Lincoln telegraph. [volume] (Bath, Me.) 1836-1846, 1840-01-02

Tor deposites and notes in circulation. It mHin-
fa1ns specie payments, and transacts profitable
business, only by the confidence of the public in
Its solyency; and whenever this is destroyed,
the demands of its depositors and noteholders-
pressed more rapidly than it can make colec-
tons from its debtors-force it to stop payment
This loss of confidence with its consequences,
acquired in 1887 land afforded the apology of the
banks for their suspension. Thepublic then ac-
quiesced in the validity oil the excuse; and,
while the State legislatures did not exact from
them their forfeited charters. Congress- in accor-
lance with the recommendation of the execu-
tive, allowed them time to pay over the public
money they held, although compelled to issue
Treasury notes TO supply the deficiency thus
created.
It now appears that there arc other motives
thau than want of public confidence under
which, the banks seek to justify themselves in
refusal TO meet their obligations. Scarcely were
the country and Government relieved. in de-
gree from the difficulties accustomed by the gen.
eial suspension of1857, when partial one, &C.
curing within thirty months of the former, pro-
duced new and serious embarrassment, though it
had no palliation In such circumstances as were
alleged in justification Of that which had prey-
iousy taken place. There was nothing in the
condition of the country to endanger a well man
aged banking institution; commerce was derang
eddy no foreign war; every branch of manufac-
turing industry was crowned with rich rewards
and The more than usual abundance of our har-
vests, after supplying our domestic wants, had
lett our Qraneries and store-houses filled with a
surplus for expectation. II is In the midst of
this that an irredeemable and deprecated paper
currency is entailed upon the people by large
portion of the banks They are not driven to it
by the exhibition of loss of public confidence
or of sudden pressure from their depositors or
note holders, but they excuse themselves by al
ieglng that the current of business, and exchange
with foreign countries, which draws the prec-
Gus metals from their vaults, would require, in
order to meet larger curtailment of their loans
ton comparatively small portion of the commu-
nlty, than 1t will be convenient for them to bear
orpcrhaps safe for the banks to exact The plea
has ceesed to be ofnecessity. Convenience and
poleJ are now deemed sufficient to warrent
these institutions in hs.regarding their sole mn
obligations. Such conduct is not merely an IN
jury to individual creditors, but ii is wrong to
the whole community, from whose liberality
they holdmost valuable privileges--whose rights
they violate, whose business they derange, and
the value of whose property they render unsta-
bic and insecure. 1t must be evident that this
neW ground for bank suspensions, IN reference
to,which their action is not only disconnec ted
with but wholly Independent Of, that of the pub.
lics gives a character to their suspensions more
alarming than any which they exhibited before,
and greatly increases the improperly oil rely
ing on the banks in the transactions Of Govern
ment 49, - ~ i. ,-1
,Alarge and highly respectable portion Of our
to:state, 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 suspension now resorted to. 1t is
only, by such course that the confidence and
COED will Of the community can be preserved,
and, IN the sequel, the best interests of the in
situations themselves promoted. ...
New dangers to the hanks are also daily dis
closed from the extension of that system ofex,
Harrn,n 80 I.
Formerly our foreign commerce was principally
founded on an exchange of commodities in
GLIDING the precious metals, and leaving in its
transactions but little foreign debt. Such is not
now the case. Aided by the facilities afforded
by the banks, mere credit has become too, CON-
monty the basis Of trade. Many of the banks
themselves, not content with largely atimatng
TINS system among others, have nsurpcd the bu-
sness, while they impair the stability of the n,er
camille commmty-they have become borrow
ers instead oflenders-they establish their agen-
cies abroaa-they deal largely in stocks and
erchandise-they encourage the issue of State
SECURITIES until the foreign market is glutted
with them-and unsatisfed with the legitimate
use Of their own capital and the exercise of their
lawful privileges, they raise by large loans addi-
sl9nai means for every variety Of speculation
The disasters, attendant on this deviation from
the former course of business. in this country,
are now shared alike. by banks and individuals,
TO an extent OF which there is perhaps no previ-
GUS example in the annals of our country. So
suis;c;sn ss = INC .iVieisn lenoer' ana
INV ouI PIoductlons 10 meet
crsdf ps,ih, Try es lease tne now OIL
.hnr ~ soon z IL 4; -, appears 70 De prosperous
X ~ s0 = y Hns'hee ~ any hesitation
in orr nrod1 ct;nas ~ XIII, ~ iiaHe payment lhcre
sarya Ics ao :, re Paper currency winch might
the Ak, x E;so aa y useless 10 pay
vtbarS,,,s II aSlh.nra ', q. 'na sseE afe mus
the hsnEs sTa iW u 'helr oIes, irolh
in s',cb en- 5an Sss e e psnAs therefore
demand ana nrodncc .Aosea aias
THAR. acc.,o,n 49, cur'an Oh
anu W .the currency, at.