Lynchburg Virginian. [volume] (Lynchburg [Va.]) 1829-185?, 1838-07-05


IA ,efcre the oi banks rs depos'iofics and
The rc-ript of bank notes in payment oi government
dues but they wee not considered.
Mr. Ar.as again occupied IN hour with has
rpecch concerning the annexation OF Texas To The
Union and was again interrupted before he had
ropclucd his remarks, by the arrival OF the time ior
taking M tho orders OF the dav.
About one o'cpck the House went into Commit
tee and took M The bill for increasing the Military
establishment, Of the United States
SENATE-Ms. WEBSTERS BllL.-As
soon ms the Journal read, Mr.. WrnsrER gave
notice that 10 morrow. he would call up tom the
table. the bill introduced by him some days snoe IN
regard to the ol banks public repositories and
the reception Of the Of banks issuing notes o'
denomination under five dollars,
TERMINATION OF THE SESSION.
On motion Of Mr.. BuouAsAN. The joint Resoln-
ton from the House, fixing the second Monday in
July for closing the session, was taken up.
Mr.. BENroS objected 10 binding the Senate IN
particular time for terminating the session, aud mo
we'd TO postpone tie resolution TO Monday next
Some conversation ensured the subject, between
Mcrssrs BucuANAr, G.uNpf and Benton the re
alt Of which WAS the rejection OF BI>ToN's motion,
i,e having only obiaincd votes for posiponlhS,
and there were thirty nine against H.
The resolution thcn adopted without division.
Sol settled that the Session will terminate on the
9TH ofJuly.
WASHINGTON, Jnne .. 1s2s.
To-day Mr. WEBSTER called up the Bintroau
cod by hun some DAYS ago, making provisions IN re-
card to the use of banks public repositories
md Tor the receipt OF notes oil banks issuing bulls
of less denomination than five dollars.
This distinguished Senator took accession 10
explain Al some length the objects aud provisions of
,he bill; and show tic application OF them to the *.
ist,nc state If the law.
Some time ago (said Mr.. w Congress passed
Joint resolution prohibiting The Secretary ol the
Treasury from issuing continuing IN force ANY
general order making any discrimination rs to The
funds medium OF payment receivable IN the sati-
Gus branches OF tho public revenue The effect ol
that resolution WAS TO repeal the Specie 'nchHH ol
July, 1896. But on the passage al lint resolution
new Treasury order was issued winch, under The
existing state Of things, had Almost retmclonS elec
and rendered the operation 81 the kfsoniI"n less
Beneficial ~ d extensive. th7n WAS desirable otc
the Treasury Oldcr Of July. 1856. ouf Of the cast,
then by the rule founded The loIn Resolution OF
lsl6 and on the Depositc Act ot IT, the notes oi
spccIc-pa,iug banks would he receivable M pay
OF the debts and dues of tie Government, with
the exception contained IN the Sd section o tie De
posite Law. which declares that the notes 81 no
banks shall be receivable thai do not redeem thcm
in specie: and that banks shall be selected Is
repositories which shall issue notes Ola less demon
NATION Than five dollars: and further TINT the notes
oi no banks shall be receivable, which shall ,s>ue
notes OF less denomination dian Eve dollars. ! his
last mentioned clause applies 10 bills al Ia banks IS
sung bills which were receivable under tue Irsnn-
inn Of le1G. hat which arc now excluded under the
ACT OF $50.
Mr.. WEBSTER then drew tho attention Of The
Senate to the fact that since the act 81 73h, almost
all banks north oil Pennsy wanna have brought thrn
selves into the condition, in which thcir bills are
excluded from the Land Office and the tuSinm
HOUSE, by the propositions of this clause. fhuSe
banks haze issued notes less than five dollars. In
some States there may be exception two
IN New York, Massachusetts and Connecticut
These the only exceptions however aud the
great of the banks IN the Northern States ate
excluded. The may be SAID OF some Of
the banks IN the Northwestern States, and IN May
land
Aso that provision Of the section which PRO.
hbi,s the receipt bills ofa banks that do not re
deem their notes in spccie--it is a wholesome rcru-
laiion. lie would disturb IT,. Eat the plnlubi-
non to select banks as public repositories. that have
issued notes under five dollars, IS ono in which all
the banks involved. Now, II IS generally ac-
scd that the suspension OF lheprohbitlon Of
small notes was an Important AID towards the rcsunp
ton OF specle-ryancnts. The question therefore.
H. how Ear shall this restriction on the Secretary be
removed, rs To allow hun 10 select specie "a, lne
banks as public repositories, at hIs discretion and
how iar shall the prohibition ON banks issuing small
notes be suspended, whether il shall he repealed
altogether, remain II stands.
The Bin which have introduced tsanl Nh W.
indicates my views al what is cxpctlicnt and ought
TO be done. lie then took the measure section by
section, aud gave lucid and powerful explanation o
each.
The first section suspends indefinitely the five dol
lar restriction of the Depostc Act.
Some might think (>aid Mr.. W. that the snspcn
SION ought TO be indefinite but itappearcd Ieasona-
BILE that II shoIld last long as the suspension of
the same rcsnietion by the States Some States
were suspend,nr, and some repeating this restriction
hot ioI the benefit Of the banks. but Ion the ac-
commodation OF the public lie would not u this
way, desire to place limit to the Suspension
The second section provides that the Secretary of
the Treasury should select as the public dcpos,io-
RES any banking institutions authorized by State
Laws. THIS section was so wotded Ia embrace
the institutions which might be created under
the general banking law OF the State OF New York
lie thid section rs II stood, provided that the
Secretary might employ banks which had NJ any
TINE. suspended specie payments But as the
COMMITTEE on Finance had reported that the
Secretary had no powerto exclude these blnks he
should not retain that section. lie proposed an
Other section in place OF this providing that the
Secretary may employ banks, Which have, sine .
July, 1856 paid out notes less than FIVE dollars
The ionih section suspcnds the provision of the
Pension Act, which ptohibus the discussing Off
GERS ct The government from paying out any note
less Than twenty dollars and any note not PAYABLE on
demand ~ specie at the place where issued.
In consequence OF the provision, the Secretary
thought himself authorized to prohibit the feccil,t
nj the Land Offices, the Post Office. aud the Custom
1ousn OF every note less than twenty dollars. This
IS not OF mich Importance a respects the Custom,
House. but At the Land and Post Oaces its opcr.,
uon IS attended with great Inconvenience; he pfo-
posed to suspend the prohibitions and he was willing
that II should be made definite
Mr.. WEBSTER concluded with some sound and
s'atesman-hke general remarks We are now, sad
he. approaching the close of the session. monde,
TO carry GU, the joint resolution adopted somc time