The herald. [volume] (New York [N.Y.]) 1835-1837, 1837-05-15
From the Weekly Herald, of May Is.
News OF the Week.

The news of this week is probably of the most i'm
ortant character that has taken place since the rcvo
lution The banking system that begun wheh the
present constitution went into existence IN 1857 mas
bv the corruption and mlsmanagement OF many years.
brought about by political parties, entirely hnaiiy ana
G,llv exploded into thousand atoms. The suspen-
s;on of specie payments, first brought about by
the banks of New York on Wednesday morning, and
followed, as far as heard from, by every otnef
bank, large small, in the country, is the iu-
neral knell sf the system OF convertible credit from
which so much good and so much evll mas sprung
during tn last half century, The ruin OF this GLORIOUS
looking gingerbread fragile edfce scattered over
the whole country. The crash does not excite STA
gle tear, single regret. Every body appears 70 De
Teoiced as at the removal of a heavy weight from
their mind.
The week opened most lowcringy- On Saturday
of the preceding week, the run on the feeble Dry
Dock the return of the Masonic Hall COMMITTEE,
with lie refusal of the President to call Congress TO-
oether, accumulated such weight of evil that mems
minds became mad. On Saturday and Sunday night
the bankers were IN consultation over me Dry DOCK
land the merchants in another on their general
evils and misfortanes. proposition was made to AID
the Dry Dock, but the other banks, after debate,
came to resolution to let 1t 60 by the board. MIR.
Galatin the President of the National Bank was one
fof the principal opposers to the granting of relief to
the Dry Dock. On Monday, instead of opening Its
doors, the Dry Dock shut up. terrible excite
ment began to peryade the street. The other banks
got alarmed. A consultation was held. They agreed
when too late, to redeem the notes of the Dry
Dock-but the public confidence that had been
rudey shaken by its soppagc, not TO be restored
by an expedency adopted ia emergency, under
feeling of public alarm.
From being a on the Dry Dock on Saturday, it
was increased to an overwhelming tide rolling against
every pank on Monday and Tuesday. On Tuesday
n ght thG bankers again met under species of panic
and cons formation. After angry and exciteable de-
bate, they agreed at late hour to suspend, in body
on Wednesday morning This the general sig
nal for the crash Of the whole fabric For two or
three days the public mind has been utterly paralyzed
and asonlshed. The news from England or the
South has been Understanding attended to but the
great and overwhelming Prostraon of the banking
system.
In this state of confusion dread, alarm, and terri
BILE disorder the bankers have gone Albany, and
concsctcd new law to legalze their self-destrucve
acts and to give to sheer paper currency, by the va
pd efforts OF legislature, the same value that piece
of gold and silver bears.
The sudden and extraordinary explosion of the
banking system is not greater than the measure pro-
posed in Albany TO meet the present crisis. The prn
cpal projected to protect the banks is bold
invasion Of the rights of free people, guaranteed by
the constitution. The channels of Justice are to be
shut up and the BILL holder of bank is to denied his
remedy at law. During the worst periods of revou-
ton and revulson in France England, the history
of paper money has never been dlsgraced by law
setting at nought the principles of right and justice
as the one now in Albany proposed TO give contn-
ued existence to the banks If it passes, their bills of
five dollars will not be worth more than twenty-five
cents-nor SO much. At this moment, the value of
bank notes is altogether derived from the fact that
lHc HOluci VI thc at law, WIFI ia
images, as in any other case of debt. Exempt banks
frem the obligation of contracts by the Intervention of
any legal machinery tq-prevent their sure collection
and you at once attempt 10 estoboa pnprI currency
without value use.
The effect of this singular explosion is yet to be ex-
perienced. What measures the government at Wash
ington will take, we cannot dream. We trust that
in this great crisis, Mr. Van Buren,, surrounded as he
is with misfortune will sanction, by any act of his
departure from the principles Of Justice of good faith
of honor of public integrity. From the state legisa-
lures expect no relief They are utterly made
quate the crisis. Lock Albany They are entirely
under species of panic and seem resolved to set
the first principles of society," justice, and the consti-
tuition equally at nought.