Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1858-04-06
e r,xv.y, cze-..,.s :,,..w:r: 4, ~ Independent

I.ay cut isSue any for circulation, except '' nc
denomination So $40, or Of some multiple OF .:l
lie stated that the object to make thc i'rHs Vi h
Independent banks conform 10 those al tne "'G o"N
.hch prohibited 10y law from !.Suih: oa' ho's
The amendment WAS agreed 10.
Mr. FpMusDs proposed ~ amend the OH iu'ther os
changing the period for commencing The rupp esSioi
the circulation Of foreign bunk notes Of ices uenohA
lon than s2O from 3ls December, ls'e' u ISL june
The proposition wus discussed by Messr.. EDMrHp-
and MCKENZIE. the latter OF whom niofeu lnhl lne luz
;her consideration Of the I'LL be indefinitely postponed
Mr. CARTER, OF Russell, said thar The people IN u, u,
pressing the circulation OF OF less denomination
than Is. II was not regarded political measure out
opposed as producing inconvenience %hicn tney
do not wish TO bear. Mr.. c. pdmonshed the House
against experimenting with the currency. He did not
pretend see further into mill stone than 0thers, oui
according 10 his construction the eject oil the WOULD
be to Richmond the hard money focus OF the stae
while the country would get nothing but rags IL IL be
the object to inaugurate an exclusive specie
which he was opposed this blu was deeldea SEP TO-
wards that policy But 1t continued the mixed currency
paper money and specie-to the disadvantage OF the
poor man. who would be required to pay MS aueS anu
meet all his little engagements In hard money.
Mr. ANDERSON inquired if the operation OF the small
note law" had proved beneficial In his sccuo vi inc
State.
Mr. CAsrER replied that 30 far rs his observation ex'
tended that law had operated to the ana pre-
iudce Of large number Of his constituents
Mr. DrcKwALI called for the yeas and nays on lie mo-
ton to postpone indefinitely and they were ordered 10 De
Mr. KEmrER then took the heor and replied to the ar
guments presented BY Mr. CARTER, calling asnton princi
pay TO the fact that the bank circulation oil the Union was
based the ratio OF thirteen 10 one oil specie ana tnns
aroso those periodical revusions which carried such ds
nrorss,ss suc friendly regard Mr. referred the
banking policy OF Great Britain to show that the issue OF
Of small denominations were disronntenanced ana
quoted from the assumptions Albert Gallan and Adam
smith Instead this being oppression 10 the
poor man, it grent financial blessing II would re-
duce tne circulation Of bank notes and specie would take
no he bank n O
ary panic made by the Glasses who held the
small and they thus aided in precpitang ruin upon
mote sections who held the deprecated or rredeemable
rag money The poor also sufferers by the present
currency another way The vcs and tens which prin
cipally circulated among the otener counerfeed
than OF higher denominations and thus losses were
entaed them which the richer classes were conpara
lively exempt FROM for the simple that large notes
were generally examined by those who receive hem so
as guard against the danger of loss from counteriene
Mr. CARTER hoped that British authority would not
have any influence Virginia legislation. lie was op
posed to that authority almost all things
Mr. KEMpER nterposed with the remark that the Bible
came from England
Mr. CARrER.-No sir; it only passed through, aud am
unable To perceive that It has done them much good
Mr. c. continued his remarks by presenting other obJcc
lions to the passage OF the bill
Mr. McKKNzrK next addressed the House, briefly, on
the side He remarked that the ratio OF specie au-
tborzed by law in Virginia one to i've but he be-
evcd that three To twenty-five at the pre-.
time He proceeded TO arsIc thu the b before the
House would result nurousy to the bei interests OF the
Commonwealth.
Mr. WARD expressed his in the reform pro-
posed he would give time 10 the people to pre-
pare TOR the change The operation of the law should be
more gradual II tho policy be suddenly inaugurntcd
and especially this junc;ure when the country just
recovering from financial revusion the effect will be 10
general depreciation of property and merchan
die ~ ,
Mr. SEoAR said he believed the passage Of the BILL with
the exclusion Olive dollar and the adoption of TWEEN
" dollars the minimum denominntion OF our Bank cir
culaton would do infinite mischief to all the interests OF
the COMMONWEALTH the single individual, and to the
massesto the rich and to the poor-o the merchant and
mechanic and indeed everybody and interest but The
Banks themselves Like many othcr he had, nc II were
slidden into tho popular notion that the suppress
sion o smaller and Introduction OF larger denominations
of Bank bills would have the effect OF nfusing larger
amount OF specie into the circulation but examination OF
the subject had convinced him that In the measure pro-
posed by the BILL there was no reormIon the contrary
muny He had nvestis alton, found this rcmarkablc
fact exs-tha least nn,eeen States OF the Union had
dollar notes North Carolina South Carofna, Georgia
Alabama, Tennessee, Ohio, Indiana, Pennaylvania,
New Jersey, all New England and New York ,
permitted their banks to ssue notes even as low
rs dollar and the inquiry at once arose in
his mind. frat. could policy observed by go many
States and enlightened states too be bad policy and
vesgation he found 1t 10 be the prevailing opinion with
practical business men, that while the notes OF the smaller
denominations answered the purposes Of the masses OF
the community they had the further effect Of retaining to
the Banks their specie basis, and OF course enabling
them to accommodate, to much greater degree, the
notes retained the specie In the vaults Of the Banks The
thing was most apparent The larger the notes 10
which the circulation was restricted the greater the
drsin each operation, of the specie OF the Banks
Make twenty dollar notes the minimum denomination,
would not twenty dollars De taken from the specie
Of tho Banks. where only FIVE dollars would be
taken, II i've dollar notes were the MINIMUM
Take the example of a twenty dollar bill The holder
wants little specieive dollars, say. for wants
about hs person than i've dola in specie time
TIE specie be hsd and though the party in want re-
oures only iva dollars he goes 10 the Banks and drnws
out twenty dollars OF its spece What was the conse-
ouencci Why that twenty dollars would be taken In
stead of ivc from the specie basis OF the Bsnks and
the Bans only Issue five dollars oil paper for one OF
specie the circulation would be reduced one hundred
dollars and the capacity the Bank Ia accommodate the
people be abridged 40 five In other words the
operation of the twenty dollar feature oil the bill would he
10 quntupe the drain upon the specie OF the Banks and
in tho same proportion, TO cripple their usefulness
to the public. Every check or draft upon the
Banx for less amonnt than twenty dollar-,
would be paid In specie. and to make the draiu
continuous and increasing the able Chairman the Bank
Committee had introduced a provision lorbdding our
railroad companies to pay out any notes OF lees denom
nation than twenty dollars the effect Of which would be
TO drive every traveller upon our railroads. 10 twenty
dollar draft upon the specie basis OF the banks u the In.
genuny of man had been tortured 70 find out means Of
dslodgng the specie from tho banks it could not have
fallen on happier plan Of doing than the provisions OF
this bill There would be, then necessarily, under the
operation OF the BILL heavy drain on the specie OF the
bank, and as necessarily large reduction of the crcu
lson And what then' Why, Of course, tho specie OF
the banks which the basis Of all their operations being
be prouortonaly abridged and the interests OF all those
who deal with the banks would suffer accordingly: The
other and most amentabe effect OF the reduction OF
the circulation would be-thnt greatest Of all hric.
lions of n community-a sudden reduction in val.
ue of property of all descriptions The rich OF today
will be poor to morrow The man In debt is inevitably
ruinedhe L. pressed and his property deprecated
half and nothing 10 LETT him Of the wreck. The rcd flag
of the aucoueer suns throughout the State and no man
il safe but the rich aud unindebrd and man reaps
harvest but the lawyer and the sheriff. who sudden
fortunes by the misfortune and ruin of thousands who
sink under the hard blows OF bank and individual pres
sure The adoption Of the bill would spread ruin through
the stae-,he result Of unavoidable bank restriction
and curtaiment Howwasitl Ais In debt 10 the bank
the bank by reason of the twenty dollar drain, 10 com
debtor pay up his property is essened in value one
half he is In court JUDGMENT and execution come and ne
ia ruined Instead Of the financial millennium predicted
bv the gentleman from Madison there would be financial
catastrophe very earthquake which would convuse the
State from circumference That would oe the re-
form to be by the reform OF rn
in--of widespread RUM and upon none would the caam
tous fall heavily the masscs-upon
the poor Another consideration should be concluse-
He iMr 81 relied much upon experience. Man was
hute being: he knew nothing perfectly, save by expert
mental result and wherever the light Of experience led
him. he was prone 10 follow Now the State OF New
York the most enlightened Of all tue States 80 far as her
financial and commercial policy Is concerned, state
that, by wise financial sysem mad come enost 70 mo
noposc the trade of the country had noted upon sys
tenn directly the OF that proposed oy the Dill un
der consideration She allowed her Banks to issue notes
of small denomination and the consequence was that all
the channels of circulation were gorgcd. She thus
enabled to carry her Bank accommodations - the
highest Legitimate point; to give To all branches
of industry n share ul accommodation, and to
infusc activity aud vigor into ALL in all pursuit.
while the system proposed here have pre-
cisely the reverse effect would orlngdown nhnk aches
to tho lowest possible point and thus cripple industry in
every department Besides she had tined ths plan twenty
dollar notes and found 1t failure Under the delusive
idea That the currency would be reformed by the expo
sion of the smaller dsnomnsons she tried what this bill
fall back upon twenty dollar notes Inc result
was that her bank circulation greatly reduced trade
suffered in all its rafcaons and, at the next session OF
her Legislature, the law repealed The experience
OF 30 wise State ought he decisive OF The question and
induce the House reec, the bill What had failed there
would be likely fail here. Besides the five dollar sys
tenn had answered admirably in every respect and was
true policy to st well enough alone Let US hold fast
to what s good" -, ~ ,
Mr. EpsuNps advocated the passage OF the bill on the
ground that 1t would exclude from circulation the rre
deemab Issued by the Banks in nsshborng states
which would otherwise superseds to considerable
extent tie issues OF the Virginia Banks when they re-
specie payments He believed inst this msnsnr
would elevate the currency aud expand the circulation oil