Southern Argus. [volume] (Columbus, Miss.) 1834-1842, 1840-01-14


Of that connection. This recommendation /
has been subjected, as desired i should
be to severe scrutiny aud animated discus
SION; and l allow myself to believe thut,
Notwithstanding the natural diversities Of
opinion which may be anticipated on all
subjects involving such important cOnsid-
erations, it has secured in its favor as gen.
erul a concurrence Of public sentiment. as
could be expected on one ofsuch magni-
tude.
Recent events have also continued to
deyelope new objections TO such connec. |
ton. seldom is any bank, under the ex-
isting system and practice. able to meet on
demand all its liabilities for deposites and
notes In circulation. II maintains specie
payments, and transacts a profitable bust.
ness, only by the confidence of the public !
IN its solvency and whenever this is des.
troyeds the demands OF its depositors aud
note holders-pressed more rapidly than
IT can make collections from lis debtors
force il 10 stop payment. This loss of con.
hdence with its consequences occurred in
1887, and afforded the apology of the
banks for their suspension. The public
q. then anquiesced in the validity of the ex.
cuse and, while the State legislatures
did not exact from them their forfeited
charters, Congress in accordance with the
recommendation Of the Executive, allow.
ed them time TO pay overthc public mon.
ey they held, although compelled TO issue
Treasury notes to supply he deficiency
thus created.
1t now appears that there are other mo-
tlves than vast Of public confidence un-
der which the hanks seek to justify them
selves in refusal to meet their obliga.
tons. Scarcely were tie country and 60.
vernment relieved, 10 q degree, from the
difficulties occasioncd By the general sus-
pension Of 1887, when partial one, oc-
CURING withinthirty months of the former
produced new and serious ernbarrassmentS
though it had no palliation RI such circun
stances as were alleged in iustiicationof
that which had previously taken place.
There was nothing in the condition Of the
country to endanger a well managed bank
ing institution commerce was deranged
by no foreign war every branch of man.
ufactuung industry was crowned with rich
rewards and the more than usual abun-
dance ofour haryests, after supplying our
domestic wants, had left our granaries and
store houses filed with a surplus for ex-
poriation. 1t is in the midst of this that
an irTedeemable and deprecated paper
currency is entailed upon the people by
large portion of the banks. They are not
driven to it by the exhibition ola loss of
public confidence, or of a sudden pressure
from their depositors and noteholders, but
they excuse themselves by alleging that
the current of business, and exchange with
foreign countries, which draws the pre-.
cous metals from their vaults, would re-
quire, in order to meet it, larger cur
tailment of their loans to a comparatively
small portion Of the community, than it
will be convenient for them TO bear, or
perhaps safe for the banks TO exact. The
plea has ceased TO be one Of necessity.-
Convenience and policy are now deemed
sufficient TO warrant these institutions in
disregarding their solemn obligations. -
Such conduct is not merely an injury. to
individual creditors, but it is q wrong to
the whole community, from whose LIBERAL
ity they hold most valuable privileges
whose rights they violate, whose business
they derange, and the value of whose pro-
perry they render unstable and insecure.
Il must be evident that this new ground
bank suspension, in reference to which
their action is not only disconnected with.
but wholly Independent; of, that Of thepub-
lie, gives a character 10 their suspensions
more alarming than any which they exhib.
tied before, and greatly increases the i'm
propriety of relying on the banks in the
transactions of the government.
A large and highly respectable portion
Of our banking institutions are, It affords
me unfeigned pleasure to state,s exempted
from all blame on account of this second
delinquency. They have, to their great
credit, not only continued to meet their
engagements, but have even repudiated
the grounds of suspensionno resorted to.
1t only by such acourse that the conf.
dence and good will of the community can
be preserved, and, in the sequel, the best
interests ofthe institutions themselves pro.
NOTED.
New dangers to the banks are also dali
~ disclosed srofn the extension ofthat sys
tenn of extravagant credit Of which thev
are the pillars. Formerly our foreigl
commerce was principally founded on al
exchange of commodities, including til
precious metals, and leaving in its trans
actions but little foreign debt. Such
not now the case. Aided.bythe facilitie
afforded by the banks, Nero credit ha
become too commonly the basis of trade
Many of the banks themselves, not con
tent with largely stimulating this system a
mong others, have usurped the business
while they impair. the stability of the mer
camille community they have becom
borrowers instead OF lenders they estab
fish their agencies abroad; they deal large
ly IN. stocks and merchandise; they en-
courage the issue Of State securities unit
the foreign market is guttod with them
and, unsatis6cd with the legitimate use {
their own capital and the exercise ofthei
lawful privileges, they raise, by larg
loans, additional means for every varict
of speculation. The disasters atlendar
on this deviation from the former course (
business in this country, ore now. share
alike BY banks and individuals, to an e.
tent Of which there is perhaps no prevou
example in the ANIMALS of our country. S
long as willingness Of the foreign lende
and a sufficient export Of our produclior
10 meet any necessary partial payment