The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1861-01-08

Ceasdriiy aggravated. commence naS nfeH shaken
to great extent, but this was H. have been ex
pected. Ii Is plant of slow growth. and charity
f"rbearance and prudence % required to prevent
it from being uprooted and destTo5 ed In comlmu-
ties wnere the credl prevails to so great an
extent as It does here we must be cautious, or we
will involve all in co,nmon ruin.
Several reforms are necessary, in my opinion.
in our 81 stem of banking We ought to abolish
all notes Of a less Denomination than twenty dol
lars; but this should be done b. degrees. and with
the utmost clution. Ii Is reform that VIII re-
cure time to accomplish 6ut as II Is a. =, o.
it should be provided for in the renewal OF the
charters Of the banks. Its 9 feet will be TO muse
4 arker amount of specie into our crcu iation, ana
to project those the Community who, from their
want of fal iliarit, with bank paper, are most
From isHon i7a y to i,is period Of twenty years
the one and two pound notes Of the BANK OF Eng
the returns made to Parliament, It Is scertaned
that he number of prosecutions Tor counterleitns
land were s9s and OF that number. there we're sig
ca pita convictions, $50 inferior convictlons ana
' osar million and quarter Of doilarsJ was TX
pended BY the bank In attending 10 THESE Pre-
tons The fetEsns sn"w anio 81 we're
with he one and two poung n0tes Inc deiections
the T fSn t i15 1T dss Of
10th 1873 were Of one pound notes ~ 20 oa .toG
pound notes o OF re poand pd mHass,
and of all above ttcsnty pounds. 50. rms covers
only Years out OF the twent, pnt ~, I'VE
mail notes. A reference to any Telabie counter
felt detector will SHOW that the editions OF coun.
banks, of ten dollars and under, are more than ten
to one of the editions OF twenty dollars ana up
wards. These striking facts are extracted from
speech made some years ago, by one OF our best
IN Informed state smen and they well deserve to be
pondeTed in your cons Iteration OF the question
If YOU shall come to the conclusion that no notes
Of a less oenomination than twenty dollars should
be issued BY the banks, you viii OF course pronlblt
the ctcu aion of notes OF other States, OF less
Second~A custom prevails through bout Virginia,
ne hal all the which their loans are
confined, TO a great extent, to those persons who
offer drafts on northern cities. MS pohcy 49,
IN my OPINION not only unjust TO the conmunitJ,
but II is unsafe to the banks so long as The specie
of our banks Is kept In New Ioik. or other north
ern cities, TO lie draw a. favor oil the holders
of their notes, Wa perfectly at the mercy OF
tnose banks. if from any they susi end spe-
Gle payments, necessarily compelled To
SUI end ass. This was The case IN 1881 Zach
bank should be the custodian Of it's own fund.-; 5ut
while this policy pl evalls 1t cannot Le. We need
a greater specie circulation; out this we can
never have long the vault OF our bak s con
most of which are pa, abe out of the State. rom
such btls ami ties very little gold or silver Is
bfuu hit into the ate And besides, the tank
which pursues this policy. from the nature OF the
have very limited KIM Wedge OF the pc
u Of the DAFT Would It hot Be SAFER and Iettsr
eli pot tn IT means III discount.Ls the paper vi
IN 50 no are pefsoua, snow 70 'he " b 'n ns
-bii,y To meet 1t a. maturity tney reiuiI, al
vIseu
ere is another objection to this policy, which
| will Illustrate. AN Individual boIruWs say % OOU
IRON IF cur tanAo, psJabe IN bait.inoie
tier his note has Ia d. iou"ed, ne banks GUS
pend specie pa n.ents. When The note III ,tu es,
he must procure eAchinse LON The bank tEat
made the luau or must 90 to ba with The
potes perhaps vi tnat hank, anu pass the.i 10
DioAer AZ of two three per mt ~ rrocu'
paitlmo e funds to take up MS nJte his surely
is neltue. just nor rlsht Recommend, therefore,
tnrt Ihis policy Ue prohibited Dy Jaw, or, at least,
mat he pat, te allowru 10 redeem obligation
10y requ ing tho bank TO Tecelv, Its own Notes in
pa, mt cases. L MS polcy places an oner-
o,s pnrden upo tue borrower, wnlcn IS unjust Il.
III I an mt II ha a n fte0 II A
hO.ds ny Aote, end L 10 a note c1 coda AMOUNT
aInst ne law authoilz HE 30 se1 oil r.. ue-
mand W h. sHOdlu IL not be 4 VIII the DdnAs:
Tard would VI ohibt he DALks tiom dealing
Ia oxohanse, aud w,uL Toqlire hem t. III fnlsn IT,
not at par, but at wnat IL cost them. In rate OF
exchange between Virs Ma anu New orb IN OF
~lnar, times, When the banks are paylig specie,
when about the cost of trans porting specie be
tween the two points If the banks we're aeniec
the privilege OF dealing IN exchange anu reailz rs
u p..ht, II would take iron them tue temptation
To hue their ioais 10 those who pd, In II rtheI
drafts, anu their accommodations would be iii
fused IN re genes all, AMONGST our own cltlZons.
Oar banking capital would thus be used Tor the &c
mu n OF it used tor the Deneht and ADVANTAGE OF
cILlZ lis vi sne no thern cities.
LuNsty-1f the poiIc, OF uIscOuntIng northern
drafts 10 be continued, recommend that 1t shall
Je restricted To such uraits as hav- onl' a snort
me to run, say hlxty days. Many of The mort. Elm
diaits that the Oanks are IN the habit vi discount
ing, If have been correctly IN ormed run 1fom
four 10 SIX months. lhis Is extendlns southern
credit TO the bUItheTn agent. He Is ueIAg The
funds OF southern banks Tor hts own advantage at
the expense and INJURY OF cur own cltizens. Our
banks we fe c. eateu the be eft and convenience
q The peupe of Virginia. II The northern agent
wishes purchase our tobacco. or other aTtl-
Gle wo have tor ga q let hlIn come prepared 20 pay
Tor II. Cnange a ponCy which thus naaes the
south tributary ~ tue north. No poncs, hLanciai
OF other should be encouraged TO siren stneu auL
Uuild up The business ut the north, under present
c circumstances, at our expense.
/ recommend a aivorce of the State from the
banbs s; al d IN making THIS recomnie lion, de-
sire To be Understood as strlklng no blow at those
institutions. II Is measure demanded ahKe by
VI Snn and n
the State and the bants can conceive OF DO sys-
TEN when Is well calculated TO restrain the
banks Il on excessive issues, and TO conhne tn. IN
within prudent ana sale limits, and which at the
same time WILL tend to the en- argement OF the spo-
maud there W Iii necessarily be a supply In any
ticle that may be required Tor The comfort the
convenience the business interests 1T the CON-
munlIy. The amount collected hy the various
s tate governments (and MAINLY In bank paper is
ABOUT the sum of S6U,00JtUO annually. our Teve
amounts about 1883 600, IN round num-
Ders, and collected Ia specie, IL Is plain to the
cummonest understanding, that II would exert
powerful influence IN RESTRAINING over rsues by
the banks, ana thus prevent over Trading. 1t
would prevent the deposit banks from discountlng
on the faith OF the revenue, collected by the ate
In the of ner va Ious banks and when are
ON deposit IN their vaults. has sumuaDt to over
trading being Withdrawn, we would have health
Ter and more uniform circulation.
The adoption OF this policy would result in re-
tanning In our State suffielent amount OF specie
not only Tor the poses of the government. bnt
a time of bank suspensions, would furnish sufi
cient specie tor the ordinary transactions OF the
people. The div orce ls demanded by principle ana
policy, The connection involves the State a
partner In the mlstortunes OF the banks; and
Whenever the law is violated, by the suspension Of
specie pay the fact that the 5 ate a stock
h,.aer, induces the Legislature to look upon the
act mon lavorably than would be the case, per
haps, ii she held no interest IN them. Whatever is
Calculated to impair or de stroy independence III
leg slation, must sooner or later exert injurious
Idhuence upon the public interests.
Entertaining vers decided convictions on this
sgjeot, ie,t il to be ny dat,, IN the canvass
freely and frankly, anu TO declare nay purpose 10
recommend he adoption OF tne independent trea
sury system 10 the conside ration ol the Leslsa
ture. The recent suspension OF specie pdj nlents
Ia result did not then anticipate ana the dm
cultles that have attended tne arrans edents iIr
the pay ment of the States semi annual interest,
growing out OF the hostility existing UetWeen our
TWO systems of OanAlng, shows, In my judgment,
ths necsssIty Tor adopting This policy at early
d y as Sractcahie, Con -lstently VIII a que regard
To the interests of the Commonwealth.arlsIng from
her ownership of stock the banks. SO long the
connection between the State and the banks exists,
those banks which receive no portion OF the State
revenue will complain of the preference which has
been gwen to the three banks In TINS city, as pre-
i"I|ciai and INJURIOUS to them and Will always pro-
test against any demand that may be made upon
them by the State, hey ond the redemption OF SO
much OF thsr as the systems w n OF
exhibit a preference Tor one over the other. Let
the State manage her own alialrs IN her own way,
and leave the banks to manage theirs, subject only
to the requirements OF the law. Inc divorce cl The
state from the banks viii remove one ground OF
jealousy. Let the two 81 SteIllS demonstrate their
relative ADVANTAGES.
Against this policy many objections are urged
some OF the more prominent OF VIII en- propose To
notice briefly. Most OF these are tile same objections
wLIcn 5ed AGAINST the adoption oil The INDIE
pende treasury stem by the ederdl government
hen this great measure was proposed IN Cons TesS,
It's opponents iuiiy satisfied that the eHect OF
such policy would he ruinouS, and serious appre-
tensions were telt and expressed Dy the nld of Its
friends. The measure was pressed, adopted, and
after an experience oI years. very few would be
willing to the Old stem, and 1t
the settled poIcy OF the government. l can see
reason why the adoption OF like poilcy by The State
would not operate equally as well, ana produce
suits equally as satisfactory.
the first objection Is, that 1t would operate OPP
pressvels upon the people, In thls-that they cou
not procure specie enoueh to pay their taxes. The