Edgefield advertiser. [volume] (Edgefield, S.C.) 1836-current, 1840-01-09

selves in refusal to NEE, their obligations.
Scarcely were the country and govern
meut relieved, in a degree, from the dIiil
cultips uccasiunad by the general suspen-
sion of 1897, when ii partial one, orcurrln2
within thirty months Of the former, produ-
ced new and serious emharraSStneuts,
though it had 10 palliatiou in such circuni-
stances as were alleged iii Justification ot
that which had previousl y taken place
There was nothing in the condition ollhe
country 10 eudanger well managed bank
ing institution; commerce was deranged
by no foreign war; every branch uf tuanI-
facturing industry WAS crowned with rich
rewards; and the more than usual ahuu'
dance of our harveSrs, after supplying our
domestic wants. had left our grauaries aud
sture houses filled with a surplus Iur eApor-
ta,ion. 1t is in the midst Of this that an
irrerleemabIe and deprecated paper cur
renry is entailed upon the people by a
large portion of the banks. They are not
driven to it bv the exhibition Of il loss OF
public confidence, or of sudden pressure
from their deposi,ors aud noteholders, but
they excuse themselves by alleging that
the current Of business, and exchange with
foreign countries. which draws the pre-.
cious metals from their vaults, would re-
ouire, in order to meet it, larger curIaII-
ment of their loans 10 CO .hparatv-lv
small portion ofthe conimuniiy.'liani II Will
be convenient for them To bear, or perhaps
safe for the banks tpexact. The p lea has
cassed to be one of necessity. Convent
ence and policy are now deemed sufficient
TO warrant these Institutions III disregard
ing their solemn obligations. Such con-
duct is not merely all injury TO individual
creditors, bur il is a wrong TO the whole
community, from whose lberality they
hold most valuable privieses-whose
rights thew viulale, whuse LusiLcss they
derauge, and The value Of whose property
they render unstable aud Insecure. 1t
must he evident that this new ground for
bank suspension, in reference 10 which
their action is not only disconnected with,
but wholly independent of, that of the pub
lie, gives a character 10 their suspensions
more alarming than any which they ex-
hibiled before, aud greatly increases the
inproprielv Of relying Oh The banks in The
transactions of the government.
A large and highly Respectable portion
of our banking institutions are, 1t altnrds
me unfeigned pleasure to state, exempted
from all blame on acconn, of this second
delinquency. They have, to their great
credit not only continued TO meet lheiren-
gaecmenis, hui have even repndiated the
grounds ol suspension now reSor'ed 10. Ii
is ouly by such course that the conti-
dencr AMI good will ofihe community can
he preserved, and, in The sequel, the best
interests Of the in I uliuus themselves pro-
m,teh.
New dangers to the banks are also daily
disclosed from the extension of that system
of cxtravaganr credit of which they are The
pillars. Formerly our foreign commerce.
was principally founded OH an exchange of
commodities. including the precious metals,
and leaving in lis transactions but little
foreign debt. Such is nol now the case.
Aided by the facilities afforded by the
banks, mere credit has become too COM
monty the basis Of trade. Many of the
banks themselves, not content will, largely
stimulating this system among others
have usurped The business. while they be-
come borrowers instead Of lenders, they
establish their agencies abroad; they deal
largely in stocks and merchand'ze; they
encourage the issue of State secures until
the foreign market isSlutled with them;
and, uusalisfied with lhe Legitimate use of
their own capital and The exercise Of their
lawful privileges, the raise, by large loans,
additional means for every variety OF spec
ulalion. the disasters attendant on This
deviation from the former course of bu>i-
ness in this country. are now shared alike
w banks aud individuals, loan extent Of
which there is perhaps no previous exam
pie in The annals "f our country. So long
as willingness Of the foreign euder, aud
Il sufficient export of our productions 10
meet any necessary partial payments,
leave the flow of credit uudisturbed, all APP
pears to he prosperous; bu' as soon as It is
checked by any hesitation abroad, or by
al Inability to make pay ment there in our
llC SftlS VI hiS VIZ
disclosed. The paper currency which
might serve for domestic purposes, 10 pay
the debt due in Europe. Gold and silver
are therefore drawn, in exchange for their
notes, from ltr banks. Tu keep up their
supply Of coin, these institutions arc o.
bliee,! to call upon their own denlors, who
paw them principally in their own rotes,
which are as unavailable TO them as they
are 10 the merchants TO meet the foreign
demand. The calls of the banks, there
fore, in such emergencies, of necessity, ex-
ceed thai demand, and produce cores
pon,ing curlalnenl of their acconmoda-
lions and of The currency, at the very mo.
menl when the state of trade renders it
most inconveuient 10 be borne. The in-
teusity of this pressure on the community
is in proportion TO the previous liberality of
credit and CONSEQUENT expansion Of The