The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1838-02-22

I'VE hear thar an application has been made
20 the Legislature OF the STATE 70 egaize this Teiu-
sal TO pay specie. That body cannot be too cautious
In acting on this matter. The moment they enter
upon Il, they are upon dangerous ground. legal
permission 10 the banks 10 refuse payment OF their
notes. and yet continue their issues. might lead 10
the most frighiful consequences II might be abused
tothe issuing Of nood Of bank paper wilhou bounds
till the confusion OF the currency reached pitch
OF which we have now but faint idea, till the de-
probation Of bank notes had become, great as was
thai Of the old Continental paper money, and ilye
dollar bank note could be paid for an oyster in Ca
Uterine market II would be taking of the most
powerful restraints which ties down The banks TO
prudence in their issues. The ruin which such
measure postponed, would burst upon us al last WIN
teniold fury.
When the Legislature take away the security on
which he [he holder Of nole relies and s,istains
the banks In refusal 10 pay specie do they not yio-
late The constitution by impairing the obligation OF
contracts ~
"We suspect part of them Ilhe banlsl viii be
in no great haste 10 resume specie paymeEtsi and
not few Of them would be glad IL the present sus-
pension should be perpetual Banks Of this charac-
ter would as fast az they found their active debt abb
sorbed in the manner above pointed out, create
new active debtby putting more notes in circulation
This evil the Legislature Of each Stale should guard
against by regulations Of a penal character"
The Legislature has not yet definitely passed
The law for the relief Of the banks. They have so
far shown greatdeal Of zeal propose unconsti
nonal provision ia favor Of those bankrupt insltu-
tons Let them show, on the other hand, that they
are willing as in duty bound 10 protect the commu-
nifty at large and the unfortunate bill holder, by an
amendment of The following import. The provision
contained In this act will only apply 10 those nstitu-
lions which will redeem their FIVE dollar notes in
silver and twill b. The duty Of hs hank commits
S.o'ers % see Gf proper quantity 81 these notes %
Kept IN circulation"
The great interest of the mass lies In the
sumption Of specie payments, and any administration
will be sustained which exerts all the power with
which the laws have invested it to accomplish that
object"
Some ofthe views expressed in the follow
ing communication (says the Globe,) in the
New York Evening Post, in regard to the late
laws of the State legalizng the suspension of
specie payments, is worthy of attention
The sound banks Of the State are compelled by
the act llegalizing the suspension OF specie pay
mentS, 10 support the weak. the insolvenl, for
some are So the reports of the commissioners the
contrary notwithstanding. The present time
was, OF all others, the most oportune for resuming
specie payments. Many of the city banks were
against the suspension, and were making every eff
fort 10 resume. Specie was never more abundant,
bank note circulation and commercial credits are
very much reduced, property generally has fallen
even below metallic standard, and the revulson
which has Frustrated this country iSnow bursting upon
Great Britain and France flour sound city banks,
in such condition of trade and currency do not
resume specie payments in less than three months,
(which would have been in Angus, i we may thank
our New York; Legislature for i'll If they do not
now, they never WILL till representatives fresh from
the people, insist upon the iul6lment of their con-
tracts with the public, and the execution of the
laws