The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1866-05-09

on exception, they are men WHOM VIC ha'e
learned to trust and confde in as honest,
capable, experienced, and faithful; and
the new ones must either be worthy OF
their confidence and association, or they
themselves are not the men We have taken
them to be. We are sure that the former
would violate no law willingly, and that the
latter cannot do so without their connivancc.
They are gentlemen in whose veracity we
have faith, and they assure the public that
they have never charged more thanthe legal
rates of discount. The large profits made
are easily accounted for, being made upon,
not capital alone, but capital, circulation,
and deposits. The capital of all the Rich
mond banks amounts to S7ss,O00, while
the deposits kept constantly in them by
the Government alone have varied from
$500, 900 to s2,0O0,0OO, and amount to
nearly a million of dollars at the present
time. The amount kept on deposit by
nr;vate individuals is also large. 1t Is easy
10 see, then, that to divide the profits ac-
cruing from these several sources upon the
capital stated will indicate a percent.
made upon that capital which, while it may
Justify the charge of shaving from those
unacouainted with the facts, is really but
the legal and honorable working of the
system.
The conclusion we arrive at is, that the
note holders of our banks are absolutely
safe and that the dcpostors are as safe
as they ever were under our old banking
system. They need entertain no fears
whatever. To do so would be utterly with
ont reason. As to the stockholders, it is
to he presumed that they know what they
are about; and they may be safely lett TO
take care of themselves.
p. S.-After the above went into the
hands of the printers, we found IN the
Washington Chronicle of yesterday the
following remarks, which coincide exactly
with our own
"Now, if the officers Of the Merchants
" National Bank had not violated this posi-
q tive provision of law, the bank would not
"havc failed. The loss of twice that sum
" would not have impaired its credit for a
day. Again: Every director of a
"national bank takes a solemn oath that
" he will, so far as the duty devolves on
him, diligently and honestly administer
"the affairs of such association, and will
"not knowingly violate, or willingly per-
emit to be violated, any of the provisions
"of the law; and section tifty-thrce
of the act makes every director who par
" ticipated in or assented to such viola
/" ton liable, in his personal and individual
L" capacity, for all damages which the asso-
" ciation, rits shareholders, or any other
"person, shall have sustained in conse-
"quence thereof. That there has been
"open and gross violation of law in this
cease is evident. If the directors were
Ignorant of it, they were criminally negli-
"gent of their sworn duty. If they knew of
" it, and asSented to it, they are RESPONSE
able to the extent of their means for every
"dollar of loss sustained by depositorS,
stockholders, or other persons. 1t is diff
" ficult to frame more stringent provisions
"for the safety of bank than are found
" i'm the National Currency act. fla bank
" fails in spite of all the safeguards thrown
"around it by law, it can only be through
"the grosseSt acknowledgement or by down.
"right fraud. The law cannot make men
"honest; it cannot make them even pru-
"dcnt. The public is fully aware of this
defect in all law, human and divine, and
"the public cannot be made to believe
"that the national banking system is re-
" sponsible for this or any other failure.
"There was not single depositor who did
" not know when he deposited his money
" in the Merchants National Bank that Its
" safety depended upon the prudence and
integrity of the managers of the bank,
"the Star to the contrary Notwithstanding
" So far from additional legislation being
required to restore shaken confidence in
"thc system, it only requires ordinary sa-
"gacity on the part of directors of banks
"a simple compliance with the plainest
"provisions of the existing law-to render
"a failure impossible"
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