Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1838-01-11

present condition of the people of this Stnte, with what
| think il would have been without the suspension ia".
am impressed with a belief that the object, as wen DO
the particular provisions of this law, have been ana sun
are much misunderstood. 1t was not The only, hol wuo
it The chief design Of the suspension act 10 SuoSelst tue
the interest of The banks. Other interests were aeeP'y
involved in the measure, and had q controlling nue.
in procuring its adoption. H.
At the time payments in specie were suaPe"u'o ~
The banks of this Stale, there was due 10 thrn " - ~
of about serenty.fVe millions OF dollars anu !, = ~
forfeiture of their charters, It had become htee''H'
suddenly to close their concerns and to wiring ms e""i
nous amount by prompt, and in many cases 'o'1su =,
ieclions. from their debtors, most OF lhem "ou'u "'e
Leen involyed in irrelrie vable ruin. Nor would the US
as,rous consequences have ended with the itn'ieoiate
debtors of the banks; it would have extended 10 Geo'0i7
of all descriplions-ln men employed In The niahuiac'u-
RIM and mechanical branches OF business, as well as 10
merchants and traders; to those who depend upon u"
daily labor for their bread, not less than TO those VINO Use
b,rk accommodations in transacling their ordinary 6nsi'
ness. Such Il course of proceeding, which, without me
suspension law would seem 10 have been unaVnldan'e,
would have made a ruinous change in the relative value
of prnpe ritz aud money, multiplied litigation, and led 10
n fatal sacrifice of the means-and under uthcr circum.
slunces-,he ample means relied on by debtors III relieve
themselves from the burden Of their engagements. The
slspe nsion uct was based on no such narrow p"licy as
faynrilism TO the banks il was designed i"r The cum
mon g"cd, and has emiuently subserved That purpose -
But lis provisions have not been less Inexperienced
than lis main design.
The belief still prevails In some extent, that this law
legalizcd the suspension of specie payments, ami look
from bill holders the right tn enforce against the banks n
demand for spccie. The belief is founded III error. The
law only suspends such of the penalties incurred by the
non payment Of specie as worked a forfeiture "i .heH
charter; but The obligation imposed on them to redeem
their bills on demand, in gold and SILVER, was not uhn"..
led or impaired by the act. The right 10 resn!t to courts
Of law to compel payment in specie was not taken away
nor we're the proceedings against them 30 Inodifed as 70
place them in a better condition when prosecuted man
that of other defendants, except rs to the rec"'tiy "
cosls in sums loss Than fifty dollars, and even in TINS re-
sprct there was no difference between them, aud lndiVi.
duals when sued in courts Of record. II this law Ind
created. rs many enormously believed, an lnVldinus us
tinc,ion between banks and individuals, by shieidinE
those institutions from prosecutions by their creditors,
and leaving to them tie unimpaired right 10 Larrass their
debtors, il would have been obnoxlnus TO the fevrIest
animadversion; but it contains no such Objectionable iea-
tuTe.
Il should not be forgotten that this law imposes n very
salutary restriction upon the banks, By which the maxi
mum Of issues allowed by law is reduced more Than Tor
ty. five millions of dollars; and il also obllgrs them, du.
ring the period Of suspension, 10 receive III payment OF
debts the notes Of each other al their par value. Adj
hitting the correctness Of the views here taken OF The
general design and effects of the suspension law, 1t must
think, be conceded that the measure was demanded ny
the peculiar emergency; and that it could not have been
withheld, without spreading bankruptcy and ruin more
extensively through the Commercial community, una
greatly aggravating the public distress.
There was undoubtedly some reason 10 apprehend mat
the banks, after being released from the penalties incur.
red By failing to redeem their bills, might be tempted TO
an excessive issue of their paper, and that Inc currency
would thereby hecnme greatly deprecated; but 1t Is
gratifying to find that such has not been their course.
They have cvinced n commendnbe desire 10 sustain the
currency in sound condition, and 10 prepare tor ON early
resumption nf specie payments. with TINS view liey
have steadily, and as rapidly perhaps as the public good
required, contracted their issues. Their circulation, IN
Guiding therein the amount of each others paper held by
them, has been reduced, within the last year, about nine
millions Of dollars. Dedncling the bills thus held from
he amount OF their issues, it appears that their actual
clcu laliun on The LIST of December last did not much ex-
cer I'd 81 500, 900, and their specie was then $3I4S2,.
1913. Although their paper fell, shortly after the sus-
pension, NOR. than 10 per cent. below specie, 1t has
been improving in value for several months past, and Is
now within three and 4 half per cent. OF That standard.
Comparing the condition Of the banks on the LIST OF June
the time 10 which the first statement OF their concerns
after the suspension relates-wIth the exhibit OF their
condition on the first Of December, ii appears that within
these two petiods-a space Of only six nionllls-thrlr
discounts have decreased s. 1851 .79l, aud their specie
has increased S6e0,307. They have also paid within that
period nearly SIX millions of dollars 10 the Treasurrrs OF
the State und the United States. The Total amount OF
debt due from them to the General Government, which,
on The first Of January last was SI,oS3,O39, Is now re-
duced TO less than S20U,00 0
The general suspension Of specie payments by the
banks, is Justly regarded as n serious public Calamity.
During it's continuance, disorder will inevitably reign
through all branches OF business. a resumption must
DTCCcuc anQ 1nUEUuuCC u HtdllHJ CViuiiioh VI '''hESI
and it should not be delayed beyond the period prescrI.
bed by a stern necessity. The penalties ct forfeiture
are withheld by the suspension law Tor only one year,
which il was believed would afford The banks ample
time 10 put themselves in n condition 10 resume. S"He
have already resumed, others are IN a C ondition to do SO,
and do not entertain Il doubt Of the resumption by all
within the period during which the penalties OF The Tor
FIXTURE have been suspended. 1t the banks OF the other
States, by reason of their inability cannot, Of for any
other cause. will no, generally co cooperate with ours, in
this important measure, trust there will be- no he.
si,ancy on the part Of any Of our Institutions TO en-.
ter promptly upon the conduct demanded OF them BY
good faith TO the public, and a due respect Tor their own
character. The necessity of The case, and q regard TO
the public good, called the suspension law into being Tor
a limited period When this necessity shall have ceased,
as it unQuestionnbly will before that period expires, The
public voice will demand 4 return TO specie payments.
You will not, therefore, | trust, entertain an application,
il, contrary 10 general expectation, one should be made
to prolong the operation Of this law. The pecuniary
CONFUSION which has shaken The whole country, owing
10 causes already alluded to, fell with destructive vlo,
lence upon our banks. That they so we'll sustained
themselves under The shock, and have recovered from lis
efF.c, more speedily than those in most other parts oil
the Union, may Justly be ascIibed 10 the excellence OF
our banking system, and TO the well directed and perse'
rering ttf,rts Of the managers Of our banks TO relieve the
community from the evils nf a dlsordered currency.
Seriuus difficulties will doubtless attend The resumP
ton and maintenance of specie payments by our banks
in advance Of a corresponding movement in "llier States
aud il is therefore u matter of u%neigned regret that the
Bank Convention lately assembled in The city Of New
York, dix not fix upon and recommend an early period
for Il general resumption. 1t is hoped that the powerful
considerations in favor of such n measure will yet pre-
vail, and that the banks of this State will be sustained
by the cooperation Of the banking institutions through
out the Union bal it ours must encounter increased
emtarrassments resulting frum a want OF this genera
CO operation, they will, | have no doubt, be sustained II
then course by a liberal degree of returning confidence
aud by all the incidental aids which il will be The int
rest OF The community TO extend TO them: Inc aPpta
10 the banks not only in this Stale, but throughout The
country, to resume, is in fuct an appeal TO them for relic
from evils which are in part attributable 10 their OWE
mpludent conduct, and it is therefore confidently hoped
that it will Rot be Intellectual. Al what lime The bank:
shall return 10 the payment Of specie, is not with then
a question Of exPrdiency, but Of duty; and this duty
will indicate no other than the earliest practicable peri
cd.
The banks hare failed, for a season at least, 10 redeem
their bills OH demand in gold and silver, as in good faith