Yorkville enquirer. [volume] (Yorkville, S.C.) 1855-2006, 1857-12-03
The Banks.

The following resolutions were offered by Mr..
Mcmminger, in the House OF Representatives. Oh
Wednesday.
l. Rcsoirsd, That the issue of notes rs currency
is a privilege granted to the banks upon the i'm
piled condition that they will redeem such notes
with con at the pleasure of the holder; that the
failure to perform this condition justly tortelts
the privilege, and should deprive tie banks OF the
profits arising from such issue; that the Act IN
relation to suspension Of specie payments SIMPLY
contemplateS Srch prvatou in the form of pen
atty of FIVE per cent. per annum upon the clrcula,
tion of each suspended bank, and the State should
insist upon payment of the same, so long as the
hanks shall continue to refuse payment i'll specie.
2. That the paying out by the other banks OF
the notes of the suspended banks is in effect the
issue by them os deprecated currency IN the
stead of their own notes, redeeDable in coin, and
is plain violation of law, for which proper pro-
ceedngs should be instituted by the Attorney Gen-
eral and Solicitors.
8. That the supposed convertibiity of bank
notes into coin at the pleasure of the holder has
hitherto been relied upon to secure their use as
currency; but the suspension now in existence ex-
hib!s the failure Of this security end renders ne
nessary resort to increased securities.
4. That one of the chief causes of these convul-
sions is to be found i'll the power to expand and
contract the currency, which is exercised at plea
sure by every bank of issues, and that the hrst
step towards prevention should be 10 limit or
withdraw this power
5. That a withdrawal of the power would In
volve the adoption of an entire metallic currency,
or a circulation of the bank notes of other States;
both of which schemes being obviously lmpractl-
cable or inexpedient, we are brought to the alter
native of providing some efficient checks anu lml-
tatons to proper currency.
g. That among these checks, one of the most
salutary is to be found in reduction of the a.
mount of paper circulation, by filing the chan-
nes of trade with the smaller coins; and lnasmuch
as paper of the same denominations Will always
displace coin, it becomes necessary to withdraw
from circulation bank notes of the smaller denomi
nations; that to this end all the banks of this
State should be required to withdraw from circu-
lation within two years all notes under FIVE dollars,
and within three years all notes under ten dollars
{. That to make this measure more effective,
it should be proposed to the neighboring States
of Georgia and North Carolina to place like re-
striction on the issues of their banks.
s. That the proper limitations to paper cur
rency are such as would attach to it, as early as
possible, the essential features of currency in
coin, amongst which the most important are actu-
al exchangeable value, and comparative freedom
from huctuation.
Q. That the first feature, to wit: an actual ex-
changeable value, may be secured by requiring
each bank, in addition to the provision requisite
to redeem its issues in con to deposit as colater-
al security for their redemption, an equivalent a
mount of public stocks; and the second feature
may be secured by limiting the total amount of
bank notes issued, to that sum which experience
has settled to be the circulation which under any
circumstances will remain current in our State;
that each bank should be permitted to issue no
more than its rateabe part of this sum in proper
ton to its capital except upon the deposit Of coin
to an equal amount set apart for the redemption
of such increase.
10. That to carry into effect the last mentioned
measure the minimum circulation of the State
shall be ascertained MS nearly practicable, and
each bank shall substitute for its present issues
new circulation to the extent prescribed by the
last resolution, to be countersigned by proper
officer upon the deposit with him of stocks or
bonds of this State or the United States, of the
CITY of Charleston or Columbia to an equal mark
ct value with the new circulation by the bank en-
titled to the same, without deposit shall be apph-
cable to the redemption of the issues Of each bank,
in addition to the securities already provided by
law and that further issues of bank notes shall
be allowed to any bank to be countersigned rs a.
bove, upon the deposit of an equal amount of coin
or bullion with the same depository, pledged for
the redemption Of such additional issue.
II. That free competition for the use of mon
ey is the proper means for placing at their just
value the rates of interest and exchange; that to
this end the restrictions now imposed upon the
rates of discount and interest charged by the banks
should be removed from all actual specie paying
banks, saving that each bank be required to ad-
yertise its rates and to charge them uniformly up
on all dealers and also that no bank shall divide
more than seven per cent. per annum among its
stockholders reserving besides, ifit see it fund
not exceeding ten per cent. upon its capital, to
paw losses and to provide for regular dividends.
IL. That these resolutions be committed to
-, with instructions to report the proper
measures for carrying the same into effect.