Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1816-11-30

lOtn OtJanuary because the gentleman
from Loudoun did not contemplate tina
period. Then, Sir, let us proceed to tn,
day, which the gentleman himself ha:
named the 10th OF February there
are two propositions which that gentle.
man is called upon to prove, before his
selection can be supported. One is, that
the banks can be by that time placed in a
condition, which they are certainly not at
this time, to pay specie; the other is,
that even if this ability could be Gre
atcd, no material change should take
place IN the resolutions OF conducl
of the government the Il. States-First
then, can the banks be brought into a
situation to pay specie by the both of Fe-
bruary And 2dly. if that result can be
obtained, may not. measures be brought
about by the government of the u. States
which may make it unwise in them to pay
The gentleman from Loudoun, whose AR
guments are Away listened to with plea
sure in this House, saw these propositions
clearly before him. He met them fairly
he attempted To shew that the Banks
might be in situation TO pay by the both
of February, and that the government of
the u. :. ought TO adhere 10 its resolution
but, sir, We disagreeas to our facts, and,
OF course, as to our conclusions.
That gentleman began by saying, that
the Banks had not done as much us they
-oughtto have done; that this Legislature
ought not to have been convened; that the
law would have compelled them 10 re-
snmespecle payments by the 10Th OF No
vember.- Mr.. Mercer rose TO explain
what he had said, was, that the banks
were Just as much condemned under the
old law as this law ui the last winter that
they had the right TO violate the one,
they might as well have proceeded TO vio-
late the other Sir, the whole matter
comes to this-7Lifthe banks cannot be put
IN a sltuationIto pay specie on the goth
OF February, you ought not to compel
them to do it--and if they will possess the
ability, tits unnecessary to adopt this "a
mendment. Have not the banks made
great exertions to resume their payments?
The documents on your table, though not
intended to make erroneous impressions,
are really calculated to deceive the House
Even the gentleman from Loudoun, in
fhe course OF ms argument, had been led
10 some erroneous conclusions, which he
has this day come forward to correct.-It
would appear from the face of these doc
uments, that the Bank Of Virginia has on
~ curtaiied 1877 900, On sum ofS3, 49,
o00-of course, Sir, only Il fraction beyond
10 per cent.-But, what is the fact -? Re-
fer to those documents, andyou will find
that on LIST January, lSlG, the bank of
Virginia bad in its possession in foreign
notes and balances due from other banks
the sum of 81 ,0lO,Sf4; butnow they have
only Sl52, 900 in funds of the same des-
criptlon. They have thus rid themselves
OF 1888, 40, SO cents-What have they
done with them, sir? Had the gentle
man from Loudoun put this question to
himself, even the documents on YOUR
table would have saved him from miscon-
ception;.i appeal to you, whether the
banks did not ask you 10 take this paper,
tors SIX months, without your paying in
terest, and repaying them with your re-
venue as 1T came into the treasury
You would not have on those terms this
same trash. What were they TO do with
itt All that they could do, was to sell it,
on the best terms and shortest periods
that they could. They did sell it for The
notes oflndividuals, payable at various
times. Many of these are the outstand-
ing notes which are exhibited on the
bank statements, and constitute part of
s3,075,000 of outstanding notes. We
ought TO add the amount OF this reduction
% the actual curtailment, and this bank
has really reduced their outstanding debt
81 ,236, 00,-Buttbis curtailment has fall
IA.
And what Is the result? That the bank
mas drawn from its customers the sum of
81 ,233, 600, out of 8, 070, 600 more than SO
per cent. What more? The capital of
fms bank is not quite $500, O00-thcir pre-
sent outstanding debt, only 1915, OO0.-
They have then only S575, 600 over and
above their capital, on which they draw
profit for as to the residue, ii is no
more than their capital, which would be
worth at legal interest 6 per cent. No
bank was ever before Ina such situation.
unless If was winding up its affairs, and
intended TO transact no further business.
1t is really this difference between the a
mount of capital and of outstanding debt,
winch alone constitutes the fund from
which are to be drawn not only the pro-
hts, but all the expences of the institu
ton.
But it Is to be hoped, that if You do ask
them to pay specie on particular day.
youwiIl notrequire them to do il in6o DAYS
and not on the Goth Feb'ry They can
not comply, unless they reduce their out
standing debt. And can they do this Z.
They have already drawn i'm more than a
million out of a capital of three millions.
Think YOU, sir, they can now draw i'm
100000 III the space of 90 DAYS That
from this exhausted subject you can in
two months extract more than halfa mil
hon OF dollars Rely upon it, the string
IS not strengthened by being stretched
1t rs the camePs hair which broke the ele-
phants back. II may be these Si,75. 900
which may bankrupt their customers
They are less able to endure this operation