Alexandria gazette. [volume] (Alexandria, D.C.) 1834-1974, 1860-03-23

II. c. Cabell, of Richmond, Virginia, has
contributed TO tho March number Of the Mer.
chants Magazine, an able article on the ban
king system generally, with especial refer
ence to the policy of Virginia and Of New
York. lie animadyerts upon the tendency
in New York to do too much business upon
the capital and surplus funds deposited there
for safe-keeping in the shape Of country
bank balances. At the close Of December
last, these balances in the banks Of New
York exceeded twenty-three millions Of dol,
lars. 1t is conceded that these deposits fuc.
tuate much more than individual deposits,
and that a moderate portion only can be re-
lied upon for loans:
OF the Virginia system, more conservative
and more reliable, he says:
1.-The banks of Virginia have steered
clear of both of these glaring faults. Most OF
the Southern States are legisatlng small no
ties out of existence, while the banking on
deposits has never been carried to m injur-
ious length. And yet, while we Of the
South have the good sense to repudiate this
vicious system Of banking. at the same time
we permit our banks to deal with and keep
large deposits with New York banks, and %
become 50 interiocked with them MGt their SuS-
pension must necaadH produce suspension n
our bank
Ofthe liability in New York 70 return
Of financial crises, as in 1857, Mr.. Cabell
says:
''Now, it is obvious from this, that these
suspensions must occur again, with cause or
without cause for panic, unless the evils Of
theirI banking system be corrected. The
bankers in New York regard the banking on
deposits, the chief basis Of their profits and
rely on them as proof OF their strength. II
is in vain to expect q change IN the law IN
this respect. But the South should legislate
for itself, to avoid the evils Of bank connec-
tons with New York, if possible, to avoid
these evils, to break NJ the connection.
1T was clearly manifest that the suspen-
sion of specie payments By the old banks
of Virginia, grew out Of the non-payment Of
these acceptances The loss, the reproach
and dishonor, might have been avoided but
for this ENHANCEMENT with New York by
means of this long paper. Ought the State
allow this state OF things to continue for the
sake Of the profit made by the banks dis
counting long time Northern paper: That pro-
fit consists in the premium Of exchange, and
the ability TO re-diScoum this poper III New
York. Tie calamities that beleIl the to-
bacco trade, gave sufficient answer TO that
question.
national CONSTITUTIONAL UNION CoSvEN-
gIoS.-The National Executive Committee
of the constitutional Union Party, at late
meeting, resolved upon the 9th Of May next
as the day of holding the Convention Of that
party for the nomination Of candidates for
the Offices Of President and Vice President
of the United States.
The place for the meeting Of the COnven-
ton is the city of Baltimore.
Constitutional Union men in each State
are invited to elect to said Convention, dele
gates equal in number to the electoral vote
to which their State is entitled.
The Convention will assemble al the hour
Of II NJ Of the day named.
By order of the Committee.
T. WIN. WALKER, Secretary.
WASHINGTON, March 81, 1860.