Morning herald. [volume] (New York [N.Y.]) 1837-1840, 1838-01-04
NO. ISIS.

I PUTpOsc. ITS DrOvIs-
IONS nave not been less msapprehended thar 10 main
design. The belief still prevails 10 some extent tha,
tms law leeazed the suspension of specie payments
ana TOOK rom bill holders the right to enforce
| against me banks demand for specie. This belief
y rounded IN error. The law only suspends snch ~
me penalties incurred by the non pa rnent of snec
as worked forfeiture Of their charters: bur the ohl
ealon imposed on ,hem 10 redeem their bills on de-
huid W gold ana silver, was not annuled or impaired
by The ac The righ 10 resort 10 court. of laxv ~
compe payment IN specie was not taken away nor
were me proceedings against them $ modified as 10
place mem IN better condition when prosecuted
thah tha OF other defendants, except as 10 the re-
covery Of costs in suits for sums less than fifty dol
lars, and even IN this respect there was no difference
between them, and individuals when sued in courts of
record III tins law had created as MANY erroneo,sIv
believed an lnyidious distinction between hanks anJ
INDIVIDUALS, by shielding these institutions from pro
secutons by their creditors and leaving 10 them ,bo
nnmpared rish TO harrass their debtors il would
nave oeen OBNOXIOUS 10 The severest animadyersions
o9t y contains no such objectiopa able feature
ishould not be forgotten that this law imposes yerv
sanitary resurrection upon the banks, BY which the
h maximum OF issues allewed by law is reduced more
than iofty-hve millions OF dGars and il also obIoes
them during the period of suspension 10 rece,ve IN
payment Of debts the notes of each other al their mar
Vaine. lAdmng the correctness Of the views
mere taken OF the general design and effects of the
suspension law, II must, think be conceded that the
measure was demanded by the peculiar emergency
and that II could not have been withheld wtbou,
spreading bankruptcy and ruin more extensively
Y,
gravating the public distress.
There was undoubtedly some reason 10 apprehend
that the banks after being released from the penalties
incurred by falling to redeem their bills, miaht be
tempted 10 an excessive issue OF their paper and thar
the currency would thereby become greatly depre cia
ted but is gratifying to find that such has not been
Their course. They have evnced commendable de-
sire to sustain the currency in sound condition. and
10 prepare Tor an early resumption specie payments
with this view they have steadily and rapidly per-
haps, as the public good required contracted their s-
sues. Their circulation including therein the amount
OF each others paper held by them has been reduced
within the last year. about nine millions of dollars
Deducng the bills thus held from the amount of their
issues il appears that their actual circulation on the
first of December last did not much exceed 100000
and their saece then So 1872 $685. Althonob her
paper fell shortly after the suspension more than ten
per cent below specie has been improving i'm value
for several months past, and is now within three and
a haf per cent of that standard Comparing the
condition OF the banks the first of June-the time
TO which the first statement of their concerns after
the suspension relates-wh the exhibit of their con-
dition on the first of December, il appears that with
IN these two perods-a space Of only six months
their discounts have decreased 80 6SI 1914, and their
specie has increased $3.50 3O7. They have also paid
within that period nearly six millions of dollars to the
ireasurers OF the State and the United States The
otal amount OF debt due from them TO the General
government which on the first of January last was
y S55u59, Is now reduced to less than 5000 OOO
Inc general suspension of specie paymerts nv tho
precede and Introduce healthy condition ofhings and
by stern necessity The penalties Of forfeiture are
withheld by the suspension law for only year. which
believed would afford the banks ample time put
themselves in a condition Some have al
ready resumed others are in condition to do So and
do entertain a doubt OF the resumption by all with
in the period during which the penalties Of forfeiture
have been suspended 1.-THE banks OF other States BY
OF their inability cannot or for any other cause
will not generally cooperate with In this important
measure there will be hesitancy the part
of any OF Institutions TO enter promptly upon the
q .l.In Of L.tx l-
the public and due respect for their character.
The necessity of the and regard TO the public
good called the suspension law into beng tor limited
period When this necessity shall have ceased, as IL
questonably WILL before that period expires, the
public voice will demand return to specie payments
You will not therefore, trust entertain application,
H. contrary to general expectation, should be made
10 prolong the operation Of this law The pecuniary
ronvusion which has shaken the whole country owing
to causes already alluded to, fell with destructive vio
lence upon our banks. That they well sustained
under the shock and have recovered from
lis effects more speedily than those other parts
of the Union, may justly be ascrbed TO the excellence
&C banking system, and to- the wedrected and per-
sevcrng esrts of the managers OF our banks TO re-
lieve the community from the evils OF disordered
currency.
Serious difficulties will dout tess attend the resump-
ton and maintenance Of specie payments by our
banks in advance OF corresponding movement IN
other States and IL rs therefore matter OF uafegn-
ed regret that the bank convention lately assembled
in the city Of New York did not fix upon and recon-
hoped that the powerful considerations IN favor OF
such measure will yet prevail, and that The banks OF
this Staie will be sustained by the cooperation OF
the banking institutions throughout the Union Out
# ours must encounter encreascd ernbarrassments
resulting from a want Of this general co,opera'oH,
thew will have no doubt be sustained IN Their course
bv liberal degree OF returning confidence, and all
he Incidental ads which will be the interest OF the
csmmuni,y to exiead TO them. The appeal 10 the
banks not onlyn this State but throughout the Gown
rv 10 resupe Is in fact appeal 10 them for relief
from evils which in part attributable TO their own
imnrHsent conduct, and IL IS therefore confidently
hoped that il will not be Intellectual. At what Tune
the banks shall return 10 the payment 81 specie 10
not with them question Of expediency bat Of duty
and this duty will Indicate other than the earliest
practicable period.
The banks have failed, for season at least, to re-
deem their bills demand in gold and silver as I'm
good faith and by law they were bound to do. IL this
delinquency the natural result of defects IN thec
organization, II is your duty to consider what mea-
surcs are to be adopted to remove them. am, how
ever persuaded that upon full nvestg Iion OF the
causes which have led 10 the suspension, you viii
find that their defects have had less Influence IN pro-
ducnp that event, than their lmprovldent manage
ment. In considering this subject. justice requires
that the consequences resulting from the latter cause
should not be- permitted 10 misead your Judgment a.
10 their general character, their peculiar h.hess 70
fulfil the purposes contemplated by Their es'aolsh-
ment 1.-THE causes Of our embarrassInen,s nave nov
a "A .ms. a.sNuR