The Yazoo City Whig and political register. (Yazoo City, Miss.) 183?-1840, 1840-01-24

SAl1Ss klnNSPSh1eRI O. me EOSt OILce, Wnsen -
kept separately, and will be stated by tseit.) SO
far as they bear npOn this subject, are, that the
losses which have been, and are likely to be sus-
tanned, by any class for agents, have been-the
greatest by banks, including, as required in the
resolution, their depreciated paper received for
public dues; that the next largest have been BY
discussing officers, andthe least BY collectors and
receivers. 1.-THE losses on duty bonds are inclu-
ded, they alono will be threefold, those by both
collectors aud receivers. Our whole experience,
therefore furnishes the strongest evidence that the
desired legislation of Congress is alone wanting
toinsure in those operations the highest degree
OF securty and facility. Such also appears have
been the experience Of other nations. From the
results OF inquiries made by the Secretary OF the
Treasury in regard to the practice among thems
am enabled to state that in twenty-five out OF
twenty-seven foreign Governments, from which
undoubted information has been found IN the ac-
ton of the Legislature, It imposes on me the duty
of again submitting to you the proPnety OF pas
sing law providing for the safe keeping OF the
public moneys, and especially TO ask that It's use
for private purposes by any officers Entrusted win
it, may be declared to be a felony, punishable
penalties proportioned to the magnitude OF the Oh
fence
In the modes of business and official restraints
on the discussing officers, no legal change was
produced by the suspension of specie payments
The report last referred to will be found to con-
tain also much useful information in relation to
this subject.
l have hereto assigned to congress my reasons
for believing that the establishment OF an lnde-
pendent national treasury, as contemplated by the
constitution is necessary TO the safe acton OF the
federalagoVernmen The suspension OF specie
payments in 1897, by the banks having the custo-
dy of the public money, showed in so alarming
degree our dependence on those institutions Tor
the performance of duties required by law, that
then recommended the dissolution of that connee-
Hio Iotin has Subjected.
as I desired it should be, to severe scrutiny and
animated discussion; and / allow myself to be-
eye that, Notwithstanding the natural dIFersltles
ofopinio which NAV be anticipated on all sub
jects involving such important considerations, 1t
has secured in its favor as general concurrence
of public sentiment as could be expected from one
of such magnitude.
Recent events have also continued to develope
new objections to such connectlon.-Seldom IS
any bank under the existing system and practice,
able to meet, demand, all its liabilities tor de-
posites and notes in circulation 1t maintains spe-
Gle payments, and transacts profitable business
only by the confidence of tho public IN Its solVen-
cy; and whenever this is destroyed, the demands
~of its depOstors and notehOlders-presSed more
rapidly than it can make collections from It's deb
tOrs--force IT to stop payment. This loss oil con
fidence with its consequences occurred In 1851,
and afforded the apology of the banks of their sus-
pension. The public then acquiesced IN the va
lidity of the excuse; and while the state leglsa-
ture did not exact from them their forfeited CHAR
tiers, congress in accordance with the recommen-
dation OF the executive, allowed them to pay over
the public money they held, although compelled
to issue treasury notes TO supply the dehclency
thus created.
It now appears that there are motives than want
of public confidence under which the banks seek
to Justify themselves in refusal to meet their
obligations. Scarcely were the country and gov
eminent relieved, in degree, from the dlttlcul-
81 cd III Icua IR3I.
when a partial one, occurring within thirty
months of the former, produced new and SERIOUS
embarrassments, thought it had no pallIatIon IN
such circumstances were alleged IN Justlhea-
ton of that which had previously taken place.
was nothing in the condition of the country TO en-
danger a we'll managed banking institution; COM
merce was deranged by no foreign war; every
branch of manufacturing industy was crowned
with rich rewards; and the more than usual album
dance of our harvests, after supplying our domes-
tic wants, had left granaries and store houses
filled with surplus for expectation.
1t is in the midst of this, that an irredeemable
and deprecated paper currency is entailed upon
the people by large portion of the banks. They
are not driven to il by the exhibition of loss OF
public confidence, or of a sudden pressure from
depositors note holders, but they excuse them
selves by alledging that the current of business,
and exchange with foreign countries, which
draws the precious metals from their vaults, would
require, in order to meet it, a larger curtallment
of their loans to a comparatively small portion OF
the community, than it will be convenient for
them to bear, perhaps safe Tor the banks to
exact. The plea has ceased to be one OF neces-
sitv. Convenience and policy are now deemed
sufficient to warrant these institutions in dlsre-
gardng their solemn Obligations Such conduct
is not merely an Injury to individual creditors,
but it is wrong TO the whole community, from
whose hberality they hold most valuable privileges
Whose rights they violate, whose business they
IL. yk,,r, tE1nv-
render unstable and insecure. 1t must be evident
that this new ground for bank suspensions, in
reference to which their action is not only dis
connected with, but wholly independent of that
of the public, gives a character TO their suspen-
.sions more alarming than any which they exhibi-
ted before; and greatly increases the improperly
of relying on the banks in the transactions of the
Government.
large and highly respectable portion of our
banking institutions are, it affords me unfeigned
pleasure to state, exempted from all blame ac-
count 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 resorted to. 1t is only
by such course that the confidence and good
will of the community can be preserved, and, in
the sequel, the best interests of the institutions
promoted.
New dangers to the banks are also daily dis
>cosed from the extension of that system of extra
circuit OF WHICH Iu6y are tue PIlldIS' 4O4-
merly our foreign commerce was principally fouD-
.ded on exchange of commodities, including |
the precious metals, and leaving in its transactions
but little foreign debt Such is not now the case.
Aided by the facilities afforded by the banks,
mere credit has become too commonly the basis +
trade. Many ofthe banks themselves, not content
with largely stimulating this system among others,
have usurped the business, while they impair the
stability, ofthe mercantile community: they have
become borrowers instead of lenders they estab-
fish their agencies abroad, they deal largely inl
stocks and merchandise; they encourage the is
sue ofstate securities until the foreign market is
glutted with them, and unsatisfed with the leg-
innate use of their own capital and the exercise
of their lawful privileges, they raise by large
loans additional means for every variety ofspecu-
laIon. The disasters attendant this deviation s
from the former course of business in this country
are now shared alike by banks and individual, to
an extent of which there is perhaps no previous
eXamnla In The nnnaIs Of conntr,. Ir,rcr =