Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1838-03-08

has demonstrated that some coeciye measure is neces
eary 10 induce the Banks to place themselves in sua.
uon 10 resume specie payments. Their condition at pre-.
sent is far from favorable: their liabilities are seven
Times as great rs their specie And although since the
hFst last june their specie has somewhat increased
ana ther deposes diminished yet their circulation is
greatly increased. They should be compelled to in
crease lher amount OF specie, to make the proper
'nucn greater when compared with their liabilities
mere are various means by which this can be done
they may purchase foreign bills Of exchange, they
are now below par-hey muy buy State stock and remit
t aOroaa-convert into specie, and import lhut-or
'ney may 60 directly into market, and buy the specie
WIN telr own notes. If you are determined not 10
tam al! dividends, and their must be issued either
10. oiVaends orIn the purchase Of specie, will Ger.
tainy place The Banks in better condition to apply
their dividends to the purchase of specie. Take for
ample tpe Farmers Bank its circulation is 50 500 600,
ana It's specie Is $500 900 in round Misunderstanding FIVE
10 one. suppose that Bank should take million Of
It's notes. and buy with them million Of specie. lis
circulation then would be SO $40 900 and its specie ST.,
5UOOOO-Is circulation would then be two dollars and
one'thlrd, to dollar of specie in its vaults. The
proportion OF immediate liabilities TO its would be
greatly reduced Does aby gentleman pretend that the
conG.on OF The Bank would not be greatly improved?
AND they are 10 lose three four per cent in the
purchase, is but fair and just that they should incur
inns oss as they are now making from nine 10 thirteen
per cent poht on their capital For himself, he could
not consent That they should continue TO issue such
currency.
MI TuSsTALL observed, that he feared great difficulty
in coming to decision upon this subject Is
OF exceeding delcacy and importance, and he hoped the
house would be In no haste 10 get rid OF 1t Without due
consideration He felt disposed 10 prefer he amendment
which was read by the gentleman from Henrico-and
which proposed TO restrict the dividends OF the Banks
without any eompulsion as to The purchase Of Specie
which seemed 10 be the distinguishing feature OF the
proposition OF the gentleman from Richmond city IL
seemed to him much more prudent to diminish the
amount Of the dividends Of the Banks, than 10 give
them larger dividends and require that portion of those
HanHS no cd I,ld Tho
necessary consequence Of such requirement be, to in
crease the demand and raise the price of specie? And
would not the Banks resort 10 the direct remedy OF
curailing their discounts and collecting their debts, to
subslnnate themselves with specie, rather than to The
crcuilous process Of making dividends for the purpose
of going into market TO buy sre To gather in its notes
from its deGtorS however onerous TO the people,
tuiny much easier and reader mode of diminishing
the dSprOporio between the of its specie and
the amount Of its liabilities than 10 send out their profits
to gather in specie.
MIR BORIS called for the ayes and noes on the qurs
ton of inserting The amendment Of MIR. ROBERTSON,
which ordered.
Mr. FLOWERS said he had voted to strike out, but he
had no intention of voting for the amendment now be.
fore the House.
Mr.. MAY opposed the amendment, requiring it did
the purchase Of specie al whatever rate il might be in
the market
Mr. ROBERTSON further explained The operation Of his
amendment and maintained that the operation Of pro.
curing specie would not increase the price in the market
NOTED by the amendment
The question then taken The insertion Of Mr..
RoBERTsoss amendment and decided in the affirmative,
as folluw3:
.9ws-Messrs. Poulson, Rives, Randolph, Holloway,
Jrer, Taliaferro Stuart Kinney, Byrd. Fryatl, Snod
grass Shanks, Peyton Triplett Tarr Hubbard, Thorn
burg, Daniel, Cheatham Corbin, Cox, Ill., Paisley,
Keen, Shcrrard, Chapman Of g. and NJ, Watkins, Ed.
munds Taylor Of H., OdrlI, Harrison, Tayoe, Shad.
wick, Allen, Mcdonald, Orgain, iludgins, Raymond,
Morgan, Chapman Of NJ, Barnett, Buck, Hodges,
Brown, Watts, Segar, Alexander, Fitzgerald. McCon.
nell, Mccoy, Cabe Gay, Stands, Storms, Pendelon,
Robertson, Leyburn, Mcdowell Gray, Cubertson Da.
Wis, Cru,chfeld, Ripley, Goodson, Gleares-G5
Noes-hessrs. Banks, (Speaker:) Bayy of A., Mitch.
ell, Cobbs, Turnbnll, Yancry, Castlsman, Wilson,
Vaughan, Lorimer Sangster Marshall, Dgges, Dickin'
con, Deskins, Wood, Smith Of G. Ogesby, pinnell,
Spencer Park, White Mullen, Flowers Bolts, Smith of
!. of W., Lucas, Smith OF k Wright, Luckett, Beard,
Taylor Of L., Goodwin Newman, Fisher Garland, Bur.
well, Cunningham, Voolfolk Mcrherson, Adams May,
TunslalI, venable, Morris, Williams Cootrs, Thomas,
Conn, Crawford, Clayton, Ford Bailey of s., Prince,
Witten, Walker, Mayberry-57
Mr.. HARRisos then moved The following amendment
which he called for the ayes and noes:
"And if any of the Banks of this Common wealth SHALL
after the - day Of next, fail to pay in specie
demand its notes. other liabilities the notes of
such bank falling shall not thereafter be received in
payment Of The revenue; and any person persons
who shall thereafter pass put in crculaon The notes
of such bank failing, he she they, shall be liable to
the pains and penalties OF the several acts against The
circulation Of notes emitted by unchartered banks"
Mr.. FISHER said that, as THIS amendment incodcd the
deposites, we'll the notes of the Banks, he could
moi vote in its favor If modified in this respect, he
should be inclined for it. Mr. F. then suggested
to strike out the words ''other liabilities ="
MIR. HARRlsoS accepted this modification Of his amend
ment.
Mr. SMITH of l. Of W. observed that such provi
sion proposed by This amendment, would be
perfectly useless, for deposor would only have 10
&c, notes in payment Of his deposile and then present
those notes for the specie.
MIR. RAxDo,pH explained by illustration Of the
facts Of The case and mode Of operation, the uer i'm.
possibility of compelling resumption at any fixed day,
unless the other Banks resume simultaneously.
Mr.. BORIS spoke with much animation against the
amendment employing the former arguments IN reiuta
ton Of the principle il involved.
Mr. SEcAK said he thought it entirely unnecessary 10
fix any day for the resumption OF specie payments
Either the banks would be ready to resume by the APP
pointed day or they would not If they could get rea
dy there was no necessity for legislation TO coerce them
They would be glad to resume at the earliest moment
they could They were sensible that popular feeling
against them advancing and would advance IN pro-
portion TO tie length Of time they postponed resumption;
and it was therefore, their interest to use all possible
means to enable them to resume II was not necessary,
therefore, TO legsate The Banks into resumption But
suppose when The day fixed arrived the Banks are mol
ready 10 rpsume-what would be the RESULT Why, that
The Legislature would as 1t has done before excuse leH'
and relieve them from the forfeiture we may impose
The argument will at come up, that the conllnunl-
y is deeply involved in the Banks, and The argument
would succeed-lt never had failed and i, never would
And again, said Mr. S., the moment you pass the bill
with The amendment Of the gentleman from HARRISON,
nressure would commence II would not be postponed
Until The day fixed for resumption came. The Banks
would begin al once prepare for the resumption, and
the chief they would use would be, contraction,
cur,oment Discounts would be cut off envely-the
merchan, would have nothing wherewith 10 purchase the
produce of the farmer-every debtor would be called on
10 pay-and such poor wight who might be in the clutch
es of the Banks would have the screws applied to him;
md The result would be Of desolation and suf
E.rinp which it would be impossible 10 describe. In
deed forced resumption could never be had without
consequences DISASTROUS oppressive and appalling
He was therefore opposed 10 the fixing OF any day tor
resumption. ;.
Mr Is1soS briefly renlied in answer 10 the obiec.