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

serious extent. men the late bank con
vention was held in this city, the Virginia
Bank, the Farmers Bank and the Exchange
Bank were not invited to participate in the
discussion and consideration of the impor.
tant questions which had called the conven.
ton together. When I proposed to the
committee who waited upon me. that I would
invite the officers Of those institutions te
meet and confer With them, the reply was
..tbat the convention had adjourned, and
they bad no power to alter the policy fixed
upon by that body Ny object in pre-
senting this fact is to demonstrate the exis-
tence Of feeling Of Jealousy and hostility
which regard as decidedly unfavorable to
harmonious action in our monetary system
Ia 1857 my predecessor, in his message ts
! the Legislature, in referring to the cxis-
tence Of this feeling, used this distinct and
emphatic language l.lsey are competing
with each other, and tl4tir collisions and
! icaIousies are not the bestss<nces TO ease
the difficulties of the times Without draw.
ing any invidious comparison between them
| urge merely the fact that the existence Of
the two is not most favorable to the harmo-
ny of orr money system. Which was the
best or worse. either alone would be bet
ter, in my opinion. than the two with an
tagonism between them Antagonism ex-
lists, and will exist" Ny experience and
observation, since the suspension of spec
payments, confirms fully the accuracy Of
this statement. Why this is SO, am not
prepared to say, nor shall | undertake to
determine who is to blame for the existence
of this state of things 1t is certainly pref
judicial to the interests of the State, aud
ought to be corrected, If it can be done, By
legislation.
It affords me great satisfaction to be-
lieve that all our banks arc III sound con-
dition, and that they are responsible and re-
liable. In times Of financial embarrassment
and pressure, such as we are now passing
through, it becomes US to practice as much
forbearance as possible in our business in
tercourse and arrangements, that the evil
may not be unnecessarily aggravated -
Confidence has beeu shaken to great ex-
tent, but this was to have been expected. =
It is a plant Of slow growth, and charity,
forbearance and prudence is required to pre-
vent it frcm being uprooted and destroyed.
In communities where the credit system
prevails to SO great an extent as it does
here, we must be cautious, or We will in
volve all in common ruin.
Several reforms are necessary, in my o.
pinion, in oar system of banking. We
ought 70 abolish all notes of a less denomi-
nation than twenty dollars; but this should
be done by degrees, and with the utmost
caution It is reform that will require
time to accomplish: bat as it is necessary
reform, our attention should be directed to
it, and it should be provided for in the re-
newal Of the charters Of the banks. It's eff
feet will be to infuse larger amount of
specie into our circulation, and to protect
those in the community who. from their
want of familiarity with bank paper, are
most liable to be imposed upon by connter-
felt paper. From 1877 t. 1919, period
of twenty-five years, the one and two pound
notes Of the Bank Of England were allowed
to circulate, and according to the returns
made to parliament, it is asceriained that
the number Of prosecutions for counterfeit
ing Or passing counterfeit notes Of the Bank
Of England, were 998, and Of that number
there were 3l3 capital convictions, $50 ins
ferior convictions, and 155 acauitsals. The
enormous sum Of $249, 600 (near billion
and quarter Of doliars) was expended by
the bank in attending to these prosecutions.
The returns show that by far the greater
proportion of these prosecutions were con-
neeted with the one and two pound notes
The detections at the bank, for a period Of
a little more than six years, from the first
day Of January, 1912, to April 10th, 1918,
were of one pound notes, lot ,23S; of two
pound notes, l7,787; of five pound notes
5, S26; of ten pound notes, 40; of twenty
pound notes. 81; and Of all above twenty
pounds, IS This covers onIy FIX years
out of the twenty>two; but it shows fright
full exhibition of crime connected with the
small notes. A reference to any reliable
counterfeit detector will show that the edi
tons of counterfcits in the United State S, of
local and State banks, of ten dollars and un-
der, are more than ten to one of the editions
of twenty dollars and upwards These strlk
ing facts are extracted from speech made
some years ago, by one ofour best informed
statesmen. and they we'll deserve to be pom
dered in your consideration Of the question.
If you shall come to the conclusion that ne
notes Of a less denomination than twenty
dollars should be issued by the banks, you
will Of course prohibit the circulation of
notes of other States, of less dsnonina-
ton
Second-A custom prevails throughout
Virginia, in perhaps all the banks, by
which their loans are confined, to great
extent, to those persons who can offer drafts
on Northern Cities This policy is. in my
opinion, notionally uujostto the community,
but it is unsafe to the banks. So long as
the specie Of our banks is kept in New York
or other Northern cities, to be drawn up in
favor of the holders Of their notes, we are
perfectly at the mercy Of those banks. III
from any cause they suspend specie pay~
ments we are necessa, lily compelled to sus-
pend also. This was the case in 1851
Zach bank should be the custodian of its
own funds; but while this policy prevails it
cannot be We need greater specie cir
culation; but this we can never have 50 long
as the vaults of our banks contain little else
than bills and notes discounted, most of
which are payable out of the State. From
such bills and notes very little gold or sill
yer is brought into the State. And besides,
the bank which pursues this policy. from the