The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1857-09-28


rish materials to the noyelists during the next
century.
Suspension OF Specie Payments by tho
Banks-Moral Of the Crisis.
Many of the banks in Pennsylvania Maryland
and elsewhere have been compelled to bow to
The storm and to suspend specie payments. This
was no more than was to be expected from the
character of those institutions. No banks con.
Quoted on really sound and correct principles
will find themselves reduced to this necessity.
The banks in Philadelphia have not as general
thing, suspended specie payments, nor are they
likely to do 80. The old Pennsylvania Bank
was compelled to resort to this step, because it
was staggering under the burden of former diff
culties-some of them created as far back as
twenty years ago-during its connection with
the United States Bank The attempt to induce
the Governor of Pennsylvania to call an extra
session Of the Legislature to relieve the default
irg banks from the penalty of the forfeiture of
their charters will fail, because the directors Of
tbose institutions cannot agree amongst thcn-
selves as to its necessity. The effort, no DOUBT
which seek to bolster themselves up by pro
ceeding wearing the appearance Of measure Of
general safety. Why should the Legislature
be called upon to grant this relief? 1t was
precisely to provide against such an emergency
as that in which the banks now find themselves
that the law was passed which it is sought to re-
peal The fact that there are banks now seeking
to get rid of it is proof that in Philadelphia as
elsewhere, the banking system requires period
cal wedding out Of its rotten and worthless mem
beers. Let all such concerns 60 by the board, we
cay; their existence is only source Of danger
and embarrassment to the community.
The position occupied by the New York
banks in this crisis is an instructive example to
other States. Here, notwithstanding the severe
character Of the pressure on the mercantile CON-
munity, there is nothing like the panic which
prevails in Philadelphia Baltimore aud else
where. The reason of tois is that we know our
banks to be sound, and that we feel that there
is no danger of their being driven to the ne-
cessity of suspend,ng specie payments The
billholdeIs being secured by statutory pro-
vision, and the weekly condition Of these insti-
tUtions being within the cognizance of all,
no latitude is left to Encouragement or 6isho-
nesty, 10 produce the distress and CONSERVATION
which are resulting from the suspension of the
banks in Pennsylvania and Maryland. II no
other benefit be derived from the storm which is
row purify ing the financial and commercial at
mosphere than that OF demonstrating the superb
oriy Of the system on which the New York
banks are conducted we would hold ii ehsapiy
than that through which the mercantile c,mmu-
nity is passing. Ii constitutes AN element of
safety for the future in the necessity that will be
felt for its more general adoption.
Let it not be forgotten that this distress and
suffering do not arise from actual poverty but
irum the very redundancy Of our wealth. We
are not az we were In 1920, with very little spe-
Gle In the country and urgent de-
mands for its employment We have al
present not only an abundance, but supernuity
Of specie for every Legitimate and useful purpose
il lie the sense OF this supersbuIdance and the
temptation to use il for mere speculative Objects
which have produced all the mischief. They
have led TO a reckless expansion in our business
operations, TO extravaganza In our habits OF
living, ard to general carelessness in the manage
ment Of our affairs. Laws ike those which
regulate the New York banks are conssq 1ently
necessary to keep present 70 peoples minds the
exact relations between their means, their ineli-
nations, and their actual wants
But legislative securities will not In them.
selves be sufficient to restore the econon ical
balance or correct wha; is rotten and unsoand
10 our condition. We must resume those habits
Of seltcontrol and denial which were tie cha
raoteristic virtues Of our forefathers and psch
helped to make our country VIVA. |! is Il was
by degenerating ino laxury and edemi-
macy that the old Greek and Roman
republics lost themselves, and impressed upon
the page OF history less,n too plain
snd unequivoca to lie misunderstood
Unhappily the love Of enjoyment and the influx
Of wealth have Of late years Blinded us TO their
example, and we have been running madly on in
The same wild career Of folly and extravaganza.
The taste for the fine purple and linens Of the
ancitnts has found with rs still more passion
ate Development, until ve have won for our
selves the reputation Of being one OF the must
luuriously inclined nations on the face Of the
earth.
IF we would regain our former reputation for
sobiiciy AID energy Of purpose, If we would re.
turn 10 the position OF individual independence
which freedom from Deb. implies, and if sc ae-
siie TO zee the country enter again upon the path
OF legitimate progress, we must correct all this
satisfied that the results will induce us to per
severe. Let us begin, for example, with the
article OF dress; 1t is wonderful what economy
can be effected under that head alone. The
population Of the United States amounts al the
prescott moment TO about $4,000 1000. II every
Individual in this aggregate we're to economist
ION dollars vaa.Iv the animal aavins, uould l,a