The Valley Virginian. [volume] (Staunton, Va.) 1865-1895, 1882-01-12
uanrions Interest.

tional banks will expire before the term
OF the present Congress closea. We see
that there will be opposition to the renew
of their franchises. Judge Buckner. mem
Der from Missouri and for four years chair
man of the Committee on Banking and
Currency, is very pronounced in his opposi-
ton to the renewal of the charters, and we
have no doubt he will have numerous sym
pathizers among his Democratic and Green
back friends.
We have always been favorable to the
present banking system. The law, under
which 1t is operated. is the most perfect OF
its kind ever adopted in this or any other
country. The system is all right. 1t is in the
abuse Of it where lies the harm. II the law
were strictly complied with there would
be no occasion to cry ont against the banks
as monopolies, for they would be regarded
as necessary and popular agenc les for the
commercial transactions of the country
Probably, however, there is not bank In
the United Subsequently, not one In
Virginia--that has not violated its charter. in
the interest it has exacted. The law un-
der which the banks are created. provides
that the rate OF interest they are allowed to
charge shall be the same that the laws of
the State i'll which they are operated pro-
vdes. In Virginia the State law stipulates
for per cent and no more. The banks
charge from to u per cent, and every
dollar that they thus exact from the people
in excess of the legal interest is that much
more than they ought to hare. The large
their reports is only an accumulation of
such illegal gains and tells the story of
the ruin OF many a useful business man and
citizen.
We think the attent ion of the Legis latuge
ought to be called TO this subject, and some
provision made 10 protect the rights of the
people in the premises-especlally as to
bankrupt estates, where losses have been en-
tailed upon community. by the failure Of
assets to meet the just demands upon them.
Fidnciaries should be instructed by an act of
the Legislature to institute inquiry into the
cause Of the insolvency Of the estates COM
mitted TO their hands. and il it should be
found that usurions interest had been ex-
acted by the banks. the corporation so Of
Tending, in defiance of the law OF it's crea-
ton, should be made TO disgorge. II would
be An easy matter to do so as it is. by fax
iIg the case to the Federal Courts. There
the national law would have to be recog-
niZed. and when it was demonstrated that
national bank had violated the Jaw nm
der which it Was operating, there would be
no difficulty in enforcing the demand for a
restitution OF its illegally gotten gains. A
case in point occurred in Baltimore in
1863. The large commercial house Of How
ard, Cole & Co. failed in that year. Its af-
fairs were placed in the hands OF Mr.
Brooks for closing up. He investigated the
condition of the firm and examined INTO
the cause OF failure and found that it was
paying usurious interest for four years pre-
yiOus and mp TO the time of failure. The
fact was brought to the attention OF the
Federal Court that a national law had been
violated, and by reason Of il great wrong
inflicted upon community. Proper pro-
ceedings were ordered instantly for. the re-
| cOvery OF the usurious interest from the va
rious banking houses from which money had
| been borrowed. and without contest the
banks disgorged the amounts. so taken,
which were placed TO the fund Of the estate
for the benefit of the creditors.
We know estates in this community which
have been absolutely eaten up by usurious
interest-by violation of the law on the
part OF The banks, under which they exist.
If the fiduciaries representing these estates
would take the matter to the Federal
Courts, inasmuch as the violation of Fed
ly determined that the law should be vindi-
| Gated, and the excessive Illegal interest
charges against such estates refunded
What right have the banks to violate the
law more than any individual? The law
was made to be obeyed and not knowingly
! and willfully violated, and when community
has suffered from illegal operations, such as
are involved in usurious transactions, the
wrong should be corrected in the only
practical and sensible manner it can be-
The reserve fund OF the banks is mainly the
representation of the Illegal interest acct
mutations, and where estates Of insolvents
are inadequate to the just demands of cred
itOrs. the banks should be made TO return
to such estates the amounts they have lille
gally taken from them. 1t is the duty of
liduciaries. under the obligations of their
trust, to institute rigid inquiry into all such
cases, and learn whether bona tide creditors
can be despoiled Of their property by the
illegal transactions Of the banking corpo-
ratiOns. in the exactiOn OF usnrious interest
Proceedings of the kind we have sug-
gested in few cases would speedily in
spire an observance Of the law, and guard
community from the exorbitant demands
made by the banks upon the vitality Of
general business, 1t is only In this way
that healthy influence can be brought to
operate upon banking methods. and testify
that the banks are as much obligated to re
spect and obey the laws as are individuals.
There are few persons in the Valley who do
not remember the eloquent speeches of Hon
E. John Ellis, Of La, delivered during the
last presidential campaign. Whilst bitter and
partizan, he was yet recognized as man of
marked ability, and an orator whose equal is
seldom heard. by persons of all political creeds.
Many of our readers will, therefore, find spec
ial interest in the following paragraph taken
from an exchange:
Representative 4. John Ellis, of Louisiana,
frankly said the other day; ''The Democratic
party is dying naturally Of timidity and IN
action. 1t is without men or measures. 1t is
not agreed Oh any policy. In the States OF the
South it is losing ground. Virginia is gone.
There are grave fears for other States. 1t is
disrupted and broken into divisions and fac
tons in nearly every Southern State. You
know IFS condition here. 1t is past praying
for, and if the South breaks up, the Democratic
party is a thing of the past" 1t is good
thing TO tell the truth sometimes.
VIRGINIA DRUeeIsrs.-A dispatch dated
Petersburg, Jan. 4. says: A convention Of
druggists Of Virginia was held here this after
Co., 4, &c IL