Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1827-12-25

ID. EcflUCIntH dnuClpatcd
SO great and sudden depreciation in Bank Stock
from offering large amount of il for sale, they
might allay their apprehensions by looking at the
profits OF other stock in the market. Stockholders
was universally admitted, well understood what
was for their own interest, and were able 10 calcu-
late with accuracy what would be the value of a.
ny contemplated investment of their capital But
II was fact that in other kinds OF stock they re-
ceiyeda profit Of from three and quarter TO three
and hall per cent. Gas was before shown) it now
appears that they :yould receive nearly the same
profit upon the purchase OF United States Bank
Stock, at its present advance.
The existing charter of the United States Bank
extends to the year 1886. The stockholders know
this, and have, therefore, precise data from which
10 calculate the continuance of their investment in
the Stock and, allowing the present rate of divi-
ucnd to be kept up, they may very accurately esti-
mate the value OF their investments. Now, of the
vorous kinds OF United States Stocks, there not
one which Is not redeemable before the year 1885;
some kinds are TO be redeemed in 1923; some in
1880, and the following years, the maximum being
1885. The bank Stock is therefore more permanent
bya year (and fraction longer) than any of the
other Stock in the markets, and, 1 need not said
DIR. b., remind gentlemen that holders of Stock,
whether they intend merely TO live on the annual
proceeds, or to use it for purposes o: business
speculation, attach the greater .r,uc 10 that Stock
which IS rcdeemable for the longest time, and TO
the rest proportionably.
The Ion rest date OF the Stocks created TO nav the
debt OF the last war twelve years
Here the Speaker nterfcred aud reminded the
gentlemen that the hour allotted to the consideration
oil resolutions had elapsed, and that he must post
pone the residue of his speech; whercupon, Mr..
McDufe moved that tho rule on that subject be
tor this day suspended.
After some remarks from Mr.. Burgess, (Which
were declared not To be in order on this notion) the
question was taken, and the rule suspended ac-
cortingly.1
MIR. Barbour then resumed, and recapitulated
the points OF his argument, having he hoped,
satisfactorily shown that depression of the price
fr, hf.t han,
rnents of the public debt already made, and shortly
TO be made, would furnish fund that naturally
sought investment; while at the same time, the "a
mount OF United States Stock was thereby dimin-
ished; and because Bank Stock, at its present
advance, gave good profit as any other Stock
he had thus far considered this Stock of this
Bank as stock merely, and had gone on the pre-
sumption that the charter OF the Bank was certain
~ to expire at the limit of its present term in 1886
But this was by no means certain ON the contrary,
there was every probability that the charter would
b9 renewed. The probabilities of this event could
as we'll be judged Of by the stockholders as by him
and probably much better. Their calculations of
that probability had united with other consdera-
tons to produce market price much advanced be-
yond The nominal value OF the Stock, and this he
endeavored to show was not likely to be diminished
He now proceeded TO inquire if any other evils
were to be apprehended from the proposed sale? 1t
had been said, that the moment such proposal
should pass the House, all public confidence in the
character of this stock would be at end and as its
its security, its protableness and its hold on the
public confidence, if this last should be destroyed
or greatly shaken, sudden fall in the price os
the stock must inevitably follow.
But, he asked why must the public confidence
be diminished: The charter of the bank would
shll remain Qor he presumed no member of this
House thought of laying much finger on that
instrument.) All the funds of the bank would con-
unue its debts receivable would continues the pro-
tits OF its operations would remain untouched: its
discounts would go on; it would have the same di-
recton; it would continue TO be the depository of
the funds OF the United States, (Which constituted
OF themselves an enormous aInount.) In short,
not one OF the circumstances would sustain any
change which could impair the confidence of the
stockholders. Why, then must il be impaired? Sup
pose for illustration sake, that any other large
stakeholder should sell out his stock; suppose
Canal Company, for instance, or any other wealthy
association, chose to part with their stock in this
bank, because they deemed il most for their inter-
est to use the money elsewhere, would such sale
Affect the credit of the stock? Not at all And why
must the mere fact that III the present the sell
Ter happened TO be the Government Of the United
States, produce such an effect!
The Government only ceases TO be holder of
Stock-it does not touch the charter of the Bank
all other operations ofhe Institution go on as be-
iore-except that the U. States Government owing
debt, and not having funds 10 pay, chooses to
pay it, chooses TO part with some portion of an in
vestment, and change il for another--it exchanges
the advantage of holding bank stock, for that Of
paying adebt it owes.
so long as this present charter continues all the
remarks founded on its continuance apply. OF its
probable renewal, it is perhaps scarcely proper to
speak IN this place, at this time. Yet must be
permitted TO remark, that cannot concur with the
honorable gentleman, from Mass. (AIr. COR
HAND in his opinion, expressed when this resolu-
ton was introduced few days since, that the
stockholders in Bank of the United States have
rlghtfo expect the renewal of its charter. They,
like others, may indeed calculate the probabilities
OF such an event, but, in the mean while, they
have precise period fixed by the charter for its
termination, and on that alone they have right to
reckon. For myself, if were TO speculate on the
probabilities of the renewal of the present charter
ef the United States Bank, should, confess say
It was highly probable it will be renewed. 1t IS
true,l did not vote for the charter and personally
j should vote against its renewal; but, on other
grounds from those which should act, the sub
Ject assumes very different aspect. The old bank
was indeed suffered to expire: but in very few
years. public opinion called decidedly for its renew
al; and five may conjecture the future from know
ing and remembering the past, it appears probable
that the same views which resulted in the present
charter, will prevail for its renewal. The promi-
nent considerations urged by gentlemen in its ia
vor, were, far | recollect, the effect of the
Bank in equalizing exchanges: in keeping up
currency at par value; in transferring with facility
balances from part of the United States to ano-
funds OF the Government. These reasons will pro-
baby be as operative in 1896, as they were when
the present charter was granted.
farther objection TO the proposition have sub
United, the consideration that it would be
wrong in itself, and i'm the eyes of the American
People, that Government should continue its con-
troll over an institution which, in that case would
be private property. And certainly, were it true
that the Bnnk Of the ". States az soon as the Go
pfoIn, e. Ia