Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1839-11-05
POLITICS..
THEPOST NOTE
YSTEMOF PENNSYLVANIA

THEPosT NOTE SYSTEM OF PENNSYLVANIA
We have promised our readers. an exposition Of The
cces and defects Of the present Banking system uf this
State, and as Do no, profess 10 write regular ,rpa
tise upon this subject shall! take il up in such po
lions may appear 10 be most profitable for immediate
reflection.
the day. II seems. in shape another. the in
evable result every few years, Of the present plan of
banking. All agree. therefore. that radical changes
mus, be made in the system itself which on
effect so bahling to The happiness and prosperity OF the
community
The tiecry of bank circulation in Pennsylvania, has
been permission 10 issue notes always payable on de
mand and always convertible the counter OF the hsnk
into gold and silver The pleasure of the holders
These notes therefore, always considered the re.
presentation of actual con and when issued those
whom the banks made loans, were regarded not simply
as bank credits, but entirely equivalent to specie
becsuse always immediately convertible into the Legal
currency of the u s.
In the early history of banking in this State this was
not only the theory but the practice Of banks and
accordingly find that they restricted themselves not
simply TO Legitimate banking, but TO legitimate banking
within the limits of the Commonwealth, for the bentf,
OF whose citizens they were originally created The
bank OF 1914 passed defiance of The repeated We
toes and warnings of that wise statesmen and patriot,
our great German Governor Simon Snyder first brok-
in upon this system, md inundated Pennsylvania with
nomina! promises 10 pay demand. as really incon.
yeft!c into gold and oliver The Continental money
OF the ReToiItion.
The ruin and misery brought upon ,5e citizens Of
isIedeemabe paper, most orcbly portrayed in The
admirable report OF the COMMITTEE Of The Sc nate oG this
State in S2O the sub OF the then distressed and
embarrassed state of the Common wcalth The rss,ric.
tons Imposed in the Bank act Of S2l were the fruits
OF this exposition and were opposed Ia b. amply ade
qGate for any future emergency. FJfctn u.ars ,rpc
rteaee and suSpsnsioas hare pyorrd them IN b. en-
frey insufficient 10 attain Tie end unless Sustained Ly die
E1eeR;ioc pc1rsr 81 he State Governor Kun-r real
contract with the Banks that they should make div
dends whilst they did no, pay THEN debts has he
real couse OF this last suspension. which Will he CONT
nucd indefinitely, unless the Executive authority s a,
once in,crpossd 10 prevent oil DIVIDENDS in November
next.
The act OF ls2! airms the sound doctrine that all
potes issued should be payable on demand. and always
convertible into the constitutional currency Of the coun
try, and this continued 40 be the pracce under all the
succeeding Democratic Governors of Pennsylvania.
Upon the inauguration of Governor Ritnpr, ne faith
folly promised 10 walk in the footsteps OF
but the first session Of minority legislature afforded
him an opportunity of tearing his solemn pledges into
pieces, ond scattering them 10 the four winds of Heaven
The hrst step towards an irredepmable currency vas
the act inccI pora,ing the S. Bank This Bank was
then expanded to runous extent Its oans were made
at very long dates and lis whole capital Of S35 600 600
was locked up, excepting about IS coo 0U0 lis bank
nee circulation was S2I JOG $50 i5 and It's spece only
1856 OF % II was CLEAR therefore lha, instead of
benef.ting Pennsy lvnnia by the of its capital il
could not pay it's notes keep up its credit without
borrowing large amount in Europe Mr. Jaudun the
Cashier was accordingly sent 10 England aud in July
1886, s,l@ "A turned The Golfers of the
Bank, for which they gave their bonds to The English
bankers and nobility,
The whole of this transaction was clearly ieraI for
they were incorporated to lend and 5orrO,o moneu
and they were not invested with any gated authority
to increase the banking capital Of The Stale, their own
will and pleasure not only without the sanction, but
against The express direction OF The supreme legislative
power of the Commonwealth.
Al the same session, the capital of the G;rad bank
vas increased from 81 100000 s. 0O00UO under the
Gpecous pretext Of forming check 10 the power o the
monster, Ia sin Tho
public deposites Of the General Government The in
creased stock Of S350O,0O0 actually paid up with
the exception OF small portion OF cash) in The stock
notes Of lis stockholders; and this bank resoed to
England, and borrowed money upon their bonds in mi
tsiion OF their piotoype This created large debt
G'ea, Britain which was equally illegal With that Gre
aied by the Bank of the United States
In the winter of 1867, The Bank OF The u States
made further effort 10 raise money by issue Of bonds
and post notes, and sale OF them in The city Of New
York The gradual but return of its 81 millions
OF cculaiion-and the constant dimnuon of its specie
IN spite OF all lis Efforts caused it's first stoppsge the
lOth OF May 1887, when il had in is mother institution
and its agencies all over the Union only
$l4S4,oOu IN specie to meet all its numerous engage
ments.
Having without any real profits in The midst of sus.
pension vi payments OF debts it's creditors declared
ana Paid WIN the consent OF The Governor Of Pennsyl.
vana, in July 1887 its stockholders 10 Eprone md
America a dividend of per cent, or 81 400 900 being
wi'hh S|uou OF oil lhe specie in It's vaults il became
necessary Tor us PRESIDENT TO LOOK Tor new and un.
tried source OF profit. 10 enable 10 continue even This
nominal division OF profits but real division OF capital
This ended in the cotton specula,ons Of 1887 and
1885, loans Southern and Western paper banks ,,roe
loans TO mere SPECTATORS; oans the Texan GuveIn
men and the purchase Of Southern and Western stocks
aud particularly OF five millions Of Mississippi sock =
Al FIRST the payments in the rredeemnbe bills
ofthe banS but as the probability ofesamp,on appsoach
cd bonds and post no,cs distant dates were issued as
substitutes.
The bank resumed in August, Leslie cotton specu
a!ions matuleo into iosses-is great debtors we're
BILE 10 psy-s State and bank and other stocks became
unsa!eateits debts in Europe and America were all
'a.n'ng 70 maturity and as las! sold bills OF
exchange houses who bad directed them not 10 d,s