The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1873-09-26
Banking Troubles.

In former days, when the country was luIs
OF State hanks, it was rare that people IN ii
panic withdrew their deposits. The danger
10 the banks was from their own NOTES OF
circulation. Theywere collected and brought
back upon them to be redeemed I'D Soia.
The pcople considering that danger, were
disposed to >ymmthi>e with the banks, ana
make common cause with them. The bro
ker who gathered up the bank-notcs ana
demanded their redemption in GOLD at the
counter of the bank was regarded by the
citizens as little better than freebooter or
robber. 1t was this demand for the re-
demption of their notes that caused banks
10 suspend.
Our new banking system is based upon
the national credit, and the notes handed TO
the banks by the Government for the Gov
eminent bonds deposited by them, all have
the same credit and are received indiScElmI-
uately everywhere. They cannot be very
readily gathered up and assorted for run
on banks for gold, even if gold were now
paid bv them. But wc have seen, what was
not generally anticipated, that there Is Il
great scarcity of bank-note', and as they are
the medium of payment OF debts, the banks
find as much trouble from their scarcity as
they found.frorn the scarcity of gold in for
mer days during specie payments.
This scarcely OF notes Is produced by sew
eial causes: -,
First. The general credit of the national
currency dil'u.cs it more widely than was
possible with the currency Of the local State
institutions of other days.
Second. At p1rticr,ar seasons when the
crops are being moved this currency is re-
,uircd in large quantities III the principal.
producing regions of the country, which
increases scarcity elsewhere.i.
Third. At such seasons it has been Ia
yorite trick of. the milIionaires of the great
metropolis to llck up a few millions OF cur
rcncy in order to engender ievcriShness in
the stock and gold market, and profit by the
vibrations Of vaIues under the fckeness and
fears of dealers. This also. produces pres
sure amongst moneyed institutions and forces
colluterals at pablic sale, causing sacrifices
and always more or less Of disturbance.
Fourth. A, such;a time 2anic exctcs de-
positors TO withdraw balances, aud they, or
many of them, hiding away bauk-notes for an
opportunity, they BECOME still more scarce
in the markef. :: = 49, So.
j. is easy to see how panic under such
state of things may cause a, general crash.
The best banks ever Invented were not
proof agIin>: sudden and general oc-
masd from de ieSitoss.- The Bank OF Eng
land, it is stated on good authority, seldom
keeps mnre than eleven tostwelve per cent
of its liabilities IN cash reserves; and Mr..
BAGEHsr says that the London and Vest
minister Bank =-thet,' first Of the joint-stsck
banks ipc public estination keeps .onfs
thirteen per cent of its liabilities in cash.
So we.ses, after al. tnat; tint most striking
trait of Giyilzaliou-:taith and trust amongst
men in Ges,e another--is the snain reliance
of banking, Us il is Of esmmerce and
OF all the: civilized pursuits. Happy the
people who have his, faitli, this nutual trust
characteristic OF public honor aud individual
probity.. We, feel indeed, proud Of Rich
mond that it isas so often proved its high
title TO these virtues, - ar..-~ - -