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

are, in my opinion, in direct conflict with
the principle asserted in the first. The
policy recommended by the Convention
would result in placing the burden of pro-
viding for the State interest, and the re-
demption of the debt, Hlmust entirely upon
the deposit banks, pnd to that extent en-
bNrrass the mercantile, commercial, me-
chanicnl and manufacturing interests of
this city. The bants MS we'll rs the citi-
Zensr are bound by every consideration of
duty, to aid i'll preserving the credit ofthe
State, and the burden ought to be made to
bear, as near equally rs possible, upon all.
A policy which imposes that burden upon
one city in the State, is in my judgment
unjust, uud | therefore decline to recog.
nize it. Nor did approve of the discrim-
inatiOn which this resolution proposed to
make between Virginia bOndholders and
others; in first place because it was unjnst
to our own citizens, and in the second
place, because sRch n Discrimination, if
sanctioned, was TO be regarded as.n decla-
ration of inability on the part Of the State
to meet her engagements, and must have
tu1ur1uuSIy7 HUecIeu ngr creulC apEuuu.-
Tho preservation of the States credit, is at
ali times an object of the first Importance.
1t is especially important that she should
maintain her credit now.
The third resolution demands ga uui-
form per centage upon the aggregate
amount of the capital, circulation aud de-
pOsits of NIL the bnnks of the CommOu-
wealth on the first day of October last,
excluding the States deposits.n a single
illustration will be sufficient to demon
strate the injustice of this plan, rs well as
its imPrNcttcAbility. The Bank of Rich
mOnd was chartered Mt the last session.
with II capital not less than ono hundred
thousand dollars md not more than one
million. When the minimum capital was
subscribed and the bank was organized,
they applied for lin issue of notes to the
amount of twenty thousand dollars, hhv-
ing Onc-fourth of that amount or five
thousand do.lnrs in specie. According to
the views embodied in this resolution,
would have been required to assess, in this
instance, seventeen per cent. upon one
hundred and twenty thousand dollnrs,
when the bank never had circulation, ex-
ceeding twenty thousand. Does not this
illustration clearly demonstrate the injns-
tice of the rule laid down by the Conveu-
tion? l could not heretofore recognize
either the justice or the policy of this re-
commendation.
Our banking system needs reformation
in several respects. We have two conpe-
ting systems of banking in the State; and
have abundant reason to know that jeal-
ousy and distrLst exist between them tn n
serious extent. When the late bank Con-
Venti0n 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 tile i'm
portant questions which had >cnlleu the
Convention together. When l proposed
ito the committee who waited upon me,
that IwOuld invite the officers of those
institutions to meet aud confer with them
the reply was, "thnt the Convention had
adjourned, and they had no power to alter
the policy fixed upon by that body" My
object in presenting this fact, is to demon
strate the existence of feeling of jeRl-
ousy and hostility, which regard as de-
Cidedly unthvorAble to harmonious action
in our monetary system. In 1857 my pre-
decessor, i'll his message to the Legislature,
in referring to the existence of this feeling,
used this distinct and emphatic language !:
"They are competing with each other, and
their collisions and jenlOusies are not the
best influences to ease the difficulties of
the times. Without drawing any invidi-
ual comparison between them, urge mere
! " the fact that the existence of the two
is not the most favorable to the harmony
OF our money system. Which was the
best nr worst, either alone would be bet
ter, in my opinion, than the two with an
antagonism between them. Antngonism
exists, and will exist" Ny experience and
observation, since the suspension of specie
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 exist
ence of this state of things. It's certain
! ly Prejudicial to the interests of the State,
J. n nd nr,f 10 1Nn. :.
done, by legislation.
1t affords me great satisfaction to believe
that all our banks are in sound cotdtion,
and TINT they are responsible and elinble.
| In times of financial embarrassment and
/ pressure, such as we are now passing
through, it becomes us to practice MS much
fOrbeHrnuce as possible in our business in
tercOurse and arrangements, that the evil
may not he unnecessarily aggravated
Confidence has been shaken to great ex-
tent, but this was to have been expected.
1t is plant Of slow growth, aud charity,
torbearauce and prudence is required to
prevent it from being uprooted and de-
strOyed In communities where the credit
system prevails to so great an extent as it
docs here, We must be ecautiOns, or we will
involve NIL in n common ruin.
Several reforms are necessary, in my
1 opinion, in our banking system. We
ought to abolish all notes Of less de-
nomination than twenty dollars; but this
should he done by degrees, and with the
utmost caution. 1t is, reform that will
require time to accomplish; but as it is a
necessary reform, our attention should be
directed to it, and it should be provided
for in the renewal of the charters of the
banks. Its effect will be to infuse larger
amount of specie into our circulation, and
to protect those in the community who,
I from their want of familiarity with bank
paper, are most liable to be imposed upon
by counterfeit paper. From 1907 to 1919,
period of twenty-five years, the one aud
two Puund notes of the Bank of England
were allowed to circulate, aud according
to the returns made to parliament, it is as
certained that the number of prosecutions
! for cunntccEaitinn. or nassinr cnuntn-fnit