Staunton vindicator and general advertiser. (Staunton, Augusta County, Va.) 1858-1860, 1859-05-21


collected their revenues in specie, have KEEP
their revenues in their own treasures, ane
the most entire success as at encta tht
collection and disbursement of their funds
Financial revulsions occur very frequent
y, and whenever they take place all readi
y agree that it would be best to" have tht
government disconnected from banking In
stitutions, and Independent Of their infu
ence. The government funds would then be
in condition ifhere they wouldbe available
and we would have none Of those Difficult:
ties abont suspended bank paper, such as
the States were subjected to in 1857. i.
Neither Of our present systems ''is found
ed on sufficient basis of specie" in the
language of Governor Wise. GAS the on
ly solid foundation Of banking" be, 81
would revert more closely than ever to the
specie basis" The policy propose would
infuse a'larger proportion Of specie into our
circulation, and would place Us in safer
position for weathering financial storm.
Another. measure of reform which is re-
quired to make tie banks Of Virginia strict
ly specie paying institutions, is the enact
ment Of law, under which each of the
banks will be required to pay out its own
notes, coin Or specie drafts, in all its trans
actions and prohibited from paying out o.
putting in circulation, the notes of any 9TH
er bank or branch. Such law would be
calculated alike to secure the solvency of
the banks, and enhance the profits Of the
business. The last branch Of the PROPOSE
ton may be the subject Of difference Of opin-
ion,. but the truth Of it is made manifest by
a consideration Of tie mode of the reasinp-
ton of their circulation adopted by the banks
prior to the enactment of the law requiring
a redemption in Richmond or Baltimore,
and the heavy loss sustained by them in
making the redemption. The business was
done through the agency IF brokers, who
as agents or purchasers Of the note holders,
procured them in quantities and returned
them to the banks where payable for re-
dempton il specie or specie funds. They
were purchased at a rate of discount varying
one-half to one per cent, as the bank Is
suing them might be: convenient or access
iblc. When presented, tire bank had the
option generally to redeem in,spccie funds
at par, or in current funds, bank notes or
checks. paying to the broker such premi-
ums fer: taking tie latter as would enable
him I'd convert them into specie finds, and
pay him fair profit in the operation for the
use Of capital, his services 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 pur-
chase of other specie funds perhaps the
Identical coin from the! same broker, who
but few days before lad taken it from the
vaults Of the bank at a large premium. To
illustrate the cferation by an example; A
broker holds $4,000 of the notes of the
hank Of Rockingham, and presenting them
fer redemption, receives $4,000 in coin,
which he transfers to Richmond. The bank
Of Rockingham then sends $4,000 of the
notes Of the bank at Buchanan to Rich
mond, and with these purchases $4,000
of coin, paying the premium. The bank at
Buchanan must Of course adopt the same
means to supply the deficit in its coin F; thus
the trade goes on, and the bag of coin trav
els from the vaults, Of one bank to those of
another, at the risk Of robbery, costs Of rail-
road fare and hotel bills, and Of time and
services, to all of which the broker must
add something for profit. The result IS in
effect accomplished whicht the proposed law
is intended to secure. Each bank is thus
furnished by the persevering kindness of the
broker, with an abundance of its notes fresh
in circulation, and is instantly reminded OF
the necessity of saving the notes of its
neighbors for the brol5er, Instead of putting
them in circulation among the people
The object is attained, but with very on
orous and annoying tax on the banks them
selves.
whilst the proposed law gives to the State
currency unexceptiorable, as specie, pay
ing and solvent, it conduces to the interests
of the banks themselves and secures justice
and equality in their transactions with eacl
other. 1t: confmes ina great.IreasUre, thu
circulation of each bank to- its in,mediat
1vicihitH, s,where the note holders have tn
best opportunity to know the character 0
the officers, who cohdEct its OPERATIONS. =
The amount Of its bcna-fde cspital-th
degree of skill and integrity mats man
agement-- and all the circumstances atfectin!
the solvency Of the institution and the value
of its notes as circulating medium. Th
fact that the institution is entirely at th
mercy Of the comniufrsty,in which it is loca
ted, and which holds its notes. enforces upo1
it the necessity alike Of being aecomodatin!
and useful to those who have it;ih thei
power to crush it when they please, or t
enhance its profits and promote its success
7by their con6depce and encouragement.
Such law enables the banAsto exchang
with each other, their notes at Richmond
the central agency for redemdtion, at par
and without the loss which they have here
tofore incurred in its operation, 1t dem
olishes the present system of currency de
posites and payments at Richmond, and tn
other centres oftrade in the State, aud re
duces their business Ito a specie basis. b,
which their checks and certificates will b
received and taken at par, in New York
or any city of the Union.
Iftime and space permitted other argu
ments could be presented in support of the
proposition For the present however thest
must sufsc6, ahd'I pass on to the
= PENSION BULL.
For my vote against this measure, l have
been arfaigned by my competitor. and his
allies and organs. | have no apology tc
make for the, vote | gave it after due