Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1816-03-09

sponsibiity for its engagements, than those
wl.c'l are common tn every other bank
Mr.. 5. did not join in the ceusurc OF banks
for that which was said to have been the
cause Of suspension Of specie yments,
viz. the loans to government, which the
pressure Of government anil public senti-
ment had urged them TO make to the go
vernmeDt in greater extent than they
ought TO have done. He was wiling to
coerce the banks Co pay specie, II they were
not disposed to d. ie when they could but,
he animated, lie was unwilling, to try an
experiment, viii II, if it did not operate
as he wished. would only have tendency
tn aggravate the evil. Ii the state banks
had violated their faith. how, he asked. did
the government stand in that respect? Let
the government set the example of redeem
ing its DIighted faith. How was the pubic
creditors paid at Philadelphia during TIE
war Instead of being paid in gold and
silver. or their equivalent, they were paid
in notes of the banks of Baltimore, which
had depreciated five or six per cent. at the
very time. This mischievous example
having been set by the government to the
banks, ought fault to be found with them
that they did not pay their notos, when go
vernment had given them the example
With regard to the present time, he said
he should be glad to know why the treas
ury of the u. States had not now the COM
mand of the specie payments and rate of
exchange in its own hands How much
better il the government had this power,
as he believed they had, that they saould
exercise it to compel the resumption OF
specie payments
Mr.. ). then proceeded to examine the
composition of the IS millions of the CAPT.
koI s. -, .fo a.
Of the state of the banks of Pennsylvania,
ly not specie banks, were in very nearly
the same situation as this bank would be
when it commenced operations. The
bank of Pennsylvania, for instance, with a
capital of 80, 500, 000..h chad 1900 600 of pub
lie stock, 10000 fspecie, &c. How was
that bank worse off than this bank of the
United States would be, with three-fourths
of it's stock public debt and treasury notes,
and onc-fourrh specie &c.
In every view, this was measure Of
doubtful expediency. and it would be suf
icient if he were to say he would not gropc
in the dark, on measure OF SO doubtful
character especially, as il proposed o
throw into { regulation quantity Of paper
Oh principles which he saw, in existing
establishments possessing the same mate
rails, could not be redeemed with specie,
&c. He wished explicitly to understand
whether this was bank for commercial
purposes, or government bank He could
not for the life of him conceive, he said,
why the government was to become part
ner to scheme Of this sort at al. He
was willing to have bank on plain intelli-
gb.e principles not a/bank of deposit
merely, for at this time of day, people
no 4
embark their funds in any thing SO limited
but he would not authorize tue bank to
issue any paper beyond the amount which
it could redeem with specie. The notes
should express on their face the currency
or PIPER with which they should be re-
deemed, specie, treasury notes, or stock
for, as he Showed by various calculations,
money could only justly redeemsa note given
for money, by an individual or government,
&c. Prior to 1914, it had rot been sgppo-
sed that the banks had not conducted them
selves on fair principles !; the very instant,
however, state of shiDgs arose to create
alarm, or when, from whatever Cause,
their notes were presented for payment
that moment the banks were unable to pro-
coed in specie payments. This bank be-
ing put in operation on the same principles,
how would it succeed better! Mr.. S. con-
Guided the speech, of which the preceding
is mere skeleton, by saying, that he yet
remained to be convinced that 20 millions
were not sufficient capital for all the pur-
poses for which the bank could be want
ed.
Mr.. RANDOLPH rose to ask two qucs-
tons, one of the gentleman from South
Carolina, the other OF the gentleman from
Maryland first, how the paper To be Gre
ated by this bank will correct the vitiated
state of our currency and, secondly, how
bank notes can answer the purpose OF a
circulating medium better than treasury
notes Though no stick,er for treasury
notes, Mr.. II. minated his opinion that
they were in time of peace better sub
stitute for gold and silver. than any paper
he had heard yet suDDtted. Mr.. r. added
some Incidental observations, amongst
which was the remark, that lie was sorry
to sec the apathy, the listlessness on this
subject on question, winch, if it passed,
would perhaps be the most important de-
Cided since the rs aDlshment of the con-
stitutIon and that, though he agreed full
iy as to the extent OF the existing evil,
the remedy hid been totally mistaken,
&c.
MIR. SMITH said, in reply. that the gem
tleman from Pa. and himself only differed
in premises, not in their conclusions; and
then answered, at some length, the argu-
monts of Mr.. Sargeans. Banks, 20 obtain a
fair profit, he said, must discount 70 so per
cent. more than the amount Of their CAPT
tai. He had stated that the Banks Of Col
umbin, at this time, had not more than