Richmond daily Whig. [volume] (Richmond, Va.) 1842-1861, 1860-04-04
with note, on dozen baal. and have them ali redeem

With notes on dozen bank aud have them all redeem
ed at once.
The Senator from Richmond, mr. Anguish asks, why
if our farmers sell at Baltimore, the Banks cannot get
Eastern exchange, and be ready with it to redeem
their notes. The answer think is rcady-the cattle
feeder grazer very well realize the money
from his operations under six months while the Banks
find that before that period the draft OF their cuso
mer natures, their notes are back upon them Tor re-
dempton, and therefore they only loan on % day
drafts. This is only part of the business OF the COM
munityothers small farmers who sell their products
at various points, and they must take in payment the
money in circulation at the point where they sell rms
subject ofexchange however is one in regard to which
do not profess to have any great knowledge but 1t
seems me- in order to have the benefits OF IL there
must be an accumulation of commodities at one point
in other words, there be centre OF trade where
large quantities are collected and although the aggre-
gate collections OF county community may exceed
the aggregate purchases yet if these productions or ar
cles for sale are distributed in small quantities through
several channels and sold various points, the surplus
cannot be made available for the purposes OF exchange
| | may Illustrate it.
The James river at Richmond has water enough IN It
TO float ship, but when that is distributed among
its thousand small tributaries, it is unavailable Tor that
purpose. We see the principle illustrated IN the
operations of savings banksthey do not increase the
capital of the community-but by collecting together
that which before scattered in small sums they rem
der it much available for the purposes OF trade
As have already stated in large part OF the State
there such centres of trade will aid in supplying
the banks with Eastern exchange and where the banks
get this and the business OF the community VIII
enable them TO substitute credit by checks and drafts
for their own notes, aud the only alternative lett them
by the operations Of this law curta their loans and
to refuse the usual accommodations 10 their customers
And the fleet of this sir is felt in all branches OF bust
ness. The industrious and enerprzng men oil moderate
MEANS who have been in the habit OF getting loans from
the banks, longer obtain them-their business Is
either greatly curailed altogether suspended-money
becomes scarce enterprise is checked and property con-
sequenty is reduced in value.
aware sir, that there cause of complaint
at this point because of the large quantity OF the notes OF
the interior banks in circulation and which was said
had the effect OF increasing the rate OF exchange on the
Northern cities. This inconvenience or evil, think was
caused least aggravated by the fact
that large portion of the revenue OF the State, whick OF
late years has greatly increased brought here in the
of the various interior banks These notes were
deposited in the banks in this city and by them paid out
and thus a large amount of that would have
found their way here in the Of trade thrown
on the communy-greatly more than could be convent
emily absorbed.
But, sir whatever may have been gained here from
the redemption law by the reduction Of the rates OF ex
change has been than counterhaanced by the in
jury has Inflicted the general business of the State
Business men in the interior if they getany accommo-
daon from the banks only do by giving drafts
notes payable in Baltimore or Richmond. In order TO
pay these drafts they must pay premium from one half
SIS Of one per cent and before the drafts are paid it
has them good deal more than was formerly lost
in exchange.
think may appeal to every Senator from the North
ere and Western parts of the State if the banks do not
almost wholly refuse discount, except upon paper Of
the description have mentioned.
Another evil resulting from the law is that the banks
in North Carolina collect the paper on the Virginia
banks send it here and compel your banks to furnish
them specie Northern exchange and thus the specie is
aDstracted from banks supply the banks of other
States And so with the banks and brokers Of other
States. Indeed sir far section of the State is
concerned the law to operate for the benefit of
foreign brokers and no one else
There are many other considerations that might be
presented in favor OF the repeal Of this law. 1t is not
question that much the banks the people
The banks some of them at least, may make more
money than formerly but the people oppressed and
there is but opinion in all OF the Northern and West
ern part of the State in regard to this law. One united
voice from the people Of that region has here de-
handing its repeal hope it may be the pleasure Of the
Senate to listen to that voice and grant them relief.