Daily Richmond Whig. [volume] (Richmond, Va.) 1840-1842, 1842-01-24

| created nv the States iN"' charters cohN'h "O
most etfectual provisions for The security OF Their
creditors. Every provision, Therefore, OF Bank
rnpt law, looking to the security ol ct,dtors may
be, and IN mos, instances Is, incorporates into TIC
charters Of these institutions. The only provisions
| ot Bankrupt law that could hc made 10 apply 10
The State corporations would be clause presc'ib-
ing forfeiture of their charters upon theiI aiurc
10 perform their obligations by paying specie
| All OF the charters grained by the States pre-
scribe certain penalties aud impose certain Tor
fixtures, for a failure to comply with heir obi
cations. The charters of some at the state Banks
prescribe that in the event OF such forfeiture.
inc whole assets OF the institutions shai oe p'aeeu
m The hands Of commits or asssnces VINO are
required TO make an equal distribution amongst the
creditors Of the B,nks. II must then be perceived
that the cauSe vt any Bankrupt law, ook'og To the
security of creditors could have nothing 10 orera'e
upon. unless il sup-rsedes the laws OF the States.
Can it be believed for moment th,tthe states would
ever have consented confer upon ConereSsthe pow
er to pass uniform laws on the subject oi B'nkrupt-
ees; they had supposed that under 'h't clause
the power would have been claimed To div"s' them
OF the right to grant charters OF ineorporatonI-For
he contcrded that, VI there he M Congress the
suhec, the State insutuiinnS To other terms to
other penalties AMI Other conditions, than those
scrbed by the State granting tho charter, then the
power OF the State is entirely worthless. or what
avail would bo a contract between the citizen and
the State IT, after that contract - made Congress
incorporate IN that contract, terms and conditions
inconsistent wh and different from the terms Of The
contract made between the State and the Stock
holders. For instance The State makes charter
II prescribcs certain duties to he performed by tho
corpora on-t p-cscrihcs certain penalties for the
non perform nee OF those duties-lt grants, on the
other hand, certain rights and privileges, suarau
tees TO thu Stockholders corpnr ie existence for
certain period ct time The stockholders, on the
faith Of this contract made with the State vest ,heir
money IN the ms ituton-in the meantime a Bank
rupi law * pissed hy Congress. which cnts up hy
the roots, the law of the State granting the charter
OF incoi por,tior and subjects the Stockholders TO
other end higher penalties than those imposed by
the charter. Can there Ne doubt TINT the States
have retained to themselves the power u charter
Banks and other corporations Ii they have. Is
is not wonderful, that they should have grant
ed To the General GovCrnmen, the power To
modify. ahrice. and, IN fact. TO annul ,hnse char
ters1 For himself, he considered the power nnw
claimed, 10 inc u e the corporations Of the States
within the operation ola Biukr1p, Law, as an At
tempt deprive the States Of the power o charter
ing such institutions. Sue uusf he us effects it the
power IS exercised. But he would row proceed 10
show thar the othe- main object Of Bankrupt Law
10 witt the release Of the debtor ofcr a full surren
der of hrs property, can have no application - a
Bank or o'her corporation. He would suppose n
Bank 70 commit an act Ct bankruptcy; a cimmis-
sion - he'd gu, against Il its assets are placed IN
The hands OF commissioners and 4 distribution or
the whole eff cts + mide amongst the creditors: OF
what 17Sl Won d ne certificate Of discharge from
all # is Obligations, to The Rlnk The charter Il Is
tue, would remain. but the Il aux would have ceiS-
ci 10 exists LIE blood would he gone So IL
will ne perc lived that fhiS main feature of every
,nkrupt system could have no appllca, on 10 Bank
ing Other corporations. Bur d, Is asked II irdt
r.dU1ls nrc 10 be made lab e TO a Bankrupt Law,
Why Eot include corporatlousl Way should they
h' cy'mpti The answer u obvious n md
riilGls the l'~ operaics rs bsh,ff or privilege In
alton 20 Banks, IL can only operate A. penal "
he thought It therefore clear that the Binks, and
o;hes corporations ut the States, could not be made
the subjects Of bankruptcy. II must bc rceoiecied
also, thIt az the time Of the adoption OF the consti-
tuition. there were various Banks in existence
must also be remarked, that the Bankrupt system
had never been applied 10 Banks m any country
upon the face Of the globe. lie would now be-
leave TO bring 10 the notice OF the House the opn-
ION OF a gentleman thai will no doubt exercise It's
due weight upon the minds OF the members of this
House. In the discussion that occurred upon this
subject, IN 1876, IN the Senate Of the United States
PROPOSE ion having been nude 10 include the State
Banks in the law, Mr. VIn Buren,, who was then a
memher OF the Senate, pressed hlms, in the fol-
lowing terms IN relation 10 the proposition:
"Mr VAN BuRES sad it could no, be denied that
the clause inietered with the regulations which
STATE Governments might have adople for the 90
vernment Of their State institutions, which was an
odloIs exerc Sc of power not granted by the Consr
tuition. The amendment has this extent: Il directs
the States as 10 the manner IT, winch they shall
exercise their sovereignty in this PARTICULAR aud
points out what penalty shall b. Indicted ctse the
chlTtecs granted by the States are violated. In 1ct
80 49,
& points cut whst the privileges granted to the IN.
corporations shall be, by dic.atng the forfeiture
ana directing what the companies may and mny nor
DO. a this has hitherto beer done by the States
They have assumed the direction Of these matters
as night, which they doubtless have. And in
INC uins this subject of corporations IN The bill now
before the Senae, will be taken entirely fson the
ateS, and subjected tn the power Of the bankrupt
system. Chs was never done, and never at emit
ed, m any country on The face Of the globe0 In
Eng and, such provision never dreamed Of
nor did he believe that, when the Constitution was
framed, such an attribute was imagined by those
who authorized the establishment OF a bankrupt
law"
We all know that the author Of the above senu
neni has changed his opinions, and is now in favor
of including the State Banks in a Bankrupt Law.
lie would nov notice an argument which he had
heard repeatedly on this h,or, that the Binkrupt
Law which has been passed, Is unconstitutional I'm
II operates on contracts made b,for. Tho
enactment Of the iaw. Nov, these same gentle men
who thus argue, nre IN favor Of q Binkru1t Law tn
be applied To the Banks ia ,risisHc. II Con
gress c'n pass Inv operating on the Sac Ranks
WHOSE charters cris'sd before me lar he could per
eeive good reason ipr denying them the pavs@rto
operate on he contracts OF indiriaais mqds b,Grs
the passage ~ tne Binkrup' Liw. ICYn.re - e,,
pass NV which shall oDrrtfe On the c nfrtrt b.-
tween citizen and The State be- did nor see why II
ms't nor pass a NV opera NJ on artcceicnr con
tr1c's between citizen md ctiz n. And vet the zen
Bankrupt Law IN account this feature NJ the iiyy
are themselves he advocates Of Bmktupt law, u
Jc app ed 20 T." State CO plrarons, contrnrng the
very feature which they denounced ~ od,ous and
unconstitutional m the present 'lw. But he would
uDw proceed o. notice the eriion Of law of that
character. IIe Ind shoSn ln the previous plrt Of
his remarks, hat tnc p-'p1ston hit had bcentaide
was 20 subject every Bank cr other cnfpora,iors
hat h1d issued noes with 'hs design that thew
should circulate as money, 20 biukrupicy, II they
should have suspended payment for DAYS -
Now what, he would ask, would hive been the
sItuiuon Of this country, when the Banks suspend
81 10 the ven 1897. had such a ilw been m opsra
ton ~ that time. The Btuks oi this State acting
under an lmperOus AMI overfu'ins necessity. sus-
pended specie payments. The Legislature Of this
State WIS called together ny the Chief Magistrate
ol the Commonwealth. Thy met here in pbedi-
% thit call and after hiying examined into tho
stare Of he Banks they by m almost unanimous vote
relieved the Binkg Of this State from the fnrfciiurcs
and renni'ies imposed ~ their chluers.-D Does INV
man doubt that he Legislature ncc In obedience 10
e almost unanimous gish Of the people off, is Slater
Does snY one doubt that they acted with a full
know edge ~ he ncressites Of the people Of this
Sfnte7 Had this state Of things occurred. however
under The force Of the Binkupt Law, no relief
could have been given 10y the Legislature Of this
Sute. The unanimous voice Of the people won d
have avaiIsd nothing. The institutions erected bv
the laws Of this ate would have been pros,rated
by the law of The General Government. Commis-
soners app00ied by Federal authority would take
possession ~ all tho effects NJ rho Banks What
then would hive been the course Of proceeding7 An
ifsmediao collection Of all of the debts due these
/ institutions, every note due 10 the Banks. wonii
have been sued ibr put IN process u collection
Whist, then, would have been the e.ct upon the CIR