Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1817-01-07

air Hay had had but two wishes on the sub
ject of these now banks: one was, that they
might not Interfere with the old banks ia the
resumption of their specie payments, on which
MS wisheshai been partially. though not alto
gcthcr accompiisaed-the other was, to make
the proposed banks really specie paving banks
that he had bestowed some attention upon
this roint, aud he would inform the gentleman
from Buckingham, (SIr AUSTIN that his propo-
sition had been the subject ofhis consideration
he would tell him why he did not incorporate it
IN the amendment he had bro't forward list.
He thoughtit unjust, the business of the bank
being done by the Directors, Chat their miScoB-
duct shonld fall thus on the stockholders: I'd,
Because il would fall unequaliy upon them !;
that those near the banking house would be
compelled 20 pay, While those at distance
might cscape--that the gentleman had there
fore much better move TO strike ont the first
section of the bill, than introduce provision in
TO the bill, which was calculated TO prevent any
man in his senses from embarking in the bank.
Mr. II. asked too, how they were find out who
were the stockhoders-thc original subscrip-
ton would not be sufficient, the stock being SO
often transferred from hand to hand. Heurg-
ell also this objection That the Directors are
made trustees, in case of orictrre, all the pro-
perry OF the hank being vested in them for col
iectng, paving debts, &c. Butin 90 days, how
was II possible toknow, whether the Bank was
solvent though they might not be able to nav
the specie;) III that short time, could they pos
s:Dly wind up their affairs aud ought any step
therefore to be taken against tile stockhol-
dcrs !
Mir. Austin replied that the Directors were
only agents of the stockholders, and that eve
~ man was bound BY the acts eff his agents
that it was not the stakeholder only nearest TO
the bank who would pay its debts, as the amend
ment contemplated only that they should pay
rateabiy, III proportion to their share of the
stock-that surely this was not too much TO ex-
pect OF those, who were permitted TO enjoy The
profits OF fictitious capital aud that 80 days
were certainly long enough to enable the drec-
"a xyh her q
not.
Mr.. Smyth objected to this provision, he
cause II was unprecedented; in the 1000 banks,
created in the L. ). there was nothing like
it; I'd. because it was unjust because the
stockhoider was made responsible for the acts
of director, whom he did not know, did not
appoint, and over whom he had no contrcul;
Sd, because ii was partial in its operation no
such provision being found in the charters of
the existing banks eth, thatno one would take
the stock under such a restriction; and lastly,
that the remedy was defective, for who would
sue for five dollar, or indeed any other note
when he would have TO sue perhaps 500 stock .
holders; the only consequence would be,
plentiful crop oflaw-suits.
The question was then put on Mr.. Austins
proposition, and lost.
The bill was then ordered to be ergroseed,&
read a Sd time.
Mr. Chamberlayre then offered the following
resolution
Resolved by the General assembly. That the
Executive and Treasurer of this State, in max
ing appointments 10 the Directory of the Banks
in the State, be instructed to exclude there
from any person, whom they respect lively may
suspect of being guilty, or who bv common
fame, is charged with being guilty of usVry, or
that practice called sharing.
MI. G. said, that this resolution differed from
the bill he had lately offered, in requiring no
test-oath-that this measure might however
cut up these improper practices for the future,
by excluding men who were guilty of them,
&c.
Mr. Smyth moved the following by way of
"ResOlred, That the Governor and Council
be requested, & that the Treasurer be instrtc-
ed, TO appoint no person 4 bank director, whom
they shall have cause to suspect of usurious
MIR. Chamberlayne hoped the gentleman would
agree to retain the word Sharing; as il was no.
torious distinction had been drawn between a
mans lending out hisOwn money, and EMPLOY
ing broker to lend il for him, in which case il
was called sharing.
Mr. Snlyth replied that the Exec itiye and
Treasurer could readily understand what uat,.y
was.
Mir. Mercer objected to the use of the word
instruct i'll relation to the Executive, a co-ordi-
nate departmentOfthe government During the
late war, at period of the greatest alarm, when
a DIN. Warren's arrival was announced, a COM
nIttee OF that House made report for instruc-
ting the Executive TO call out the miitia-Ife
had opposed the Resolution in that shape, and
the House supported him in the objection he
mao 'dkcn.
Mr.. Chamberlayne proposed to change the
word instructed into requested"
Fir. Mercer contended, that being the Flee
tors of the Executive, request from them
wonld nearly be theSame an instruction.-IIe
was unwilling to legisatc OIL this subject to in
terfere with the direction of the banks the
officers, to whom was delegated the power of
appointing the directors, abused that bower
they might be punished by remsvaI-this was
the proper check-He also objected to the
terms of the resolutions: Suspected of bein.,
guilty." like the victims who were executed
on the lamp-posts at Paris. " Cause to suspectl"
No formal evidence required! None on oath
MIR. Chanbcrayne moved to amend the ori-
ginal resolution by striking cut and Treasu-
rer of this State, in making appointments to the
Directory of the banks in this state be ins truc
ted" and substituting be requested and the
Treasurer instructed in making appointments
to the Directory of the banks in this State"
Mr.Smyth preferred his own resolution, be-
cause it excluded common fame" as evidence
and it omitted sharing aterm unkno wn to our
journals and our laws.
Mr.. COlston hoped Mr. Smyth would add the
words " directly or indirectly"
MIR. Smyth accordingly amended his resolm-
ton so as TO rea whom they shall have cause
to suspect of committing directly or indirectly
usurlOus practices"
Mr.. Harrison asked lift was competent for
the Treasurer and the Executive to say what
lsuSuTy, to summon witnesses, Ser Does not
the bank charter say who are TO be Directors !;
and can you annex DewqGaificatiOns TO tins Of
nee Mr.. n. contended, tliatit was best TO be
done with this measure altogether, as twas on
~ calcuatedsto bring the house the smile
of Indignation and contempt
Mr.. Banks moved to lay the Resolutions OIL
the table.