The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1856-02-19

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mz}katlPAuL moved toAmsnd BY sddias .sseep'
>1heI@ such daft Ia payable a1t Of Ne state.
!: mr naed i: -. . cslss: Z; e 81 3
asosher in CisciAsasior ST Tsuia, 6oods ed dFsw
Ing . drafs On his debtor, had Il discouneed "
Virginia Bank The Bank has II collected and II
is collected in current funds; Il world be unjust 70
force the Virginia Bank to draw for specie upon
the 81 Loyliso or Cincinnati Bank. -. /,
Mr. EDNuNps objected earnestly 70 this amend
meut The drafts drawn upon Banks out OF tne
State, he particularly desredto have specie drafts
The banks had privileges enough and the people
ought longer to be oppressed with adepreciated
currency The holder Of their check should not be
subjected to payment in deprecated currency or
| TO shave for gold or its equivalent 4as
| Mr. PAuLL's amendment was rejected
Mr. JOHNSTON suggested that the endorsement
| by a Cashier of q bank Of the word good, aud
| his signature on the back OF check would be an
uevidence of Debt" and though the check be drawn
| for current funds, would make the Bank liable for
| specie.
Mr.. EDMUYDs eontended that it would not-that
| the endorsement was a mere recognition of the
deposite Of certain kind Of funds and the right
| to draw the same funds deposited.
| Mr.. STAsARD concurred with Mr.. JOHNSTON
| and suggested the word "check' in place Of "evi-
dence of debt to remove the doubt as to the ef
| feet of those words
| Mr.. CLAYBRooK moved to insert the word check
In place of evidence of debt" to remove all
doubts and give the clause exactly the construction
| that was now given it by the mover.
/ The debate was continued for some time
/ Messrs. CLAYBRooK, STANARD and CLAIBORNE,
| assumed that the amendment would involve the
Bank in the obligation to pay specie for its en-
dorsement on a current fund check, and Messrs.
| IiBoDES, EDMUNDS and GARNET contended that
| it would not Mr. GARRETT considered that the
| amendment was designed to bind Bank to pay
general deposite in gold and silver-the eonsttu-
tional currency. 1t said that you shall not min
gle the general deposites with the deprecated cur
| rency. 80
Mr.. CLAYBRooKs amendment was rejected, and
the amendment of Mr. EDMUsDs was agreed to.
| Mr.. EDMUNDs moved to amend by adding the
following clause:
at shall be the duty of every branch of the Bank,
which is or may hereafter be authorized by law
to redeem demand all circulating notes issued by
| such branch, or payable by such branch, which may
be presented for payment the Office of the Bank in
the city of Richmond, at rate of discount not ex
ceeding quarter of one per cent? and for failure
to redeem the same the holder thereof may recover
the same damages, and in the same mode now proyi-
ded by law for fanre to in specie at the office or
| bank where payable"
Mr.. Seldom offered the following as substi-
tute for this amendment:
sAl the notes shall be signed by the Preside and
countersigned by the Cashier of the parent Bank
1t shall not be lawful for the Bank, or any of its
branches except in settlement with other Banks or
branches, to pay deliver out in payment, or sts.
faction of any demand upon it. or by way OF loan
discount any bill note, check other paper, except
such is payable by itself its counter. For every
violation Of this section the officers guilty thereof
shall forfeit each hundred dollars half to the in
former and the other to the Commonwealth"
Upon this amendment very long debate en-
| sued, which we have neither time nor room to re-
| fer to, except in the briefest manner
Mr.. EDMUNDs objected to the amendment be-.
cause, he commended it would force the banks to
exact in payments due to them, their notes. for
If they received other notes, they would have con-
tinually to dispatch messengers (the law compelled
them to send money by messengers) to collect
| them-that therefore every citizen owing bank
would have to take the notes in his possession and
collect them himself in order to pay the bank or
| the banks would be forced to institute rate
of discount to compensate tor the expensive sys-
| tenn of collecting by messengers. z e.,
| Mr.. SEDDON'S object was to bring the banks
really to specie paylnenta-to conne their circula-
ton to their localities and make specie checks the
medium of payments between distant points.
| Mr.. TAYLOR considered the amendment proposed
by Mr.. EDMUSDS all that the hard money men
perly be done to put the banks on the specie basis.
| The amendment of Mr.. SEDDoN, he argued, would
amount to nothing more than to prevent the banks
from accepting their charters.
MIR. EDMUNDS reiterated his objections to the
amendment. 1t would force bank debtors to visit
different banks and collect the various notes they
| had or pay shave to broker to get the money to
pay the bank he owed. Did it elevate or did it de-
preciate If he could pay his debt to the bank with
bank notes, they were worth more to him than if
| he could not. Therefore the amendment would
| deprecate rather than elevate bank notes.
| MIR. FOREMAN suggested that the amendment
| change payable in New York or elsewhere Mr.
| GARNET concurred with MI B., and animated
his intention to move an amendment to obviate this
| difficulty. -.. -.-.a j.
| favor of the amendment. He declared himself In
favor of rechartering the old Banks truly spe-
Gle basis. He was opposed to the new banking
system of basing circulation on State stocks, and
regarded the union with the State through that
| medium as most dangerous But in rechartering
| the old Banks he wanted a system which would
check the propensity to swell paper issues, depre-
ciate the currency, initiate prices and, by series
of expansions and contractions, to bring ruin and
disaster upon commercial communities paper
currency really and readily convertible into specie
was the only reliable check upon these excuses of
banks. 1t was the remedy proposed by Mr. Hus.
kisson and by Sir Robert Peel in his celebrated
bill. What sort of specie payments had WEI You
| could only get specie for a note payable at the
counter of the bank where you presented ii, and
it was alwayspaid out with reluctance Such too
was the system of exchanges between the banks
that 1t was the rarest thing TO find note in city
payable at any bank in that city During his
whole legislative career he never had received in
pay note payable at the counter of bank in this
city, and he had no doubt such was the universal
| experience of members. He dwet for some time
on this system of exchanges by which the mother
bank rotes were sent to the remote points, and
those of the distant branches were circulated here
| he confessed his surprise at the remark of Mr.
CAsKIE that the Bank of Virginia had not institu-
ted such exchanges since he had been President of
| IL. He put the utmost faith IL what that gentle
man said, and hOnored him for his intelligence and
his services; but nevertheless, true that even
that Eank did not pay out its own notes But the
practice of that Bank not the practice of other
banks In the investigation into TIE affairs of the
Bank of the Old Dominion 1t was stated on oath,
that that bank had snapped notes with the bank at
Staunton, and Fredericksburg bank was engaged
in circulating its notes through agent in Illinois
What was the consequence A deprecated cur
rency. Take these bank notes to Baltimore or
New York, you could not pass them without being
shave to one and two per cent. What were those
Northern exchanges we hear SO much noise about
There was no real exchanged was only appa-
| rent and caused by the deprecated condition of
the State; for We sent more in produce to the
North than we got in return. 1t was ali owing to
that deprecated currency which he desired to see
corrected
In reply to Mr.. EDMUEDs' argument. Mr. GAR
NETT said the banks were compelled by law and
would be compelled by law, unless it be repealed
to take their braLch notes in payment of debts due
them; and as for The messengers that would have
to be employed, what hardships was there in thatl
Didn't they send messengers now to carry ON that
system of exchanges which made the currency in
convertible into tpeeie and deprecated it, making
the people pay fir m one to two per cent. bring
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