Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1828-01-01

sacrifices of property. How did lie prcrnioIn on
bank stock stand in 1892 1t fell after the con
c'usion OF the charter to 80 cents for the dollar
Although the Price had previously been rs high u
nv II ieil at once 10 30, which Was below par.
lie did not prctesd 10 have any knowledge OF
he situation OF the present bank; tu; rs Tar rs
historical statements had been made, he knew
tefe had been very great management, aud
that great losses had occurred-Ec'Y, he would not
say. He believed that these losses had not yet
been retrieved, bu; that tctc yet deficiency
W be made good amounting, perhaps, 20 two or.
thrcc millions. lilo cpntcsnded that the premium,
OF u LIZ per cent not the only element which
entered into the price. There is another element
aud ii il was not generally understood, the sorner
tue stockholders knew il the better. The Other
element 70 which he alluded, il the rcnc-a; cx
pectation ufat the charter will be renewed; he
would not say, removed upon tho same Conditions
but by the payment of bossus that IL would be
| re-chariered 40 MS to continue is operatuns; and
he regarded the expectation rs reasonable IL.
would ask if the Government had done potI,in to
cause such expectation 1t had FROM the frs; in
siitution OF the bank done, and it had undone.-
hatever difference Of opinion hal existed on the
INJECTOR the constructions OF constitutional power,
'hcfc was but one sentiment among distinguished
statesmen, and that WAS, that an institution Of ts
Kind was necessary machine IL was the settled
opinion that its existence is csstial and ind
sable.
He here alluded to the Legislative history OF the
different banks, referring, the first which was
{ incorporated in 1871, ind WIS subsequently, re-
peaied, causing great dis -. After the lorna
'ol " the constitution, second act of ncorpora-
non was passed The charter OF that bank was ai
lowed 10 expire. In 1916, after great disc usson,
( the prcscnt bank was Chart rcd. The whole al
the subject underwent discussion; Che constitutional
power OF Congress fully debated. After goios.
through repeated ordesls Congress came at las; TO
, the solemn determination tiiat it was essential
How did you act' What Was the condition OF The
country at that time!
In the year 1916, the public debt Of the United
al -
per cent. stock, but mostly in per cents redeem
aoic nj the will OF the Government and some of il
was in per CENT. stock. similarly redeernabie-
. " hat did you do? You, with 7 million of this
p'Ohc debt purchased SIMILAR amount of stock in
inc Bonk, with an understanding that the stock
should not be disturbed When the Bank stock
afterwards rose to 80 did soi, make the slightest
movement towards Hing the stock' No such
'hifS' 1T would then have produced very consi,i-
crabtc proht, but every one knew then as every.
ono knows now, that such a step would have been
biow struck at credit. Could any man say
'hcnhat one OF the elements Of the price Is not de-
rived from the expectation that the Bank will con-
ulue alter the expiration of the present charter:
Does this expectation affect the stock. Yes. il
does lie did not care whether the principle ysas
right or wrong; but it was. Such has been
tie course III oil history Of finance, suci, a course
We have adopted, and if we go ON 10 the end Of
the charter, the price will be enhanced bv that
expectation.
If at period wheu we were distressed and
suaitened in our means, (and Bank stock rose 10
1917 we still continued to keep our STOCK in snit
OF the embarrassprents of the time. and should
now, when our public debt is not much more than
one third, and we arc free from embarrassment
sen out our stock ct fine when the induceInent
IN tine shape of premium is still less thus telnrr
he world that these circumstances induce the sale
1t must have ar extraordinary appearance in tba
public eye.
The whole ci,ilized worlI Is governed By one
princlpie IN ITS financial operations; and YOU can
a IDxGa aitaSf tf.,,.
which viii not be felt. Whether right or y-rpoa
Things are so, and dependence OF the opinion OF
foreign capitalists for financial operations can
not IN denied It's the principle ID your existence
There Is no measure o; finance III Eurooc which is
not prodicated upon it, as would lie proved by a
reference TO the situation and policy OF ENGLAND in
1877 70 the whole Of our financial tem9erature
IS Indicated by the thermometer which is hung up
III the royal exchange, London.
The gentleman from Virginia had said that no
aia not vote tor the bill to incorporate the bank
iG was sufficiently acquainted with the gentleman
20 know ilie ground on which he had opposed it
, men ne heard thlt the gentleman did not vote,
peil@ acquainted with his opinions, and having no
Doubt that he induced TO vote against the hill
~ MS peculiar constructions of the constitution
he considered tic annunciaon us notice Of hi, in
tioH 10 revive the discussion on that point when
inc measure shall be again brought before Con
G7ess He hoped, however, that we should ne[,.-
tied. 80 81
II VtiT4Cu''fiy DeIoYcS US 10 Keep or financial /
clarAtcF 80 pure, that credit may s.on d min
paired abroad. II was not merely GOOD f,iil, but
thc most precise, scrUpulous and punc;lious fulfil
Inent OF orr obligations We should be careful that
the steadipess OF our course be SUCH az 10 make
pubic confidence perfect. is the uniform stead
mess and good faith Of our operations upon which
we must rely for our character abroad
Here MIR g., who spoke in tone which render
cd impossible for frequently TO catch The drift
OF ms Argument. made some reference 70 tho Treu
sury Report OF Mr.. Crawford, i'll which nc stated
that our country had been in debt from its origin
:, mere was noihinS more true than ulat we had |
liVcd IN dent From the moment our anccs- I
tors touched these shores, had lived in DEBT
W c had borrowed from England at per cent. and
invested II at profit upon that intcfc t. This j.
the whole history OF our country. st present vs.,
are occupied III providing for our own necessities
me CONSTRUCTION o. Roads AMI Canals il but part
OF ulat necessary process. We are only PREPARING
the machine Tor production. We have at present [
very little or no surplus. The value Of The rnoue,
in London liz one week IL eq,I TO tI.
operations OF the whole 81 the United States for
year.
In regjFd 10 tiic proposition Of the rcnieman
rom virginia he was bound to oppose H. The A. (
dopuon oi II ivould not fail TO 20 forth to the world
as strong evidence that Congress had not .hc iitcn
lion TO renew the charter Of the Bank
Mr. Stewart rose, not % enter into the debate !
seheVaii{, Dut merely 10 present one tygo objcc
iions 70 TINS measure, which bad not been diverted
70 ny olheT gentlemen. The great object Of the
Nopos5on, as avo~Ycd by the mover. was. "a bas-
ten TIC eXunguishincnt OF the nIi:onal debt by !
'cting TIE hdSk stock ard thus increasing the
mems o. the Treasury to accomplish it, II cen
uem'n wili LOOK at the effect Of the present sink
ing id OF ten millions Of dollars ON the national
ncO u VIII be Obvious 10 every one that instead oil
increasing, we shall be compelled 10 diminish the
present sinking fund.
[ifcrc MIR. Stewart went into calculations and