Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1861-01-08

Gai;i'ncr2 with The rotrs perhaps Of that bank,
ami pass them II il broker at 4 loss OF TWO u
three per cri,i. 10 procure Baltimore funds IL
take up his nuir. This, surely, is neither just
nor right. recommend, therefore, that this
policy be prohibited ny iaw. or at Last that the
party be allowed 10 redeem his obligation, by
requiring the bank 10 receive lis own notes in
payment i'll all c,>rs. This policy places an
"ncrous burden 'il"II the borrower, which is
unjust in The extreme, ard it ought not tn be
pcrnlltch. If y holds my note, and hold a
note OF equal ainDnnt against y, the law All.
tlorIzcS HE 10 set Oh Is demand. Why should
1t not be 50 with the banks:
Jhtrd-l would prohibi; the banks from
dealing III exchange, and would require them
10 furnish II, not ut par. bnt III what 1t cost
t,icf1l. lhe rate Of exchange between Eir-
GINA anu New York, in ordinary times, when
the banks are iayln: specie, seldom ranges
ah"Fr i'!c !'HiI OF one per ccriL.. ":;!ch Is about
TIE cost Ut transporting. specie between tho
two points. II the bauks wcrc Lcr.:cd the pri-
vllcgd OF dealing in exchange aad realizing 4
P?oill, 1t would take from them the temptation!
to conliI,c their loans To those who pay in
Northern drafts, a'd their accommodations
would hc dltluacd more generally amongst nur
own citizens. Oar banking capital would thus
DC used for the accommodation Of our own PEG
pie. As it now is. much Of it is used for the
benefit and advantage uf citizens ri tie North.
crn cities.
LdStty.-iI the policy Of discountinS North
crn drafts is 10 DC continued, | recommend that
itshall be restricted to such drafts as have only
4 short time 10 run, say sixty days. Many OF
the Northern drafts that the banks are in the
habit of discounting, if | have been correctly
informed, run from four TO six months. This
is extending Southern credit to the Northern
agent. lie is using the funds of Southern
banks for his own advantage, at the expense
and injury Of our own citizens. Our banks
were created for the benrti, and convenience OF
the people Of Virginia. If the Northern agent
wishes to purchase our tobacco, or any other
article we have for sale, let him come prepared
TO pay Tor il. Change \ policy which thus
makes the South tributary to the North. No
policy, financial or other, should be encouraged
to strengthen and build up the business Of the
North, under present circumstances, at our
expense.
| recommend G divorce OF the State from the
banks and in making this recommendation, |
desire to be understood as striking no blow at
those institutions. 1t is L measure demanded
alike by wisdom and prudence. and the inter,
ests both Of The State una tlr banks. ! can
conceive Of no system which is so well ~calcula-
ted 10 restrain the BANKS from the excessive
issues, and to contine them within prudent and
sale limits, and which ut the same time sill
tend TO the enlargement Of the specie %cirCula-
tiou Of our State. Where there is Il demand,
there will necessarily be Il supply in any ar,
ticle that may be required for the comfort, the
convenience or the business interest of The
community. The amount collected by the
various State governments land mainly in bank
paper is about the sum of $50, 400. 100 Al.
nually. Our revenue amounts to about
81, $50, 00n, in round numbers, and IL collected
III specie, it is plain to the com,Ioncst under
standing, that it would exert u powerful inEu-
ence in restraining over issues by the banks,
and thus prevent over trading. 1t would pre-
vent the deposit banks from disconnting on
the faith Of the revenue, collected by the State,
in tnc notes Of her various banks, and which
are Oh deposit in their vaults. This stimulant
10 ovcrtrading icing withdrawn, W. would
have Il healthier and Il more uniform ~circula-
iton.
The adoption Of this policy would result in
retaining i'll our State L sufficient amount Of
specie not only for the purposes 81 the govern
'Tent, but in 4 time Of bank suspensions, wonld
furnish sufficient specie ior the ordinary trans.
actions Of the people. Tho divorce is demand,
eli by principle and policy. The connection
involves tho State as Il partner III The lnis!Ur.
tunes Of the banks; and whenever the law is
violated, by the suspension Of specie payments,
the fact that the State is a stock holder, induces
the Legislature 10 look upon the act more IA
vorabiy than would be the casc, perhaps, if she
held no interest iii them. Whatever is calcn.
lated to impair Or destroy independence in leg
~islation, must sooner or later exert an injurious
influence upon the public interests.
Entertaining. very decided cOnyic,icns "u
this suhjccr, | felt it 10 be my d";y, il !" ran-
vass which preceded my election, 10 hv"v' my
opinions freely and frGnkly, and 10 declare my
purpose t" rccom,ErnI ;hc adoption d; the
independent treasury >,*;,m - the considers
ton Of the Legislature. The tc"vrt susrer-
son OF specie payments ia result | did moi t!cn
anticipate and the difficulties that have attend
ed the arrangements for the payn.:t o. the
States semi annual interest, growing OIL; OF The
hostility existing between our two systems Of
banking, shows, in my judgment. the necessity
'' '''lN''S ''''' l''''l 80 49, ~ 80"
practicable, consistently with 4 du. regard To
the interests Of the Commonwealth. arising
from our ownership Ct s:crk in the banks. -
So long as the CONNECTION between The
Stale and the banks exists, those banks, which
receive no portion OF the Stale revenue, will
complain Of the preference which las been
given to the three banks nthis city, rs prcju-
dicial and Injurious to thcrG, and will always
protest against any demand that may lie made
upon them 10y the State. beyond The rcdenp
ton q! 80 much Of their paper Us is received in
r%ayInrnt OF revenue. As between thesyStelns,
sc should not exhibit 4 preference Tor one over
the other. Let tic State manage her own at
fairs i'll l!er own way, and Leave the banks TO
manage tlirirs, subject only to the requirements
Of the law. The divorce Of the State from the
banks will remove one ground Of jealousy
Let the two systems demonstrate tlielr relative
advantages.
Against this policy many objections ARE urged
some Of tho more prominent OF which | pro.
pose to notice briefly. Most of these arc the
same objections which we're urged against the
adoption of the independent treasury system
By the Federal Government. When this great
measure was proposed in Congress, its oppo'
ncnts were fully satisfied that the effect Of such
Il policy would be %TninOl!S, and serious appre-
tensions were feli and expressed by tho tlinid
Of its friends. Tic measure was pressed, adopt
cd, and after an experience Of years, very few
would be willing 10 return TO the old system,
md revive it as The settled policy Of the govern.
mcnt. can see Ia rcason why the adoption
of Il like policy 10y the State would not operate
equally as well, and produce results equally as
satisfactory.
The first objection is, that it would operate
oppressively upon the people, in this-that
they could not procure specie enough to pay
their taxes. The same objection was urged
when the system was proposed to he adopted
by the Federal Government; but the result has
proved in that case that it was unfoundel. So
| think it would be in this case. In four.:ifths
Of the States the taxes are TOW paid in notes OF
the banks. These notes upon their faces pro.
Tess tn he inc representatives Of specie. II this
be- true. then there would he no difficulty in