Daily Richmond Whig. [volume] (Richmond, Va.) 1861-1862, 1862-02-05
BANKS AND BANKING.

To The Ehtor 81 The Whiy.
Tho subject Of the currency and banks aud banking
being uoder consideration in the L.gsla,ure somc
tracts from work published In Philadelphia in 1889 by
Stephen Caldwell a native OF Virginia, gentleman OF
great intelligence, large practical peri nee aud who
has few superors in tbi any Other age 10 the dtsI
Of political economy, will doubtless be Interesting TO
your readers II you deem the,e extracts Of cisnt
value to justify their publication may send Others cqus
ly appropriate. NEChAD.
From work entitled "tbe ways and u,aas CT pay
ment full analysis OF the credit eye, m With vIiOu,
modes OF adjustment by stepaon Cad.eil, Phi!sds
phi 1853 "Tho superior working Of the Scot h Ia ki
system whether judged by Its history CT - pssseIt p
ston, snd however reluctantly the adm sion msy 70
made il iucontestibls r.; few failures Of 5,lks tso
place in Scotland, (OHIy fSs Of 'ik ~ esaLay ~!
mare than teo hare failed u pay their dp7Sit, 0"G t.-r
circulation. The Of 1857 may prcrs Be "a,
,,ors and these have tor tue par osen dstrJGs
only 10 the stockholders. The Banks of 500 lacd
have inf c;ed any heavy losses upon the people
they have never, directly Indirectly, spread dsssier
ard ruin over the whols community in which Ih5y sTe
pac they have never contracted their issues 80 rap D.
y as seriously to rjrre their cus,oners they have raw.
er suffered any general d'credi;, by ci their
,
cessation OF business from in ,1ted cirlul, on. Whca
the Bank Of England obliged, in 1897, TO hro~ It,
self upsn tie protection OF the Government a.t accept
from the Pivy Council orter rot to piy speoie tbs
Banks of Scotland asked such order, and E.Gdo
change in their mode Of business. Yet there
run for gold upon the Scotch B INKS This is fully
kaovedsed in the report Of s.ec. committee to the
House Of LORDS in 1896 1T "a proved by the evidence
aud BY the documents that the inks Of Scotland ~heh
chartered join! stock companies or private establish
nents have for than century, exhibited s.abil'
y which the committee believes to b. IMPLIED in the
history Of banking; that they supported ihemsslses,
from 1877 to 1872, without protection from tie
restriction, by which, the Bank Of Elgar d,
and that of Ireland, relieved from cash pay.
mens tbs. there little demand for grd dlrng he
late endorsements in tho circula.ol ia 1926 AID
that In the whole period of their Establishment there
are not than three instances o. blDkuup'cy.
As during the whole OF this period large portion Of
their issues consisted sDos. entirely o. 81, sl s
b IL the strongest for oolclu ling ,h,t far
as respects the banks Of Scotland hs issue of paper OF
ha. denomination has been found compatible with the
highest degree Of ity and that there not there.
FORE while they conducted on the system SUI
fcent ground for proposng any aerlt Oh, with view
adding soldity which has btel 20 long sptci,uy
established" [See pages and t. Lords r. ports 1879
The committee bear in tho rspoFi emphatic nUi.
nony the advantage of cash creds aud a.o the
Of receiving deposits Of small Gums aud Of Isyirg
on the about per cent. below toe c1ren, a:e
Of interest" See the wsys and means o. payment pages
1874.
Should this extract be deemed worthy Of insertion,
will send you others of equi grear interest your
readers. y.