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

because he could not consent 10 put the Banks at the
ootstool of MIR. Nicholas Biddle The people of Vir.
GINA must first rise in their majesty and force that Bank
to resume, and then, but not till then, Banks may
also resume
| MIR. EDmUSDs was surprised that the proposition of
The member from Harrison, should have been for mo-
entseriousy discussed ltrequires of the banks that
which, In their present condition. utterly impossible
BY an examination Of The exhibits Of the Farmers Bank
ind Bank Of Virginia. it will be perceived that the cir.
cualIon OF the Farmers Bank more than five to
OF specie, and including deposites due on demand lis
immediate liabilities compared with its specie, up
| wards OF seven to The Bank OF Virginia has in
circulation six dollars Of 10 one of spede and add
It's deposllcs 10 circulation, The proportion of immediate
liabilities of that Bank lis specie would he more than
eight 10 one In this state Of things demand upon
one OF The banks for one-seventh Of its immediate ub
ltes or upon the other Of onecighh would drain from
their vaults every dollar of specie Besides
tguous 10 the State of Pennsylvania with banking
ptai Of 90 millions of dollars and have the most intimate
and extensive dealings wish the State of N York which
has banking capital Of 40 millions The course of trade
between Virginia and those two States, leaves Virginia.
al all times indebted TO lhem and the general and
cessve overssues of the banks, have made banking
system 10, The present, entirely dependent upon the
banking system Of The great commercial cities 10 the
North. TO force our banks to resume, previously 10
resumption of the principal banks in those Cities of far
greater capital and strength would defeat the object that
is so earnestly desired run for specie would be in.
snntly made upon banks and they would in very
short time be drained Of every dollar second suspen.
sion would occur still more disastrous than The rst pre-
ceded by ruinous curtament, for possible benefits
But the gentleman from Harrison has read The printed
letter Of Albert Galla,n Newbuld and others, 10 show
that the Banks Of Virginia resume independently
of those of other States That letter proves the very
reverse. 1t slaes, that foreign exchanges are in avot
OF the u States. Then there no longer foreign drain
of specie, but the importation has become profitable
than the deportation of spece and the Banks Of the u
States can, by concert, simultaneously resume without
fear of foreign demand for specie. The letter also
| fooE
the U. States favorable TO New York. This is fa-
yorabe of things for that city, but most unaVor
able for all other States 10 independently Of
New York: and it would prove, that while New York
| might independently Of other States, yet all
others must await her lead, resume simultaneously.
The rate of exchange between Richmond and the city
Of New York, is four per cent against Richmond, and
between Philade phia and Richmond, is tco per cent Or
in other words notes Of the Banks of prginn are IN
city four per discount below the notes of the
Banks of that city, two per cent in the other Should
the Banks be forced 10 during this unfavorable
state Of exchanges and before resumption by the Banks
Of other States, there could be profitable bus.
ness than purchasing bank notes in those markets,
and returning them here for specie This would soon
effect the utter proslraton Of the Banks lie believed
resumption, under the most favorable circumstances,
must he attended with pressure, and forced re.
sumption, when exchanges were against us and the
Banks not prepared for such an event. would lead TO
disastrous results than witnessed in this
country. These the inherent and necessary evils
1
be pallaled and suffered until it shall be in the power
OF the Legislature 10 make saluIry reforms in the
whole system.
MIR. VESABLE rose 10 set the Bank Committee right
before the House. That Committee left blank TO fill
up @ith fixed day for resumption. The 4lh section
provides that If Bank shall pay dividends and not pay
specie, then it shall be subject to penalty Of 10 per
cent But the amendment now offered, proposes that
they shall forfeit their charters and that their notes shall
be no longer receivable &c. &c. All this entirely
out of the question. If it possible that such a
measure could pass would be necessary 10 call toge
ther Extra session, to remedy the disastrous effects
| of such procedure.
Mr. SHEnnARp pointed out q distinction between the
Banks two Of which would not lose their charters, viz
the Merchants 81 Mechanics and the Bank Of Virginia
Such being the case, the amendment would act IN The
most partial manner upon the several Banks
Mr.. HARRISON replied briefly, but naudibe 10 the
| Reporter from the confusion which prevailed.
Mr.. SMITH spoke in confederation Of the remark made
by Mr. Sherraid, Showing the difference which would
he made in the operation Of such in relation
to different Banks MIR. S believed that The Banks of
Virginia competent to specie payment,
and carry on solitary and Alone if no other Banks
in the Union should pay specie. MIR. s. instanced as
examples, several little Banks which never had suspend
ed in defiance of all the capitalists and brokers Of the
North. He hoped MIR. Harrison would withdraw his
amendment.
Mr.. SurRRARp explained, and Showed that it was not
in the power Of the Legislature To forfeit all the charters
Of the Banks as The amendment proposed.
Mr.. HAREisoS wished 10 modify his amendment, so
as omit that part inficting the forfeiture OF their
charters
| 10 be taken on the amendment.
Mr.. HARRISON then asked leave 10 withdraw his
| amendment
| Mr. PEyroy objected He wished the real sentiments
! Of MIR. II. TO go forth to the world.
Mr.. WooLFoLK hoped leave would be given 10 The
gentleman from Harrison 10 withdraw it, if he wished TO
| do so.
Mr.. PEYros remarked that Mr.. H. first insisted upon
poie dc n 1nnu sDppch its {ayor called for the
ayes and noes and now wishes TO withdraw his amend
| ment. This he could not consent to-
l. Mr. MAY hoped The time Of the House would not be
wasted by taking the ayes and noes upon question
which would not be carried and which the gentleman
who had brought it forward, was now anxious to
| withdraw.
Mr. CRUrcnFiELD said he had only opposed The with.
dawal on The apprehension that the proposition would
be again renewed he wished 10 the time of the
| House.
MIR. H.RRrsov said he would withdraw his proposition
now in order 10 offer it again in a modified FORM.
MIR. BUCK expressed his intention TO vote according 10
| the wishes of his constituents.
Mr. Harrison wus then allowed to withdraw his
! amendment.
The question recurring on the striking out the fourth
section Of the bill,
Mr.. Boris then offered an amendment 10 the fourth
section as reported by the Committee Banks as
TO intend allow the Banks 10 make dividends, but not
above certain per centage to be left blank and TO be
| decided hereafter
Mr. MAY said he was not disposed to allow the Banks
TO pay their next January dividend unless they had
sumed by that date.
The amendment of Mr. Boris was then rejected.
The question was then taken striking out the fourth
section, and decided in The affirmative, as follows:
3yes-Nlcssrs Rives, Randolph, Holloway, Jeer, Tai
iaefro, MITCHELL Cobbs, Fryatl, Snodgrass, Shanks,
Pcyton, TriPett, HUBBARD, Thornburg Daniel Cheat
ham, Wilson, Marshall, Dgges, Dickinson, Paisley, sher-
rard Chapman of G.. 81 NJ, Odell. White, Mullen,
Harrison, Flowers, Bolts Smith Of X, Tnyoe Allen,
Mcdonald, Luckelt, Beard Raymond, Morgan, Barnett,
tall Cabel, Morriss Robertson, Leyburn, Mcdowell,
Gray, Culberlson, Davis, Crutchield, Ford Wten,
Goodson, Walker, Gleaves-5S
Nocs-hlessrs. Banks, (SPeaker) Bayly of A., Byrd,
TurnbulI Mallory, YanceY, Caslleman, Hill, Servant.