Columbus Democrat., 1838-02-17


The country has been overwhelmed by de-
plorabe calamity. The root OF the evil Is to DC
found alike in The hearts and dispositions OF the
people rs in excessive issues by the bsnks.-
The des,re for speculation vas fed by bank rs
sues and accommodations but We hnd that the
creation of So large a number Of new banks, |
which have flooded the county with their paper |
received lis impetus from this same sPIr'i oil spec
ustion. Bank charters were peutoned Tor WIN
less reference to the wants of the community IN
Which hey Wete to be located, than To the desire
Of the projectors TO speculate IN stocks.
TLe causes which produced Ihis state oi things
are not now TO be inquired into. The best and
most permanent mode ut rehei ought alone 10 oc-
cupy he .,inds of those who are vested with the
power Of enactlne laws for the general welfare.
In order to srrNe at Just conclusion as to
the true policy to be pursued-Provlded the banks
be not enjoined-it will be necessary to examine,
ftsi the power which The Legislature possesses
second, the circumstances under which the pre-
sent debt ofour clzens was contracted, and The
propney of permitting them to pay those debts IN
deprecated currency; thnd, the probable
length Of time required 70 enuhle them TO lqul-
date their debts fourth. the ability Of the banks
10 resume in any given period; htth, the im'ia'
tions and restrictions which will be necessary To
insure gradual return 10 currency that shall be
convertible al any momen, INTO gold aud silver.
| FIRST, The porer rhtch the Legi'idIure pos
ssSsS orer the banks. The night Of visiting any
corporation is inherent in the founder. The le-
glslature created the banks and gave them certain
slivlIcges subject 10 certain restrictions. lhe
| -gh to examine the affairs of each bank IN any
manner the legislature, IN lis "lsdom may de-
sgnne, whether pointed out in the charter or not,
is n we'll established prIncips-a principle so
PLAN and Just IN It's nature as 10 commend itself
10 the common sense of every individual. By
the exercise OF the visiting power alone is the lie.
gIslature enabled 10 ASCERTAIN whether the prlVl-
Ieges granted to corporate bodies, We abused or
transcended To recognise any other principle
would DO virtually declaring the created corpor-
alton superior to the creating power.
The banks by their charters contracted to pay
their respective notes that are payable TO bealer)
on demand Their refusal to pay Is a violation
Of contract, as every note IL n bona tids contract
between the holder and the bank. Every banl
has received notes Of individuals in payment o
stock IN violation of charter. Each bank With ii
broken chatter is now al the mercy Of the legs
! lature, for legislative support or legislative con
, demnahon and Judicial process. Leniency an
forbesrance is recommended by the commission
4. ers, for, Illuminating ~ the fact mny appear, III
= fate Of the people and the tate Of the banks are
, The present time identical.
o The board have sbsained from making ar
IS distinction relative to the banks examined th
| oh ipvtd,nua tn Gtfu
e of each s exhibited IN the statements anuexe
e and although we might in truth report the secu
r ties Of one bank TO be little better than anolhe
e yet ss there is no isolated case Of such chara
c ter as TO call for any other than general action
a ;a5 legislature, II could be productive Of no 20,
r and might, perchance, do some injury; therefor
h so far as the banks your commissioners have Il
honor of reporting are concerned, the same lcgi
il Iave action will apply as equtably to all.
10 |, affords us pleasure to state that not sing
e bank has expressed desire to have the snspc
c, SION OF specie payments rec ognzed by law. u
i, advocates of odIous and unconstitutional rel
- laws are alone in their belief that the logisau
ii has the right 10 sanction by law the suspension
IN specie payments. Ii would interfere with the Q
rt Lratons Of the banks to The holders their not
ly oc the federal constitution which f0rbIds
We States passing any law which shall impair the q
ii ligation Of contracts. Even were it compete
cy for the legislature TO sanction such suspense
IT, sound policy would dictate prospective action {
I'd ", leaving past offences, whefe they now rest,
IN the lorbearsuce oi the people for there exl
is a credisbc reciprocity otlorbeamnce which wol
cease II the banks we're relieved from their oblII
US tons to Inc holders OF their notes. An aten
rs on e part OF the legislature 10 transcend its pc
TO er By IogaliZ!ng tar any period the suspension
se specie payments, would have the effect oi 81
ks king still moe rudey the credit Of our Sta
on which has already received terrible shock
IRE broad from those who have been enriched by
,rk products Of our soil, and the discounts upon
TO circulation, decrled Tor the purpose Of profit
he In the exercise ofthe undouOted power wh
led the legislature possesses, II would not result
Of fayorably TO the community al large, II IN
cot banks that have evinccd readiness 10 exh
Their affairs be permitted to continue their b
ov- ness. after there shall have been thrown aro
the them new restrictions safeguards for the I
tha nile. With those that have refused to ackno
m edge legislative authority, some decided /
Of should be taken that will prevent the recurre
Of like indignity.
nd;. I'd. The circumstance under teh,ch The y
lar- snf debt ,cas contracted. In taking full vie,
or the relations between debtor and creditor, is
om- portant 10 bear in mind that the debts in Mi,
uch sippi we're contracted at period when our st
res. commanded price 33 per cent. higher thar
d TO this time, and that il The people are not perm
are to pay in a deprecated currency, they Will
eIve unable to pay at all, and The whole credit Of
,yer banlA and our people would be prostrate bot
ever home and abroad. BY coerclng the banks TO
mu- sumo specie payments their circulation would
Ugh s,anty be diminished the amouui Of spec
edit, now have on hand, a more disastrous susper
&C. would follow, the specie would be carried Of
mia, western traders, and the ability oi our c'Izen
, the discharge their respective obligations w0ult