The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1873-09-27
All Denends on Confidence.


The nrescnt system Of barking and cur
rercv Is an experiment as yet moi i"l'y
rested We have been inclined to favor 1t;
b,t we do not understand il entirely. just
n,wa serious difficulty attending 1t Is mani
tested.
That il gives Us 4 currency unquc>tioneo
and urquestopa bic. and equally creollaD'c
everywhere. is very true. But the amount
Of that currency is found to be subject to so
many yicis>tudes affecting its relation to
supply that money preS>ures appear to bc
NOR. frequent and more easily occaSoncd
than under former systems. The tempta-
tions to withdraw deposits are very easily
excited, and the moment the depo-itorS
make their demands in unusual numbers
panic and suspensions follow. There is not
enough currency in the nation to pay even
the depositors claims against the savings
banks.
At the first assault the banking institu-
lions find themselves incapable of resistance
and without rcinforcements. They may be
unqucstionaby solvent, yet it avais them
not. They are borne down as though they
were the most un>ound.
The banks hel oleSS, the community be-
come inevitably so; and what is worse. the
Government itself is threatened with failure.
Its revenue may be so curtailcd that there
may not be enough TO carry 1t on. The TO-
bacco tax, which has amounted in this city
in peaceful and prosperous times to $4,000
and $4,000 per day, has fallen down to
81 900. aud is still declining. The deprecia.
ton Of trade. the crippling OF the ability to
boy and to sell, when the pressure comes,
Under the present system, is very general;
and the means for foreign trade are as much
inpsircd rs are those tor the domestic. So
that very slight cause.-the main one being
the scarcity Of notes of circulation may
fearfully curtal the revenues OF the Govern
ment both from domestic taxes and foreign
imposts.
This presents danger that the Govern
ment, we suppose, will be compelled to pro-
vide against. The people have it in their
power almost to break the Government.
currency by drawing their deposits, and the
banks are soon crippled so that they can at-
ford little aid to commerce aud industry.
Their suspensions deprive the nation of the
circulating medium, make suspension gene
raj, and seriously embarlass the Govern
mcnt.
1t is I'LL with the people. If they trust and
confdc in the banking and the currency OF
the country, all will 20 right; if they do not,
an amount OF injury to Government and
people is done that may exceed all previous
examples.
What is the matter: That is tor the
Statesmen to consider. We have the best
currency for its universal acceptabiIity that
that it may not disappear as it were al the
moment of greatest need and greatest ap-
prehension:
1t is evident that the system is incomplete,
and that something is wanted. Is not that
something i chicf and powerful institution
that shall have the Reserves, and that may be
able to do just what every body seems to have
wanted The Government 10 do! The tnan-
cial machinery has many excellent points,
but does it not want balance heei-a
regulator?
Under the old State-bapk system, when a
run was made upon the banks for gold that
was too heavy 10 be resisted, they suspended
specie pay ments, and that enabled them at
once TO issue us much paper as was wanted.
That gave ease TO the country, and every.
thing moved as successfully and as merriIy
as could be. he people tliiyed and the
& vernlnent gathered its revenues Success
flly, Us though there hsd been no disturb.
ancc. But now failures are for the want of
this PAPER money; and every failure dimin.
Isles It's quantity, increase, the pressure,
and takes away from everybody the ability
TO pay debts and taxes.
We see, then, that under our present syS-
tenn everything depends on confidence. The
moment the people lose that, the system
binds and clogs, aud fails TO work The good
it is designed to accomplish.
the theme is interesting to the fnancier
and statesman. ard Il sret.' deal OF Thinking |
VIII ne requisite to inase the SYSTEM y hat II
should te