Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1841-12-18
LEGISLATURE OF VIRGINIA.
DEFERRED DER.4TE
UOUSE OF MISUNDERSTANDING IL! 1871.
PRESUMPTION OF SPECIE rAYMENrs.

Chairman Of the commi,,ee Banks. desired to
know whether The Committee on that subVct had d.
,ectea their attention the second aud toutb sections
Of the act of last Tor the reiei oil Inc 'anks
By reference to that act il would be perceived that
from and after the first of January next all the Dahks OF
This Commonwealth will be liable, by motion upon ten
days notice. the recovery Of any note OF ure "ue rom
them, and also TO the payment OF uttrePe "i tme'e''
psr anuum upon oil their outstanding notcs, btas, or
checks in case of their nonpayment III SFef'e on de-
mand Agreeably to the law OF 1871, prescribing re-
gmat,ons Tor the Banks, the holder OF any o' noe, OF
check, the payment whereof IN specie was reuseu,
might obtain Judgment and execution tor Tue amount
of such BILL note check with ten per fsht damages
thereon and costs, motion in any Conr' OF RECORD
ha wing Jurisdiction thereof upon ten days notice, oy
warrant before any magistrate, NC ana moreover II
WINS provided that every such judgment should bear an
interest, in addition the said damages {" teen per
cent per aDnnm on the principal sum from the GATE Oh
the service of the notice until paid
1t was well known that heretofore under THIS law the
Banks in this city much harrasscd by these sum
mnrv proceedings against them, and great loss thereby
ensued TO individuals and the public without any CON-
pensatinr advantage The CommonwealtHis The own
er of nearly oneha OF the entire amount of The bank.
nu capital Of all the Banks, and such, participated
largely in the loss; such indeed was the harsh and
onerous operation of the law, that at The last ses-
sion by the act TO which he had Referred these penal
ties had been suspended. So much OF ,hc law us SUD-
ected the Banks TO the payment OF the IN per cent
damages and the fifteen per cent interest, "as suspend
ed until the LIST day of April, 1872 but IN lieu thereof
they made subject from and alter Tie >S day 81 "a
naarg ntx the cxacton Of irecc cent upon their
notes bills &C. already explained aud 10 The hnrrass-
inc process by motion Looking TO the interests OF the
Banks (said Mr.. the interest o. The loinonweail
as stakeholder in them, and to that oil the conimun
ty al large it seemed TO him that the present state oil
things required immediate action, and IL tie committee
on Banks had not had their attention called 10 The SUP
iect If 1t did not contemplate speedily TO hlng IN OIL
further TO suspend these penalties lie should ask leave
himself to bring in bill for that purpose
Mr. S. said he did not wish, however, TO anticipate
the action of the Committee If any acton on It's part
was intended he only desired 10 the SUBJECT oroust
TO the attention of the House. Another motive winch
ought 10 prompt immediate action, was to be ionnd
in The resolution Just received from the Senate asking
for recess until after the holidays The penalties VIII
attach after The Isl Of January, and to give eicen' re-
lief The law GU ght to be enacted before that time
/ MIR. HoILEuaN rose to reply to the enquiry OF tue
gentleman from Fauquer, and stated that the subject
alluded 10 was not before The Committee on banks
The subject mir! he embraced in the message oi the
Acting Governor which had been referred to The Com.
RI n;eee. for nught he knew, but the Committee had
taken no action on Il thus far lie (Mr. li) had NM
self but that moment received letter from the RE
sdent Of the Virginia Bank asking the attention
Of the Committee 10 the provisions OF tEe i'h sec
ton of the ac referred and desiring relief from Their
operation The original penalty upon the banks for re
fsinr to paw specir Mir H. said was III per cent inter-
IS, and Is per cent damages. In 1887, when the banks
first suspended, The Legislature repealed 'he pehu,y
They INDUCED from year to year, n'it' te a
session. when the Leg lsature determined they uo
not resume, they should pay X per cent interest ~
stead of %. Mr. H. said he knew not what would Dc
the pleasure Of the Committee 10 bringing III OIL
for the further indulgence OF the banks h"'' as Tor ms
own part, lie should oppose any such measure
| Mr. S,olr then sud his purpose had been attained
lie perceived from the remarks OF the Chairman OF ihe
Committee that action was to be expected from that
quarter he would therefore, in pursuance OF ms no.-
fcaon at once ask the leave of the House 10 bring IN
a bill 10 suspend much of the existing laws N reia-
ton 10 the Banks subjects them TO the process ny
motion and to the recovery OF rsre per cent interest
upon their notes. bills, &c. until the lst day Of April
lsJ2 MIR s sa,d he would detain the House but n
few moments whilst he explained Of the reasons
| which had induced him ~ make this motion II was
evident, that if the Banks wee subjected To The de-
nand and exacon Of cerc per cent on their entire CIR
cula,on, the resumption by thea OF specie payments
mnst be the i'm mediate consequence.
In such an event their vaults would be speedily eS-
aus;ed OF lis treasure, their doors be closed their bust
ness functions and operations cease lake u (sale
Mr. S. that in the p-esen state Of commercial re-
ations with the ciiics of Baltimore and fh'lade ph'a,
| il would be impossible FER The Banks he!e ~ MAINTAIN
the payment, oil their notes IN specie iot any length Of
time whilst the Banks in these cities rcaah III state
of suspension. Let the condition OF our Banks be
what il may, let them be ever 50 sound ana fea'y
to resume specie payments, it is impossible that
they can continue 10 pay specie for their no,es
when the of trade accumiat's them IN Tue
Northern cities, where, owing 10 he suspension OF ohef
Banks their conveniently into specie, vii g've Them
value whic. wll! make hcm he greed.y sought alter
to. the purpose OF being returned here Nh. ). SAID II
was useless for him 10 detan the House ny an arSu'
ment prove thsthe proposition was se!i.eviaent'
The question them for the House 10 consider was,
whether under existing circumstances ,nr
of specie payments should be enforced iro. and ALTER
the LIST of January next: twas mpossI5ckc thought
that the Banks would submit to The cSaciv OF The -
per cent Was the House prepared 10 dcce this ques-
lion in the affirmative now: Had It the necessary nor.
"a. 4, ~. midi piys We ere
told by the Chairman, that the Committee on Banks
had had but one meeting, and although some enquiries
had been directed, information had as YET been eli
cited The Banks had not yet made their annual re-
port In this state ofgnorahce then, on the part oil the
House, proper to have these penalties to be visit
r ed upon the Banks:
Sir, said Mr. S. great clamor has been raised by po-
lticans ugaini the Banks Tor suspendng odium cast
upon all who defend them, and The peoples minds pre-
ludiccd against them. Now, ii ar regarded Banks Us
ncorpoatrd solely for the benefit of stockholders, as IN
vested with exclusive privileges 10 be exercised solely
for their purposes and advantages he Should DC
amongst the las,nay, the very last y consent That
the present state nf things should continue But, he
did not view Eanas in that light, on the contrary,
lie regarded them a. public institutions, enacted Tor
public purposes designed lnr public good, invested
with privileges accorded I" them IL The price OF Inc
benefits they corief AND rs Tie means oil conerfnS
them Not only has the State itself interest, as
a stakeholder in the Welfare Of these institutions
but the whole community who compose the State.
By loans and discounts the Banks enable those en-
gagged in trade and commerce to pursue their opera
TONS they enable them 10 purchase the products OF m
dusry and give its return to labor. In fact every
credit furnished by the Banks to the merchant, is
credit to the farmer and mechanic. Close the doors Of
the Banks, stop this credit and you at once cut of the
means of the merchant 10 make purchases, competition
will cease in the markets. and the prices Of all the pro-
ducts Of labor experience decay. So nsepeably are
the State and the people connected with these insttu-
TONS so intimately their Interests allied together,
that whatever affects must infect all--eyery blow
struck ut the Banks, falls with all lis force upon the
State and the people.
4 The Banks of is State did not suspend The payment
of specie because Of any thing growing out of their
own condition. but because the suspension OF the North
ern Banks in those pacest which merchants trade
made the measure "Gssf therefore nhsn bH IN
The ey;snr lay il relic yed them I'll the foreitures
which had attached them, and tioned their sus-
nensinn Ii rns hclieyed last VIM that the causes