The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1878-07-24

d this view OF the subject It Is
obvious that circulate onia 10 a country bank
what deposits are to city bank. mere
dense and banksafe accessible
i'll cash balances go into bank and consti
ute deposits, SO that no consid bic cir GU
!ation is ontstandin Ing but where population
d sparse and communication irregular, OF
slow and infrequent, where banks are lew,
and distant, everybody needs TO keep sup
ply of money about him. Hence in such
there, is always an outstanding
but there are few deposits. II
wiitnow appear why national banks are NOT
adapted to the needs OF agricultural COM
munities, and why, especially, they nave !,
not been established generally IN the SOUTH.
AS hard as we are trying to build up osner
industries In the South, that section WIN re,
main, Tor some time to come, an agricultural
country by distinction. -.
The chief objection one hears when this
subject of State-bank issues is broached Is
this: Your State-bank note couia not NC
passed elsewhere in the country except at
discount. That disposition TO stay at home
Is eractiu achat zoe acdnt. II any one Will
take the trouble to look at the weekly state
ment of the New York banks he Will see
marvellous resemblance between the aggre-
onte Of country bank balances and the call
ioant item: in other words, these country
balances, which constitute large portion OF
tbe !" reserve" required TO be kept by these
banks, are the chief pabusun OF Waii-street
sueculation. when that money ought TO De
nj home doing work for the customers OF
those country banks. The truth IS, u Is i
matter OF nerfect indifference to US Whethef
our money will pass in Maine or Alaska OF
NOT. II we have business in Maine or Alaska
we will be careful TO provide ourselves Win
something those people will take-say gold
coin. or whatever else they fancy. Neither
Green backs nor national-bank notes have
ever nassed current either in California or
Texas. Let the man in business IN San
Francisco dare to tender greenbacks IN
payment for his note; II he does ne had
better take his sign down. He is looked
upon with the same horror that man
is who pleads usury. On basis OF
three dollars in notes to one OF specie
in the banks vault, this currency Will pass
readily in Virginia-indecd, be esteemed as
such notes are esteemed in Scotland. where
we see only five per cent. OF the currency
is coin, and where "this paper is universally
preferred to coin." AS far rs we know, IL
is not usual for anybody to refuse to re-
tilted check of any respectable bank. When
a check is certified 1t become wholly the
banks obligation. Why then take the note
of such bank, fortified as we have shown
BY such reserve in specie, with more re-
lnctance than a certified check? These
notes would both induce and buy farm pro-
ducts, and pay wages in the conversion OF
these products into manufactured goods,
and these goods sold to other people would
give us all the money OF those people,
through bills OF exchange, we would need
in our transaction with them. Major Daniel,
in the speech above referred to. observed in
this connection:
Il am told that it would be inconUenient
for man in Virginia to have his pocket
full OF State. hank notes which lie could not
pass current in Baltimore, Philadelphia, or
New York. Yes, truly. But not half so
inconvenient as to have nothing In his
pocket that is passableIn Virginia; not half
so announcement as to have TO pay twelve or
twenty per cent. for loan to be used here,
when State banks could let him have it, il
permitted, at six per cent; not half SO IN
convenient as to have nothing TO pay taxes
with, and nothing 10 buy food or ralmcnt
with at horne.'
Our present bank facilities in Virginia
amount to the merest bagatelle. How much
Of such facilities obtain in the magnificent
country living between LyDchburg and Brls-
toll? Providence takes care that the blue.
grass is provided to make beef; but the
owner of that bluegrass must see 1t grow
ND and fall down without the ability to
command the money, except at ruinous
rates, to buy cattle to put on and eat up this
grass. His estate may be worth 100000;
still he cannot get money for less than
twelve to eighteen per cent, and this eats
up utterly all the profit on his cattle. Or
what avairis his enterprise, and how can
lie become producer OF taX-paYing values
Is no other portion OF the State in the same
fix? Let each man make the inquiry Tor
himself. The exercise will do him good.
We are constantly hearing Certainly for
the last three years. the Financial Chronicle
and other papers Of like character North,
talk about the good times diScoveraDle IN
the eye OF the near future" We see, also,
the Secretary OF the Treasury fitting about
from point TO point, doing his best to boz
ster up things; and still failures Involving,
during the past six months, hundred and
thirty millions of dollars) keep on occurring
with the utmost and most appalling regu-
larlty. The strain OF ten to twenty per
cent. interest for money cannot last forever
lis fruits are being borne now by the whole
sale. .-......
The article you reproduced last week
from the Charlottesville Jefersonidn, in
our judgment, is absolutely unanswerable.
There may be- greenbacks by the bushel,
but OF what avail are they il VIC can't get
hold Of them. We want the Governments
name only on the ''coin OF the realm" 1t
has no business on a promlSe-to-pay IN
the shape of circulating note. So we
would like to see the last Sreenback and
national-bank note utterly wiped out and
replaced by the notes OF State banks on the
basis suggested everywhere.
When a country's business goes entirely
to pieces under the operation of system
of finance, we have, or ought to have, in
this fact demonstration that the system is
not good one. If the present condition
of this country does not afford such a de-
monstration, then we have no more to say.
Your obedient servants, 0. AND 2.
10 the Editors Of the Dispatch:
Dear Sirs,-In your editorial notice OF my
n otn D1,hIiehed in vo11r Issue oP lie 20Q in