The Camden journal. [volume] (Camden, S.C.) 1836-1851, 1840-01-04

crations, it has secured in its favor as
general concurrence of public sentiment
as could be expected on one of such mag
nitude.
"Recent events have also continued to
develope new objections to such con-
nection. Seldom is any bank, under the
existing system and practice, able to meet,
on demand, all its liabilities for deposites
and notes in circulation. 1t maintains spe-
Gle payments, and transacts profitable
business, only by the confidence of the
public in its solvency; and whenever this
is destroyed, the demands of its deposit
ors and note holders-pressed more rapid
ly than it can make collections from its
debtors--force it to stop payment. This
loss of confidence with its consequences
occurred in 1887, and afforded the apollo
gy of the banks for their suspension. The
public then acquiesced in the validity of
the excuse; and, while the State Legisla-
lures did not exact from them the forfeited
charters, Congress, in accordance with
the recommendation of the Executive, al
lowed them time to pay over the public
money they hold, although compelled TO-
issue Treasury notes to supply the def
ciency thus created.
"It now appears that there are other mo-
tives than want of public confidence un-
der which the banks seek to Justify them
selves in refusal to meet their obligations.
scarcely were the country and Govern
ment relieved in degree from the diff
culties occasioned by the general suspen-
sion of 1887, when partial one. occur
ring within thirty months of the former,
produced new and serious embanassraents
though it had no paliation in such circum-
stances as were alledged in justification of
that which had previously taken place
There was nothing in the condition Of the
country to endanger we'll managed bank
ing institution; commerce was deranged
by no foreign war; every branch of manu-
featuring industry was crowned with rich
rewards. and the more than usual abun-
dance of our harvests. after supplying our
domestic wants, but left our granaries and
storehouses filled with surplus for expor-
tation. 1t is in the midst of this that an ir-
redeemable and deprecated paper cur
rency is entailed upon the people by
large portion of the banks. They are not
driven to it by the exhibition of the loss Of
public confidence, or of sudden pressure
from their depositors or note holders, but
they excuse themselves by alledging that
the current business and exchange with
foreign countries, which draws the precious
metals from their vaults, would require, in
order to meet it, a larger cutailment of
their loans to comparatively small por-
ton of the community than it would be
convenient for them to bear. or perhaps
safe for the banks to exact. The plea has
ceased to be one of necessity. Convent
ence and policy are now deemed sufficient
to warrant these institutions in disregard
ing their solemn obligations. Such con-
duct is not merely an injury to individual
creditors, but it is wrong to the whole
community. from whose Gberality they
hold most valuable privileges,-whose
rights they violate, whose businessthey de-
range, and the value of whose property
they render unstable and insecure. 1t must
be evident that this new ground for bank
suspensions, in reference to which their
action is not only disconnected with. but
wholly independent of, that of the public,
gives character to their suspensions more
alarming than any which they exhibited
before, and greatly increases the impro-
pliety of relying on the banks in the trans
actions of the Government.
A large and highly respectable portion
0f s.!E hss TX ii!assti.utiens are exempted
from all blame on account of this second
delinquency. New dangers to the banks
are also daily disclosed fro m the extension
of that system of extravagant credit Of
which they are the pillars. Formerly OUT
foreign commerce was founded on an ex-
change Of commodities, including the pre-
cious metals, and leaving in its transactions
but little foreign debt. Such is not now
the case.
"Adcd 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 with largely
stimulating this system among others, have
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