Daily Richmond Whig. [volume] (Richmond, Va.) 1840-1842, 1841-02-03

II -
The country. Each would REQUIRE all its lust adj
vantages, and hence the Banks elsewhere must b
etPee,eo 70 demand from ours all they had CLAIM
70. hence, through this periodicals stress upoi
| aid. ' ff
lie believed the objection TO the small bills poll
ey most relied upon, was, that the specie, which
would otherwise circulate in their stead, would az
lord means OF repenishng the vaults OF the banks
/ IN case OF run upon them for the precious metals
This opinion he thought altogether fallacious. The
drain OF specie, whenever it occurs, and whatever
the cause implies OF necessity, its greater value a,
some other point than that which the run is made
upon. IL is when bills upon the point TO which re-
mttances are to be made cost more than il would
cost 10 remit SPECIE IL shews itself by depositos
IN the Banks, or holders Of their BILLS dema ndng
tneir dues IN coin. Specie at once becomes commo-
uty IN the market, commanding premium in the
paper currency; Then il is, and then only, the
Banks stand in need OF il, to fortify them against
the run that has commenced upon them. But from
that moment not dollar Of coin goes into their
vaults. debtor having $1,000 in specie, worth a
premium in notes, and owing that sum AZ Bank.
converts his specie into the notes Of the Bank he is
indebted to, pockets the premium, and pays the
$1,000 IN notes. Deposites also cease except in
notes INTO which all coin converted or the advan-
tage OF the premium. Hence, il is perceived, that
The supposed nebtIhe Banks are TO derive in a
tune OF pressure, from the specie part Of the circu-
atins medium, is wholly illusory. They want il
when others want 1t, and because others want il,
M.
hnds its way into their vaults.
The policy of small issues at the period of re-
sumption was almost universal. England in 1924
authorized them in aid OF the Bank Of England. In
ISIS he believed they were issued by every
State in the Union, save three or four IL had been
the uniform policy of this House. save in the FIRST
session after the suspension of 1887. Experience
had shewn the impolicy of the course then pursu-
ed, and II had since been abandoned by this body,
az Ieast-the body more Immediately representing
a.. 81 ~
people: In respect to the general policy Of small
bills, he would only say now, that if il did not
strengthen banking institutions, IL could not be
maintained TO be hurtful. lie would appeal TO the
act that the Scotch banks universally believed to
be the best managed in Europe, had issued fI
notes since 1896; that the New England banks the
most successfully managed in the United States
especially those OF Massachusetts and Rhode Is.
and, which had stood firm, while others gave way
mad always issued one and two dollar bills and TO
the fourth fact that the Bank OF France which sus-
pended in lsO5, then issued no note under 500 :;
ana the Bank OF England, when il suspended had
no oills under S25. In the face of these facts il
could not be maintained that the denomination of
Oils mad much to do with the ability TO pay specie
Mr.. CRuroHFTELD, in his ususal clear, straight
forward style, urged upon the house the neces-
SHY which existed for passing the bill There was
no compuslon upon any man 10 have these smaller
notes, or any other, unless he thought proper. He
could go TO the Bank and demand silver whenever
ne thought proper, and there was an express pro-
VISION, that II any Bank shodd fail TO pay in spe-
ele any note issued by II IN virtue OF the act now
before them, when duly presented for payment.
mat 'he holder oil any such note notes might at
once, recover the amount thereof with enty- i've
per cent damages on the same, by warrant before
justice OF the peace. II gentlemen on the other
SIDE, who were in favour Of indefinite postpone
ment, were not contendng for a mere abstraction,
ne should be glad 10 hear any for their OPP
position.
MIR. CowAH was not sent there to regard or pro-
tect the interests of the Bank Bank interests but
TO take care that his constituents were not injured
IN any way. These Banks had deceived them
twice or thrice already, and he not disposed TO
grant them any further privileges. He wished 10
see specie IN the hands Of the abourerS OF the coun
try, instead of shin plasters; and the effect OF this
bill would he 10 decrease the specie and increase
the shin-plasters and therefore he was opposed to
It's passage. lie further learnt from gentlemen that
this resumption would not probably last long; that
II was n mere temporary piece OF business; and
were they then 10 be called upon at that time to
sanction fresh issue OF notes? All knew the
course OF the Banks since 1887; that they were
continually appealing 10 the Legislature for indul-
gences, and that the more they got the more they
wanted With all these facts before Them he trust
ed that the house would agree TO the motion for in
definite poStponement
Mr. STEPHENSON, Of Tyler, said, that the whole
opposition 10 this measure must arise from an en-.
ure ignorance OF the first principles of currency;
y r
eulaton, cheaper and dearer, the cheaper would
be IN circulation, the deareE not, All the other
Banks permitted the issuing of small notes and Il
they refused 10 their own banks that privilege the
only effect would be, that the small notes of other
States would occupy the place. He lived in The
neighbourhooi of another State whose hanks issnnd
these small notes and these small notes constituted
considerable portion o. the currency of his county.
thus, they were benehtting the banks of Other
states at the expense of their own. He found, too,
on Perosms a statement OF the market price Of the
notes issued by ali The banks in the Union. thai
the paper Of these banks, issuing these small note.
was IRON one 10 two per cent higher than the
others. These, with other reasons which he STA
ted' would lead him TO give the bill his cordial
support.
MF IUssrALL should support the bill. The
present uestion had been before the Leeislature
Tor Two or hTee sessions had called forth much dis
cusslon and considerable excitement and he b,d
no doubt that had the bill passed at the las, session
It would have enabled their Banks To resume a. an
earlier day. This bill to sustain he in,e,ss,
OF the people-it vas not bill for the benefit al The
banks, looking only TO the interests ofthe banks hn,
II looked TO the interests the citizens of the Stat
OF The democratic citizens Of the State-itwss ortb
oeheht almost entirely oithe poor men ofthat class
Always the most numerous IN every community
whose amount OF change was generally less tbsn
80 This bill too took especial care of the inte,es
OF the poor man. There was provision in the
OIL which compelled the Banks 10 redeem all fhei,
small notes whenever called upon, and if thew ne.
elected, compelled them to 20 so at a premiDrn ~
~ per cent. He then explained To the House the
immense amount OF money afoat in the city and
throughout the State, in the shape of small bIs is
sued by private banker OF the name of Cobsn =,
also by the Baltimore s. Ohio Rsil Road Comm.
ny. These notes were received readily by ali rrsd
lors; they were passed about at every Court Green
and every member in that House took them viii
out seruPie. The question then was whether tb.ir
own banking Institutions and State were 10 nav.
the beneht resulting from this species of currency
or whether the benefit was TO remain in the ban1s
Of private spectators, and inhabitants Of o,ber
States. ''"'i
Mr BRowE Of Preston, supported tie motion r.,
indefinite postpOnemenL
Mr. CRoPFEE hoped that gentlemen were not 90
ny 70 ta'a much longer, for he really could not
bear H. The mind Of every man was made mn t,n.
On this question, and he did not suppose tbat in
ge member desired the advice and long sneecbes
o. the great hnnnciers upon that floor. He had p,e
pared resolution that they should not have rno,.
man ~ speeches. upon the subject, but he vyouIJ
not now offer il. He trusted hat gentlemen Ind
nOt much more 70 say ''
. mr LIE said he had been as warm an adyoo,,e
or ne correction Of what he deemed abuses IN on,
o'nking system, as any other; and although IN
sene'eI ne regarded the suppression Of small note,
p an important feature IN veil regulated banking
Jslemi yet ne should vote against the. indef,i,c
DostPo1ement Of the present bill for the yes.o, -,
y Penoency would afford him m opportunity ofof
ef'hg an amendment, which, n Il prevailed. UouId
'oIect "hat ne deemed great abuse In the eond,e,
y Two al least u the Banks OF this State. He re
etIe1 70 the excessive issue q posi- note. I, a.
nctehanls and Mechanics Bank a WhseIing -
nc North western Bank Of virginia r. 49,.
., paper medium ofths character 10 an uo.
al L.