Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1816-03-20
HOUSE OF REPRESENTATIVES,.
Tuesday, March ~.
NATIONAL BANK.

Tuesday, March 10.
NATIONAL BANK.
The House proceeded to the order of the
day-being the report OF the committee oil
the whole house on the National Bank
bill-the motion to strike out that part OF
an amendment reported by the committee,
which makes the charter forfeitable for
non-payment of its notes in,Specie, being
still under consideration
Mr.. Calhoun supported the motion to a
mend the amendment. 1t was with much
reluctance, MIR. G.. said, that lie opposed
any provision which the House had deem
ed necessary to perfect the bill but III the
present instance. he was compelled to make
an objection. The fundamental chara cter
of this bank, was, that it should pay its
notes in gold or silver coin and sufficient
penalty was provided to effect that end.-
1t is good rule in law, said Mr.. {. that
where you attach a separate penalty to
particular violation of a law, you weaken
the general penalty and as he tho't the
general penalty would attach in the case
without this special provision, which would,
the bill, he hoped it would be stricken
out.
The motion to amend the amendment,
- .
Mr.. Randolph then moved to amend the
amendment of the committee, by making
the interest demandable on the notes Of
the bank, in case of refusal to pay specie,
twenty per cent. instead of ten.
Mr.. Calhoun repeated the reluctance
with which he objected to any motion
which, in the opinion of the gentleman who
made it. would improve the bill; but, he
had tho't that even the propriety of 10 per
cent. contemplated by the bill, was very
questionable, as he doubted whether that
provision might not produce combinations
against the bank, which were SO anxiously
guarded against. Every man acquainted
with the subject. knows, that no bank can
at all times possess the means of meeting a
general run upon it, and he submitted it
to the house, whether such a provision as
was now proposed, would not be danger
Gus to the institution by inviting run on
it, and thereby produce a suspension of
payment. He admitted that it was all i'm
portant to the benefit anticipated from the
bank, that it should pay its notes at all
times in specie and he thought that end
already secured by other sanctions suHi-
GENTLY guarded. This bank, said MIR. G..
is no more than a part of the commercial
community in which it is established, and
any embarrassment of the bank must press
also on the whole commercial community i;
that community would be the first to give
way in such case, and this would pro-
duce run on the bank, and compel the
stopPage of payment. If the amendment
would produce greater certainty of spe-
Gle payments, it might be proper; but. be-
lieving that it might defeat It's own object,
and produce that which it was intended to
guard against, he Thought it was danger
Gus, &c.
Mr.. Ward of Mass. was in favor of the
amendment. He thought Mr.. Calhoun
had over-rated the miscniefs which might
possibly enSue from its adoption. Mr. w.
believed that no person would resort to
the penalty, unless where the bank might
exceed a temporary refusal to pay its
notes. If the bank declined payment for a
short time only, there was no person who
would psremptorily so to law for the pen
atty and there was no danger OF the COM
bnation predicted. 1t was his opinion, that
the provision would be beneficial to the
bank, by the character it would give it as
specie bank, the superior confidence which
it would Of course possess throughout the
Country, and the great business it would
consequently be enabled to do, &c.
MIR Randolph Isaid the argument Of
the gentleman from S. c. (Mr. Calhoun
was a very powerful objection to the prin-
ciple Of the bill, but none against the a
mendmsnt 1T was an argument which he
had been keeping in reserve by himself,
for another stage of the bill. He had no
objection to fifteen per ceutum, as
the penalty, but he preferred TWEEN
ty for another reason. The higitious
conduct Of the banks for some time back,
had proven that they could make 10 per
cent. more than their fir profits ; and his
object was 70 make the damages surpass
any profits the bank could make by refu-
sing to pay spt Gle. We ought, he said, r.
remember certain surplusses which the
Banks on particular occasions distributed
il addition to the declared dividends, and
it was proper in this case to guard against
speculation Of this kind. All banking in.
stitutions were al Ike in their desire 70 swell
their proh.s to their greatest extent, how
socvsr correct and yirtuous the Director!
might be in their private characters snc
he would guard against every public rob
Der, whether he be Governor-Geners
Of India, or a Bagshot highwayman. lie
would putt out OF the power Of this bank
% commit frauds on the community, with
out ruin to itself. Let the penalty be am
pie, said Mr.. RI make tie bank gooC
one, and there is no danger Of their being
| IN able ALWAYS to pay specie.