Yorkville enquirer. [volume] (Yorkville, S.C.) 1855-2006, 1857-12-10

sec. D. That this ACT snail not take effect un-
til the first day of January, one thousand eight
hundred and ffty-nine.
| Remarks Of Mr.. w. Wha1ey on the Bank
| Question, in Committee OF the Whole
House, MIR. Sullivan In the Chair, Decem-
| ber 2, 1857.
Mr.. Whaley began by saying, that to speak a.
gainst any established institution, particularly
when they were backed by monied influence,
was an uphill business but when he looked
around and viewed the condition of things, and
fully believing that we were on the eve of great
monied convulsion, he deemed it his DUTY to use
oil his energy, and help, if possible, to stay the
tide that was fast swelling upon US. He had the
honor, q few days ago, of offering certain resolu-
tions on the banking system, which were now up
on the desk but from the rapidity with which
this debate had progressed, he could not discuss
them now. He would therefore proceed to discuss
the bill offered by his colleague, the Chairman of
the Committee of Ways and Means, and in conclu.
sion, would offer an amendment to the bill, and
would move its adoption as substitute. Before
doing this, he would consider, 1st. What was the
condition of our currency. Our currency is o
mixed one, consisting of great deal of paper and
o very little coin. So great was the preponder-
ance Of the former that, it had in q great mea-
sure ceased to be q representative Of the latter,
| but had become substitute. He knew no better
way of bringing this question more fully before
the House, than by showing from brief history
of paper currency in America. Sir, even while we
were colonists, and as early as 1890, paper money
was issued in this country and to afford plau-
sible, if not sufficient security for its redemption
the property and revenues of the colonies were
pledged. These bills of credits were first issued
in Massachusetts, and the other colonies were not
slow in following an example convenient for pre-
/ ,oI -.
These bills Of credit soon began to depreciate,
Notwithstanding the colonial pledges, and intro
duced into the counry that pernicous variety of
currency-i. e., the difference in value between
specie and paper money. At first, the deprecia-
tion was trifing, but when o fresh issue Of from
two three millions of pounds were added to the
circulation, the depreciation was very rapid, and
would have ended in total loss but for q fortuit-
Gus circumstance entirely independent Of the
property and revenues which were pledged for
their redemption. Great Britain ceded Louisburg
to France, and paid the colonies s183,000 on ac-
count of the expenses they had incurred for the
Louisburg expedition, with which they compound
ed these bills of credit at the rate of two shllings
in the pound. Such was our first attempt at SUBJ
stituting paper money for coin, and such was its
results-overissue and depreciation, loss of capi-
tal and depression Of business.
The war of the Revolution gave rise to the Sc
cond issuing of bills Of credit. In 1775, by Act
ofCongress, bills to the amount Of $4,000, ,000.--
They depended upon the credit Of the country,
and had no metallic basis. Though Congress en-
acted ''that they should be tender of payment
as to oil private debts, and declared a refusal to
receive them eItinguishment of the debt ITSELF"
Notwithstanding this act of tyranny, large sums
were added to the provincial issues; the deprecia-
tion began to be sensby felt in Ill., and iucreas-
ed with additional issues; so rapid was the in
crease of issues that in 1779, only four years
from their first issue, they amounted to S160 000-
600, and such was the tendency of this paper
money to 60 on increasing, that Congress declar-
ed that they should not exceed $500, 900, to
which limit they amounted during the year. This
sum was too large to admit of redemption at par,
or rather there was no real money to redeem them
with, so, in 80 and 81, these bills ceased circu-
lating, and have never been redeemed. few,
indeed, were funded by Congress, at the rate Of
one hundred for one. Such was our second at
tempt to substitute paper money for coin, and
such its results; over issue and depreciation, loss
of capital and depression Of business.
The next was the Bank of North America,
which went into operation in 1881, under the
charge of Mr.. Robert Morris. 1t was not char
tered institution, but was instituted by an order
of the confederation, to meet the necessity Of q
circulating medium Our present banking system
may be said to have begun with this institution.
From its limited capital it failed to furnish cir
culating medium for the Republic, and severr' of
the States again resorted to issuing bills of credit.
In 1884, this bank did very extensive business,
and by the beginning Of next year, the effects of
its operations began to be apparent They were
such as banking operations always are-produ-
ducng temporary plentfulness of money, fol-
lowed by great scarcity, usury, ruin to the many,
and riches to the few. In less than four years
from its birth, the people became alarmed, and
took away its charter. The bank, however, con-
tinued to do business, and after several unsuccess
full efforts, finally was rechartered, thus showing
what great power banks have over the people.
The first baL!; of the United States in its cor
porate form, wep. into operation in 1874. The
charter expired in 1911, and the bank went into
liquidation. 1t was rechartered in 1916, and ex-
pired in 1886, at which time twas estimated that
the bank possessed surplus of over S43, 900 900.
The same bank was chartered by Pennsylvania as
the Bank of the United States of Pennsylvania,
and all of the stocks and assets transferred in
1886, and became bankrupt in 184l, sinking in
the short period of five years nearly the enormous
sum of ninety million, of dollars, spreading ruin and
desolation in every state--widows, orphans, chur-
ches and charitable societies all engulphed in the
common ruin.
Mr.. Wbaley, after reviewing the history Of the
banks in South Carolina, said that the examples
furnished by history, if we are inclined to profit
by past experience actually occurring in our own
country, ought to warn US as to the future But
it is not to the experience of our country alone,
but of the civilized world, which we have to guide
US. John Laws Mississippi scheme in France.
The Assignats of the Empire, and the Credit Mo-
bilier of to-day. The South Sea Bubble in Eng
land tbe history of the present Bank of ENGLAND
its suspensions and support derived from the gov
ernment All the banks ever chartered in Ameri-
ca, from the first down to the wild cat banks of
the present day, all show that paper currency
will tend to over-issue, and to depreciation, loss
of capital and loss Of business and the intellectual
and moral depravity.
shall now, Mr.. Chairman, consider the first
proposition contained in my proposed amendment,
which was to make the banks, in case OF suspen-
sion, liable to bill-holders, as in case OF other
creditors. Banks are chartered by the L'gisla-
ture By their charters they receive certain privi-
leces and are relieved from certain liabilities, to
which they are not entitled as private individuals.
Let US see, Mr.. Chairman, what these privileges
are. They are endowed with one, if not the most
important prerogatives Of government-the ex-
elusive right of coming money out of paper. They
have the power of issuing their bills dd H6itum,
and they pay no interest to their creditors, while
they exact interest from their debtors. They are
exempt from liabilities, to which individuals are
subjected. If q man fails, his whole fortune is
liable for his debts, and if that will not satisfy his
body is imprisoned. If the bank fail, the stock
holders ore only liable to twice the amount of their
stock and the community looses. Sir, why is this
inequality? 1t is not republican. 1t creates q
monopoly to enrich the few at the cost of the many.
This combination Of capital is runous to natural