The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1860-01-28
&utmnaa 8ispatrt,
-
SATURDAY MORNING. IA,



ks1s0pioa Act" VI the iast General Assem-
blys-aa sos that required the lmdepenaeu
Banis and Branch hanks located IN village
and interior towns TO provide for the redemt
lion Of their notss In Richmond or Baitimor
lent: 1. e., the holder OF the note paying the
per cen. premlum for the gold or Its eq uiys
lent This act has operated very we'll Sine
II went into operation exchange between Viz
stnia and the great centres Of trade At th
North has been kept down generally to the
per cent. premium, and has never exceeded ,
premium whereas, previous u that act, ex
changes were always fiactua,ing from < to
aud sometimes ! y and y per cent. premium
oe'ngoisenat r. The supplying. Of exchange Il
pay Nor1hern debts was then tnrown upon III
banks VI this city chiefly, aud when thei
ability to draw bsiis VI exchange was exhaust
ed, the brokers (wh0 are after ali the coiiec TOR
OF debts due both by merchants and bank
were forced 10 collect the notes VI the "Rura
Banks, as Judge STANAkD called them, AN.
by making iatiguing and expensive journe,
obtain from those banks the specie or Nortn
ern bills necessary " enable them TO conduc
their operations vi renting W their CORES
p0ndents the collections they had made o
course such expediea Is for proc uring exchang,
were inconvenient and expensive, and oc
casioned always \ serious advance in the pre-
MUM. The premium, whatever it might be
indicated The dep,setasion Of Virginia curren.
ey. The Law Of Redemption Of Bank notes
has proved q regulator of this premium, and
has protected the currency Of the State from
those remarkable depreciations which were
the result Of the enormous premiums in N or tn
ern exchange In times past. -..
We trust that the Legislature will not re-
peal the law. 1t is a wise law-has operated
well. and will do much to maintain the credi,
OF Virginia bank note circulation 1t should
b considered as an indispensable par. Of the
new system OF banking recently adopted by
virginia. 1t will help TO assure the accounta.
oility Of banking, and save us from that sort
OF modern financial strategy which selects the
most secluded and inaccessible retreats for
banking operations, from which the country
may b flooded with y circulation that cannot
b easily returned-a circulation known in
otner States by the expressive names of Red
Dog" Wild Cat" "Owl Creek" etc.
We nave received from a very intelligent
gentlemen. the following remonstrance against
the repeal OF this law. His argument is very
forciole, and derives additional claim to con-
alteration, from the fact that he is an officer of
one Of the new banks. For these reasons, we
give his remarks very prominent place, in
lieu OF continuation Of our own:
10 rHE MEMBERS OF THE VIRGINIA LEGISLATURE
The last General Assembly of Virginia passed
n law to equaiize the currency of Virginia.
called the redemption act" This law has been
In successful operation for nearly twelve months
tnus anordins an opportunity for both the people
ana the banks to test its merits AS there seems to
Do great desire on the part of rsons to pro-
cure lts immediate repeal, deem it proper to call
the attention Of the Legislature to a few facts con-
nected with the practical operation of this law.
As lar as have been able to learn, the bank
statements a published show little or no din,inu
uon IN discounts, as compared with reports previ
Gus 70 the existence of the law; their lines being
~ CREST % the law allows. Now if thus
be 10, the desire for the repeal of the redemption
aw cannot arise either with the people or the |
banks. in order to secure larger loans or discounts
o ob'ain this end, the laws yestr,eting discounts
should be repealed, and not ".he redemption act'
1t cannot be desired to increase the circulation
OF the Banks; for if they cannot by law increase
heir loans, they have need Of more circulation
than they now have.
10 II desired to appreciate the issue of some |
banks and depreca te the issue of Others and give
ne Virginia currency Of almost as many varieties
of value rs there are banks in the Common wealth,
II was the case before the passage of this law -
Is 1t desired to Increase The dlfcu ties of obtain
ing coin and exchange at an increased value
which would he the immediately on the re peal
u this law. 1t would set the brokers actively at
work running upOr all the Banks in the State. and
place IN their hands the buying and selling of all
he exchange for the Banks would say to their Gus
omers as they did before the passage Of this law,
!" We cannot sell our exchange. we must keep il
Tor the brokers' and thus throw the entire trading
community into the hands of the brokers, to submit
O such terms As they may dictate, or to draw coin
rom the Banks and transmit that to meet their OBJ
il atoms.
1t has generally been admitted that both the
eople and the Banks are benefited by exchange
eing kept at low rate. If this is conceded is not
his object cansed by the very act of the Legisla-
ure which some persons (who know do not un-
lerstand its practical working) wish repealed: |
~ 1t Is: and you not only have my word for 1t.
ut you have the facts, as proven by the effects of
he law for the past ten months.
Do the Banks desire this repeal to avoid the re-
emptlon OF their issue, OF to render more difficult
demand upon them for coin: IF either be the
lct. this of itself should be sufficient cause to pre-
emit its repeal.
10 the repeal desired because law requiring the
anks to redeem their issue in two places is in IT.
slf. unjust? If so. to whom does it apply Ger
INT. premium for redeeming what by law they are
'quiIed to redeem at par. This fully cempensatex
lem for redeeming ut the agency, all the Banks |
st the benefit of the per cent. for all their issue
agent getting the benefit of the |
,posit for his trouble.
10 it unjust to the people to be able to convert
to coin at the Metropolis Of the State any VIZ
MIA money they NAV chance to have, at 4 per
mt. discount at the Banks where it is issued If
prefer We think Tine |
nnot be maintained. /
Now. IN coNCLUsIoN WE ASK, If the repeal Of
The reden,Ption act" tciH net increase the loans
ID discounts Of tie Banks, nor increase their 1
rcxI0fsoH. nor Toner the price Of exchange, nor
srsass the facilities for getting coin, nor gtre to
people more uniform eHyreney-wHERRI THk
scHssirY FoR ITS REPKAL? .
have been connected with q Bank before and
leo the passage of this law. and am satisfied :
y tAovoxshIy eoNrisced-that it should not only |
ntinue, but that the legislature shOu Id SO amend
d strengthen It not to allow any Bank or v
ent 10 pay out the notes of any Bank or Branch n
1850 circulation they redeem. Do this, and the | +
wiz % complete and perfect, and when the | .
|enco OF trade 10 in our favor-as the tendency |
things seem to indicate will be the case soon
re Will bo no moro complaint on account of this II
y PRKeIDENr OF Cot rxY BANK.
'sumenioIs 81 the British Government to a.
A American Captain and His Wife. d.
Many Of our readers doubtless remem Der an p
count Published In this paper in September il
II OF the noble conduct Of Captain SYLvEs. it
BROWN, OF the ship Henry Clark, in res. "
ing the captain and crew OF the ship Back ii
ssss''' OF Andres, Scotland. This happen. p'
IN August last The Henry CLARK, Of Ken. vi
oenkport. Maine, bound from Liverpool to at
q l