Virginia Argus. [volume] (Richmond, Va.) 1796-1816, 1816-03-06

| 80 e"e SuSpe tsiuIl OF specie payments {: they
stood as cause and effect first The excessive is.
sues caused the suspension f'specie payruents !.
ana advantage had been taken ofthat Suspension
To ISSUE still greater floods of it, The banks had
\ uhoeriaSen to do new business, uncoRgen.al
with the nature of such institutions: they under.
,opK to make long loans to government, not ~
brokers', but as stockholders--a practice wholly
ihconSsient with the system ofspecie payments.
| A'ter she"ing the difference between the ordi-
nary oustness OF a bank IN discounts, and the
making loans for twelve years, Mr.. C.. said, in-
disPutabiy the latter practice was great and
leading cause ofthe SUSPENSION &c specie paya
Inents OF ths species of property (Puhlc Stockl
| the Banks of the United States held Oh the 30th
| day of September last, about eighteen and >
hall millions, and nearly eqasl amount OF i'rea-
sury notes besides stock for lone loans made 10
the stete governments, amounting AL together.
to within small amount of forty millions being.
large proportion of their actual capital. This
he SAID, was the great cause of the s spension of
specie payments. Had the Banks Che now dis.
eussed the question: the capacity,o resuue spe.
Gle payment If they have tie Gis3osi.ion he said
they may resume specie payments. The banks
are not nsolyent, he said ihey never were more
solvent. IF so, the term itself IMPLIES, that if
time be allowed them, they may before long, be
IN condition 20 resume payment of specie. If
the banks would regularly and consentaneously
begin to dispose Of Their stock, to call in their
notes for the Treasury Notes they have, and mo.
derateiy curtail their private discounts if they
would act IN concert IN this manner, thev might
resume specie payments. IF hey were to with
draw by the sale Of part only oftheir stock and
treas notes, twenty-five millions of theic notes
nom circulation, the rest would be appreciated
70 par, or nearly and they would still have Is
millions Of stock dsposable to send to Europe
for specie &c. With thirty millions of dollars IN
Their banks, and so much of their paper With
drawn from circulation, they would be in a con.
dition TO resume payments in specie. The only
Difficult y that of producing concert, was one
which it belonged to congress to surrnount The
indsposition OF the banks from motives of inter-
est obviously growing out of the vast profits
most Of them have lately real zed by which the
stockholders have realized from IL 10 20 PSF
cent on their stock, woulGhe, he showed tie grel.
test obstacle. What, he a ked, was Bank -
An Institution, under present uses 10 make mo-
new. What was the instinct of such an institute.
on GAN, gam; nothing bur gain: and they
would not willingly relinquish pler gain from
the present state of things, which WAS profilabIs
to them, acting they did without restraint, and
y.thou' hazard Those who believed that the
present state Of things would ever cure ITSELF
Mr G sail must believe VIA Is NJ able ,--s
h.n<s my change Their ns'ure Law q -
instinct, 6etS,r hey wiz sia Ia 2o,ss :. ~ "a
not Their interest to do by this D. ces, of rea.
soning, he came 10 the coHciu ION that t rested
with congress TO make them return 10 specie
payments by making i their interes : to do so.
This introduced the subject of a National 81, k.
A National Bank, he said, paying sTecie Itself
would hive tendency to make specIe payments
general, rs well by ITS Influence as by its exam.
pie u will be The interest of the NATIONAL bank
to produce this state of things, because O.
therwise It's operations will be greatly c me
scrbed as t must pay out specie OF ratlOna OanS
notes for he presumed one of the FIRST rules of
IL, IL co h. 81.
banks which did not pay in god and silver A
nstionsl bank OF IS millions with the aid of those
banks which are at once ready To paw specie.
would produce powerful effect al over the u
mon Further, National Bask would enable
the government 20 resort to Measures which
would make it Improbable to hanks to contis
nue. the violation Of their coDtratts, and advau.
tageous to return to the Observance Of them.--
The leading measure Of tins eh1radsr would be
o strip the banks refusing 10 pay specie of al
their profits arising from the business of the gos
vernmert ~ prohibit deposits with rien and to
refuse TO receive their not.s payment of cluea
TO the government. How far such measures
wouidbe eiFcaciOus in producing return to spe4
Gle payments, he was unable 10 say--bat it Was
as far as he would be willing to 20 AZ The present
session IF hey persisted IN refusing to resume
payments IN specie, congress must resort 10 inca.
siires ofa deeper tone wtuch they had in tbelr
power
The restoration Of specie payments, Mfr c.,
argued would remove the endorsements on the
industry Of the country. and the stains frorn isz
public and private faith. IL renamed to SEQ
whether this house, without whose aid it waa
IN vain 10 expect success IN this object, would
have the fOrtitude 10 apply the remedy ff this
was not the proper remedy, he hoped il would
be shewn BY the proposition Of proper substis
tute and not opposed by vague and general dc.
cianation against banks The disease, he rs<l.
was deep It affected public op,nion--an what.
ever sitects public opinion touches the vitals Of
the government. Hereaf or, he said, Congress
would never stand IN tNe same relation TO this
measure in chthey now id The disease a.
rose in time Of war--the war had subsidized but
left the e,se which it was now IN he power
ofCongTess to eralc2te--bnt, ifdey didnot nov
exercise the power, dley would become abettprn
of a stare Of things winch was of vitsl conse.
quence public morality, as he Showed hy Va
rous illustrations. He called upon tie house
IS Guardians Of the public veal Of the health ~
TIE b,dy polite which depended on the uub,,c
morals, 20 interpOse again.t q state Of thjn.sa
which was Inconsistent with either. tic appeal.
cd 60 the house too, as the guardians f 6u5lio
and private faith. IN what manner he asked.
were the public contracts ia filsdl In cold ii
silver which the government had stipulated 10
psy' No. N paper issued BY these institut, me
in paper greatly deprecated IN paser de,re.
! GATED from 10 10 per cent. below the cuipeoe,,
~ VIII Oh the government had contracted IN uav
&c lIc added an,ther srgurnent--the ineqoa.f.
y a taxation IN consequence Of the state OF CIR.
culatmg medium, which nutwthstand w the
taxes were Il ID witI street regard 20 the const a.
tionsi provision tor their equality. made the PEG.
pc 70 one section OF the Union, pay perhaps one
htth more Ot he same tax than those in another