Martinsburg gazette. [volume] (Martinsburg, Va. [W. Va.]) 1833-1855, 1840-01-02

tion. Its 10 the midst Of this thst an Iifedeems-
bic and deprecated paper currency i en'eiied up
on The people by . large portion Of The banks. lhey
are not driven 10 Il by the exhlbiuou of ioss Of pub
lie confidence, or Of a sudden pressure from their
depesitorvur noie-hoiders, bot they excuse them
selves by alleging tint the current OF business, ard
xchauee wish foreign countries, which draws ne
precious metals from theit ysults, wonid require, 10
oTder 10 meet IL, a larger enrichment OF their i0aps
ioa comparatively stnAli portion Of the community
han it viii he c5nyenieas tor item to bear, OF pee
hsps safe for The banks TO exact. The plea las cen
sed TO be one # necessIfs. Convenience sud policy
are nov deemed suff .ient TO warrant these insIito-
tons il disregarding their solemn obligations. Such
conduct is rot merely an Injury to individual credi-
tors, but it is a wrong 10 the whole community, from
whose liberality they bold most valuable privileges
whose rights they violate, whose business they de-
range, and The value Of hose property they render
unstable and insecure. II must be evident that this
rev ground for bank suspensions, in reference To-
which their action is not only ditco necied with, but
wholly independent Of, that Of the public, gives a
character to their suspensions core alarming than
any which they exhIbtedb before, AMI greatly ihcIea-
-es the impfopriety Of relying On the banks in the
transactions Of the Cove nment.
large Hnd highly re. pectabte portion ofour bank
ing institutions are, it sfUtds ne u~nfeigned pleasure
tostafe. exempted from oil blame On account oflhis
second delinquency. They have, 10 their great Gre
if, not ONLY FOHiiHfit0 10 meet tttif engagements.
bot have even repudiated the grounds Of su. pension
now resorted TO. Ii i. only by such = course that
the confdcuce and good Will of,he community can
be preserved ard IN the SEOUL, tie best interests Of
The institutions themselves promoted.
New dangers 20 the banks are also daily disclosed
from the extension Of that system Of extrayagaut
credit Of which they sre he pillars. Formerly cor
foreign aas principal founded on Bn eN-
change Of commodities, including the p,ecious me-
tails, and leaving in ia transactions bui liile foreign
debt. Suchis NOT now the case. Aided by The IA
cilities afforded By the banks, mere credil has be
come 100 commonly the basis Of trnde. Many Of
The bank themselves. not content witl largely slim.
ulating tina system among Others, have usuippd The
business, While they impair the %stnbiiiiy Of the met-
canfile community they have become borrowers ia.
stead Of Lenders they establish their agencies a
broad; they deal largely in stock and merchandise;
they encouraged The Issue Of State securieiies nnai
the foreign market il glutted with them and. I'M
.a,i,fed with legitimate use ofilteir omn capital and
The exercise ofttelr lawful privileges. they raise, by
iafse hams, additional means FIR every variety If
sPecula on. The disasters attendant on III, devia
ion from the former course OF business IN this com.
Try, are row shared nike by rs banks and indiyiGl-
ls, t. antxiert at which IlIctei is perhaps no Prev
ous example, in he an rals ofour cot nty.
SO long as "A willingness of the foreieu lender, ard
n ~s'tfiieiept export Il cur productions 10 meet any ne
tFSHaiN lIHtAidi tdA tJtuiR, HdFt ttie H}N OF CFtGi
undistHthed. all appears 10 BE- prosperous; bot a.
soon "a il is checked by any hesitation abroad, or b
an inability 10 make rayGent there in our produce
tons, Tie evils Of tie system are disclosed. The
paper currency, which might serve for domestic pur.
poses, is useless to pay The debt due ia Europe
Gold and silver are therefore drawn. in exchange
for their notes, from the Banks. To keep up their
supply OF coin, these Institutions are obliged to call
upon their own debtors, who pay item principally
~ hi 1na.- 4s-
as they ore to the merchants, 10 meet the foreign
demand. The calls Of the Banks, therefore, in such
emergencies, of Necessity, exceed that demand, and
produce "A corresponding curtailmtut e their &C.
comnodations, and of the currency, at the vely
moment when the state Of trade renders it most
lnconvenlert to be borne. Tie intensity Of this
pressure on tie community is in proportion to the
previous llberality Of credit and consequent expan
sion Of the currency forced snles OF property are
made atthe time when the meaEs of purchasing are
most reduced, and the worst calamities to indiyiin.
as are only at last arrested by On open violation OF
their obligations hy the banks, q refusal to pay spe-
Gle for their notes, and an imposition upon the com.
mnniiy ofa fuctusting and deprecated currency.
These consequences are inherent in The present
system. They are not Influenced by the banks be-
ing luge OF small, created by Ma joual or Slate Go
They are the results OF The irrasisia-
bic laws of trade and credit. In the recent events
NF N'N "''AN''ctV iAtb7ttAltu Xxx certain ct
iects OF these laws, We have seen The bank of The
largcst capital in the Union, established under a
National charter, and lately strengthened, as We
were au'horitatiYely informed, by exchanging that
tor a State charter, with new and unusual privilc.
ges-ln a condition too, az it was said. Of entire
s~oundncss AMI great prospetity-not merely unable
10 Ies'St these effects, but the first to yield TO them
Nor IS IT 10 be overlooked that 4 re exists n
ham OF necessary dependence among these insti,u
lions winch GbtiUps linn, 20 q ,,na. -. = -
low the course of others. Notwithstanding its iuius.
nee to their own lmme dia,e creditors, or i, Jury 10
me particular community IN which they are placed
Tins dependence Of "a bark, which is IN proportion
TO the exteut OF fits debts for ci,culstirn and d.ru.
sizes is moi merely on others in its own vicinity. Lui
"a nl' those winch connect 1t with the centre 40
trade Distant banks may fsil. WITHOUT sctior4,
Affecting those IN our principal commercial cities;
put the failure Of The latter is frltatlhe ext,tmi,ies
OF me Cn'on. The Suspension al York. in iS37
was every where, with yet, frN execution. f,ll,n
co. az soon asl waa known; thut receniiv Al Phil.
adeiphia immediately affected the bank. or m.
South and West ~ a simllar manner. TIN. dc,end.
eAce ct our whole banking system on the in,ti,u
'lohS IN a Ie" large cities, IL not found in the haas
- the" orgAlnz tl'on, bu, in those Of trade and *.
chahge, The banks at that centre to which, cur.
renel flows, and where ii i. required in nuvrnen,.
Tor merchandise, hold tie power Of connoiiro ,hos.
10 regions whence it comes, while the latter posses
no means Of restraining them so that the v,Ine If
',a'Vduai property, and the prosperity of trade
through the whole interior of The Country are made
10 digPeud on the good OF bad management Off be
Da'@i . Institutions in the great seats Of trade OF
The sea.board. "
p't t'i' chain Of dependence does not stop here.
a. d''' not terminate At Philadelphia or n. Yo,k
reaches across HE ocean, and end. in London
.e 'eo''e 81 'he credit system. Tie same laws of
"aoe "hlch give % tie banks IN our D,iprin.I chic.
power over the wholr hauking system of he Hid
states subject the former, in thcir turn, to the mo.
n'! power ut Great Britain. Iti Is NOT denied IN,
'ne suspension Of 'he New York Banks. in 1897
""Gn was followed in quick succe sion througbon,
Ve OHlon, was rroduceA DIV I'm nnnlicnlinn nd ~,