The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1859-01-05

xsns xsnAY MoRxIn -. Lac uARya . Iss
roo Muen Cred.

leu 70 give them,
700 "u'a e'ei.' 1"e' - s,selves, aud the majo-
oas'"es-s W merchants" The great
''c " 49, ~ :. this country have generally
"e"ss Borrowing and ovcr-trading Win
'v". .cksop's bitter denunciations OF theee
.sucics, there Was much truth, aud NOT
"a. landing bis extreme measures, no little COCO
- come out Of the checks which the system OF
.,....ve credi. received under bis administration.
rhs.. admissions are. we believe, now made by
acme Who we're bis energetic adversaries whiie DO
wss ia authority Our country il but IN its MAN
ey ia most reopksts, and none more 80 than 10 i's
financial condition. The wants, necessities IN"
pscu!iari.ies Of . young nation, with VAST "hoei'
nsssss ye. uupsopisd, suggests SHIFTS ana s'.a,a'
rems for procuring the neccssaries OF i've, ano 'He
.xchaose of commodities, which are not needeo
nor tolerated In q matured nation ana oea'''
nominated country. These contrivsnces coa"s'
with the advance Of population and commerce
We now have greatly improved eonoifion OF 'oe
credit system aud exchange from that Of twenty
vears stnce But We have yet to learn lessons, ana
s,,ii further to amend our financial system A. We
grow older.
The introduction Of steam on our bays and rivers,
and the Invention of the telegraph, have worked
n great revolution In comnsrce, aud aided rnucb
in purifying the credit system. They have oeen
especially useful In checking the oTer-i'sues Of
Banks, which formerly we're 50 disastrous In the
effects and In this respect tbeir agencies are ms
valuable to the people.
There IL still a tendency to overerediting auu
over.trading which timc must help to correct
The banking institutions Of the smaller to~hf
have been muca increased Ia this state, ana the'i
experience 10 yet brief. timely panic operated
a. healthy warning to them; but they must col
time 70 look cautiously into their proceedngsano
NO, snrsad too much sail for their ballast. lodi
xi,uaIs should not be allowed TO go too far 10
horr wing through THAI plausible mode of drafts
on the large cities 1t is bit changing The form o.
,dssedpss ,oisaom Increasing the reliability Of The
berro,o~r Developments within year so, prove
the impo;ioy of indu iging thi, system too far,
nnder the belief In it's safety, and under the temp
tatioa Afforded by the northern exchange thus
thravo into the hands of the banks. Reform has
hsen rizidly applied TO this phase OF credit in
chi. ci.v-and the banks of the Interior should
initiate the good example.
The limited demands Of ordinary commerce in
the interior leaves a banking capital to seek em.
ployment 10 other channels and the disposition to
snees,e In real estate Is oftener encouraged by a
too free 20 of banking capital. Wherever this Is
the case the consequences must be disastrous.
The prices Of land are at once inflated beyond all
reason Purchasers are unable to pay balances from
the proceeds Of ths soil, and forced sales at de-
preciated prices with distress and ruin, all follow.
To this way whole communities are sometimes in.
yolved in trouble and difficulty.
This subject is one worthy the consideration and
reflection of banks and people. Tho banks should
allow no man to borrow excessiyely-and it is a
part of the duty of the director TO consider to
what use money borrowed is to be applied. He
has not only to look at the safety Of the loan; but
to endeavor 20 to dispense the money in his hands
NJ la the best manner TO preserve the credit and
thrift Of the borrowers, and Of course the oommu-
nifty. Ipjud'cIous credit to one popular and infu'
sutiaI man In a village, may sometimes seriously
euharrass nearly every man in 1t.