The Rhode-Island Republican. [volume] (Newport, R.I.) 1809-1841, 1839-11-06
ianin 3. IIowlahd.

ana Tue OrSnd ommiffee rose.
J Mr. Clarke. from the committee on Banks.
reported at great length and recommended the
passage OF an act revivine part OF the suspen-
SION laws Of June. 1887, with other provisions.
Mr. i. Il. Hazard spoke in opposition 10 The
report. The hanks suspended when they pleas
ed and these reports were drawn up TO blind
the eyes OF the people. He moved to lay the
report on the table.
The report Of Mr.. Clarke was then taken up.
Mr. Clarke said the banks were completely in
the control Of the legislature. and under prop
er legislation. could never leopard the interests
OF the citizens.
/ The act recommended, threw the same i'm
pedImenfs 10 the course of the hanks to stop
suits, as were thrown in the way of the bill hold.
ers.
All other sections were 10 prevent the banks
from making profit from the suspt nsion it
would stop the banks from exacIing 5 per cent
damages on protested bills. The other sectuns
had ieodrncy TO protect the community it
prevented the banks from selling their specie
funds AT profit. He thought taking prem,-
um improper. and he had no doubt that the
banks would refund what was already taksn.-
lie had supplementary report Of the bank
commissioners recommending that course. and
directing the banks to receive their own bills
for their dues in New York and Boston. This
he thought would establish the credit Of our
banks. and make our bills At par in those States
the sums due from those cities would make our
bills in request. The committee considered
the suggestions Of the legislature would be suf-
hcient without the passage of law. New
I orb has a direct communication with Eny-
land the suspension Of ~ was 4 sort of non
importation law; it prevented irnporstions and
gave The banks time TO resume. The English
manufacturer felt the want of The market of
this country and an effort made in England
to enable the banks OF New York to resume h, ,
loaniDg them specie; they did force prema-
turr resumption Of specie paymenis-a resump.
lion that was then thought ine1pedIent, hui no
hank in this Stale had assistance from England
the committee thought themselves bound TO
look at the interest of the business OF the State
II would enable the business of the State to go
on and keep the laboring classes from being
thrown out of employment at this season. The
law, with one exception. was not for the hene.
fit of the banks the interest of 5 per cent was
an ample protection to the bill holders.
The supplementary report was received.
Mr. II. Il. H0.drd said. if this smooth talk
would convince the House, well and good -
The Banks were not under the hands Of the
Assembly. but the Assembly in the hands of
the Banks When the Banks suspend. the As
sembly are ready TO bear them out in II. III
gentlemen wished to run risques. let them do
il themselves and not throw them upon the COM
muniiy. What sort of danger is 1t to the pub
lie TO make men be called rogues. or pay their
debts.
Mr.. f. X. Potter thought that while the
Banks about us paid, il was nn ustifable for us
% suspend and the public would NOT bear it,
The Banks had increased the sums due from
pecie paying places and cot rid of great part
IT the funds OF non-specie paying places-thus
he Banks shaved both ways. He should move
MS hill in amendment of this bill He thought
he bill suspendnR suits, should be called bill
10 set The banks al liberty. Il
Mr. Clarke moved that the rule be suspe nded .
10 allow the Bill TO be read twice. ;
Mr. E. r. Potter objected. and asked for the ;
ayes and noes. They are rs follows Ayes46.
Nays %; so the rule was suspended-two
thirds being required to suspend. 7
The Bill! was then taken up by sections. 5
Mr. Hidden moved an amendment. that the il
President and Directors be Individually liable :,
or all sums deposited-aDd the amendment S
prevailed.
MIR Aidrich moved that the rate Of interest be b
6 per cent. INSTEAD OF 5, for sums under 500. il
Mr. Simmons opposed the motion as it would
withdraw the circulating medium, as capitalists Z.
would prefer to put their money in banks. G
Mr. Randolph sand the Merchants Bank had /
about S70000O Of bills on the Country banks G
which might thus be put on interest. 6
Mr. Simmons contended that the Banks might s
put their capital on deposit in other Banks on
interest and be ready TO demand specie when i,
ihev resumed. !
Mr. Atdrich Withdrew hi. amendment.
Mr. Holden offered an additional section pro- i
'idng that any Bank refusing to receive the :
bills OF other Banks in this State in payment of i
heir dues, or TO refund the premium for specie \
funds, should not have the benefit Of this act. /
Mr. Clarke said this was making something i
besides speci-,a tender in payment of their dues.
Mr. Holden said they might have their choice il
10 tahe their notes OF TO pay specie. ID
Mr. Simmons opposedir. n
The motion was so amended as to make the :
Banks receive their own bills al par. e
Mr. Simmons thought it best to say nothing A
,bout paying back the premium; he was a.
'hamrd that any bank had received it. and he il
lid not wish to have il on the Statute Book. r
lie thought the effect of receiving their own 2
pills for dues ont Of the State world make the n
Banks pay the difference between specie funds n
md their own bills whenever the demands were r
made. h
The amendment prevailed.
Mr. king offered another section allowing the :,
commissioner TO designate some earlier day on :;
which the banks should make report; adopted. g
Mr. T.. X. Potter moved part OF his bill IN a.
nendment as follows:
Ii any bank in this State shall refuse 10 pay :;
,old or silver for ITS notes or bills payable on /,
emand. for the space of 90 days from the time :,
Il making a demand. the charter OF such bank a
ha IL be thereby forfeited" :,
He thoughi there ought to be an expression r
Il the feeling of the Assembly, that the banks n
ught 10 resume IT any thing took place max. 6,
ng suspension necessary the Assembly would Of
meet soon, and could legisate on the subject. :,
Mr. Holden moved to amend BY inserting 90 %
zys instead Of 90. y
Mr. b Hazard said that would be oppressive
N the deblars; it would compel the debtors 10
'ay their debts in specie in so days; the debt.