The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1878-03-12
Real-Estate Bank.

MIR. FuLKERsoN) has introduced into the
Virginia Senate bill proposing ''to issue
upon State credit currency OF S3.OOO,-
8. 900, to be distributed through bank in
Richmond and various branches therein
named, so that the benefits may be fairly
8. distributed through these branches all
;: over the State. The borrower will obtain
3. one third OF value OF the real estate
!" pledged, on which the bank will have
I" lien of the first dignity"
We have not seen the bill; but this sue
cinct statement OF its main points we have
no doubt is correct for it is given in COM
municatiou signed "R. NJ. T. H." the
initials OF Mr.. HUNTER, Treasurer OF the
State, who is the author of the system which
the Washington Senator's bill proposes to
vitaize by law.
Ii it had been intended to bring before the
public in bold relief an Illustration Of the dis
astrous consequences OF the destructive
craftsmanship which has for five years
tended to ruin the public credit Of Virginia,
it could not by any other means be so sue
cessfully accomplished as by proposing "to
"issue, upon the credit Of the State of Fir-
81 qinia, currency" What would it be
worth? The loans, it is said, are to be Sc
cured BY land at one third Of its value And
what OF that Are notes OF circulation taken
and trusted because Of the security bank
that issues them takes from the borrower?
Not that we have ever known. Banks get
credit in the community by having their
capital stock paid in, and paid in with "good
money!" That and the reliability of the
men who manage them were the causes Of
trust in banks and their currency. The
banks of this time are based on Federal
bonds, which are pledged for the redemp-
ton Of their own notes. But cur Virginia
proposition Is that Virginia herself-poor
old State-shall herself print and issue,
through banks, the currency. In the mat
ter OF such currency there may be conflict
with the Federal currency laws, but it is Of
no use to discuss that now.
This is the unsecured currency that
would present itself boldly to the public
and offer itself as the medium for the pay
ment OF personal debts. 1t cannot have
credit while Virginia herself has none.
And Of what service would it be? What
assurance would the land security give to
the note-holder? He would hold paper
moaey which would be interconyertible
with nothing, and secured by negotiable
notes based on mortgages upon land which
could not be saable until the restoration
OF the public credit. A circulating me-
dunn depend ding upon such security would
he utterly useless to commerce. 1t would
be so, no matter what State issued it. But
the currency based on the credit Of Vir-
ginia-a State whose credit has been ruined
By lawmakers who have been making laws
for the promotion of party ends instead Of
for the good OF the Commonwealth-wh he
state not to pass laws that would keep them
selves in power and yet steadily impair the
public credit and the public peacefully
what faith would there be in poor old Nir-
ginia's g currency? Look at her bonds
in the market! What a shame to us all
How can a yirginian hold up his head at a
sto OK board where Virginia skies rule at 81
and 56 !?
Virginia has promised and reafirmed her
promise to pay her debt. Afterwards she
settled with the creditor by transferring
third OF her debt to West Virginia. Still
she failed to redeem her pledge, and for
three years the men who hold an obstruc-
tive position have essayed to avoid the laws
that require the State to provide for the in-
terest upon her obligation. To put forth
such proposition to issue q currency based
on Virginia credit, at such time, would
seem TO be a noekery OF the public creditor.
It can do no mere than bring ridicule and
reproach upon the State.
For q bank to maintain this Virginia cur
rency would be q feat somewhat like one
lifting himself up and holding himself az
arms length by grasping his coat-tail The
currency could get afoat through mortgages
on land but 1t would be a lively business,
J. the redemption Of this currency. This.
proposition reminds lis OF tho faiioW-candies
i pss iHto q pump kin-head, or hight In 81
i skaisfon, fhas only shows as fits Isielessness.
And salis preposil lion comes from 4 leader