Martinsburg gazette. [volume] (Martinsburg, Va. [W. Va.]) 1833-1855, 1841-12-23

49, 'NHN hfuR tiCN NOutQ Ut HUt
to sustain themselves in the effort. TIL,
suspension Of other institutions. unde
such circumstances, operated entirely (,
our disadvantage, enabling them 10 re
plenIsh their vaults at the expense Of on
Banks, while the latter received no equiv
aleni. Perceiying that a continued drair
Of specie must be the consequence OF per
sisting in the course they had adopted
and aware that the rapid curtailmeu, o
the circulating medium which would b,
necessary to enable them to p~ersevere
would be severely felt by all classes o
the community, the directory OF our Bank
rescinded their resolution. Their deter
mination to resume specie payments nj Sc
early a period was no doubt premature,
Ii would have been more safe for them
and better for the community, if they hac
deferred the execution Of a design so cred
table to their public spirit, until that de
sign could have been effected without re.
gard to the course of others. 1t is to be
hoped that it may yet be accomplished at
no distant day, if a small, gradual and
regular curtailment of discounts be rigidly
enforced against all the customers OF the
Banks. A resumption OF specie payments
by all our Institutions, which shall be per.
inanent and ~eifectual, is, no doubt, most
ardently desired by the great body of the
people. But, surrounded as we are by
other institutions beyond our c%onttol, and
placed 10 a condition we cannot entirely
prevent, it becomes a question OF grave
consideration, whether the requirements
OF the charters Of our own inst tutions
shall be rigidly enforced, or further time
be allowed them 20 prepare for resump-
ton. As the period will speedily arrive
when the relief heretofore extended 10
them will expire, this question will, no
doubt, attract at once the calm considera-
ton Of the General Assembly. In arriv.
ing at a correct decision, due regard
should be had to the past as well us to the
actual state Of ~things-the condition Of
the Banks and the business of the coun-
try. The whole nation is yet suffering
from the baneful effects Of overtrading,
overbanking, and their lnseparable con-
comitant, a dlsordered currency. Wild
speculation and extravaganza, the natural
consequences Of the immense accommoda-
ton afforded by banks whose cupidity
seems to have placed no limit to their is
sues, have been attended as usual with Il
painful reaction. Many Of the State Gov.
ernments, too, have contributed IN no
small degree to the embarrassment Of the
times by appropriations to works OF In.
torpnI panrnrarnan uuhtnh xpnplH npIu ha
met by contracting an immense foreign
debt which has materially affected the
state of our foreign exchanges II will
require time to allay the agitation which
has been produced by these causes. Tue
lessons of experience they have taught,
il is 10 be hoped will be remembered. la
the mean time, the recuperative energy
OF our people will tend to restore a more
healthful condition. Our Banks must
feel the beneficial effects of such a change,
and i~rprudently managed, may soon place
themselves in an impregnable position.
1t should be remembered that The with
drawal from this State Of the capital sup.
piled by the Bank Of the United States
has imposed upon our State Banks the
necessity for a moro leulent course to-
wards their debtors than might otherwise
have been required. The accommodation
afforded the Commonwealth in loans to
meet the public exigencies, has also con.
tributed to prevent that contraction OF the
circulation which it should be their object
to effect. Under existing circumstances,
it would seem expedient TO extend the re.
liefatforded by the act o. the l5tho of March
last, limited, however, to a period which,
while il may afford due time for resump.
ton, will preclude the idea of future lndul-
gence. Whatever your wisdom may pro-
vide, it is essentially important TO the
credit Of the Banks themselves, to the iu-
terest OF the Commonwealth, and to the
restoration Of a sound currency, that care
should be taken that another resumption
be not followed by another suspension Of
specie payments.
1t cannot be denied that the reckless
course of many oil the banks throughout
the county, and especially the late bank
of the United States, has had the effect not
only Of weakening the public confidence
in all such institutions, but OF creating a
strong prejudice against those whose at
fairs have been prudently managed. II
is generally admitted, that the whole bank
ing system requires reform. But sound
policy dictates that NJ harsh or violent
remedy should be resorted 10. Such re.
striciions should be imposed as experience
has proved necessary, and such reasona
BILE indulgence should be extended as the
public interests may require. the for
leiture OF the charters OF these institutions
in most Of the States will greatly facilitate
the reform which is SO much needed. 1t
is indispensable to their wholesome regu-
Iation that the State should possess salu-
tary control over the issue of their notes.
But this control cannot be efiectual while
the interests Of the State as a ~stockholder
are identified with those of the banks.
W Whenever an entire separation oil thsse
interests can be effected, the .ormer wiz
be more independent in exacllng' ano tne
latter more cautious ia avoiding penalties
which NAV be incurred by a violation oil
their charters. If this be true OF the State
governments, it is no less true when APP
oolied to The Federal Government. To as.
sociate that government as an equal part
ner with private stockholders, is TO de-
tract from and degrade its high and re.
sponsible position. There is moreover
warrant in the Federal Constitution,