Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1838-06-19

meocrmeu, OF the present session, the recon-
mendations, substantially, were renewed, ana aga"
the Senate has, after long deibera,lon and oroa'e'
adopted them in the shape Of bill, aud thus SEM te
to the House for its concurrence. II that oi'' S"a
become law, the whole depuslte system ecoGn
legalized by the depusilr of 1886, Will oe
VIII the Senate then with its own action suPp's 10
own hill, win !, in The abse nee Of all Information as 10
what may be the fate of that measure 10 .I'e 20 IT,
branch Of the Legislature, or rather wan '"e
| that it has not yet been consioefeo 'n'I'' So ,a
| bill upon the same general suoJec', oaseu "P ~
| principles? bro for,d
it 10 be their duty say upon KINDRED ora'cn Oh hs
snh;ect that whether such duplicate acton ny Tue same
I1,,;ro bodv be consistent with parliamentary law,
with The economy Of legislation, or with the uniformity
of decisions which should cliarac erlSe all deuerde
bodies ore questions which properly address, themselves
TO the Senate and not TO them; but upon lie ers Vi
tho n,o,os;,ions they must be permitted TO feel entire
coincidence thai no sufficient for change oil OPT
MON or action can be presented . :;
The remaining inquiry embraced IN The resout''u 10
in the following words: ct
ga And also 10 INQUIRE into the expedency Of repeat
no mr. modifying those provisions OF the SAID ACT, WHY.
prohibit the receipt, in payment OF debts ana "u'
United States ofhe bills Of all banks which issue o "
less denomination than five dollars
This inquiry relates to the last clause oi "ie '' wv
ton of the act which reads as follows:
a. Nor shall the notes or bills Of any bank be received
in povment of any debt due the United States, winch
shall after the said fourth day of july in the year one
hill ola less denomination than five dollars.
The provision of the law Of 1856, was inserted IN ut
therance of policy some years since adnpteu NY oo'
rress as will be by the 9Th section oil Inc P'oPs
echarier of the Bank Of the U. States o! the year OF
1889 which reserved to Congress the power. from ana
after Sd of March 1896, 10 prohibit that institute" nom
issuing circulating notes OF less den"nihaIo" '"
twenty dollars. That act did not become q law ou'
this feature of il the appreciation OF the wv" nousr
of Conuress: while the objection Of the then Presl'
dent to the bill made mention OF TINS pto''S,i"
as exceptionable in his mind On the contrary MS
whole policy and all his recommendations IN Itla'ioh
the currency after that Gale, and especially acF we
time when the power could have been exercs d. favored
the policy ofhs limitation. Previous Legislation OF Coh
gress the year 1886 distinctly indicated dete mlna
ton 10 adhere to- and carry out the policy, and by limit
ing the circulation Of bank notes of the smaller denom
nations 10 currency of coin only for The minor
transactions OF business for the payment oil day labor
ers for the change required in pecunary dealings and
The like; and in this also TO CIV" more broad me-
allc basis whole paper circulation. Many o The
States Of the Union fell into the policy thus adopted and
pursued by this Government and CONFIRMED their legls
!alion 10 The object proposed
1t 10 be universally conceded that these OBJ
scts could only be secured by the of small bank
from ordinary circuaton; and all adopted the pc
icy wise and worthy Of pursuit The powers OF this
Government could effect little, the paper circulation
TO be suppressed that of the notes of banks existing
BY and acting under Stale authority but what il could
90 proposed 10 be by the provision OF the de-
pose law above quoted As very general and vgor.
effort made by the States and the people,
cude from circulation bank notes of less denomination
than s.; and several States whose banks had
been uhorIzed 10 issue notes Of the denominations Of
and So took from them that authority while the hanks of
several other States had either possessed that
horlly or had been deprived nt it at previous period
The progress in this attempted reform OF the currency
materially retarded BY the fact that all lhs States
dad not enter into, and upon it, retain the
o. small notes by their banks aud that the banks
OF the Brush provinces upon our north western bUun
dairy continued 10 issue small notes, which found
or less extended circulation in the contiguous States of
The Union Sill the advance towards an entire metallic
circulation for all sums below five dollars rapid
the then situation of the country and the banks,
cnu!c reasonably have been expected and additional
States were taxing measures Tor the gradual exclusion
Of The small OF their banks when the suspension
Of specie payments, with very few xceptous, by all
the banks OF all the Slaes in May, 1851 arrested the
sanitary Improvement.
The suspension every practical xtenl,
The banks, general rule did not pay specie upon
any denomination of their notes, to any class of their
creditors An unavoidable consequence followed. All
the coin in cIrcuniion the must OF which had been put
in circulation by the policy and measures before advered
to, either gathered into the banks, not TO be again
given out for the circulating currency Of the country
boarded by private holders, 10 whoos minds the
pensiun had communicated feeling allied 10 panic. in
clining them treasure up all they had which was mo-
ney, precisely in propnron to the dninutnn of their
confidence in The value of that circulating medium
which had money, but could not
OF . TS asfnS me ~ The banks %nce rhe an
absence of any medium for business Transactions IN.
der Ave dollars, the OF all media which
enlightened public feeling could tolerate, became
in many sections of the UnCn. evil Of the first
magnitude, and one against which the interference
of the State Legislatures commandingy invuk
ed In obedience to calls Of this description from
suffering constituency, the legislatures OF several of the
Sales, which had adopted and prosecuted the policy of
substituting the circulation OF coin for that Of small tank
notes in the minor pecuniary transactions OF socriy felt
it TO be their duty retrogae their action, and again
10 confer upon their banking institutions the power 10
issue, and the right to circulate notes OF the deuomna
ton below five dollars in some cases, this change Of
policy in the action Of the States, has been made gene
raj and unlimited while in others, the committee
think more wisely and fortunately, it has been made
temporary, and adopted with evident design not 10
abandon the policy, but to meet the particular grievance,
and that being Obvated 10 return to those sound
hch permanent regulations Of law cannot Ia ii
10 have most sanitary Influence upon currency gen
orally and especially upon the ateres OF The poorer and
by far the classes, its sounGness and
reality.
Still the committee suppose that nearly all the banks
in many entire States have 10 obedience to- and in
ormty with, this change of policy The legislative action
of the States under whose authority they exist violated
the restriction imposed by the clause of the Deposite law
Of 1886, last ubnve quoted and thus put it Of the
power oil the fiscal officers of this Government 10
ceive any Of their notes in any payment 10 the Uni.
ted States, while that restriction remains in force and
without modification Under such circumstances the
committee are not prep'Icd to suy that this provis
should be rigldy ADHERED to TO pcrpeiua'e the
exclusion Of tbs of these banks from the public
receipts while the notes of other banks no more SAFE
received. Such rule would aid the policy which
the committee earnestly advocate Of giving greater
bty 10 paper circulation but ~oGId merely establish
an invdIous Discrimination between the different local
banking Institutions founded far as hPy car discover
upon deensibe principle Had thssp violations of
the restrictions imposed by the Deposi,e law BEEN IN
,irey voluntary the prrt Of the banks had no sus
pension of sprcie payments, and consequent derange
lnent of the whole paper currency interviewed; and
even under these pressing inducements had not the in
reference Of the Legislatures of the States authorized
the violations and in least rendered The
issue Of the small notes almost if altogether duty