The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1841-03-12
philadelphia Correspondence.
PHILADELPHIA, March 9, lS4l.

PHILADELPHIA, March 9, ls4l.
A Bank bill has been reported to Legislature.
IL sanctions suspension for tuo years authorizes the
Banks to issue small notes to nearly the amount of
three millions, imposes tax Of 8 per cent on Bank
dividends, and prohibits the banks Fl nm loaning mo-
ney to any officer or clerk in their employ The last
provision is unexceponabe. Almost all the recent
bank difficulties here have begun with speculations
made by Presidents and Cashiers the loans obtain
ed from their institutions. two years suspension
will be most injurious to credit 1t is to say the
least very impolitic fer the Legislature to excnse the
banks from fulfment Of their obligations for so long
period, when the course of the General Government
is yet undeveoped and before the effects of its healing
policy yet felt This frequent and injudcious e-
gsatve sanction of bank suspensions for extended pc
RODS by no means tends 10 promote prudent admin
stration of bank affairs must not be understood to
be unfavora6e to indulgence to the banks the part
of the Legislature. The existing suspension at least,
must be authorized, but every well of the banks
could hope Mat little discriminating rgor were err
csed by legislature, unless it wishes ncte them
into speculations and INSTRUMENTATION by removing
every check and legal penalty.
The State is in an unfortunate dilemma The U
s. Bank was the chief cause Of the late suspension
until her credit is re-established resumption will b
lasting and that this institution will ever again obtain
general confidence may be justly doubted The State
Is in part prvy the embarrassments of the bank by
the heavy bonus imposed upon for its charter and
the exactions from in the shape of loans
1t also holds than millions of Pennsy lvania
per cent stock upon which there is depreciation of
more than 5000 The State cannot, therefore
without manifest injustice inlict penalties upon it for
embarrassments which it has itself in part produced
The question presented 10 the State is how far
can be just to The U. S Bank and sustain the interests
of the community Except this bank from the indul-
gence granite to Others and great of our diff
culties will he removed but the State will be depr we'd
Of an institution whose liberal contributions have fire.
quently saved the lonor of Pennsylvania and whose
immense capital is most scnsiby felt in commercial
operations. Moreover the Girard funds and the mo.
neys OF several other valuable trusts are placed in this
bank, which would be greatly damaged by forfeiture
OF It's charter The bank elics sympathy also from
its prompt generosity TO New York and Charleston al
Ter the destructive confagration in those cities and
from its general literally TO our merchants The
question then presented to the State is shall this bank
be sustained or not To many it appears better that
same time release it from every possible obligation
as to enable it to expire with the lcas, possible injury
to its stock holders.
The proposed amount of small notes authorized to
be issued, 10y this b is too large, That it but ad
ding three millions TO the liabilities Of the banks at
time when they should he diminished One million is
abundaniy sufficient for the Of the community
The restriction of bank dividends to five per cent is
very unjust The utmost lberay is extended to the
banks but the legislature very jealous lest their
stockholders should derive any benefit from it. To
loss of 25 per cent bank sock will then be superad-
ded reduction Of one per cent dividends. The
State Imposes per tax on dividends and in it's
necessities wanders mendicant from bank to bank
begging assistance enable it TO pay its debts, and in
every possible manner seeks to make money from the
banks, yet il cannot act with common justice to the
innocent stockholders This provision cannot pass it
is to be hoped 1t is surprising that il was introduced
The bill with these obnoxious exceptions strikes me
as good one.
The Inaugural meets with universal appreciation.
U, S. Bank stock holds at II and Girard at 81 Peo
pie here very curious TO know why no effort is made
To compel the return Of Lewis to this country. Many
Of the directors of the SchuykI bank suffer under
ptejudicial imputaons from the apathy and indiTcr-
manifested their part to the apprehension Of
Lewis John Banks Of Reading viii be nominated as
the Wing candidate for Governor. He is a popular
man, and will be among the few Of we'll educated 90
yernors that Pennsylvania has had Gov Porter has
no chances Of reelection
Yours, p