Herald of the times. [volume] (Newport, R.I.) 1830-1846, 1839-10-31

and adjoining districts. held on Wedne sda Y
evening, October 23rd, 1889, the committee
appointed at previous meeting to prepare
and report on address to the citizens of Penn.
syIvania, presented the following, which was
read and unanimously adopted, and directed
tn be- signed by the chairman aud secretaries
and published in all the daily papers:
TO THE CITIZENS OF PENNsYL.
vANIA.
The banks Of Philadelphia having decided
to suspend for time the payment OF their
notes in specie. deem il their dnty to explain
to the citizens Of Pennsylvania, the reasons
Of that measure. This they will do frankly
and briefly.
In May, 1897. the banks in New York sns
pended payments in specie, and the rest of
the Union fnllowcd their example. This just
and necessary measure was required by the
commercial relations between this country
aud Europe; and all the banks of the Unied
States Immediately directed their efforts to
assist the country in the honorable discharge
of its foreign debts, and to prepare for the
resumption Of specie payments. These OPP
eraiions were proceeding in manner easy
for tho country and satisfactory to its foreign
creditors, hen their progress was disturbed
by premature efnrt for u general resump.
ton of specie payments. The banks of New
York were unfortunately constrained by law
To resume on gwen day, whatever might be
the state Of the country; ard they naturally
endeayored to induce all the other banks to
do voluntarily what they were compelled To
do. This purpose was effected, aided a. it
was bv the impotence of The public, by the
competition of political parties anxious to up
propriatc to their respective sides the popu.
lanty expected from fastening the resunp.
tion, and by feelings Of local pride, which
prevented many from declining to do what in
reality they disapproved, and accordingly
day Of resumption was named.
The banks of Philadelphia were quite as
ready TO resume rs those who were most
snxious to begin. for they had greatly re-
lnced their liabilities, and one of their nun
,er had no less than S7,357 COO in its vaults.
But they believed that the country at large
iad not yet sufficiently recovered from the
'iolent shock 10 be ready for resumption.-I
They recolIec,ed that under similar circum-
stances the bank Of England h:d continued
,er suspension for upwards Of twenty years,
Ind they avowed their apprehension that a
assumption in the unprepared state Of the
country must be followed by a relapse
)vcr-ruled in this Judgment, and obliged at
he hazard Of greater evils to unite in the re.
they sincerely co.operated in il
md, being satisfied that the measure, in orde
q br useful or permanent must be general,
hey made great efforts and large advances
% the Southern and South western states,
who were thus enabled, almost exclusively
by the assistance Of the Philadelphia bnnks.
to unite in the resumption. But the ineilicacy
Of the measure soon became obvious.
The Southern and Southwestern states,
placed by the resumption too much in advance
of the crops, which alone could sustain them
gave way at the earliest demand for specie
thus breaking the general line of resumption
and weakening the Atlantic banks by the
amount of the advances made 10 support them.
Nor was this all. The dclusive appearance
Df The resumption worked injuriously on both
sides Of tie Atlantic. in this country il
:aused the belief that all danger was over,
md individuals rushed into new enterprises,
md states undertook new improvements, re-
ying on The enjoymen, of the old facilities of
'rcdt. Abroad. tho extraordinary and hon
'rabc efforts made to discharge its debts.
EXALTED tho character Of the country and
to lend on the public securities of
! people who had been thus faithful to their
1t was then that the an,icipatons, under
which the Philadelphia banks gave their re-
luctant assent to tho measure, were realized.
And now, after little more than year of
nominal resumption the Southern and South
Western states are more embarrassed than
ever. The Atlantic banks arc weakened by
their fruilless endeavors to aid those states
the commercial debt to Europe is larger than
nt the resnmpion-the debt Of the states in
Europe much larger, and the specie means of
the country much diminished. The prema-
ture resumption of specie payments therefore
has left the country IN a state of exhaustion,
which has prevented it's being able to stand
the new shock which forms the more recent
and direct cause of the present suspension,
the drain Of specie TO England.
In our relations with England she is largely
and habllualy a creditor. Like all other
creditors, she is willing TO buy more and to
lend more while her own situation is perfect
ly easy-but when she is herself pressed, she
ceases to buy, and proceeds at once to exact
payment Thus, in ordinary times, she re.
ceives payment for goods in our own produce,
Or in our own funds, aud rarely requires, be-
cause rarely needs specie. But sudden
trouble has come upon England, which re.
verses the whole Of our relations. Her crops
have failed, and she is forced to protect her
people against famine by purchasing food,
and this not from our country, which might
furnish u market for our crops, but from her
ncighbors who can furnish il cheaper than
we can-and these are comparatively small
consumers other products, she must pay with
specie for her food. Accordingly the Bank
of England alone has been obliged to furnish
more than thirty five millions of dollars in
specie 10 be shipped ab-oad--n drain that has
threatened that institution with suspension.
BY the latest statement of her affairs, it ap.
pears that with immediate demands for which
she is liable, of c25.742 600, the whole stock
OF specie is only G2,S00,000. aud this after
Borrowing from the Bank of France f2,O00..
CC0-so that wli'out ihs extraordinary aid
her position would have been extremely
critical.
The consequence is that money has risen
10 twice or three times its ordinary value
hat the staples Of this country are unsalca.
bic except at ruinous sncriticcs-that the
stocks Of this country scnt by the states. or
BY the banks, or by individuals, ore wholly
leaving as the safest and the
ayoritc mode of payment, the exporta,ion oi
ipecie. The demand for this article is still
srther increased by the efforts mndc in
England to produce relief nj home. The
pressed by some urgent want,