The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1860-03-16

The Banking System Of New York.

,,.s7,ne an able artlcie on the banking sys-
generally, with especial reference to tbs
,.r Of Virginia and in New York, HI
p.,.d,erts upon the tendency OF New Yorl
100 much business npon the capital aud
tins funds deposited there for safe keepinR
~. shsre Of country bank balances. AT the
"a a, December last, these balances in the
rs Of New York exceeded twenty three
,,,;nns of dollars. /, is conceded that these
.,.,,s fuc.uate much more than individual
.n,.,;s. aud that a moderate portion only
- ~ relied upon for loans. OF the policy o
t.xi,rou, this large sum TO borrowers, Mr.
ra,eii says:
rhs error Of the New York hanks in lSj.
an their course of banking months before
~. catastrophe Of the suspeE sion Of specie
.,,,en,s IN lending the deposits due TO dis
al banks TO stock spec cuiators, and not pro
,tinr Ia time for the Western failures Th,
Ssrsiis OF the New York banks are the basi.
=, their loans IN great part. In that consist.
,ss great error of their banking system-ths
ba,!tns OF debt upon debt. Say ,ha, tn,
Gs.9sits Of these banks was S7o,oOoooU: theil
srtcie si3,Waot1; one-half of the deposits
s25nAClU being due TO country banks, how
.ss II poss ble tor the banks OF New York tc
avoid the conseq uences of their folly. except by
,psneus!on In addition TO the drain TO Eu.
rots il was known TO those having the bes
nunor.unlty for knowledge, that specie was
ls,,iur thr city bY express for these country
hanks AZ the rate Of S5tEi,MD per day. and yet i,
was graveiy proposed to remedy this by ex-
handing the loans; IN oiher words, expanding
iheir circulation. The attemp! would have
hs.r futlle and idle The error is in their sys.
ieu Of banking, and must occur again and
again dragging down IN one common rum the
cIilty and innocent-tne reckless spec uiaiors
and the cautious capitalists, and bankrupting
49, ou1v rhe merchant prince. but the widow
sn.i nrnhon whose lItEleali has been inves ted
in some stocks rendered yalueless by these
bank reruislons.
syscln of bankers using caritai 'hat does not
belong 20 them.
such system of banking is at all times
unjust for j, is not right that banks should
carry Oh their banking transactions cash
,gritGi hat 6otS nof tt{oag 10 them. This is
trn. in regard To the banking on the deposits
Of resident customers. 1t is argued to be less
unsafe when the deposits are from the COM
muuiy i-r no one can doubt in times Of Pc
cuAlary pressure, where there was mutnai
confidence and mutual benefit, that the COM
uuuliy would sustain he banks as far pos.
sbe. Ban when, as is the case in New York,
SO large q portion OF their deposits are bal
ances dae 10 distant banks (there being no
common objects or mutual benefits, and often
IN. yery reverse how extremely dan gerous
6,es ihIs system Of banking become!
The suspension OF specie payments by the
hanks of New \ ERIK was unq stionably the
fssplt OF pauic. But as long as the banking
sYs,pln Of the State Of New York remains un-
changed, so long will i, be liable 10 periodical
Suspensions. producing distress and ruin TO
The mercantile community. 1t matters not
whether The liabilities ot a bank are in its cir
cuiaiion or its deposits. If it does not pre-
serve sufficient amount OF specie 10 protect
both. II must suspend under the influence of 4
ran made upon it for specie 10 crafty the real
or The pane wants OF note-ho!derS and deposit
fors In former wears the object of bank re-
formers was The security of the circulation
The free banking law of New York attempts
u effect this by requiring deposit of the Sc
,nriiies for the amount of circulating notes
The law III other States, TO accomplish the
came security, equires the specie III the vaults
OF The banks TO bear a certain proportion TO its
circulation But experience has demon ra ted
that bank stands i'll a much danger from its
deposGrs as from iil-holders."
OF tue Virginia system, more conservative
aud more reliable. he says:
" The banks of Virginia have steered clear
Ufboth Of these garing faults. Most of the
Southern States are legIslatiDg small notes
OFT of existence. while the banking on de-
posts has never been carried to an in urions
length. And yet, while We of the South have
the good sense 10 repudiate this vicious sys-
ten of banking, at the same time we permit
our blnks 10 deal Wi and keep large deposits
win New York banks, and TO 6.conie so inter
lotstd 'cta ta,m tiat iAeu suspension mus; IN.
frifa5!y fIodEee suspension Of orr banks"
OF the liability in New York to a return OF
financial crises, As in 1o57, Mr.. Cabell says:
Now, it IS obvious from this, that thees
suspensions must occur again, with cause or
without cause for panic, unless the evils OF
thsr banking system be corrected. The bank
fTs Ia New y orA regard the banking on de-
posts Tie chief basis Of their profits, and rely
on hem as proof OF their strength. II is
IN vain IN expect a change in the law in this
respect Bur the South should lesislate for
i'sei to avoid the evils OF bank connections
Win New York, and, il possible to avoid these
e'I>, 10 break up the connection. X 80
I'll was clearly manifest that the sus pen
sion OF specie payments by the old banks OF Vir-
sha, grew cut of the non payment of these
ait1ptances. The loss, the reproach and dis
AoAor might have been avoided but for this
ehaHgiement with New York by means Of this
iong paper. Ought the State allow this state
OF lnings TO continue for the sake OF the profit
made by The banks discounting long Northern
paper That profit consists IN the premium
OF exchange aud the ability 10 re-di,cohnt fhiS
iifsr IN Mar York. The calamities that befel
iae tobacco trade gave a sufficient answer 10
A4t question"
IHE LYNCH EXECUTION IN ARKANSAS
Es,a.r Pa'tiea!ars-The Memphis Appeal has
s.me Particulars of the recent execution of
Wm and Philip Cheek, in Crittenden county.
ARK, on the ID inst, for the murder of Robin
son 1t was supposed at first that Mrs Robin
sea was implicated in the murder Of her hus-
hand but it proved tha; she was innocent
t kVA liie exdinludtlOu I the CNpekS, 1OI
iowlIg scene occurred
The crowd was very large--the surrounding
country having been entirely reused by the
horrible declaration of a younger brother, and
lhe Supposed guilt OF the wife. AT the mo-
meai the decision was rendered q rush WAS
made Tor the prisoners and q determination
% lynch them was manifested. Sheriff Berry
gfew weapon and expressed his intention of
GseaaTging his duty aud surrendeTing the
prisoners 20 A legal tribunal; assistance being
gwen him, the crowd was driven back ana the
.0''A cleared. The effort was useless, ho W
e'eI, l0i soon The mass OF men-enraged and
ryond The reach OF The appeals the advocates
VI IA" and order made to them-were again
ID lheroom. The Sheriff, though h. had a pis-
W. IN one hand and knife in the other, was
AsoeKed down by Il bully rufIian. With a yell
=. mum pm The TWO men were seized, and led
no the woods. Here some delay occurred,
~, the men would confess nothing, and i; was
ssUted 'd that they should at once suffer the
ponai'y OF their awful crime. A rope was pro-
80 ana one of the crowd--a friend of the
.4ltotIed kobinson-fastened il around the
~. M Al he younger brother Philip. Through
sne ryihg scene the young criminal had
1-an.lesied hut little emotion. To all appeals
@ -e lufued deaf ear Not a word could be OBJ
p". rom him. He neither prayed to heaven
A. ,tAposlula,ed with his fellow creatures.
is vac vac moose was tightened around his neck,
cho,a tne aci OF tying ii, he exclaimed "Don't
NJ, me lie said no more, and IN few
VA Tree was ""e A'"'- '
v'a. "neH he beheid his brother thus given over
sh. 'n NJ 10 deafh he III ust in few moments
b-ss.,, iiiiam became violently agitated-he
sos gu NO 70 be permitted 10 pray. The permis-
he ), va ,h gran lsd-k neeiing upon the ground
n, n Tue most moving accen .s besought God
tor wy, mercy upon his soul and forgive him
he v.ne ne had done. When this was over
10 ,.1 e1n"r'ed To make clean breast Of il,
imnn.i al he had done and to clear the woman
~ her hn nj
con .'s "sn false. He replied that Mrs. Robin.
Inv ,h. innocent, but that he would say Meth
hon, ~ would implieate any one. Prepara-
bis h,n,, sie tiien made 10 hang him up besde