Staunton vindicator. [volume] (Staunton, Va.) 1860-1896, 1861-01-18
q h& Oinditator,


FRIDAY, JAN. IS, 1851.
8. M. YOST, Editor and Prop rietor
Gov. LetcEaer,s Message.
We give below that portion of Governor
Lstcher's Message which relates to the sub.
ject Of the Banks:
On the 2lst of November last the bank
in the city Of Richmond suspended specie
payments, and very shortly thereafter tn,
other banks 10 the State followed their ex
ample. The fact having been co,nmunica,
ted to me officially by the treasurer, I caus
led the accompanying order to be sent to tha
officer. Under these circumstances, all 0
which were carefully considered. I came t,
the conclusion that it was safer and cheape
to make the three deposit banks the specia
receivers and custcdians Of the revenue al
it should be paid by the collecting officers
The capitol is not fre-proof; and if I had
directed the revenue to be received and re
tanned by the treasurer until it as needed
it would have been necessary to employ ar
additional clerk, at a salary Of perhaps Sc,
800 per annam. This course, if adopted
would have thrown heavy responsibility
upon the treasurer, and would not have
been safer or mere convenient than the
present mode. The revenue collected since
the suspension is on special deposit in the
banks, and is to be drawn on special checks.
[ trust this arrangement will meet with
your appreciation.
After the suspension of specie payments,
the first important question to be consider
led was, how are the specie funds to be pro-
vided for the payment Of the State interest
and the redemption other debt? After Sc
rious reflection, decided that the only f4ir
land proper mode was to ascertain what per
Icentage upon the circulation Of all the banks
i'm the State, on the first day of October
last, (the date Of the latest quarterly return
of their condition, would realize the nee
Iessary amount, and thus save the credit 0;
the State. ascertained that it would re
lqulre seventeen per centum; and then d.
rected the Treasurer and Auditor Of Public
Accounts to prepare circular, to be sent
to The banks, calling upon them to furnish
the quota necessary "to meet the obligations
Iof the State Shortly thereafter replies
were received from two Of the banks, pro
testing against the arrangement, and in
sistiug that it was the duty Of the deposit
banks to furnish all the specie required for
these objects, but at the same time express.
ing willingness to aid in saving the cred
it Of the State. After these letters were
received, [ caused second circular to be
scut to the banks. Both of the circulars
are herewith transmitted.
On lhe 22d day of December last. a con
Tention- consisting Of Officers Of the Valley
Bank the Merchants and Mechanics Bank
the Northwestern Bank, and the branches
of each, the Central Bank, the Monticello
Bank and sixteen of the State Stock banks,
assembled in the city; and, after spending
some time in this discussion and consdcva-
ton Of the subject. delivered to me q paper,
herewith transmitted foryour consideration
On the next day a committee, appointed by
the convention, waited upon me. and we
had conference Of several hours in regard
to the plan had adopted The objections
to the plan, as stated in the conversation,
we're very much those that I have embod-
led in the paper to which I have referred,
and are set forth in three of their resolu.
tons.
The first resolution sets forth principle
which meets with my cordial approbatiou.-
| utterly dissent from the principles avowed
and the doctrines asserted in the second and
third resolutions, and which are, in my o.
pinion, in direct conflict with the princi pies
asserted in the first The policy recon-
nsended by TIE convention would result in
placing the burden of providing for the
State interest and the redemption of the
debt, almost entirely upon the deposit banks,
and to that extent embarrass the mercan
tile, commercial, mechanical and manufac-
turing interests Of this city The banks as
well as the citizens are bound, by every
consideration Of duty, to aid in preserving
the credit Of the State, and the burden
ought to be made to bear, as near equally
as possible, upon all. A poliay which i'm
poses that burden upon one city in the State
is in my judgment unjust. and therefore
declined to recognize it. Nor did | APP
prove Of the discrimination which this res
olution proposed to make between Virginia
bondholders and others-in the first place,
because it was unjust to oar own citizens.
and in the second place, because such dis
elimination. if sanctioned was TO be regard
ed as declaration Of Inability on the part
of the State to meet her engagements, and
must have injurionsly affected her credit a
broad The preservation Of the States
credit is at all times an object of the first
Importance. It is especially important that
she shall maintain her credit now.
The third resolution demands a uniform
per ccntage upon the aggregate amount Of
the capital, circulation and deposits of all
the banks Of the Commonwealth on the first
day Of October last, excluding the States
deposits" A single illustration will be suf-
ficlent to demonstrate the injustice Of this
plan, as well as its impracticability. Che
Bank Of Richmond was chartered at the last
session, with a capital of not less than one
hundred thousand dollars and not more
than one million. When the minimum
capital was subscribed and the bank was
organized, they applied Cor an issue of notes
to the amount of twenty thousand dollars,
having fourth that amount, or five thou
sand dollars in specie. According to the
views embodied in this resolution, would
have been required to assess, in this in
stance, seventeen per cent. upon one huns
cred and twenty thousand dollars. when the