Richmond daily Whig. [volume] (Richmond, Va.) 1842-1861, 1856-03-01
SPEECH or Joseph srcrp T.,

laceS Mr.. Speaker in the argument OF the gentleman
from Goochsnd who addressed tho House on SATURDAY.
| there sentiment he expressed which has m,
hearty that tho subject before is Que
surprising importance. II ia ever 80 with question
currency Ever and Is matter that sinks dee,
ntohe practical interests of all classes of the community
OF iarmcr merchant, professional man. mechanic and Ia
boring alike. What money shsl e used in h,
diversified exchanges of society matter OF direct nercs
tosevery member and none does IL much
poor man. whose humble means allow OF no subtraction
by depreciation OF the circulating medium. subject
such magnitude we shall approach, trust, with be-
coming sense ofour responsibility and with firm purpos,
to dispose Of it with reference, solely to the welfare
the people.
frankly confess Mr. Speaker that have none of the
decprooted prCudces against banks that seemed TO b,
entertained by the gentleman from Goochland On tn,
contrary, regard the banking system only one o
the highest evidences but OF the brightest trophies
modern civilization. IL has come 10 precisely did
the printing press the spinning jenny the aud
the steam engine Dcep-seatcd in the necessities of our
race, the ingenuity OF man set TO work develop
and did develop the and the other for the convent
ence the comfort aud tho happiness OF his species Liz,
the steam engine it Is potent fundamentally; capable
IL is true, Of great mischief, but, when INSTRUCTED
with far greater capacity for good and whatever NAV b.
its defects and its SHINING this all well know that q,
most enlightened the recst aud the hsppest people OF
the globe are those that have made fee of banking
! institutions
But need occupy the time OF the House with any
elaborate vindcation OF the banking system The antou
~ of the institution the history of its blessings to the hui
man race so largely prepoudsrating it. evils and tho
TACT that at this moment enlightened and
nation the earth, employs the agency of banks relieve
Of all necessity of rrpeng the ercs assaults which
have been made upon the system generally by the gentle
from GOochand. So proceed at once to the merits
of the question before us
regret that the gentleman from Goochlaud should have
seen Mt to REFER in terms OF animadversun the
ance OF officers ofhe banks before committees OF the
gsla,ure; and i, is due those gcntenen should state
that they appeared by special request those who had
the right 10 invite them And take pleasure further in
declaring that tor least was highly edsed by the
instructive practical exposition with which they favored
the committee, while admired the graceful molcsty and
dceaey with which they executed the task devolved up
on them by the solicitations of those that heard them
The bill before and others like IT, propose the re-.
charter OF the old banks the usual terms hut the
teman from Goochand would have old and long
tired, well tested system, 70 substitute what is usually
known a. the trebaaking, stock system OF which the
basis shall be principally state securities instead
Of the ancient one OF specie and bills ecei-abls
This latter system commeds itself TO the gentleman
from Goochlsud chiefly grounds first that IL Of.
iers to The not holder better security than the old one
both for instant cOnvetbility and ultimate redemption:
ami secondly that It will be electua restrain the
inodate issue OF paper money, and TO prevent those
expansions and coEtracuon- of the currency rnous
the interests OF all classes OF the community and pafc.
laN, As Was well said by the gentleman from Gooch nd
OF the poor and the lAborer.
take issue gIth the gentleman on both Doints
maintain that old banking system is ali respects
equal and in most respects much superior to it, new
competitor that 1t gives amplcr security the bhoier
provides ~Ounder currency for the peoplc affords su.r
protection against alternate expansions and contraction.
and suherVes far more adequately great purpose o.
banking OF the business wants OF the COM
munity
With the gentleman from Goochland heartily arre.
that the hrst duty OF the S ia regard to her bank e
gi'on Is To provide sound currency for the people
10y giving ample security 10 the bihoiers But claim
Tor the old banks that they furnish this securitv in IA
greater degree than the socbas system In the natur,
OF things must De Ia the one case that of the old
banks the assets are coming i'll at every business boar
cry business day of the week in the form of bills receivable
and ti' almost hourly supply OF assets proceeding chief,
a. 1t does from class whose highest interest and indeed
very salvation. depend the promptest punctustv
mean the merchants Is neverfAing reliance In the
oteT th4 oil Tue stock system the bulk OF the capital
being locked up IN public securities, there cannot DO the
sane constant hoNng IN of assets to form fund for the
satisfaction Of the bil-holder's demand
Let INC illustrate 10y iamiliar example Suppo.e
have outstanding against monetary obiga-
t.u- liable, ~ any moment, TO upon me Tor iouda.
ton; under which system would be more likely TO meet
these demands in cash, that which gives me 4 multitude
OF puucua debtors constantly by their cash PAYMENTS
filling my Golfers, or that which locks up my assets m
mortgages, bonds or stocks, that require for CONVEX
ZION INTO ca>hF And under which system would NV cred
II De better maintained that which constantly furnishes
me the means instantly lquilate present demand or
that which requires when the demand comes upon
me- 10 look about aud arrange and postpone until can
. convert my mortgages and bonds into ready moneys
IOiusate 10y figure the one system is deem reservoir
supplied by thousand and twice thousand copious and
perennial streams and kept by their united contributions
constantly rcpcnishcd; the other L. couparativ,lv
shallow basin, supported by and then struggling To
sresue with current crooked and sluggish a. never
I'LL II to repetion To which, of these sources the
noehoder safer in going for supply there be no hes
itaton in deciding
But it j. said that the stock banks have also their bill.
receivable Tor redecming fund 50 they have: but the,
have not this to the extent as the old
banks. The latter allowed by their charters To iii
count to twice the amour; OF their capital the latter can
not even halve th.r loans and discounts because th-
Capital being mostly bound up in securities in the hand
OF the Treasurer, is available to any large extent 6
purposes oil loan and discount Ia proof o this refer Il
the fact that the loa- and discounts % all the stock bn
together tall considerably short Of the amount of tbe
Capital SO that the old banks have than twice III,
capacity OF the new banks Tor loans and discounts and
course, than twice the ability from bills receiyab
to redeem their outstanding notes
FOR immediate convertabity, then the old system is
better guarantee 10 the biil-holdcr than the new
Secondly, there is provision IN our old sysem which
places the bhoder beyond the possib ity Of loss ea,
that which allows the old banks make loans and dis
counts twice the OF their capita for II but an
hall OF the loans be good, the holder is safe IL wa
made as clear sunbeam By Mr. Caske in his speecI
before the bank committee that bink under the iii
charters, might absolutely sus the whole vi it. capI
and then have an ample fund 10 pay oh the bilhoder-
The argument j. his aot mine, but the application wn
make Of il th iher j. provision in this old and we'll
tired system Of ours which makes the nOte-holer alo
tey safe why try am system however plausible II MAKE
him s'eE Why make hazardous experiments TO pro,ec
hin, when, already, his protection certain and com
pete Sir the people, the honest aud toiling masses
those who use bank circulation in their everyday rstc
lions will scarce thank for the change and II il prove
disastrous "ii be Glow 70 forgive those whose agency
doumci them a. the disaster.
But prefer 10 argue this great question from the result
OF experience. Before, however proceed to truce IN
history OF the stock system beg leave to quote A. illus
traii'e oi the philosophy Of the subject the sentiment. O
one whose vision and enlightened craftsmanship bav,
lpnR since made their impress upon the cOuntry ue,t
hlInd Fillmore, Of New York In hi- annual report !,
coupuoler Of tl State made 10 1877 ia expressing i
preference for the stock the old safety fund system
be remarks.
The comptroller believes that the safest way 10 MAKE
sound paper curfencv,'is 20 have 81 all times ampl
security For W redemption IN possession u the State
Ih order 90 make this security amDie ia should be mo-
Oly sufficient boo amount but be- o such nature thu
t may b." readily converted into cash without loss -
D, not sufficient that DC b. ultimately good and coIlcc
i''e delay in rrdcoming the circulation causes IL q
d'rrccfte. an3 saIuost fatal 90 the poor man VII,
cinn't wsit. 40 Ultimate insolvency. Ito becomes a
/ w once tlc 'irim Of The broker A bond and moftgsQ
may Doc good that j., the Who'll, amount secured b.
. thrn may Boo cpIcctiblc But the bill-holder cann0
wait 2r TINS. They must boz convertible into cash D.
Gle aud ifof any reason this cannot be- promptly dom
they "e not that kind Of security which should be re-
. quirod'
Intis bief extract s clearly set forth the inherent in
ufWi'Y % the stock system. For immediate coovcrt