The Columbia Democrat. [volume] (Bloomsburg, Pa.) 1837-1850, 1840-01-04

their deposilors or note holders, bu, they
excuse themselves by alleging that the cur
rent of business, and exchange with foreign |
countries, which draws the precious metals
from their vaults, would require in order TO
meet il, larger curtailment of their loans
to a comparatively small portion Of the
community, than it will be convenient for
them 10 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 in
slitutions in disTegarding their solemn o6li-
cations. Such conduct is not merely an
injury TO individual creditors, but it is
wrong 10 the whole community, from
whose liberaiy they hold most valuable
privileges whose rights they violate, whose
business they derangc, 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 dscon-
neced with, hut wholly independent of
! that of the public, gives a character TO their
suspension more alarming than any which
they exhibited before, and greately increas-
es the impropriety of relying on the
banks in the transactions Of the Govern
ment.
A large and highly respectable portion
| OF our banking institutions arc, it aflurds
me unfegned pleasure TO state, exempted
| from all claim on account OF this second
delinquency. They have to their great
credit, not only coniiuued 10 meet their en-
gagoments, but have even repudiated the
grounds OF suspension now resor!cd to. 1t
is only by such course that the conf
dcnce and good will of the community can
| be preserved, and, IN the sequel, the best
interests of tho institutions themselves pro-
noted
New dangers TO the banks are also daily
disclosed from the extension Of that system
of exlravaQaui credit of which they are
the pillars, Formerly, our foreign COM
merce was principally founded OIL an ex,
change Of commodities, including the pre-
cous metals, and leaving in its transactions
hut little foreign debt. Such is not now
The case. Aided by these facilities afforded
by the banks, mere credit has become too
commonly the basis Of trade. Many OF the
banks themselves, not content with largely
stimulating this system among others, have
usurped the business, whilst they impair
the stability Of tho mercantile community
they have become borrowers instead oi
lenders they establish their agencies a
broad they deal largely in stock and mer'
chandse; they encourage the issue o.
State securities, until the foreign market is
gutted with them; and unsdtsied with
. the legilimalvc use of their own cripital
and the exercise of their lawful privileges
= they raise, by large loans, additional mean!
= for every variety of speculation. The dis
= aslers attendant on this deviation from the
. course Of business in this country, are now
S shared alike by banks and individuals, Il
1 an extent of which there is perhaps no pre-
= vious example in the annals Of our country
!, So long as a willingness Of the foreign len
Y der, and q sufficient export OF our produc
q. ,ons 10 meet any necessary partial pay
l. ments, leave the flow of credit uuGsturbed
c all appear to be prosperous but as soon q
!. it is checked by any hesitation abroad, o
5 by an inability TO make payment there II
l. our productions, the evils oil the system al
h disclosed. The paper currency, whlcl
might serve for domestic purposes, is use
= less TO pay the debt due in Europe. Col
J. ana SILVER are lutlGioIG NidN Hi ia CAChdls
s. for their notes, from The banks. 10 kecI
/, up their supply of coin. these institution
in are obliged to call upon their own debtor,
5, who pay them punclually in their ow
" notes, which are as unavailable 10 them n
y, they are to the merchants 10 meet the fol
g. eign demand. The calls of the banks
- therefore. in such emergencies, oil necessit
u. exceed that demand and produce a CORES
y. ponding curiailment Of their accommod
its lions, and of the currency, at the very m
ed ment when the state of the trade renders
Il. most nconvenieal 10 be borne. The intel
he sity Of this pressure on the community,
tie in proportion To the previous lberaliy
oir credit and consequent expansion of Il
ce currency; forced sales Of property a
,e. made at the time when The means Of pu
lie chasing are most reduced, aud the wor
is calamilies to individuals, are only at last a
cy rested by an open violation Of their oLlig
lions by the banks, nj Il refusal to pay sp
TO- Gle for their notes, and an imposition up'
IN. the community Of luctualng and dePre
M sted currency.
Ms. These consequences are inherent in
emf present system They are not inauenc