Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1841-02-04


IN the bill which compelled the Banks TO redeem al
their small notes whenever called upon, and il they
neglected, compelled them 10 do at premium Of
% per cent. lie then explained TO the House The i'm
mense amount of money aoat in the city and through
out the State, III the shape small bills issued by pr
vatc banker of the name of Cohen also by the Bal
tmore 4 Ohio Railroad Company. These notes were
received readily by all creditors they passed about
at every Court Green, every member in TINT House
took them without scrnpe. The question then was,
whrlh their own banking Institutions aud State were
to have the benefit resulting from this species of
rency, or whether the benefit to remain in the
hands of private SPECTATORS and inhabitants OF other
States?
Mr.. BRowS of Preston, supported the motion for in
definite postponement.
Mr.. CRoprrR hoped that gentlemen not going
to talk much longer, for he really could not bear it.
The mind of every man made mp upon this ques-
ton and he did not suppose that single member de.
sired the advice and long speeches of the great nan
ciers upon that floor He had prepared resolution
that they should not have more than 30 speeches upon
the subject but he would not offer it, He trusted
that gentlemen had not much more TO say.
MIR. LEE said he had been warm an advocate for
the correction of what he deemed abuses in bank
ing system, any other; and although IN general he
regarded the suppression of small notes as an important
feature in u well regulated banking system, yet he
should vote against the indefinite posiponement OF the
present bill, for the that its pendency would
afford him opportunity of offering an amendment
which, if it prevailed would correct whit he deemed
great abuse the conduct of two ut least OF the Banks
of this State lie referred 10 the excessive issue OF
post notes by the Merchants and Mechanics Bank
of Wheeling, and the North Western Bank of Virgil
MIA The power to issue paper medium oil this charac-
ter To m unlimited extent, lat least to the extent 10
which it might issue paper payable on demand,) he
deemed most raring defect in the charters of those
sttutons and that loudly called for the interference
of the Legislature-und he called upon all gentlemen
who in favor of correcting Bank abuses whenever
opportunity afforded, and especially upon gentle
men from the Western part of the State, where these
post circulated TO vote against the indefinite post
pone ment of this bill, give him opportunity of Of
lering an amendment, which might have the effect of
curing the evil complained of. This would be- perhaps
the only bill before that body through which they could
reach those two Banks, because those Banks having
never in form suspended specie payments the only mode
by which that object could be obtained, would be by
making the repeal Of the power to issue postnotes,
4 condition Of their acceptance oi some privilege
conferred BY act passed last winter, the power to
issue post notes was taken away from the Bank of Vr-
gnia the Farmers Bank, the Exchange Bank and Val
ley Bank; but the Banks in the Northwest, not being
within the power of the Legislature such provision
could be made applicable To ihem and they had accord
ngly exercised the power of issuing post nhies To what
deemed most alarming extent tappenrrd from the he
statement o. the conditions of those institutions recent
Nv laid before that body, that while the Northwestern
Bank had in circulation SlG305 %, bills payable on
demand the amount Of It's post notes IN circulation was
S2a6 eco 90, and that the demand notes Of the Mer-
chants aud Mechanics Bank of Wheeling in circu.
ation amounted 10 SIG, l0o 20, while the amount Of
its post. notes in circulation S:55G23 90. Mr. Lee
thought there much weight III the argument ct the
gentleman from Richmond City, (ir Roberlson,) thai,
some OF this kind necessary Ia enable the
Banks whn had susp nGed and resumed specie pay-
mcn;s 10 maintain such payments: but that argument
could have application TO the Banks IN the North
West because they had mol in form suspended specie
payments lie thought The issue Of small bills might
be beneficial 10 those Banks, but he thought they ought
not To have the right to issue the snail notes ana the
post notes too; aud he therefore, wished to provide,
that if they accepted The provisions ol this act, they
should be placed the same footing with the other
Banks in the State and should ongcr have the right
post notes; aud If he could succeed in correct
ing that abuse, he should deem most important oh
ect attained lie hoped therefore, that the motion for
indefinite postponemcnt would ln so that he might be
enabled 10 move his amendment.
Mr. SMITH Of Isle Of Wight advocated the adoption
of the motion for indefinite poslponemcnt.
Mr. McR,E supported the bill.
Mr. ROBERTSON said, from his relation to the ques
ton, he would be INDUCED with n few additional OBJ
serva;ons. The gentleman from Isle Of Wight had
spoken of the bill as for nohodys benefit but that Of
gambling spectators. lie had not favored the House
with the grounds Of that opinion As he (Alr r.
utterly al loss to know how il operated such cf
feet, he must TIL IL shewn TO do So consider the
remark made merely ad odimm-to excite prejudice
against the bill where argument failed Again: The
gentleman from Russell was for legsang for the pco
pie, not the Banks &c. He (Nr. r. agreed in the
general correctness Of the remark. lie for the
BILL precisely because it went TO benefit the people
One mode, by furnishing them better medium for
worse had been strongly presented by other gentlemen
Another he had before glanced at, but tearing he had
not been fully understood he would cndeavor to ex-
plain. The Banks are required To preserve ratio of
coin to circulation of not less than 10 s.. If they
fail 10 do it, they required instantly to refuse all
further loans and discounts tall the proportion
tabllshed The effects Of such stoppage could only
be most disastrous. Now, by the aid Of this BILL the
Banks might sometimes preserve that rato when, with
out it, they would be unable; and thus avert those dis
asers TO the communicate the pcopc-whlch would
else ensue He would take the oto of the Banks
to illustrate the proposition That Bank has cir
culation of SS00OO0 and holds coin TO the amount Of
$500 000-that is than 81 in specie TO ) in notes
far within the required ratio Now, demand for lUO
OG0 say by Baltimore and domestic dema nd Of : 100
UO0 would reduce The specie III the vaults to 800 ,O0O
and the circulation 10 5000 000-a proportion of only
81 in specie 10 Sc in n"cs-a state Of things requiring
at once suspension of business BY the Banks. Now,
surprising the domestic demand for 100000 nbvaied
by the use of the small notes, the Bank would have
5000 600 Of specie in its vaults against circulation Of
S70nO00 still far within the required proportions Of
one 10 ive and preventing that shock the
and the business Of the people which, IN the opposite
state of things, would be inevitable.
After some further debate the question the ndef-
mite postponement put and lost:
.7lrs-Messrs. Southall, (Speaker,) Coles, Carpen
ter, Wiley Byrd, Hannah Jackson, Haskns, Meredith,
Burlington, Cox, Bur~el Of G, y W sangs'cr, Des-
Smith of |. of W. DAVIS Dabrey, lIabern, Ballard,
Boo,on, Dggs GEode, Boyd cIayS" Tnnzey Wade
ciffc, Snder, Smith ofRnck, Shipman, Cowan, Bevns,
Conn, Williams TAFT Warren, Goodson-45.
Noes-Alessrs Cabell, NJ Cue, Stuart Burwcll OF B.
Mitchell, vandoren, Frya Jones, Kyle, Toler Irvine,
corbin, Coleman, CaFdwel, B[oadus; Irving Scott,
Marshall of Fauquier, Mclaughlin, Payne, Woods,
Hale, Wood, Gather, Wilkinson, Erskine. Vance,
odelI Thompson, Mullen, Lee Armstrong, M'Rae,
Donnclly, Tayloe Of K G., Beard, Ramey, HARRISON,
Caldwell orrck, IIarre Taylor of N, B, E,her,dge,
VERIFY, Mcconnell, Hiden, Cheatham, Hiner, May,
Tunsiall, Keen, Burner, Dey, strother, Robertson,
Dorman, Leyburn, Crutchfeld, F'izhugh, Stephenson
Oft, Walker, Stephenson of W., Ful,on-G7.
The question then REQUIRED upon the amendment of
Mr. Smith substituting lst June for lst August, and
was lost, ayes 30, noes 81.
The question then REQUIRED upon agreeing to the
amendment oflhc Committee, when
Mr. Bnows of Preston, offered the following amend