Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1884-08-09
as well as all that hold like situations OF
trust, are regarded with almost similar dis


trust, are regarded with almost similar dis
trust.
The interest OF the banks Is 10 establish
and maintain solvency. They cannot bve
In community where breath OF suspicion
as TO their koundness exists. Few instances
OF defalcation or malsdminstration occur
among their officers, and few employmenn
associate with them higher motives Tor in-
fegrity. In every Transaction there - ad-
monition OF the trust and responsibility re-
poeed In The officers Of these institutions
Jy the stockholders and the community u
well. Ana u would be unnaiural TO sup
pose that these considerations do not ope-
rate as stimulani toward q faithful dt'.
charge OF duty. Besides, the policy OF
many. and perhaps all. OF the banks Il 10
set apart n share OF their earnings TO tide
over the inconvenience Of incidental losses,
with the view OF equaizing their earnings
one year with another. Useful as these saw
iDgs may bc In case OF runs. they are not
provided for from such object-ior expert
ence shows that solyency does not prevent
runs-and rs these surplus savings are in-
vested continually. just as other asset. are.
In discounted bills. and cannot he COM
manded by the banks until their maturity,
they would prove. most likely. untimely for
the run. The fruitful employment OF the
funds OF bank requires that they should
be loaned out on the usual commercial and
like paper, having convenient periods OF
time TO run. II loaned on call (which II
could only do to a limited exteut, they are
generally made on good collaterals. worth
more than the sum loaned, aud though sub.
jcct to call, il Il not contemplated that the
entire amount Of all such loais are TO be
la1 N ot 70 ~
they can never be so called in without en-
gorging the markets with the collaierdls,
which must be sold on such occasions at a
rulnous sacrifice TO their owners. And
all this may grow out OF mere
attempt to test the solyeney Of bank. Just
a. creditor may demand payment from
the meagre Purpose Of seeing whether The
debtor could pay, and then prefe. him to
retake the money after he had sustained
heavy loss in procuring it. The banks oi
the South have for the most part arisen out
OF the great public necessity for them in
the legitimate avenues Oi trade. md they
| have had no need 10 20 outside OF the safer
| operations Of Lusiness to loan their money.
| The dens OF speculation in futures belong.
we are glad to say. TO other martS, mlinly
| at the North ana West. where we so often
hear there is a plethora Of money. There
may he some germs OF pupilary training at
| futures among us, but they are OF little
note.
1t was the passion for gambling in future.
and stocks in Wall street. New York, that
brought about the recent "spat' for
| money.
Not a dollar should he loaned to men
engaged in such speculation or gambling.
| We should not arm idle men with coyetous
desires for gain to come into competition
with the honest businessmen of the land
| by aiding them TO pool the commodities oi
| the country till they rot or must be con-
| sumod at their own prices. The wholesome
use Of money is against all such disgraceinl
| business, concealed under the soft name OF
| futures end Griiu denomination 81 corners,
! and The like. farO-table is c0mmendlbly
| preferable to this betting on the rise aad fall
| OF human necessities Of food and raiucut
All business that is extended into ihe
bounds OF speculation /, injurious to the
common welfare. Purchases made f. sup
| ply the reasonable demands oi ones eur
rent trade and the recurring wants OF The
public are proper and adyanta gc0us 10 80
ciety, and bank. should discourage al
other plans OF business by at least with
holding loans from those engaged in'>ucf
methods Of abuse Of the great objects ot
honest employment and public prosperity
As to the circulation OF the hanks UheiI
own capitaI)-that is, in the form OF notes
supplied TO them by the Treasury of th'
United States-runs for redemption %
these notes could ouly Ice made by psrtie'
who wanted coin in place Of the notes
When this Is the case the United state
| Treasurer must foot the bill. and we hard
ly suppose that anybody wants the United
states TO settle up from fear OF suspen
sisn. I.
RICHMOND, August s, 1854.