The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1873-01-21
More Banks-More Money,

the use OF II was tne pau u '''N
charhtaps to increase the quantity OF money
but judge COCHRAN, the distinguished sena
Tor from the august county OF Augusta
gives them the additional plan of making
more banks as an important means Of accom-
plishing their object.
On Friday last Judge COCHRAN offered 6
preamble and resolutions whose obiec; was
the establishment Of more banks. The pro
amble-the Judge Is much given to pream
bulation-sets forth that the currency is in
adequate for the demands Of development
and trade" and that the crates of interest
!" are greatly In excess Of the net value OF the
agricultural products Of the Statc,' and that
for these reasons It is "the desire of the
General Assembly of Virginia TO increase
" the polu1e Of the currency and chcdpen
"the rate: Of interest by the establishment
'",of State banks Of circulation" Therefore
heproposes that Congress be requested to
exempt Virginia from the prohibtory tax OF
ten per cent. on the circulation Of State
banks in order that Virginia may go into the
business Of establishing such banks Of dis
count authorization.
This is very queer proposition from the
party in favor Of usury law. The Legisla-
ture of Virginia has become a sort of foun.
tain of folly, and this proposition does not
help to redeem it's reputation:
lst, The appeal to Congress to exempt
Virginia from the ten per cent. tax on the
circulation of State banks Is hopeless. Con-
gress will make no exception in favor OF
Virginia (if that could be called favor with
regard to that tax. Indeed, Congress will
hot repeal 1t for the sake of one nor Of any
number of States. 1t would be great mis-.
fortune for the country were it abolished.
We have now uniform currency equally
solvent, and creditable In every State and
town of the Union. This is Il great
blessing. Those who know the per-
plexIty that was caused in former days by
the variety Of State bank notes in the com.
MERGE Of the nation can we'll appreciate the
present currency. When there were so many
State banks four-6fths OF their circulation
would not pass current ut any great distance
from home, and the business Of gathering
up those notes and returning them was a
very large and lucrative one. The brokers
bought them ct a discount and sent them
home. the discount was lurge-in the year
much more than ten per cent. upon the cir
culation, But the banks did not pay that
the people paid it.
N/g l,o
people burthened, but the failures of banks
were frequent and the te.holder was poorly
secured, being subjected TO the loss of large
per cent. upon what he held, and occasionally
of the whole of it. Now we have currency
equally creditable in all parts of the Union,
and the note-holder is completely secured.
Who wants to VeX the country again with
the oil State bank system!
%. The idea that authorizing more banks
will make money more plenty is fallacious.
1t may be likened 10 the planting of more
hydrants about the city in order to Increase
the supply Of water. There are hanks enough
already, and safer banks than any the
StAtes can establish: banks whose currency,
commerce to degree that is impossible with
State banks. We want money, not banks
If there is money to be invested in banking
capital let it be invested In the stocks OF the
present banks. The capitalists will find then
safer than State banks. The moneyed mer
know ull this as we'll as We do. Therefore
there is no money waiting for State banks
aud the establishment of such institution.
would not increase the banking capital dol
lar save, indeed, in some little place where
ring might create bank merely to give
Offices to fathers, brothers, and cousins.
We doubt whether d State bank of circu
lation could exist now ut all. 1t could no
maintain u circulation which would e,
fifty miles from home by the side Of the ma
tional currency. II would be at such dis
count that 1t could not keep ahoat.
Sd. Mr.. COCHRAN states that sit Is the de
"sre Of the General Assembly to increds
The rolun'e Of The currency and cheaper III,
"raie Of Interest by the establishment O
Estate banks VI circulation" This sentence
contains o confession that is inconsistent
VILE the views Of some who favor q usury
law. Many, with the Richmond Wing at
their head, contend that low interest makes
money abundant, and that paper proposes
one and one-tenh per cent. as best; and
why? fcourse we must infer because that
rate will afford the largest supply, or, at all
events, a supply equal to the demand. But
Mr.. COCHRAN asserts that to increase the
oolame of money is to "cheapen the rate OF
interest" Heis perfectly right. But, then,
what great error he commits in his sup
port of a usury law, echich tAprerent the in.
crease Of The uolume of money, and there
fore the reduction of the rate of interest!
One would think that IN intelligent gen.
tlenan would inevitably see the impractical,
bility Of such views as are contained in
Mr.. CocHRAN's proposition in attempting to
elucidate them. But man is by nature self.
eomplacent and very blind to the defects OF
bis own conceits.
-
The Coal Question.
There is still much excitement ut the