The Valley Virginian. [volume] (Staunton, Va.) 1865-1895, 1882-01-26
National Banks.


for the purity of the judiciary is all false
pretense and miserable sham.
National Banks.
On the Goth the Committee OF the House
of Representatives, on Banking and Cur
rency, adopted resolution, by vote OF nine
to two. asserting that the present National
Bank system ought TO be maintained. 1t is
stated that the action OF the Committee
reflects the sentiments OF the House. and
indicates that there is strong element in
that body in favor OF the bill extending the
charters Of the National SBanks. Mr..
Brumm, one of the two voting against the
resolu ion, is a Republican Greenbacker,
while Mr.. Buckner, the other member who
dissented. represents the strong anti-Bank
element of the Democracy. He will lead
the opposition to all national bank legisla-
ton, and there will be determined. yet
fruitless effort to crush them out of exis
tence. The recommendations Of the Com
mittee, participated in by Republicans and
Democrats, will be endorsed by the House.
The national bank system is as perfect as
the skill of men can well make it. 1t Sc
cures to the business OF the country safe
and reliable currency, and protects the
noteholder against any possible loss. The
volume of this currency is regulated by the
demands of trade, as the issues can he in
creased when business requires it. and
drawn in when stagnation or revulsion in
commercial activities make it prudent to do
so. The system meets every requirement
of the country, and it should be the policy
of the government to retire the greenbacks
as soon as possible. The issue OF paper
currency directly by the government is IL
able to abuse. 1t becomes party ques-
ton. and to the degree that it does so, I'M
settles business. A system which allows
the expansion or contraction of the volume
of currency, according to business de-
mands, is that which will best prevent
speculation. The present system meets all
legitimate wants, and should be maintained.
The only argument that can be reasona-
bly, urged against it. is the abuse OF the law
by the banks themselves, in the exaction
of more than legal interest. 1t is singular
evidence of the inherent weakness OF men,
that the banks and money borrowers abso-
lutely contract to violate the law in this
respect. The banks trade upon the neces-
sites of business men. and this class, in
return, surrender their rights, under the
laws, because the banks demand il. There
is no excuse for bank directors. who in
qualifying, obligate themselves to maintain
the law which creates the institutions over
which they preside, in deliberately viol.t-
ing their oaths and their charters. Custom
jnsti6es it. and nothing else does. The
remedy for this wrong lies in the Legisla-
lures of the respective States where the
banksare located. and the grand juries OF
The counties where banks may exist. The
Legislature could enact law attaching
severe penalty to the infringement of the
bank charters by the bank directors. and
the judges of the corporation and county
courts could charge the grand juries to inquire
into any violation of law. in this respect,
and when parties were found guilty. have
them to answer. the same as for the viola
ton Of any other law. The banks should
be as much amenable to the law as indi-
viduais. They have no more right to vio-
late their charters. than an individual has
to enter vault by means of burglars
u u Ia; ,far
the law.
We have heretofore urged that the Legisla-
tura enact law making 1t the duty OF fidu-
Charles, entrusted with the settlement OF the
estates of insolvent debtors. to look into the
cause of such insolvency. and if it should be
found that usurious interest charges have
been exacted, to at once demand restitu-
ton OF the mount of such excess. There
could be no defense for the banks They
would have to return the illegal profits, or
suffer the penalty of the violation of their
charters. Public policy and the interest of
community require that some such 'estric-
ton should be laid upon these institu-
tions. Custom has benumbed the public
conscience on this subject and the sooner it
is aroused the better. The banks are ere
ated by law, and they are by the law linn
tied in their privileges. To them they
should be confined. and held strictly to
the observance OF the obligations they as
sumed, when they asked for incorporation.
Were the incOrporators, when they present
their petition to the comptroller. to say to
him. that 1--WE know the conditions the law
we will prom Use to comply with them. but
when we shall be fully organized and be-
come necessity to community,we will vio-
late the law in order TO increase our divi-
dend and create surplus fund.- there
would be no charter granted. 1t is, there
fore, an act of bad faith when they charge
greater rate of interest than the laws OF the
State in which they exist, allow, and to that
degree should they be punished. inst as indi-
viduals would be for the disregard OF plain
statute.
As matter of fact. we believe the banks
would thrive better. and be more prosper
Gus. were they to conform their discount rate
within the limits of the law. AS matter
of justice to community, the directors
should refuse to accept any greater interest
than the law allows. whatever might be
the temptation. As a matter of morals, we
do not see how they can charge more than
their charters prescribe as the limit. Usage
may educate a people to most anything.
Reason and justice will correct improper
usage, when public attention is invoked and
public interest aroused. The banks will
have to conform to law, or the law will be
indicated. in the enforcement of its pen
elites.
Duty on Sumac,
A petition of the sumac grinders Of the
United States has been presented, asking Con-
gress to impose heavier duty upon imported
sumac, and tanned sheep and goat skins. The
reason for the petition is that our home mills
cannot compete with the foreign manufactor
ies IN consequence of the difference i'm nrice