Daily intelligencer. [volume] (Wheeling, Va. [W. Va.]) 1859-1865, 1861-01-10

relInblc counterfeit sdetectOr will show
TINT the editions Of ,eonnterfeits in the
the United States, of local and State
banks OF ten dollIrs apd under, are more
tllansten to one of theselfitiOus of twenty
dollars and upwards, These striking Iucts
nre extracted from 3 speech made some
years ago, 10y one pf-Onr best informed
statesmen, aud they we'll deserve 10 be
p0ndered in yogt consideration of the
question, II you shall come to. the con-
clusion that no notes of less denomiua-
tion than twenty dollars should be issued
by the banks, yOTlwillsOf course prohibit
the circulation OfluOles,or othel States. of
less denomination.
Second-A custOm9 pEeVails throughout
Virginia, in perhaps tlI the banks. ltv
which their loans hre confined, to n great
extent, to those srsoRs who eau offer
drafts on northern eitias. This policy fs,
IN my opinion, not tplyl0hjnst to the COM
munity, butit is unsafe asto. the banks. So
long 0s the specieiOf orr banks is kept in
New York or other northern cities, ito be
drawn on in favor OF te holders of. their
notes, We are perfect tly { itlie. mercy of
those hanks Ii frnmtaur .eauAssthoy st1s-
penn specie DaSme1ts, VI are necessarily
compelled 10. susneFa also, This was; Tne
| case in 1857. Each. bank should he the
custodian of its own funds, but while this
policy prevails it G0n1otb We need a
greater specie circll4tiQpf but this we con
never have SO lougAs tie vaults of our
banks contain littlR else than bills and
notes discounted, most of which are pnya-
bic out of the State. Rrom such bills and
notes very little gold OF silver is brought
into the State: Aud besides, the bank
which pursues this policy, from the nature
OF the case, must hare very limited
knowledge of the peeuPiaFy condition and
responsiOility of the acseptor of the draft.
Would it not be sNferAud better to employ
their means in dtscoupting the paper of
those who are personal known to them
as the maker and cndeFsers of tho note,
and ofwhose ability to meet it at maturity
they are fully advisedRa
There is another objection to this poll
cy, which / will illustrate. An individual
borrows say $4,000 from one of our banks,
payable i'll Baltimore. After his note has
been discounted, the banks suspend specie
} payments When the note natures, he
must procure exchange from the bank that
made the loan, or lie must go to Baltimore
with tue notes perhaps of that bank. and
pass them to IL broker at a loss of two or
| three per cent. to procure Baltimore funds
to take up his note. This surely is neither
just nor right. Recommend, therefore.
that this policy be prohibited by law, or,
at least, thnt the party be allowed to re-
deem his obligNtiOn, by requiring the bank
to receive its own notes in payment in Ill
Cases. This policy places an onerous bur
den npOn the borrower, which is unjust in
the extreme, and it ought not to he per-
nitted. If a holds my note, and hold a
! note OF equal amount against A, the law
authorizes INC to set Off AS demand Why
should it not be SO withFthe banksP
! Third would prohibit the bunks from
dealing in exchange, and would require
4 them TO furnish 1T, not s. par, but ut what
it cost them. The rate of exchange he
( tween Virginia and New York in ordinary
times, when the banks are paying specie,
seldom ranges above tue half of one per
cent, which is about the cost of transport
/ ing specie between the two points. Ii the
! banks were denied the privilege of dealing
! in exchange and realizing II profit, it would
take from them the temptation to cOnfine
their loans to those who pay in northern
drafts, and their accommodations would
be ditfused moro generally amongst our
own citizens Our banking capital would
thus be used for the accommodation of our
/ own people AS it now is, much of it is
used for the benefit and advantage of citi-
Zens of the northern cities.
LaJtLy-If the policy of discounting
f, northern drafts is to be continued; re-
commend that it shall be restricted to
such drafts MS have only a short timn to
run, say sixty days. Many of the north
ern drafts that the banks are in the habit
! of discOuntiug, if have been correctly
Informed; run from four to six months
This is extending the southern credit to
the northern agent. Heis using the funds
of southern banks for his own advantage,
at the expense and injury of our own citi-
zcns. Our banks were created for the in
tcrcst 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 for it. Change policy which makes
the south tributary to the north. No poll
icy, financial or other, should be encour-
aged to strengthen and build up the busi-
ness OF the north, under present ,Circum-
stances, at our expense.
recommend divorce of the State from
tue banks; and in making this rcconmeu-
dation, desire to be understood as strik-
ing no blow at those institutions. 1t is IL
measure demanded alike by wisdom and
prudence, and the interests both of the
State and the banks. can conceive of
no system which is so we'll calculated 10
restrain the banks from excessive issues,
and to cOnine them within prudent and
safe limits, and which at the same time
! will-tend to the enlargement of the specie
circulation of our State. Where there is
a demand, there will necessarily be 81 sup
ply in any article that may be required for
the comfort, the convenience or the busi-
ness interests of the community The
amount collected by the various StIte gov
feFnmCnts land mainly in bNnk paperJ is
about tue sum of $50, 900 900 annnally.-
Our revenue amounts tosnbnut 50, ,o35, 900,
in round numbers, and if collected in spe-
Gle, it is plain to the commouest UNDER
standing, thai it would exert n powerful
influence in restraining over issues by the
banks, and thls prevent Over-trading. 1t
would prevent the deposit banks from dis
counting on the filth Of the revenue, col
llected by the State, in the notes of her VIA
rious banks aud which are on deposit in
their vaults. This stimulant to over-trad-
-s..s.- l...;.-- ..--...l