Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1827-12-28

OF the Importance of an early decision of this mo
;lentous question, Mr.. Il. said he would forbear
intrudns any further remarks on the attention OF
| the House.
Mr.. Barbour, with view to obtain direct
decision upon the principle Involved, now nrodi-
~ his resolution so as TO instruct the Committee
OF ways and Means 10 report bill to authorize the
sale Of the Shock OF the Bank owned by the United
Slater.
Mr. McDufie, Chairman Of the Committee
| OF Ways and Means, expressed his thanks 10 M.
gentleman from Virginia for his fairness in PFC
posing this modification. He thought with the
gentleman wiiu had preceded him, that it was i'm
portant the question should be decided on its merits
and aimportant that il should be decided os 500.
as possible. He thought that, in fiscal view or
the question, the gentleman from Virginia, in Law
ing down his premises, had overlooked the well
established principle, that, in individual com
Petition where market is more than supplied with
any given commodity, the price of that Commod,-
ty always falls in proportion the excese Of the
supply. He had clearly shown that there existed A
surplus capital IN the u States, from the Govern
ment having paid off sixteen millions of the pub
i,c debt. This very surplus of money in mar
] ket' Mr, mcD argued, entered into the price q,
the Stock. Ii, on the contrary there was a search
~ OF cash in the market the stock would not brine
Its par value. as 20 the fact demonstrated by The,
gentlemans calculations, that the real value OF mo-
ney IN the United States is at present not more than
three and half per cent, il had no bearing at at
on the present question.
Whichever the Government comes into The
market, all the principles resulting from the
tts
with ten-fold power. The Governments nam
moth seller, or mammoth buyer: when the Gov
eminent comes INTO market as buyer, il raises the
price OF stock beyond all proportion as, when i.
comes in as seller, it depresses il beyond propor-
tom IL was upon this principle, that, though mo-
ney be actually worth, the gentleman saws ONLY
fnfee and halt per cent, the tioveTnmei Mt when il
passed law 10 exchange its 6 per cent stock for "a
stock OF per cent, irredeemablc at a later period
could not get il; whilst if the Government were TO
go into market and borrow, Tomorrow, the wi,ole
l6,OoO0OO ii has paid of, the stock it Hould issue
would, IN two days time, be at or 10 per cent.
advance.
MIR. Med. said, that if was therefore always 80
be regretted that Government should come into
market, because its presence there nvoluntarily
produced great effect upoa the market, in every
way.
Mr. Med. then made some statements to show
that refined arithmctcal calculations were not pro-
proper data III all cases TO egislate upon. He pre-
sumed that il would be admitted, az a general pro-
position, that the stock of the bank of the u States
is certainly worth much TO Government as ii il
10 individuals. To the latter, its value regulated
upon principles which cannot err, is ROW rs per
cent above par II it is of that value 10 individuals
Is, upon the same principle, OF the value 10
government Why: The Government receives
| p per cent interest upon the stock in the .Iars
| whilst itpays only per cent on the same amount
OF its own stock. The difference therefore is pn,
per cent. the whole amount of its intere in
the Bank, seventy thousand dollars per annum
clear profit, besides lis interest in the Balance,
which the Bank always reserves to meet cortiu-
gences H. then You sell out your Stock in The
Bank, supPosng you sell il al the present mar
kGt price, you make according To the centlcnan-s
Calculation, present gain OF million six hun.
dred thousand dollars. whilst You annihilaie cap-
tai which will produce, the end of time If tho
i@iik continues to exist, areyenue of seventy thou
sand dollars year. But, so far from being able 4,
dispose CT the Stock at the present advanced prir
IN the market, NJ. Med. believed that if this re-
solution were now 10 pass, the Stock of the f3anS
would be AT once reduced 10 par, in the Market
tttfi.t a
Med. here entered into calculations TO sheW fb.
etfoct, upon The v5fe of the stock from any mi.
nation OF Il dispo 'On, on the part Of the Govern
ment 10 restrict its cSiStcnee the tra ion of ia
present charter and traced its present high price In
the market, TO the general confidence that the crar-
ter would be continued. The effect of bringing
Government shares in'orsalisst Mr. Med. asssu,1
ed, would be to reduce the piice OF the Stock &,
par, II not below par. What, then, would be ttlu
effect OF tfis measured
: We sell our stock at par sal he: DO we o:iai,le
ourselves, by doing so, TO pay Oft, as the geniIs.
man supposes, any portion of the National Debt?
NO: Tor the seven millions we should receive for
our Bank Stock would only 80 op pay TO the Bank OF
the United States the seven millions we owe Tor
that Stock. The only operation which would reak-
~ and etectually exinguih any portion OF the debt
OF the United States, would be sale al the prstit
OF one million six hundred thousand dollars which
ihe gentleman calculates upon. under the errone-
GUS notion tina: 20 large portion of stock wo1Ii
command the present market price. But, if we
sell the stock at its par value, as Mr.. McD had as
s1Ined that we should do if we sell il az all tier.
instead of gaining the sum calculated, we should
actually lose the Identical sum of one million si
hundred thousand dollars. For the gentleman had
himself shown that the Stock now worth tt en-
ty-fiiTce per cent above par: andi were 80 dis
posed Of to yield only its value ut par the diff
ference would certainly bs lost TO the u. States
Mr. McD. said lIe should not pretend 70 follow
tie honorable member in his most ingenious arcul
iaent or in his calculations But he would now
call the attention OF the House to a fact, by which
i would appear that all parts OF the United Stages
were Interested in this matter. IL was fact. OF
which lie was appEiLed from various and from the
very highest sources, that at ths time the stock Oh
/ the Y. : Bunk coniit1tcs the rnedium by which
the balance agains; the Uuited States in our trade
/ with g.. Britain Is di5ch1Tgcd and the ne.
costly Of paying the balance in specie ayerted.
-" hat, he asked would be the effect of DESTROY
ing the confidence OF the foreign creditor in tho
value OF This stock No gentleman, az al acquaint
Oh with the subject would deny that the bare
knowledge OF the passage of such resolution "a
I tiiis, would knock down, 10 a point much below
par, the stock Of the Bank of The United states 10
ioraign counties. What, tIcn, would he the
consequence: Instead Of using this stock for re-
m;uonccs t.ie balances due 20 the merchants Of
/ Europe must be rcnitcd in specie. This specie
must be paid from the vaults Of tho Bank A run
upon The Bank would inevitably cnsuc for million,
upon millions. what would be the result Ever
! gentleman who knows the Usual proportion b.
tween tie paper Of Bank in circulation and Tho
specie in It's vaults must know That there Is no
Rank capable OF meeting RUG Of this kind. The
Bank thus run upon must culril lis discounts i-I
paper must be called in, its creditors distressed.
Who are, IN tis case, the creditors Of The Bane
thus Obliged ~ cal upon then3 Tho State Baussf