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

the loan, or be MuSb go 70 Daltimofe WIZ
the notes perhaps Of that bank, and pas
them to broker at loss of two or three
per cent. to procure Baltimore funds to TAKE
up his note. This, surely, is neither JUS
nor right. I recommend, therefore, tina
this policy be prohibited by law, or at leas
that the party be allowed to redeem his OBJ
legation, by requiring the bank to receive
its own notes IN payment in all cases. Thi:
policy places an onerous burden upon tn,
borrower, which is unjust in the extreme
and it ought not to be permitted If A
holds my note, and I hold note Of equal a
mount against A, the law authorizes ME tt
set off AS demand. Why should i not BE-
so with the banks
Third-I would prohibit the banks from
dealing in exchange, and would require
them to furnish it, not at par, but at what
it cost them. The rate of exchange between
Virginia and New Y5sk, in ordinary times.
when the banks are paying specie. seldom
ranges above the half of one per cent. which
is about the cost Of transporting specie be-
tween the two points. If the banks were
denied the privilege Of dealing in exchange
and realizing profit, it would take from
them the temptation to confne their loans
to those who pay in Northern drafts, and
their accommodations would be diffused more
generally amongst our own citizens. Our
banking capital would thus be used for tie
accommodation Of our own people AS it
now is, much oft is used for the benefit and
advantage Of citizens of the Northern cities.
Lastly.-1f the policy of discounting
Northern drafts is to be continued, | re-
commend that it shall be restricted to sach
drafts as have only short time to run, say
sixty days. Many of the Northern drafts
that the banks are in the habit Of discount
ing, if have been correctly informed run
from four to six months Ths is extend
ing Southern credit to the Northern agent
He is using the funds Of Southern banks for
his own advantage at the expense and in
jury Of our own citizens. Our banks were
created for the benefit and convenience of
the people Of Virginia. IF the Northern
agent wishes to purchase our tobaeco, or any
other article we have for sale, let him come
prepared to pay for il. Change a policy
which thus makes the South tributary to tho
North. No policy, financial or ether should
be encouraged to strengthen and build up
the business ofthe North under present cir
culnstances, at our expense
| recommend a divorce of the State from
the banks; and in making this recommends
ton, desire to be understood as striking
no blow at those institutions It is meas
ure demanded alike by wisdom and prudence
and the interests both of the State aud the
banks. | can conceive of no system which
is so well calculated to restrain the banks
from the excessive issues, and to confne
them within prudent and safe limits, and
which at the same time will tend to the en-
largement Of the specie circulation of our
State. Where there is demand, there will
necessarily be supply in any article that
may be required for the comfort, the con-
venience Or the business interest ofthe COM
munity. The amount collected by the va
rious State governments (and mainly in
bank paper) is about the sum of $50, 0O0,-
600 annually. Our revenue amounts to a.
bout SIS, $50, 600, in round numbers, aud
If collected in specie, it is plain to the COM
monest understanding, that it would exert
a powerful influence IN restraining over is
sues by the banks, and thus prevent over
trading. 1t would prevent the deposit banks
from discounting on the faith of the revenue,
collected by the State, IN the notes Of her
various banks. and which are Oh deposit in
their vaults. This stimulant to overtrading
being withdrawn, we would have health
Ter aud more uniform circulation.
The adoption Of this policy would result
IN retaining in our State sufficient amount
Of specie not only for the purposes of the
government. but in time of bank suspen-
sions, would furnish sufficient specie for the
ordinary transactions of the people. The
divorce is demanded by principle and poll
cy. The connection involves the State as
d partner ia The misfortunes of the banks;
and whenever the law is violated by the sus-
pension of specie payments, the fact that
the State is stakeholder, induces the Leg
stature to look upon the act more favorably
than would be the case, perhaps, if she held
no interest in them. Whatever is calcula-
ted to impair or destroy independence in
legislation, must sooner or later exert an
influence upon the public inter
ests.
Entertaining very decided convictions on
this subject, felt it to be my duty, in the
canvass which preceded my election, to avow
my opinions freely and frankly, and to de-
clare my purpose to recommend the adop-
ton Of the independent treasury system to
the consideration of the Legislature. The
recent suspension of specie payments Ga re-
suit did not then anticipate and the diff
6cultses that have attended the arrangements
for the payment Of the States seni-annual
interest, growing out Of the hostility exis-
ting between our two systems of banking,
shows, in my judgment, the necessity for
adopting this policy at as early day as
practicable, consistently with due regard
10 the interests of the Commonwealth, ari-
sing from our ownership of stock in the
banks. So long as the connection between
he State and the banks exists, those banks,
which receive no portion of the State reve-
1ue, will complain. Of the preference which
las been given to tho three banks in this
'ity, as prejudicial and injurious to them,
md will always protest against any demand
hat may be made upon them by tho State,
beyond the redemption of so much Of their
PAPER as is received in payment Of revenue
As between the systems, we should not ex-
libit preference for one over the other
Let the State manage her own affairs in her