The star of the north. [volume] (Bloomsburg, Pa.) 1849-1866, 1857-11-04
u nsHK OBSERVATION-DISCLOSURES II REMkDY

| il is'imporiant at this time 10 exa mine th
opinions Of ,hose wise aud ihonshdul sne
who have preceded US, with reference 4
The banking system, and sd5seive how uni
form anil concurrent their testimony hs,
been as 10 The evils flowing from a pape
currency. From WASHINGTON, all down lb,
line OF AmericaG statemen, there has beser
an almost unbroken serious OF bofi, vigerou
thinkers, uho have pointed OF! The disaslrou.
lconsequences Of dcbauching the cuTeccy of ;
people, ard thus rendering labor al all ,im.''
the slave and follower OF capital. The first
Bank of the United States was chartered in
direct opposition TO The opinion aad counsel
Of Jefferson, and many patriots aud states
men of that day. Il was justified on the
grounds Of necessity, and each succeeding
renewal of lis legal life was he.aIded and
supported by the same arguments. The
Stale Banking System derived its origin from
The same supposed necessity, and all expert.
ence has demonstrated The FAC, that both The
Bank OF the Uuiued States, aud those OF the
several States, have acted iijuriously upon
all The best interests of Trade, Commerce
and Manufactures by expanding credit 10 an
unwhoesome degree. indncipg reckless
speculation, raising The prices OF all articles
10 be consumed, and ending 10 wide spread
disaster and ruin such as we have cause 10
lament at the present time.
The suspension ofspecie payments by The
Banks in all parts of the country furnishes
an opportunity Tor laying before the public
an extract from The message of Governor
JAMES X. Polk 10 The Legislature of Tennes-
see, in 1899, on lhs suhjec, OF Bank susden-
sions. After having shown The causes of the
financial trouble al that time 10 have result
ted from an inflated paper currency, startin o
first with the Banks OF the Eastern cities, bs
says;
Upon the receipt Of the information lha,
some oil the Banks OF the East 10 lille more
than year from their last resumption had
again suspended specie payments, The ques.
tion Immediately arose in the public lind,
what had produced The suspension, and wha,
would be the course proper 10 be pursued by
lie Banks oil Tennssssei
As far os we are informed, The snspen.
sion at the East is represented 10 iiave arisen
mot out OF lack of power 10 continue spe-
Gle payments, but of self. preservation, under
The form of keeping The specie from being
drained oui of the country. Without the
means OF knowing how the fac, may be, ii
is Tor asuspension Of payment by The banks,
bui a" absolute inability 10 meet their res.
possibilities promptly.
"And Whatever may have been The cause
oil The suspension of payments by The banks
o! the East, il can furnish 10 sufficient
ground for The suspension of payment BY our
banks, so long as they have an ability 10
pay. Like individual debtors, they should
meet their Liabilities honestly and promptly
so long as they are able 10 pay. What is
tie elect II contrary course be adopted ,
few OF The banks at the East suspend, and
represent TO the public that they are still sol.
vent, and do so, not from necessity, bu, 10
retain their specie; and following their ex.
ample, The banks in the interior, which are
also represented 10 be solveu', suspend also
not because they are under the necessity 10
do go, but simpls because the eastern banks
have suspended; so that the suspension OF
The banks in single city which may have
indulgeG in excessive issues of bank paper
and bank credits, and thus stimulated and
promoted over.scIion in trade, or which may
have nlterior objects in view, is made 10 op.
crate as suspension of payments by all The
banks of The country. Surely, if bank sus.
pends in Philadelphia, il is no reason Tor our
banks 10 follow The example, unless they
are compelled by their condition 10 do so.
"The apprehension of The drain of their
specie can be no sufficient reason, for one
of the conditions of their corporate privileges
ia, thai they shall keep themselves at all times
in condition TO meet their liabilities. When
a suspension of specie payments takes place
by banks, their circulation Immediately de
preciates in value, and the loss falls not on
the banks, but on the people The labor o
the country bears The loss, whilst the banks
during period of suspension, are often do.
ing their most profitable business.n
The las, paragraph OF the above extract i.
worthy of being pondered at this crisis
When bank commences operations it il
with solemn charter-promise TO pay all its
liabilities in gold and silver. Upon the iai'h
of that assurance, it's noies are used as cur
rency by the community, Not single note
would cross the counter of Bank il the gole
and silver feature OF its charter was omitted
| The traders and toilers have no time to in
quire into oil the minor circumstances BY
which oank may be surrounded. They
cannot pause in the m idsl Of their daily ayo
cations TO examine into all The particulars o
a banking system. They look only a, the
prominent fact that each and every institution
issuing currency is obligated TO give in ex
change for paper promises gold and silver
whenever demanded, and upon that clause
of lbe charter of each Bank they rely 70
safety. I'D. .,.....- ..
As the Slate in its sovereign cacacity a
! guardian and protector of the people ha
covenanled with its citizens that tho Bank
| shall pay gold and silver in exchange 70