The Hillsborough recorder. [volume] (Hillsborough, N.C.) 1820-1879, 1840-06-11

= svppa,s he bM Ihaliid be made uhi.
! laTm, thsn, snh 70 iHeiuds I'll bsnkt,
have ne lhs poser. and is q FEpsdiehi.
10 pass IA IN that SHAPED
}, Ga Ihs naIiah Coz = e0nmillss, made
soms ims ago b. ths @emhsr from
Peunsylssnis. 70 which have already
referred. suggested ne opinions which
A entsrssin on one branch al the poser
OF Congress connected With this suhjse.
TIE constitutional point. now arising. I
ia not mean 10 Irrsi. nor 70 decide; "a 10
open 70 Others. and VII no doubt be
discussed By Them. Bot upon the ex-
pedieneY or propriely Of including banks
and other corporations in This bill.
wIll say o fsw words. The state with
~hieh I AN connected can have as liIile
obieelian 10 include banks in the bank.
rapl bali 30 any other stats. Many per-
sons IN Massachusetts. quite respectable
and ~ell informed. are 10 favor Of the
measure. BuI il appears 10 me they
have not vel considered Ihe practical
difxrulues Lei " look Al what 10 pro-
posed 10 Be done.
There are eight HUNDRED or thousand
state banks. each with rs charter confer
ring iis rights, prescribing is duties.
and enjaining penalties. They are
banks 81 drposile. banks Of discount.
and banks or circulation. It's nov gen.
erally admitted that Ihry are lawfully
created. Their legal existence 10 estsb
lshed. They comprise. suppose. Awo
hundred millions of capital. Some Of
ihem are founded entirely on private
Ownership. while in soms Others the
states rresung them arc proPnflnrs. and
IN s0ms others again The states are sole
proprielors, Some Of them have right
10 suspend Tor limited lime. Others have
mol this right. the charter Of each being
us own constitution.
Such being The general state Of things.
Il is nov proposed To subject al Ihsse
banks to the operation Of bankrupt
las, so that when they stop payment
Tor day or an hour, their properly
ard effects may be seized for dIslrIbu
ton aiming their credIinrs, and their OPP
erslioas broken up. Il is proposed to
do this, although the charters Of the
banks may expressly aulhorize them To-
do that very thing, which is an act Of
bankruptcy, under this bill, and for
which their properly is 10 be thus seiz-
ed. Here is certainly direct collision
between state authority and the suiho-
ri,y Of the United States, which ought
10 be avoided whenever j. can be. The
aci of Congress 10 this case would be
made 10 repeal or annul pro fanto the
law Of The state. ] do MT say that this
can in no case be done; but say iha, all
such collisions ough, 10 be avoided IL
possible.
IL proposed tina, Congress shall pre-
'cfibe dasles 10 ihe oanks moi prescribed I
v their own charters. and for The viola.
ism OF those duies thus prsserlbed BY !,
Congress. il is proposed 70 proceed q
gainsi them as bankrup's, 10 seqnes-
lraie their effects. and virtually an
mol their franchises. If this can be done.
should u be done. without clear and co
gent aecessi,yl Without wishing 10 re-
present the proposition as exusvagsni. or
'peaking ~ i with dIsrespeci. i seems
o me 10 be bnld. IL not rash, until case
n absolute necessity is msde ont. What
would become Of the bank stock in case
u such seizure and representation What
sxten, &c depression aud Auciualion
would attach To il. When. such a Law
should be passed. What would become
81 the entire circulation Of the country.
creditors. and debtors. aud OF all ils bust
ness. IL general suspension should hap.
pen. aud all the banks should be pl4ced !
IN the hands Of the Federal Courts, their
paper eniirely diserseed. aud an immedi.
re collections ni al their debts attempted
abe enforcedi WIS, would become Of
'ane Of the slsies who own the banks.
md Of others who derive revenues from
heml And haw enuld such immense AZ.
Ia,rs be administered by the courts of the
United S,atesi These difficulties appear
% me 10 be startling. II, Indeed. we
were quite eonfBent Thai such provi.
ZION would hereafter prevent al general
suspensions. we might venture npnn the
We might expeciio be able. TO
lesl with here aud there an, indisislual
Ease. Rn, this provision is not certain
% prevent general suspension in grea,
emergencies or gfea, commercial revolu.
ions Twice. within q few years. the
banks have suspended. Notwithstanding
'he peHaluss Of their own charters. AID
The laws Ct their own sisles. The real
truth is. that. il iilessbsence Of all regu.
la,ion or Central by Congress, the banks
have attempted, and 10 attempt, regul.-
lion BY their own concern Of acli0n.--
They make Law for themselves.
A general saspensinni 10 the result Of
general concurrence, or Of a genersIcon
siclion Of the necessity &c suspension. on
he part 81 sii The banks. or many Of
hem. This has happened. and 10 The
present stale Of affairs may happen Ell
Tain, notwithstanding a bsnkrapi law
. my opinion. indeed. it's Certain 10
Happen. notwithstanding al the bankrupt