The Valley Virginian. [volume] (Staunton, Va.) 1865-1895, 1871-01-19
BANKS.

The Legislature, on the 18th, finally pass
cd an act Incorporating the Bank Of Virginia,
which is to be located at Richmond, with
power to establish branches in other parts Of
the State. Jay Cook, the Washington bank
er, is one of the incorporates.
There have already been incorporated, in
the State, FIVE Or six banks upon the same
irresponsible principle that lies at the base
of this proposed institution. Jay Cook him
self is, doubtless, a very shrcwd, and to all
appearances. is very responsible man, But
shrewd men do not always maintain their
responsibility. Their reputed wealth is just
as likely to 60 where the ''woodbine twineth,"
as the irrepressible Fisk would express it, as
that of other persons not regarded as so well
yersed in the sleight Of financial transactions.
These charters do not guarantee and protect
the note holde. or the depositor. The banks
are not required to report to any body. 1t
is optionable with them to make quarterly
or any other exhibit, or not. If their con
dition should be fourishing, they might
probably make it. If it were not, they would
scarcely go to the trouble to let the public
know the fact. To the event of adversely
or if the bank did not pay the stockholders
what they considered an exhorbitant remu-
neration for their supposed Investment, it is
very clear, from the past history of all such
institutions, that the stockholders would save
themselves, and the note holders and deposi-
tors be allowed to pick up the crumbs. Why
does not the Legislature incorporate into
these charters, provision similar to that
recommended by Governor Walker, in his
annual message requiring the officers of the
bank to mako quarterly reports to somebody
and to publish such reports, so that the pub
lie might have a knowledge, of their condi-
ton? The idea that Jay Cook or any other
capitalist, contemplated relief to the people
will not bear the test Of argument. They
engage in these operations for their own ben
eft, and not that of the people. Not satish
ed with the outrageous and ruinous rate OIL
II per cent. for their money, they organize
for tine purpose of squeezing out Of the PEG
pie 20 per cent. No business community car
stand this. Every days operations hastens
the inevitable result of individual bankrupt
cy, smother it up as you may please.
The National BANKS are bad enough, bu
they undoubtedly secure the note-holder GER
tainly, and the depositor probably. They
are required to deposit 100000 in United
States bonds at Washington, before they cal
get 100000 to operate on. They are bound
by law, to keep reserve on hand Of Is pc
cent of their deposits and circulation and
although they shave to the very marrow
bones, there are ample safe guards agains
loss to the note holder, so long as the Unitet
States bonds are good.
Upon the hypothesis, (and it is safe one,
that no business community can pay IL pc
cent for the capital they use, it is plain tina
the National Banks are an evil, and that bu
siness conducted upon capital obtained from
them rests upon very fimsy and shaky basis
To add to these, a system Of irresponsible
banking, where depositors and note-holdcr
have no substantial security, is laying.th
foundation for untold financial dist,e ss an
eventual ruin
1t is simply duplicating the wild cat" an
'stiger" system that flooded the western States
previous to 1857, with an irresponsible pape
g currency, and which greatly contributed t
the disastrous financial revulson of that pc
Rod May not our law makers learn at leas
a little practical sense from the history Of tn
past The farming and laborlng communitie
are those who ually suffer from such wild an
thoushtless legislation, while they ,ofall Others
should have safeguards thrown around thei
interests, for they are the substantial hope c
the country. The s'sharpers" can take care g
themselves, without having the sanction c
law to aid them in mercilessly fleeing tn
people.
Mr.. HANGERS Billion the 18th in tn
House ofDelegates the house bill to amend tn
act to authorize subscriptions to incorporate
companies by certain counties, was taken uI
the question being on Mr., Hangers substi
tute for the same.
Mr.. Thomas offered an amendment to tn
substitute, requiring three-ffths Of the regis
tered voters in any county to authorize sui
scription, and advocated its adoption.
Several gentlemen followed, both for an