Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1842-01-29
RICHMOND, VIRGINIA. SATURDAY. JANUARY 20, 1872

80 1t will he perceived that this feature OF every
Bankrupt system could have application to Bank
ing or Other Corporations But, il is asked, !! NIT
rdna's are TO be made liable Bankrupt Law, why
not include corporations: why shonlG they be exempt
The answer Is obvous-as 10 iRiiriduatS, the II" opf
rates as 6en.H priricgc. ln relation 10 han&S II
can only operate rs penalty lie thought IT therefore
clear, that the BInks, and other corporations Of Inc
otates could not be made the subjects OF Bankruptcy
II must be recollectrd, also that the time ottc adoP-
tion oil The Constitution there various Banks IN
exstence-and il must also be remarked, that the Bank
ruPtsystem had never been applied TO Banks III any
apstssry upon the face of the globe He would now
hr'aave 10 bring TO the notice of the House tie OPT
Z - gentleman that will no doubt exercise It's due
So upon the minds Of the members Of this House
IN IT, discussion that occurred upon hs subject, N
ls26 in tie Senate of the u. $, proposition having
been made 10 include the State Banks IN tie law Mt.
Van Buren, who then member of the Senate, eT-
pressed himself in the following terms IA relation TO the
propositions
'.Air Van Buren, said it could not be denied that the
clause inteered with The regulations which State 10,
vernmcnts might have adopted for The Government OF
their State institutions, which was an odions exercise u
power not granted by the Constitution. The amend
menl has this extent; 1t directs the States rs 10 the
manner in which they shall exercise their sovereignty
in this particular, and points out what penalty shall be
inflicted III the charters granted BY the States are
violated In fact, II points out what the privileges
granted 10 Tie interpretations shall be, by debating the
forfeiture and directing what the companies may ana
may not do. All this has hitherto been done by Inc
States. They have assumed the direction OF these
matters right, which they doubtless nave ana II
including this subject Of corporations III the bull nov
before the Senate, it will be taken entirely from the
States, aaJ subjected 10 the power OF the 3ankrnp'
System (In.s was never done, and never attempted,
IN any country the face of the Gobc) In Eag.
land, such provision never dreamed OIL nor d'd
lie believe that, when the Constitution was framed,
such attribute imagined b. those who author.
lied the establishment Of n Bankrupt Law
We all know that the author Of the above sentiment
ias changed his opinions and IS now IN favor OF m
.uding the State Banks III n Bankrupt Inv.
He would now notice an argument which he had
card repeatedly this floor, that the bankrupt Law
which has been passed, unconstitutional in this that
il operates contracts made before The enactment oil
tic law Now, these same gentlemen wh" thus argue,
a,c in favor Of Bankrupt Law, to be applied to the
Baaks noac in eJ;steacc. If Congress can pass law
operating on TIE State Ranks, whose chartcrs Gf!Sed
icforc tie iolc, he could perceive no good reason tor
d,nyng them the power 10 operate on the contracts oil
iadiriinnls madc btore TIE passage Of The Bankrupt
Law Ii Congress can pass law which shall operate
on the contract between the citizen and tie State, he did
no, see why it might not pass law operating on an
tecedent contracts between eift-en and ea'.'n ANA
vet the gentlemen who are oudes IN the condemnation
the Bankrupt Law account OF tins feature OF the
law, themselves the advocates OF bankrupt La",
10 be applied 10 the State corporations, containing the
Yery feature which they denounced as odlous ana IN
constitutional in the presentlaw But he you'd nov
proceed To notice the operation oil Ia" Q. lli ca!ac
Ter lie had shown in the previous part OF his remarks
that the proposition that had been made vas 10 SUBJECT
every Bank other corporation, TINT hau issGed
notes with tho design that they should circulate as
money 10 bankruptcy, if they should have suspended
naymcnt for DAYS. Now what, he would ask
would have been the situation Of this country, when
the Banss suspended in the year 1877, had such II"
been in operation at that time. The Banks of this
-. iots
cessty suspended specie payments. The Legislature
or his State was called together b. tie Chel Magls
trate of the Commonwealth. They met here IN obsd-
encc 10 that call, and after having examined INTO lie
Of the Banks they hy an almost unanimous vo'e
relieved the Banks of this State from the foretufcs
and penalties imposed by their charters-Does any man
oul. that the Legislature acted in obedience to the at
most unanimous wish of the people Of tins State: Does
any one doubt that they acted with full knowledge Of
the necessities Of the people of THIS State: Had TINS
state Of things occurred, however, under The force oil
the Bankrup; Law no relief could have been given by
the LEGISLATURE Of this State. The unanimous vcce OF
the people would have avaled nothing. Inc institu-
tons erected by the laws u this State would have been
Frustrated by the law of the General Government.
Commissioners appointed by Federal authority would
take possession of all The effects OF the Banks what
then would have been the course of proceeding: An
immediate collection of all of the debts due these lnsii-
tutons every note due the Banks, would have been
sued for put in process OF collection "hat' men,
would have been The effect upon the circulation 81 NE
country. All Of the outstanding notes OF the Banhs
must be presented those commissioners Tor payment
and must be paid pari passu The holders OF Tie bisiS
Of the Banks must avail; until Il distribution IS mace
Of the effects Of the institution What would be ,he
effect upon notes az the Bank A certain and ruia-
ous depreciation. In the meantime, what ald couia
the LEGISLATURE of the State afford; None Whatever
M matter how much the interest Of The people
mjrht temand-no matter what might be The wishes
Of the people Of the State-ths law would sweep
from existence these institutions nt the States. Vow
he wanted TO b. the vote on the amehom"ht OF thc
gentleman from Campbell who OF The scli-constitncd
guardians Of State Rights were in favor OF inns oo,d
oroposton to subject the institutions OF the states TO
The control of the Federal Government what ,hen,
woud have been the effect of the law upon the other
corporations of The States; The power 10 subject the
Banks involves also the power to subject the other cor
no-,Iions Under this law the james River and ka-
nawha COMPANY would have been, and indeed would
now be- subject to the proceedings IN bankruptcy
Even the lard condemned for the use OF the company
oreher with all the effects Of the corporation would
be liable to he sold by the Federal Commissioners so
ina, this institution in which the State Is largely ME
rested would be crushed beneath the power OF the Ma
tona Government lie would ask, where was the true
friend of the rights Of the States that would DE Wiling
10 see this national government thus interfering WIN
the domestic Of the States: Every man must
see the crush that must take place from lhs con-
lict between the States and the Federal Govern.
ment lie wished those who are always the rIends OF
State rights, when State rights are not IN danger 10
show their hands on this question. They are extreme
IL DESTROYS that the Wings should meet the question OF
The Bankrupt Law, applicable 10 individuals Bnt they
desire avoid commi;ta on their part as 70 s most
odous proposition. For himself, sooner thah see .s
institutions of This State Frustrated by such law OF Inc
Federal Government he would resist 1t hy force re
hoped the amendment would be adopted-he was or
posed 10 any action whatever on this suajrct' IA.
re are 10 xpres our opinions let us give them on 'he
whole subject, both on the resolutions aud the amend
ment.
MIR. DANIEL rose and moved the indefinite postpone
n,en Of The whole subject. lie was wen aware TIA.
he wns in very small minority the question under
consideration He was in favor OF an exercise ol the
power granted in the Constitution 10 pass Bankrupt
Law Much as he was opposed to discuss'on-to the
INTRODUCTION of resolutions producing wranging de-
Lacs-hc felt compelled to raise his voice against the
proposition to take the sense of The House on 50 nd
poriant proposition this without debate lie ~, ~
sisted that il gentlemen were Determined 10 force tns
resolution upon the House, they should ct and hear pa
tently the arguments OF those VINO ici, 'le'nstI'ss