi'
MIA to pay the taxes. Gov. Wise tells us in his
message, that We have nearly trelre-and-d-haJ.
millions Of circulation in Virginia, upon n
banking capital of thirteen millions. DO tivcs.
tens, twentics, tifties and hundred dollar notes
represent specie: They purport upon their
faces 10 do it IL they represent specie, then
there is enough to pay three millions of taxes;
but if they do not represent specie, the people
who are most deeply interested ought to know
it; and the sooner the fact is known the better
We have had the experiment tried by the Ma
tional Government, and also in several OF the
States. Wherever tried it has been found to
work well in practice.
The cry of mot specie enough" was raised
when the independent treasury system was or,
ranized. still the friends Of the measure pressed
it to adoption, and the result has realized their
highest authorizations. Those who were orlgl-
nallv onposcd to it, are now so well satisfied
with its operations that they do not desire to
sec It abolished and the old system restored
They would not, if they had the power, repeal
the independent treasury law, and restore a con,
ncction between the Government and a United
States Bank, or the State Banks.
The State of Mississippi has collected her
revenue in specie since 1886. The States OF
Texas, California and Arkansas have collected
their revenue in specie. from their organization
as States up to the present time. The receipts
into the Treasury of Mississippi from the lst OF
january, 1850, to the 10th February, 1852,
amounted to $4S2.SlS G5. The revenue OF
Texas for the year ending October 3lst, 1852,
amounted to Sl39,222 IL, and at that date she
had a surplus in specie in her Treasury OF
1886, Col 90. The receipts of California, as
estimated, for the year ending June 3Oth, 1853,
amounted to the sum of $i34, $50 90. On the
LIST of October, 1850, Arkansas had in her
Treasury, $o03, gel OS, and received from all
sources, from the SOth of September, 1850, to
the 30th of September, 1852, 1886, TG7 Oh,
making n total of $500, 73S II. These are the
latest dates I have been able to obtain, in re.
gard to the revenues of these States, but | have
not q doubt that the amounts annually collect.
cd for State purposes have increased considera.
bly, since those periods, respectively. In these
instances there is no connection between these
States and the banks-thesc States have col.
lected their revenues in spccic-have kept their
in their W treasures, and the most
entire success has attended the collection and
disbursement Of their funds.
Financial revulSionS occur very frequently,
and whenever they take place, all readily agree
that it would be best to have the Government
disconnected from banking institutions, and
independent of their influence. The govern.
ment funds would then be in a condition where
they would be available, and we would have
none of those difficulties about suspended bank
paper, such as the States were subjected 10 in
1857.
Neither Of our present systems Of banking
ais founded on a sufficient basis ofspecie,' in
the language of Governor Wise. As the on.
" solid foundation of banking" says he, "a
would revert more closely than ever, TO the
6asis." The policy | propose, would
infuse a larger proportion Of specie into our cir
~culation, and would place us in a safer posi-.
ton for weathering a financial storm.
Another measure Of reform which is required
to make the Banks Of Virginia strictly specie
institutions, is the enactment of 4 law.
under which each of the banks will be required
to pay out its own notes, coin or specie drafts,
in all its transactions and prohibited from pay
ing out OF putting in circulation the notes of any
other bank or branch. Such a law would be
calculated to secure the solvency Of the banks,
and enhance the profits of the business. The
last branch of the proposition may be the sub
is made manifest by q consideration Of the
by the banks, prior to the enactment
of the law, requiring a redemption in Rich
mond or Baltimore, and the heavy loss sus-
tanned by them in making the redemption
The business was done through the agency Of
brokers, who. as agents or purchasers of the
note holders, procured them in quantities and
returned them to the banks, where payable for
redemption in specie, or specie funds. They were
purchased at a rate Of discount varying from
one-half to one per cent, MS the bank issuing
them might be convenient or inaccessible
When presented, the bank had the option gene.
rally to redeem in specie funds at par, or in
current funds, bank notes or checks. paying
to the broker such premiums for taking the
latter, as would enable him to convert them
into specie fluids, and pay him a fair profit in
the operation, for the use of capital, his SER
vices and his travelling expenses. If the bank
chose, however, to redeem in specie funds, then
the deficit must be supplied and discounts
must be suspended, until such current funds,
notes and checks or credits with other banks are
sent to Richmond and invested in the purchase
Of other specie funds-pcrhaps the identical
coin from the same broker, who but a few days
before, had taken it in from the vaults of the
bank at a large premium. To illustrate the ope.
ration by an example: a Broker holds $40, 000
of the notes of the Bank Of Rockingham, and
presenting them for redemption, receives
$40, 900 in coin. which he transfers to Rich.
mond. The Bank Of Rockingham then sends
$40, 900 Of the notes of the Bank at Buchanan
to Richmond, and with these purchases $40. 0oC
of coin, paying the premium. The Bank al
Buchanan must, of course, adopt the same
mcuIlS 10 supply lUC uehSit I'LL IS Gull tlus
the trade goes on, and the bag of coin travels
from the vaults of one bank to those of another,
at the risk of robbery. costs of railroad fare
and hotel bills, and Of time and services, to all
of which the broker must of course, add some
thing for profit. The result is in effect accom-.
plished, which the proposed law is intended tc
secure. Each bank is thus furnished by the
persevering kindness of the broker, with an
abundance Of its notes for home circulation,
and is constantly reminded Of the necessity o.
saving the notes Of its n~eighbors for the broker
instead of putting them in circulation among
the people. The object is attained, but with
a very oncrous and annoying tax upon the
banks themselves.
Whilst the proposed law gives to a State, a
currency uncxceptionablc, as specie, paying
and solvent, it conduccs to the interests of the
banks themselves and secures justice and
equality in their transactions with each other.
1t confines in a great measure, the circulation
of each bank to its immediate vicinity, where