Staunton spectator, and general advertiser. [volume] (Staunton, Va.) 183?-1849, 1840-01-09
Presidents Message.
CONCLUDED.

OF an Independent National Treasury. as con-
templated by the Constitution, is necessary
10 the safe action of the Federal Government.
i he suspension of specie payments i'm 1887.
by the banks having the custody of the pub.
TIC money, showed in so alarming a degree
our dependence on those institutions for the
performance of duties required by law, that /
.neh recommended the entire dissolution of
tiiat connection. This recommendation has
peeh subjected, as desired it should be, to
severe scrutiny and animated discussion; and
l allow myself TO believe that, notwithstand-
ing the natural diversities of opinion which
may be anticipated on all subjects involving
such important considerations, it has secured
In Its favor as general concurrence of public
sentiment as could be expected on one of such
magnitude.
recent events have also continued to de-
veiope new objections to such a connection.
Seldom is any bank, under the existing sys-
tenn and practice, able to meet, on demand. all
Its liabilities for deposites and notes in circu-
iatlon. 1t maintains specie payments. and
transacts profitable business, only bv the
confidence of the public in its sovency and
whenever this Is destroyed, the demands of
us deposltors and noteholders-pressed moro
rapidly than it can make collections from its
oeolofsIiorce 1T to stop payment. This loss
VI conndehce with its consequences occurred
IN 1870 ana afforded the apology of the banks
loi 'heir suspension. The public then ac-
guessed In the validity of the excuse. and
while the State Legislatures did not eyact
from them their forfeited charters. Conqess
In accordance with the recommendation of the
executive, allowed them time to paw over
the public money they held, although compeI-
t Il 10 issue treasury notes to supply the de-
hcency thus created.
III now appears that there are other motives
than want OF public confidence under ,vbicI,
the banks seek to justify themselves in a ref;,-
sal to meet their obligations. Scarcely u,oro
the country and Government relieved in
degree, from the difficulties occasioned by tho
general suspension of 1887, when martial
one, occurring within thirty months of the
former, produced new and serious embarrass-
inehts, though 1t had no pallitation in such
circumstances ~ as were alleged in Justification
on OF that which had PREVIOUSLY taken Mace
mere was nothing in the condition of the
country 10 endanger well managed BANKING
en 9u'ioi' commerce was deranged by no
foreign war every branch of mannfactvr;nt,
Industry was crowned with rich re,y.rds ~
Inc more than usual abundance of orr b,rvosti,
alter supplying our domestic wants. had jaf,
our granarles and store-houses filled with q
surplus lor expectation. 1t is in the midst of
llls' that an lrredeemable and deprecated ma
per currency is entailed upon the peonle br :,
iarge portion OF the banks. They arc hot
driven to 1t by the exhibition ofa loss orrnb'
Tic confidence, or of a sudden pressure fro,,,
their depositors or note-holders. but thew ex
cuse themselves by alleging that the cnrrent
OF business, and exchange with FOREIGN COM
trles, which draws the precious metals from,
tfelr vaults, would require, i'm order to moot
IT, larger curtallment of their loans to a com.
ParatiVely small portion of the community
'na,i IL VIII De convenient for them to bear. or
PolhaPs saie LOT the banks to exact. The plea
mas ceased TO be one of necessity. Conven-
ionoo anu Poiicy are now deemed sufficient to
ram 'neSe institutions in disregardinr their
merely an injury to individual creditors hu u
IL is wrong TO the whole commun;t,, e.,
whose iIberality they hold most valuabIe nv;
Vheges-whose rights they violate. whose bn-
sihesS they derange, and the value of whose
properly they render unstable and insecnro
Il must be evident that this new ground for
Ddnh suspensions, In reference to which tboir
aclion is not only disconnected with Int
wholly Independent of, that of the pnbl;c
gives character to the suspensions more .,
! farming than any thing which thew exhibited
before, and greatly increases the ironoI;c,
oil relying on the banks i'm the transact;pu, e
the Government. 'ioiis vi
"A large and highly respectable portion of
our banking institutions are, it affords mo nm
=, ,eiSheo pleasure to state, EXEMPTED from all
~, Dnaiiie on account of this second delinnuoncy
:ney nave 10 their great credit, not only CON
.,nueu 70 meet their engagements, but have
wen rePudlated the grounds of suspension
now 5esorted TO. 1t is only by such a course
'id' lue confidence and good will of the COM
.,,u can De preserved, and, in the sequel.
tie pest interests Of tho inotitut;,,,, tI,,-u,,
selves promoted '''on'-
:. new dangers to the banks are also dail,,
disclosed from the extension oftbat svsten, of
credit of which thew are the nil
';s' FU1rinerly our foreign commerce was
PI?.Pdily founded on an exchange Of com
no,,;' including the precious metals. and
IL. III its transactions but little foreirn
Such is not now the case. Aided IN,
H.. i'oilties afforded by the banks. mere GRO
"' become too commonly the basis of
Iaae. Many of the banks themselves not
content with largely STIMULATING this svstnv,
lnong others, have usurped the bue;nes"
.nie they impair the stability of tie me s
ne community; they have become borrower,
instead OF lenders; they establish their aeon,
,les abroad; they deal largely in stocks and
they encourage the Issue Of
2 'l securities until the foreign market is |
,'u'ted with them; and, unsatisfied with the |
use of their own capital and the ex-
aolse OF their lawful privileges, they raise. |
= large loans, additional means for every va |
'ety OF speculation. The disasters attendant
II !lilS deviation from the former course OF
In thls country, are now shared alike |
y banks and individuals, to an extent Of
vhich there is perhaps no previous example
the annals of our country. So lone as
willingness of the FOREIGN lender and = s.za;