The Charlotte journal. [volume] (Charlotte, N.C.) 1835-1851, 1840-01-09
[ NUMBER Is.

cns,ndv of the nubllc money showed 10 so ALARM
ing degree our dependence on those institutions
for the performance Of duties required By law, mat
! then recommended the entire dissolution Of mat
connection. This recommendation has been sub
eeied as desired Il Should be, 20 severe scfuti-
ny and animated discussion and allow myself
to believe that, notw Outstanding tie natural diver
sites Of opinion which may be anticipated on all
subjects involving such important considerations,
il has secured IN its favor general concur
renee Of public sentiment could be expected Oh
one Of such magnitude.
Recent events have also continued to deyeope
new objections TO such COMMISSION. Seldom Is
any bunk, under the existing system and practice,
able TO meet, on dcma 3, an is Liabilities for de-
positcs and notes Ia circulation. II malntaIns
specie payments, and trausacts profitable bus.
ness only hy the confidence o. tho public IN 10
soltency; and Whenever this Is destroyed, the de-
posiiors aud notehod rs pressed more rapidly
than il can make collections from rs eobiofs--
force il to stop paymcut TINS boss II confidence
with its consequences occurred IL ! s37, and az
:orded the apology Of tie banks TOR their suspen-
sion. The public Then acgicscad in the validity
Of the excuse and, while The State Legislatures
did not exact from them thrir forfeited charters,
Congress in accordance With tie recommend.
ton of the Executive, allowed them time 10 pay
over all the public money they held, although COM
PEELED TO issue Treasury notes 10 supply the de-
Gcicncy thus created
4, now appears that there are other motives than
a want Of public confidence under which the banks
seek 10 Justify themselves 10 a refusal To meet their
obligations. Scarcel, were the country and Gov
eminent relieved, 10 a dsefee rom Iht difficulties
occa stoned by the general suspension Of 1897, wien
a partial one. occurring Within thirtY months Of
the former. produced ncw and scfinus embarrGss-
meats, though Il had no paliaton 10 such circum.
stances as were alleged in Justification Of that
which had previously taken place. There vas
nothing in the condition Of The country to endan.
ger well managed banking institution coTu-
merce was deranged BY no foreign war; every
branch OF manufacturing industry was crowned
~ith rich rewatds and the more than unusai
abundance 81 oar harvess, after supplying our DO.
nestle wants, had leit our granaries and store.
houses filed with a surplus inr expiration. l.
Is IN the midst OF this, that lrrcdee1able and
deprecated paper currency IS enlaed upon tho
people BY large portion OF the banks. They are
not driven 10 It by he exhibition Of loss Of pub.
hc confidence, OF Of sudden pressure from their
fep,st0fs or nctehoideys but they eKcuae them
selves By alleging that the curreut Of business, ana
exchange With foreign countries which draws the
precious meiss from their vaults, would require,
IN order 10 meet it larger eprlaiIment Of their
loans to comparatively small portion Of the com.
munity, than will be Convenient for them 10 bear,
o. perhaps safe for the banks 10 exact. The plea
has ceased to be one Of necessity. Convenience
and policy are uow deemed sufficient 10 warrant
these institutions 10 disregarding their solemn Oh.
hga IONS. Such conduct is not merely an injury
70 individual creditors, but Il is wrong 10 the
Nha!e community, from whose libefality they hold
'Hosl valuable privileges hose rights they VIC
late, those business thcy derange aud the value
a l.. A -
cure. IL musi be evident that this new ground for
bank suspensions, 10 reference 10 which their &C.
ian IL not only disconnected with. but wholly in.
dependent Of. that 5f the public, gives a character
iot their suspensions more alarming than any which
ihey exhibited before and grraty increases the
ImptoFrirtg Of relying on the banks 10 the trans
acticos VI the Government.
large and highly respectable portion OF our
banking institutions are, ii sfords me unfcigned
pleasure 20 slate, exempted from an blame on &C
count Of this second delinquency. They have, to
their great credit not only continued 10 meet their
engagements, bot have even fepsdiated the
grounds OF suspension nos rcsorted to. Ii Is only
BY such course that The confidence and good will
Of the community can be preserved. and in the Sc.
qlel tho best interests Of the institutions them.
selves promoted.
New dangers to the banks are also daily dis.
tfavagant credit Of which they are the pillars
Formerly our foreign commerce was principally
founded On an exchange Of commodities, including
The precious metals and leaving in its Transactions
but litle foreign debt Soch is now the case
AIDED By the facilities afforded By the banks, mere
credit has become leo commonly the basis Of trade
Many Of the banks themselves, not csnlcnt with
largely stimulating this system among others ,haye
usutped the business, While they impair the sta.
6l.ity, OF the mercantile community they have be.
come borrowers instead Of lenders they establish
their agencies abroad they deal largely in stocks
and merchandise; they encourage the issue of
State securities until the foreign market is glut.
ted with them; and, unsaiished with the eriu.
mate use Of their own capital aud the exercise Of
their lawful privileges, they raise, BY large loans,
additional means tor every variety of speculation.
The disasters attendant on this deviation from the
former course Of business in this country arc now
shared alike by banks aud individuals, 10 an ex-
tent Of which there Is perhaps no previous exam.
pie in the annals Of our country. So long asa
willingness OF the foreign lender, and sufficient
export Of our productions 10 meet any necessary
partial payments leave the flow Of credit undis-
turbcd, ali appears to be prosperous; but as soon
as 4 Is checked by any hesitation abroad, or by an
inability to make payment there in our produc-
tons, the evils Of the system are disclosed. The
PAPti 'uiltuSl winch HlEnt serve LOT uomesuC
purposes, Is useless TO pay the debt due in Europe.
Gold aud silver are therefore drawn, in exchange
for their notes, from the banks. To keep up their
supply Of COIN these institutions ARE obliged 10 call
upon their own debtors, who pay them principally
in their own notes, which are unavailable to
them as they are to the merchants to meet the for.
eign demand. THE calls OF the banks, therefore,
IN srch emergencies of necessity, exceed that de-
mand, and produce a corresponding curtailment Of
their accommodations and of the currency, at the
very moment when the state of trade renders it
most incnnvenicni TO be bsrne The intensity Of
this pressure the community is in proportion to
the previous lberalits of credit and consequent ex
Pansi,n of the currency forced sales Of property
arc made at the time when the means of putchas-
ing are most reduced, and the worst calamties TO
individuals are only al last arrested, BY an open
violation Of their obligations by the banks, refusal
to pay specie for their notes, and imposition up.
on the community of a adctuating aud deprecated
currency.
These consequences are inherent IN the present
system. They are not influenced by the banks
being large or small. created by National or State
Governments. They are the results sf the irresis-
4. H. 80 do s.A