Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1816-11-16
RICHMOND, NOVEMBER is, 1916.
VIRGINIA LEGLSLA1URE.
HOUSE OF DELEGATES,
Wednesday, Nor. 10.
CHARTERED BANKS.
SKETCH OF THE DEBATE
Dn fLo Nrsno,.;<,.. IS.T ......--.-

L..
On the Suspension Bal--rcoNTINuED.
After Mr.. Giles concluded his remarks m.
S0iyth (oi Wythe) rose-He observed that he
concurred with the Select Committee i'm the i
dea OF giving time for the. Honsc to consider
had now taken place, he tlisasht it better TO
close the subject at once FOR his ownpart ne
thought II best to suspeudth law till Inc Isl of
ssuiyInot, because certain corporations had
hxcd ON that day as the period for rcsumiru
specle payments but, because the Congress Of
the q. States seem to have designated that ne
ROD, by making the East instalment, of the Natl
onhi sank fail due at that tiple:kHe begged
leave toremind the House, that the Banks are
not to be censured for the suspension of specie
payments; for, he gave them great credit for
the supplies which they had furnished in car
rSinS ON the Var. The Farmers Bank had
loaned at least 1000, 900 to the State of Viz;
ma and $3.50, coo TO the government of the II
S.-When he looked at these exertions. he was
disposed to excuse them for the suspension of
specie payments.
lie had looked to another circHmstance-He
had attempted to satisfy his mind, whether the
Banks had with good faith endeayoured m
comply with the Law of the last Legislature
put, ON that point the evidence was irresist
lble. They had both drawn in their paper to
very considerable amount. -
lie stated, for example, that the debts due
from other banks TO The Farmers Bank of gir-
ginid last year
amounted to the sum of ...... Sl,Iis.37O
mat those debts now amounted
oiiis 10 ''.'''.......--..... 2j6,o50
So that within the year the sum of $50. 400 had
been collected from other banks.
He stated, that The Farmers Bank had in
circulation lastyear--
Notes TO the amount of -. S33IO5ot
That they have now out the
sum OF .................... 2,15OC00
And have thus reduced the
sum in circulation ..... II6O 5oi with
in the year.
Theyhad, too, made sacrifices TO obtain sgseiaj
He stated, that the Bank of .VirginI, lad
Ioaned a large sum In paper for six months
without interest, TO be repaid in specie-wbicb
was equivalent to giving premium CT !; az
cent.-The Farmers Bank too had made CON
siderable exertions. But, suppose that they had
not; and that these institutions had nor been
well conducted-stiil, what would the public
interest reguiIel RecoUect that the State is
interested intliese banks to large amount
lie would beg leave to state, that these two
banks have lin circulation
Notes 10 the amount OF ........ S 1908 sa1
AND that the specie of both amounts
O. 10 ..'s: ...-.-... 6JS0I5
So that half their notes being presented for
payment, would require sum greater than
they had i'll their vaults to meet them.
f1he notes which they had in circulation were
but little more than double the specie which
they had in their vaults But, if halfof these
were presented, all theirspecie wonld be drain
ed out.-This, indeed, might be safe state OF
business at other times. On ordinary occas-
OffS, no banks have half as much specie as notes
in circulation. The Charter of the Virginia
Banks authorizes them to issue three times as
many notes as they have specie in their vaults
But, at present, they have. only double the
amount of their specie in niatOn:@yh;s is
surely, d very moderate proportion But. in
these times, this proportion would not render
them perfectly safW Lctit be recollected, that
in the City of Richmond alone S 40O,000 are
due tor the Stock of the National BaDk@Ihis
amount might be drawn from the Virginia
VIZ iaH IN M
BesideS, as they have more than 5 900 600 in
notes III circulation, much of this sum may be
boarded upin the Northern Banks--and large
proportion off may be presented for payment
Besides, in the village banks, whether charter
cd or Enchartered, large amount of the paper
is boarded, which may be presented for specie
lhus, demand exists from the Stockholders
of the National Bank in this CITY alone from.
the Northern and the village banks, as well as
frompryate citizens, which mightscriously af.
rect the resources of our Banks.-Is there no
danger, then, that they should stop payinent9
But, if this result were now to occur IL would
be far more fatal to them than when the for
iner suspension took place-These banking in
situations would now be considered as utterly
bankrupt, andtheir notes would no longer have
any value. But, If these notes were no longer
good, what would be the situation of the Com
monwealth All our State taxes are PAYABLE
III this paper-the State is compelled to receive
them. Is it, then, expedient for this House to
pursue any measure, which NAV reduce them
to bankruptcy ;7Iie was, for these reasons, in
favor of a suspension till the LIST of .,uly-nor
did he conceive, that the government would
be diShOnoredby this course because it was
not adopted on account OF any peculiar respect
to the measures of the Convention at pbiia
delpha; but, because the lastinstamcnt ot;the
National BauA would fall due on that day.y
mr.. Colston did not exactly concur with the
gentleman last up Mr. SmytlI). Hc conceived.
this was AN improper time for debating the &C.
neral question He was willing TO susDend fhe
operation of hclaw--he was willing to rive all
reasonable time--he was not disposed 10 dis
tress these banking institutions but he was
not satisfied, to allow them till the LIST of tulv
As to Congress having fixed on that day, as al
lodged by the gentleman from Wythe he bog
ged leave to remind him of another circutn
stance. that they had actually fixed ON the
20th OF February as the period, when all the
taxes and dues to the Treasury must be paid i'm
specie. SO far, then, as they had expressed their
wishes, they had fixed ON the 10Th ofFebruarv.
not the LIST Of July, as the dayfor resuming spc,
Gle payments. He was willing to fix on the
same period, himself; but, further than this he
was not prepared To go at present.-But this
was surely not the time to launch out into arau-
ments on the general question. Gentlemen
say, letus grant indulgence to the Banks for
MS own part he was willing TO indulge them to
"A certaIneNtent.--But, he wished the House to
recollect, that this thing of legislation was Of
ten matter of compromise among the mem
bcrs- that we cannot all agree upon the very
same prOpOsitiOn.-Many Of his acgnaiutances
in the House would perhaps even vote against
the Bill, as It stoOd-Why then venture to ex-
tend 1t why not, for the present tax G il as il
i, with a view ofgiynga temporary reliefto the
Banks:
Mr.. ChamJerlaye concurred with the last !
gentleman IN most ofhis views. He regarded /
this bill as y repFieve, rather than pardon but
whether 1t be repricyc or "a pardon he yyould |
~ IA huf