Vermont telegraph. [volume] (Brandon [Vt.]) 1828-1843, 1840-01-08

specie payments. The report last refer
red to will be found to contain also much
useful information in relation to this SUBJ
ject.
l have heretofore assigned to Congress
my reasons for believing that the estab-
lishment of an Independent National
Treasury. as contemplated by the Consti-
tuition, is necessary to the safe action of
the Federal Government The suspen-
sion of specie payments in 1887, by the
banks having the custody of the public
money, showed in so alarming degree
our dependence on those institutions for
the performance of duties required by
law, that then recommended the entire
dissolution of that connection. This rec
ommendatiou has been subjected, as I de-
sired it should be. to severe scrutiny and
animated discussion; and | allow myself
TO believe that, Notwithstanding the natur
oil dversities of opinion which may be
anticipated on all subjects involving such
Important considerations, it has secured ir
It's favor as general a concurrence of pub
tic sentiment as could be expected on one
Of such magnitude
Recent events have also continued to
develops new objections to such connec-
ton. Seldom is any bank, under the OK.
listing system and practice, able to meet
on demand, all its liabilities for deposit,s
and notes in circulation. 1t maintains
specie payments, aud transactsa profitable
business. only by the confidence of the
pubic In lis solvency; ard whenever this
IS destroyed, the demands of its deposit-
ors and noteholders--pressed more randi
~ than 1t can make collections from its
debtors-force it to stop payment. This
loss OF confidence with its consequences
occurred in 1887, and afforded the apollo
gy OF the banks for their suspension
Inc public then acquiesced in the validity
OF the excuse; and, while the State Leg
lslature did not exact from them their for
felted charters, Congress, in accordance
with the recommendation of the Execu.
tive, allowed them time 10 paw over The
public money they held, although com
PEELED to issue Treasury notes to supply
the deficiency thus created.
1t now appears that there are other mo-
tives than want Of public confidence un-
der which the banks seek to justify them
selves in refusal to meet their OBLIGATIONS
Scarcely We're the country and Govern
ment relieved, in degree, from the diff.
cultIes occasioned by the general suspen-
sion OF 1887, when partial one, occur
ring within thirty months of the former,
produced new and serious embarrassments,
though 1t had no paIliation in such cir
cumstances as were alleged in iusti6ca-
lion of that which had previously taken
place. There was nothing in the condi-
ton OF the country to endanger well
managed banking institution commerce
was deranged by no foreign war; eyery
branch Of manufacturing industry was
crowned with rich rewards: and the
more than usual abundance of our bar-
vests, after supplying our domestic wants,
had left our granaries and storenouses
hlled with surplus for expectation. It's
IN the midst of this, that an irredeemable
and deprecated paper currency is entailed
upon the people by large portion of the
banks. They ale not driven to il by the
exhibition of loss of public confidence.
or of sudden pressure from their demos.
itors or note-holders, but they excuse
themselves by alleging that the current of
business, and exchange with foreign coun.
tries, which draws the precious metals
from their vaults, would require, in order
to meet it, larger curailment of their
loans to comparatively small portion of
the community, than it will be convenient
for them to bear, or perhaps safe for the
banks to exact The plea has ceased to
be one of necessity Convenience and
policy are now deemed sufficient to war
rant these institutions in disregarding their
solemn obligations. Such conduct is MOI
merely an injury to individual creditors.
but 1t IS wrong to the whole communilv
from whose liberalily they hold most val.
liable prlvlleges-whose rights they vio-
late, whose business they deranee. and
the value of whose property they render
unstable and insecure 1t must he ev;d-
ent that this new ground for bank saepen-
sons, in reference to which their action is
not only disconnected with, but wholly in.
dependent OF, that of the public, gives
character to their suspensions more alarm
ing than any which they exhibited before,
and greatly increases the impropriety of
relying on the banks in the transactions
OF the Government.
A large and highly respectable portion
of our banking institutions are, it affords
me unfeigned pleasure to state, exempted
from all blame on account of this second
delinquency. They have, TO their great
credit, not only continued to meet their
engagements, but have even repudiated
the grounds of suspension now resorted
to. II is only By such course that the
confidence and good will of the communi-
ty can be preserved, and, in the sequel,
the best interests of The institutions them