The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1868-12-08

ascer.eining the amount of deposits upon
which they must hold q reserve, OF apoh
which they must psy taxes, the oanks 'i W.
riably deduct all such checks On manu. nl ~.
instance, on the drst MONDAY OF ossS sa
they reported Individual depossts' SEA;
l70. 900: but deducting checks on n 1
sl1a 500, 900, they had actual deposits 0,
sI1I' $40, 900. Taking the call loans ana
the certified checks together, the somewhat
startling fact is developed that the New
York national banks furnish 100000 of
capital and $4,000, 900 of credit for specu-
lation. The use Of certified checks is di-
rect imitation to that extent, which stlmu-'
lstes the stock market, and keeps the price
Of a large class of miscellaneous securities
much above their actual value; so that the
market is feverish and fluctuating, and
slight stringency reduces the price.
"Taking advantage of an active demand
for money to move the crops, West and
South, shrewd operators form their COM
biuations to depress the market by locking
up money, withdrawing all they can con-
troll or borrow from the common fund
money becomes scarce, the rate of interest
advances, and stocks decline. The legiti-
mate demand for money continues, and,
fearful of trenching on their reserve. the
banks are straitened for means. They dare
not call in their demand loans, for that
would compel their customers to sci! securl-
ties on o falling market, which would make
matters worse Habitually lending their
means to the utmost limit of prudence, and
their credit much beyond that limit, to
brokers and spectators, they are powerless
to afford relief. Their customers. by the
force Of circumstances, become their mas
ters. The banks cannot hold back or with
draw from the dilemma in which their
mode of doing business has placed them.
They must carry the load to save their
margins.
GA panic which should greatly reduce
the price Of securities would occasion seri-
GUS If not fatal results to the banks most
extensively engaged in such operations, and
would produce feeling of insecurity which
would be very dangerous to the entire
banking interests of the country. The fact
that a banking interest with capital and
surplus of 100000, 900 can be, and has
been repeatedly, placed at the mercy of
few shrewd, though bold and INSCRIPTIONS,
men is evidence Of some inherent defect in
it's management, and the foregoing state
ment may serve in some degree to show
where the error lies First, in demand or
call loans to brokers and spectators on col
lateral security, by which nearly one-halt
the active resources of the banks are used
directly to foster and promote speculative
operations secondly, certified checks or
loans of credit to the same class of men,
whereby stocks are inflated, and immense
operations are carried on daily upon fcti-
!tious capital; third, the payment of interest
on bank balances, which, being payable on
demand, must be loaned on call in order
to avoid loss." .-.s. .s.
Under the head of specie payments the
Comptroller says: --.
"The subject of specie payments natu-
rally comes up whenever the currency ques-
ton is discussed, and much ingenuity has
been exercised in devising plans for an early
resumption. The principal obstacle to spe-
Gle payments may be found in the statement
of the public debt of the United States for
the 1st of October, 1868, under the head of
debt bearing no interest," as follows
United States notes, 1856, ,073; frac-
tional currency, s32 1888, 614.17; making
together, s3SS,954,6s of Government
notes circulating as money and designed to
take the place of gold and silver by being
made legal tender for all debts, public
and private, except duties On imports and
interest on the bonded debt. As long as
the people prefer an inferior currency, in
ferior because irredeemable, and incon-
vertible except at heavy discount, they
will have it to the entire exclusion of the
precious metals.
"Whenever the people conclude that 1t
is more economical to conduct the business
of the country on specie basis, they can
ordain specie payments by making provi-
sion, through their representatives in Con-
gress, for the payment or withdrawal OF the
present deprecated paper currency issued
and kept in circulation by the Government;
and whenever the people wish to restore the
credit of the nation they can do it, through
their representatives in Congress by re-
moving the only embarrassment that stands
in the way, by directing that provision shall
be made for the payment of floating in
debtedness amounting to 1888 200, 900, con-
sisting of promises to pay that are never
paid, and to establish the fact that the
United States is q solvent debtor, able and
willing to pay every debt as it becomes due:
Specie payments and the restoration OF
public credit are within the reach and de-
pend upon the will Of the people OF the
Uuited States. :,
The report closes with the following allu-
sion to free banking whenever Congress
shall inaugurate measures looking TO the
appreciation of United States notes to gold
standard the effect of such measures will
probably be to diminish the volume Of such
notes in circulation. To what extent the
reduction would have to be carried in order
to place them permanently on specie ba-
sis would at present be mere matter Of spe-
culation. Doubtless large amount might
be carried, with profit to the Govern ment
and with benefit to the public, as soon as
the effect of such measure becomes appa-
rent, by the gradual approach of legal-ten-
der notes to par with gold. The restric-
tons imposed upon the issue Of circulating
notes by national banks may be safely re-
moved, provided the establishment of CEN
trail redeeming agency in the city of New
York, at which all national bank notes are
redeemable at par, shall be requir ed by
law. Any inconvenience resulting from
reduction of legal-tenders may thus be re-
medied, and the remedy will be in the
hands of the only competent judge of the
necessities Of the case, the business public
of the United States"
Report of the Department OF Agri-
t- culture.
From Advance sheets of the annual re-
port of the Department of Agriculture now
ia press, but not ready for distribution be-
fore January. the Newark Advertiser gives