Baton-Rouge gazette. [volume] (Baton-Rouge, La.) 1819-1856, 1841-12-25

cided that it would be dangerous to tn
country, not to continue the suspension
The state of prostration in which our mo
notary institutions are placed is calculates
to excite to the highest degree the solici
tude of the Legislature. The derange
ment of business and the depreciation o.
all kinds of property, are not the only evil
produced by this state of things. A pro
longed suspension is an illegal and contin'
ual violation Of contracts. When institu
tons whose most important functions is IL
require rigid punctua!;ty in the perform
ance of promises to pay, refuse on theiI
part to fulfil the same obligation, and pub
lie opinion seems to support them in theil
refusal, individuals are apt to think more
lightly of the violations of their own en-
gagements. A general neglect of the true
and honorable fulflment of contracts takes
place, and the decentralization of society is
the. inevitable consequence. While we
were warranted in expecting the interven.
ton of the Federal Government you may
have had reason to think your %inaction
justifiable but now that it is the evident
that we have nothing to hope but from oul
own exertions, we are bound to enquire
whether we may not lessen the evils Of
our position, without trespassing beyond
the limits of our constitutional duties.
In discussing so momentous a question,
do not forget, fellow citizens, that all per
sonal interest should be renounced ard al
party spirit thrown aside. The fate Of
the banks is intimately connected with the
interests of the commerce, the agriculture
and the industry of the country. Our OBJ.
ject is not to destroy these institutions, but
to protect them, by preventing any per.
version of their privileges which may lead
to their W RUIN and strike u fatal blow
at the interest of the State.
When our Banks suspended payment III
1889, it was not because they had suffered
losses which compelled them to it, but only
because they feared to be drained of theil
specie in consequence of the suspension Of
which the Pennsylvania banks had set the
example. This measure met the general
APPRECIATION Of the public, who thought
they saw in this cessation of action on the
part of Our monied institutions the means
Of preserving their strength and Of keeping
them ready to resume their legal direction
and duties us soon as the resumption Of
the other banks would permit it without
danger. The confidence hitherto felt in
them was not impaired by this event; theil
paper was never at a greater discount than
two or three per cent, and forms a great
part of the circulation of the neighborine
states. After a suspension of more thar
two years a majority of the Banks, just as
the Legislative session was about to com
mence, have decided to continue this
state of things until November, 1912.
There would perhaps have been more pro-
priety in awaiting your determination, fol
the question of resumption is more Of your
competence than of theirs. The right o.
emitting paper money has been granted
them by the state only on the express con
dition of their always maintaining it as it
par value by paying in coin, and theiI
charters are forfeited the moment they
have failed in fulfilling this obligation
these institutions are now at the dispose
of the Legislature, who a direct such
as may be proper FOR liquidatine
their affairs, or may prescribe the condi'
tons upon which the forfeiture shall be
RENTED, and the continuance of their ex
istence allowed.
Experience has fully established the
falsity Of the doctrine, that a resumption
cannot be permanent unless it be simulta
neous with all the banks of the Union
Boston and New York demonstrate thai
every city in which a large amount o
trade centers, can with its own means sus
tain within itself a baad circulation, a:
long us its banks are really solvent ant
are well administered. New Orleans car
and ought to do what these two cities have
done. She possesses a more extended
commerce than Boston, and to sustain he1
specie payments she has the advantage
over New York Of exporting two product.
of soil which, as long as Europe pays il
coin, represent yearly from thirty to forty
millions in specie.
There is no doubt of the soundness o
our banks in the aggregate. A Statement
of their situation lately published ant
which was laid before the meeting of thei
Presidents, shews that upon comparing
the amount of their cash liabilities, witt
the assets applicable to their payments
the situatio , of the banks is more favora
BILE than it was in December, 1888, wher
they resumed specie payments. Then
objection to resumption now, is founded
upon the ina ability of some of them TO pro
vide the available means to meet the pay
ment of SUCH of their cash liabilities d
may be imme diately demanded Of them
whilst their CT circulation is now only sus
tanned by the confidence inspired by it
being received at the other banks. l hav'
already at two former sessions suggested
to you the nece ssity of adopting measure
for %lNuidating these weaker banks. 1t
now admitted TN all hands that the diff
Guilty Of support ng their credit is the oni.
obstacle in the way Of the others res,'4nin.
their regular course of operations. It wa
to relieve these in Institutions in their distress
and to give them time to improve their sit
uation that the Board of Presidents ha
thought proper to advise the p~ostponemen
of the resumption one year. But whate
yer means they may eventually have 0
meeting their engagements, it is evidcn
that their active ca pital is Insufficient 70
legitimate banking purposes. A compar
alive statement Of their situation at tn
suspension of specie payments, and in tn
month of October lust will give you al
idea of what they have to hope from th'
prolongation of their suspension.
I'D NOVEMBER, 1889.
Dis Cash Cash