Burlington free press. [volume] (Burlington, Vt.) 1827-1865, 1840-01-03

small portion otthe communlty,than
it will be convenient for them 70
bear, or perhaps safe for the banks
to exact. The plea has ceased to
be one of necessity. Convenience
and policy are now deemed suili-
cient to warrant these institutions
in disregarding their solemn obIi-
cations. Such conduct is not mere
ly an injhy toNindividual creditors
but it is wrong to the whole COM
munity, from whose libera'ity they
hold most valuable "privileges--
whose rights they violate, whose
business they derange, and the val
ue of whose property they render
unstable and insecure. 1t must be
evident that this new ground for
bank suspensions, in reference their
action is not only disconnected with
but wholly Independent of the pub
lie, gives character to their sus-
pensions more alarming than any
which they exhibited before, and
greatly increases the improperly of
relying on the banks in the transac-
tons of the Government.
A age aud highly respectable por,
ton of our banking institutions are, 1t
affords me unfeigned pleasure TO state,
exempted from III bamc on account OF
his second Delinquency. They have, to
their great credit, not only cOnlrued to
meet their engagements, but have even
repudIa'ed the grounds of suspension now
resor'ed to. 1t Is only by such course
that The confidence and good will Of the
community can be preserved. aud, in the
sequel, the best interests of the lnsll'u>
tons themselves promoted.
New dangers TO the banks are also daily
disclosed from the extension OF that system
Of eXtravngrant credit Of which they are
the pillars. Formerly our foreign com
hcrce was Principally founded on an ex
change Of commodities. includ ng the pre-.
c'ous metals, and leaving in its transactions
bu, little foreign debt. Such ls not now
the case AIDED by the facilities afforded
by The banks, mere credit has become too
commonly the basis of trade. Many oil
the banks themselves, not content with
largely stimulating this system among
Others, have usnrfed the business, while
they impair The stability, of the mecanllle
+ community; they have become borrowers
instead OF lenders; they establish their
agencies abroad: they encourage the issue
Of State securities until the foreign market
Is glnlted with them and. unsHtl-ied with
| the legitimate use Of their own capital and
he exercise Of their lawful privileges, they
raise, by large loans. additional means for
every varlel y ofspeculatiun. The disasters
attendant on this deviation from The former
course OF business N This country, are now
shared alike BY banks and individuals, Ia
an extent o' which there Is perhaps no pre-
vious example IN the annals Of our country
81 long rs willingness of the foreign len
der, aud a sufficient export of our produc-
tons 10 meet any necessary partial paw
men's leave The fl>w Of credit undls'urbcd
a appears to be prosperous; bit as soon a,
It is checked by any hesitation abroad, or
by an inability to make payment there in
onI produce ions. the evils Of the sys en- IRE
disclosed. The paper currency which
nigh, serve for domestic purposes. is use.
les TO pay The debt due in Elrope Gold
; and silver are therefore drawn in exchange
or their notes. from the banks. To keep
, up their supply Of CON, these institutions
are obliged to call upon Their own debtors
who pay them prlncIpa y n heir own notes
which are as unavailable 10 them as they
are 10 The merchants 10 meet The foreign
. demand Tn" calls Of he banks, therefore.
IN such emergencies. OF necessity, exceed
tha, demand, and produce a corresponding
cur'allmcnt 81 their accommodations and ut
, the currency, at the very mom'ut when
the state "f trade renders it mast incOn
uIen, to BE- borne. The intensity o.
his pressure on lhe community Is in pro
portion to the previous hberary of credit
: and cpnsrq en' EXPANSION ot The currency
} forced sales f property are made at the
time the means Of purchasing are most
reduced, and The worst caiamtries to in
dlvIdua's are only a. last arrested, By
an opan violation Of their oDl'galluns by
the banks refusal To pay sp'c,e io'
their notes, AVID an imposition upon ~,
Community Of fluciuailDg and deprecated
currency
These consequences arc inherent il
TUE present. system. ihey are not lhu l.
, enced by he banks being large or smsI
created by National or S'a'e Government,
They are me results of the rresIsl,bl,
laws of trade and cretr. IN The recen
: events which have so srkingly illustrated
-, he certain effects Of these laws, we hav,
so.n the bank ofthe largest capital in The
Union, established under National char
ter, and lately stengih"ned as we were
: euthorat' voy Informed, by exchanging
, that for s ate charter, with new an,
, unusual privileges IN condition too, a,
was said, of entire suundness aud grea
prosperity merely unable to resls,
these effects, but the first to yield TO them
Nor is II to be overlooked that there ex
lists acclaim of necessary dependence among
these institutions which oblrges them, to q
great extent,to follow the course of other.
outstanding i's injustice o their owl