in view. They also recommend another state convention to assemble in Norfolk in November next, and the appointment of delegates to the Augusta convention. The convention dissolved in the finest possible good humour, about 3 o'clock, Saturday, and adjourned to "Bacon's Springs," to partake of a dinner provided by the Richmond delegation. The Virginia state loan of $400,000, bearing six per cent. interest, was taken on the 21st May by Messrs. Jaquelin Taylor & Co. of Richmond, at a premium of $2 81 per cent. Mr. Bullock, Secretary of State of Kentucky, and agent for the negotiation of $1,250,000 of the bonds of that state, has succeeded in effecting a disposition of them on favourable terms. The purchaser, it is said, ultimately to dispose of them in the European market, converting them into sterling bonds, and making the interest and principal payable in London.--May 25. STATE LOAN.--We understand, says the Baltimore Chronicle of June 12, that the Maryland state loan of $500,000, redeemable after 1890, to bear an interest of three per cent. per annum, was taken yesterday at 63 per cent. H. W. EVANS, Esq., Commissioner of Loans of the state of Maryland, gives notice in the Baltimore American that the interest on the funded debt of the state, now due or hereafter becoming due, will be paid in specie or its equivalent. The amount of gold coin imported into the United States from the 1st of January last up to the 5th May inst. is officially ascertained to be $7,054,000, and the exports $484,074--leaving a net balance of about six millions and a half. Since the 5th inst. about one mil. lion and a half in gold has been imported into New York, making a net aggregate of about eight mil. lions.-N. Y. paper of 18th May. A BANK GONE.--An endorsement on the way bill, received at Augusta, states that the Western Bank of Georgia, at Rome, has closed its doors. BRIDGEPORT BANK.--An act has been passed by the legislature of Connecticut, authorising the shares of give hereafter :- Bank of River Raisin, Erie and Kala. mooza Railroad, Banks of Ypsilanti, Clinton, Calhoun, Macomb, Tecumseh, Constantine, St. Clair, Pontiac, Wisconsin, Battle Creek, Niles, Marshall, Oakland, Utica, Saperior, Huron River, Gibraltar, Brest, Saline, Saginaw City, and Grand River, Calhoun County Bank, Merchants and Mechanics' Bank of Monroe, Farmers' Bank of Homer, St. Joseph's County Bank, Commer. cial Bank of St. Joseph, Berrien County Bank, Millers Bank o Wishtenaw, Merchants' Bank of Jackson county, Michigan Insurance Bills, Shelby and Detroit Rajroad Checks, Farmers' Bank of Oakland, Clinton Canal Bank, and People's Bank. The bills received at the counter of the State Bank in Detroit are indiscriminately paid out, whether char. tered or safety fund. In addition to the above, the Advertiser says there are some banks that are considered perfectly sound, and their bills circulate to some extent among the citizens there. The Bank of Niles and the Berrien County Banks resumed specie payment on the 16th May. The Niles Intelligencer of the 23d, says specie has become quite plenty about town again. WILD CAT BANKS.-Mr. Thomas Fitzgerald, the faithful and energetic bank commissioner of Michigan, has addressed an official communication to the officers and directors of the several banks in the city of Detroit, appealing to them in behalf of the "safety fund" banks in his district, and soliciting for them that credit and confidence extended to the country chartered banks. He says most of the banks within the limits of his district, including both chartered and safety fund, commenced specie payments on the 16th May, in good faith, and have as yet suffered no inconvenience, but received the strongest evidence of a disposition on the part of the people, to confide in and sustain them, by the return of specie once drawn out, and additional deposites made. Their only fear is from the nonspecie paying states adjoining. Commissioner Fitzgerald takes the responsibility of recommending to the Detroit banks, in his official eapacity, that they receive and pay out at their counters, tered banks, the notes of the following banks, to wit:on the same footing as the notes of the country charBank of Homer, Bank of Marshall, Bank of Battle Creek, Bank of Niles, Berrien County Bank, Commer. cial Bank, Grand River Bank, St. Joseph County Bank, and the Bank of Coldwater; and expresses the belief that the banks of Allagan and Singapore are making this bank to be reduced from $100 to $50, and a new subscription of two thousand shares of $50 to be made. DIVIDEND ON THE SAFETY FUND.-The Albany Argus of 22d May says, "The comptroller, since the resumption of specie payments, has made a dividend of four per cent. on the capital of the safety fund paid into the treasury, and has apportioned the same among the safety fund banks, in proportion to the amount contri-arrangements that will entitle them to be placed on buted by each." the list.-Buffalo Commercial Advertiser. SAFETY FUND NOTES.-The Merchants' Exchange Bank, the Leather Manufacturers' Bank, and the Bank of the State of New York, now redeem the notes of all the safety fund banks of this state, at one half of one per cent. discount. BANK DIVIDENDS IN NEW YORK.-The Bank of America has declared a dividend of five per cent. for the six months ending 30th June, payable on the 6th of July. The Phoenix Bank has declared a dividend of four per cent. payable 5th of July. The Lafayette Bank has declared a dividend of four per cent. for the last six months, payable 1st of July. The Seventh Ward Bank, a dividend of four per cent. payable 2d July. The Merchants' Bank, a dividend of four per cent. payable 9th July. MICHIGAN BANKS.-The Detroit Daily Advertiser states that the bills of the following Michigan banks are received at the counters of the banks in that city, as well as some others, the names of which they will From the Racine (W. T.) Argus. The wild-cat money, as it is called, has completely overrun this section of the country-it has driven all other money out of circulation; and since suspicion has been cast upon some of the banks, it seems to come upon us more frequently, and in larger quantities. Indeed it is nothing uncommon to see men have $500 or $1000 of this kind of money; and some of the speculating gentry have lately been through here, who were willing to buy claims at a great price, and all to be paid down. Every man should be on the look out that he is not swindled and defrauded. WILD CATS ESCAPED!-The president and cashier of the "Bank of Kensington," located at Kensington, Oakland co., Michigan, have offered $1000 reward for the apprehension of Alfred A. Dwight and Sherman D. Dix, two individuals, who have recently absconded with about $40,000 of the paper of said bank, which it was alleged was fraudulently abstracted from the bank, without the usual forms of discounting having been gone through with. The uncharitable belief is even expressed that the president's signature to the bills of most of the paper with which they absconded is forged. They are said to have taken a course running due west, and were last heard of industriously palming off their grabbed paper at Chicago.-Buffalo Com. Adv. LITIGATION IN ILLINOIS.-The Peoria Register men. tions that judgments were entered at the last term of the court in that place to the amount of $100,000, of which it is believed not 25 per cent. will be collected, while a more lenient course would doubtless have secured nearly all. There having been no court last fall, the amount of business at this was unusually large, the suits on the docket amounting to 446, of which about 300 were disposed of. the company who issue such paper intend to avoid the charge of willingly providing the means of deception, they should take care that the distinctive character of the paper stands out in letters so large that they will catch the eye at first glance.-Journ. of Com. PAYABLE IN NEW YORK.-It is important for perBANK OF MARYLAND.-The creditors of this bank, sons in the interior to mind what they get as New who have not yet filed their claims with the trustees, York funds. We have seen to-day two twenty dollar are required by Baltimore County Court to do so be-notes of the Commercial Bank of New Orleans, made fore the first day of October next, or otherwise they payable on demand at either that bank, or the Bank of will lose all benefit of the distribution of the funds in America in New York. They were sent here under the hands of the trustees. the expectation that they would be paid according to promise; but it turns out that the Bank of America has orders not to pay such notes. This is not because the Commercial Bank has no funds here, (for the Bank of America, we are told, has paid and is constantly paying large sums on account of the Commercial Bank,) but because the said Commercial Bank finds it more profitable to sell checks on New York at ten per cent. premium. So it is quite necessary for those who receive the promises of the bank, to read not only what a-head. This perhaps has something to do with what is on their face, but what are the secret orders sent on they mean by "medium" in New Orleans. This same Commercial bank has a capital of three millions of dollars, on which, not long ago, it declared a dividend of seven per cent., and we dare say paid its New York stockholders at the Bank of America, though we do not know, and do not think it worth while to ask, about that. At any rate, the stockholders are taken care of, but the creditors have to take care of themselves.-Journal of Commerce of 27th June. Dividends in and near Philadelphia for the last six TEXAS MONEY.-We learn that since the president's veto of the bill for a further issue of the promissory notes, this money has become a scarce article in Texas. It is greatly preferred to Mississippi notes; and is at par with any southern bank paper, excepting that of New Orleans, Tennessee, and Alabama-the two latter of which is but little in advance. SMALL BILLS.-The Connecticut House of Representatives on Friday, by a vote of 165 to 32, passed a bill to REPEAL the laws imposing restrictions upon the circulation of small bills. The Loco Focos at the last session patched up a bill which they hoped would satisfy the people, and which allowed the banks, for a specified period, to issue small bills payable in specie. The effect was, to confirm the opinion of the people more than ever in favour of small bills. They accord. ingly sent men to the legislature who would comply with their wishes. And they have complied. On the third day of the session the house voted to repeal the prohibitory laws by a majority of more than five to one.-4 May. SMITHSONIAN BEQUEST.-Extract of a letter to a gentleman in Washington city, dated London, May 14, 1838. "Dear Sir-As you have a great stake in Washing- Your very faithful and obedient servant, Bank United States, Atlantic Insurance Co. Months. Fire Insurance Co. of Pa. 3 per cent. $1 20 per share. 3 per cent. Franklin Savings' Bank, - Railroad Co. Lehigh Coal and Navigation 5 3 31 34 4 31 3 5 5 BRANDON MONEY.-A gentlemen direct from Mississippi, informed the editor of the New Orleans Picayune, that the Brandon Bank had commenced redeeming its five dollar notes with specie, July 5. FIVE DOLLAR POST NOTES.-The Delaware and millions of the stock of the Union Bank-one million The Governor of Mississippi has subscribed for five Hudson Canal Company have issued very handsome two hundred and fifty thousand dollars payable in post notes for five dollars, payable six months after 1850, and three million seven hundred and fifty thoudate. They have all the appearance of handsome five sand in 1858. The state bonds have been placed in dollar bills; and in many instances have been taken the hands of the directors of the bank, and commisas money, under the impression that they were pay-sioners are about starting for the east for the purpose able on demand, when they would not have been taken of disposing of them. if only the six months had been perceived. We deem the procedure of the company in issuing such notes as altogether reprehensible, taking it in its best form. Paper payable in six months, ought never to bear the shape and similitude of money. But at all events, if We learn from the Arkansas Gazette of the 6th ult. that the commissioners, appointed by the governor to negotiate a sale of the bonds of the State Bank of Arkansas, and real estate bonds, had returned, without do. patriot, Sovereigns, having accomplished the object of their mission, owing | Mexican dollars, 4 shares Mechanics' Bank, 2 50 Vicksburg Bk. B. this w. flat, par a par 93 a 94 cents each. $16 30 a $16 40 do. 15 60 a 15 70 do. $4 85 a 4 90 each. WEDNESDAY, JULY 11, 1838. Congress adjourned on the 9th instant, without hav. ing enacted any law relating to the future collection of the revenue. The several bills passed by the senate on the subject, and rejected by the house, will be hereafter recorded in this Journal, for future reference, it being quite probable that the same matter will be renewed at 100 the December session of congress. 103 100 50 95 62 614 54 35 100 66 2 days, flat, 944 82 2 days flat, 81 20 SALES OF STOCK AT NEW YORK. 1201 Our readers can scarcely have failed to observe the 50 great difference in amount between the transactions in 100 the stock market of New York and those of Philadel. phia. This difference, we presume, is more an evidence 100 of a speculative temperament, than a proof of an actual 30 transference of capital from one species of investment 81 to another. Where the fluctuations in the market 50 price from week to week are not of a great extent, it 100 requires a large number of shares to yield a profit worth attending to, and perhaps it would be found that in reference to a large proportion of the sales at New York, the only capital employed or required was the simple amount of the difference between the buy. ing price and the possible selling price at the expira. tion of a week or a month. Thus, if the probable Aluctuation in the Delaware and Hudson stock, in the course of a month, were estimated by the brokers not to exceed five dollars per share of one hundred dollars, five thousand dollars would be all that would be required to represent a nominal sale and purchase of one hundred thousand, and if the buyer was in good credit, the transaction might be conducted by a note, so as to require no capital at all. A very large portion of stock sales are nothing but wagers on the price of stocks. 109 106 73 THE BANKS OF Philadelphia.—A meeting was held on the evening of the 5th inst. by the delegates of the different banks of the city and county of Philadelphia, at which it was resolved that it be recommended to the said banks to resume specie payments on the first of August next. Two banks of the sixteen were not represented. Of the fourteen present ten voted in favour of the resolution, and four against it. We have not yet learned that any of the boards of directors have acted upon this recommendation, and think it probable that unless unanimity be obtained, neither will com. mence by itself. TERMS. PUBLISHED WEEKLY AT $5 PER ANNUM, BY ADAM WALDIE, Carpenter street, Philadelphia, to whom all orders and remittances are hereafter to be sent. Subscriptions received by Weeks, Jordan & Co., Boston; Wm. Burns, 262 Broadway, New York; OF THE UNITED STATES. DEVOTED CHIEFLY TO FINANCE AND CURRENCY, AND TO BANKING AND COMMERCIAL STATISTICS. "It is the interest of every country that the standard of its money, once settled, should be inviolably and immutably kept to perpetuity. For whenever that is altered, upon whatever pretence soever, the public will lose by it. "Men in their bargains contract, not for denominations or sounds, but for the intrinsic value."-Locke on Money. THE TRADE OF BANKING IN BY MICHAEL J. QUIN, ESQ., BARRISTER AT (Continued from page 25.) CHAFTER III. Origin of Branch Banks-Their supposed advantages-Places where established-General principles of managementFacilities afforded by them to country bankers, to trade, and to the crown for transmission of revenue-Expenses of the branches, and their losses by bad debts. 1. ORIGIN. No. 3. profitable to the company; an opinion which experience has shown to have been well founded. But they conceived that it [440] would be very desirable, if the whole paper currency of the country were to consist of Bank of England notes, [503,] with a view to give the circulation greater solidity, and a more equal regulation in expansion and contraction of paper money. Such an extension [440] of the bank circulation would not be likely to take place without the concurrence of the country bankers. [437, 489.] The establishment of branch banks would probably, In consequence of the unsafe foundation [494,] in time, have the effect, in a great deupon which many country banks were erected gree, of supplanting [491] the eirculation of some years ago, Lord Liverpool, with a view country paper; but it would be in the power to remedy an evil of such magnitude, [Pal- of the private bankers to remove the competi mer, 465, 466,] suggested to the Bank of tion of the branches in the conduct of general England the idea of establishing branches of banking business, by substituting the bank its own in different parts of the kingdom. paper for their own.* Though a favourite measure of his, it was [514] In the year 1825 there were, morenot at first favourably received. After the over," innumerable" applications for the esta blishment of branch banks from "all parts" alarming number of failures which occurred in 1825 and 1826 among the country bankers, of the country. But although, for the reasons stated, the directors expressed to the governgiving rise to no fewer than seventy-seven commissions of bankrupt within the two years, [Harman, 2,351] applications, the same policy ment their willingness to comply with those the government proposed the abandonment by the bank of their exclusive privilege as to the which induced them to reconsider Lord Livernumber of partners, and suggested that facili- pool's plan, and even to propose it as their ties should be given for the formation of joint-own, compelled them to object to the creation stock banking companies in the country. II. SUPPOSED ADVANTAGES. of new competitors in the country, under the title of joint-stock banking companies. The government rejoined, that they considered the It occurred to the directors, that, under the organisation of branch banks as a good thing circumstances, the plan formerly projected by per se, but not adequate to the exigencies of Lord Liverpool [Harman, 2,349-2,350] might the time. Eventually, it was arranged that be attended with advantages both to them- both branches of the bank, and joint-stock selves and the public; that it would afford companies, should be sanctioned by law.† III. PLACES WHERE ESTABLISHED. them facilities for conducting their affairs, give them a great insight into the country part of the business, and be productive of Branch banks were accordingly established, other beneficial consequences. The directors in the course of the year 1828, at Gloucester, were not, indeed, of opinion that branch banks Manchester, Swansea, Birmingham, Liver[Palmer, 481] would ever prove materially pool, Bristol, and Leeds; and, in the follow *The greatest number of bankruptcies known to * Four country banks have already adopted this have occurred before that period among country bank-measure, at Gloucester, Birmingham, Liverpool, and ers, in any one year since 1780, did not exceed twenty; Hull. that is the number for the year 1810. + See "Summary of Law," post. ing year, at Exeter, Newcastle, Hull, and Norwich. These eleven towns were selected, as being supposed to present the most convenient centres [Palmer, 513] of circulation, with reference to the manufacturing and agricultural districts. IV. GENERAL PRINCIPLES OF MANAGEMENT. VI. FACILITIES TO TRADE. land notes, he may receive the amount in gold from the branch without any [451] charge. Thus, the risk and expense of obtaining gold [452] from London are altogether saved to the country banker. He may, if he please, send his bills for discount [458] to London, where he may get them cashed at the lowest market rate of interest; he has then only to The general principles upon which these order his agent in London to pay into the establishments have been founded appear to bank there any given quantity of bank paper, be judicious. They permit individuals of sup- and the amount is issued to him by the branch posed credit to open [Palmer, 419] with them in the form of gold, without any other expense discount accounts. They afford every facility than that of mere postage. This regulation to the transmission of money from London to has been established merely as a matter of the country; and to those bankers who have [456] convenience to the country bankers, at proposed (for the bank have made no proposi- very considerable expense to the Bank of tion themselves to the bankers) to withdraw England. their own paper, they advance the same amount of circulation in coin and bank notes which they were previously stated to possess Any individual who has an account with a in their own notes, at three pounds per cent. branch may, upon the same terms, obtain acper annum, upon approved bills. The branches commodation in [Beckett, 1,436] branch notes, issue local notes, [Palmer, 460,] and twenty- which are convertible into gold. If he have one day bills. They do not, as matter of no account, he may still obtain the same facicourse, pay London notes, in order to guard lities, paying for them the " agency" comagainst facilitating theft in London, and mission. The necessary consequence of this obtaining payment at one or more of the system has been, that the moment that branch branches, and also to obviate the necessity of banks are established [Palmer, 504] in any providing gold for the same notes at different part of the country, the rate of interest existplaces. They discount at the rate of interesting in London is immediately opened to all [497] which exists at the bank in London. that neighbourhood. There has been a great They [524] take deposites, from the use of extension of the branch circulation in Lancawhich they receive a slight advantage; [507,] but they pay no interest upon them, [Beckett, 1,451,] nor do they allow any person to overdraw his account. They charge no commission [Palmer, 498] upon discounts, but they [7] take a commission upon what is called agency" business, from those who do not keep an account with the bank, and for whom they transmit money or bills to London for payment or receipt, or for whom they act as [530] agents in collecting money on bills of exchange in the country. 66 V. FACILITIES AFFORDED BY THE BRANCHES TO COUNTRY BANKERS. shire, without any corresponding amount of VII. FACILITIES ΤΟ THE CROWN IN THE No account is opened by the branches with country bankers [Palmer, 449] who continue to circulate their own paper, except for the limited purpose of furnishing them with gold upon the spot. If a private banker possess a branch [450] note, he is of course entitled, as any other holder of such note would be, to have it converted into gold at the branch office. This local convenience is in itself an Generally speaking, the branches do not advantage to the country bankers, which they issue [Palmer, 459] gold for London notes, did not before possess. But in addition to except under special circumstances as a matthis, if a country banker make a deposite at ter of convenience. If they receive a [518] the Bank of England [454] in Bank of Eng-bill or draft for payment on any private banker, |