Worcester daily spy. [volume] (Worcester [Mass.]) 1850-1888, 1857-10-01

We give place to the following communication,
both because the subject is one in which the
whole community feels deep interest, and be-
cause it comes from one whose opinions on such
a subject are entitled to respect. We believe,
however, that, for this time, they will not meet
general response. The present appearances in.
dictate that the severity of the is abating
The banks are in a sound and healthy condition,
and we feel assured that they will soon be able
to extend the much-needed aid to their sound
customers
Suspensions.
The banks in PHILADELPHIA and Baltimore have
suspended, and every mail brings intelligence Of
suspensions in other parts Of the country. New
York and Boston hold out, and insist that they
are able to do so; but is it either wise or right
that they shOuldl This grave question, but we
adswer it unhesitatingly in the Negative, and af-
firm that it is neither expedent or just for them
to continue specie payments, even if they posi-.
bly, can succeed in doing so. And why is it not
expedient? Because, if they continue specie
payments, they must stop all loans to their GUS
toners, and take in their bills fast possible
II they do this, what will become of all the bus
mess men, whether solvent or not They must
fail. The last general returns of the banks in
this State, in October, 1856, showed that their
creulotion was twenty-six million and a half
and their aggregate specie only four million and
half; and relatively, they probably stood on the
LIST OF the present month essentially the same.
If the policy Of specie payments is adhered to,
our circulation must be reduced to nearly the
amount of the specie in the banks, and if so, how
can debtors discharge their obligations with one
sixth part of the currency existing when they in
Cured them 1t cannot be done. The conse-
quence must be, that the banks must cause the
general bankruptcy of their customers. Would
that be erpe8ient?
Again, it is not right. The banks have issued
their promises to pay in the shape of bank-notes,
they have inflated the currency, they have driven
all the gold out of the country. that, of the
four hundred millions produced IN California,
not twenty-five millions now be found in all
the banks Of the United States. They have en-
ployed the increase of credit until the whole peo-
pie are immensely in debt, and now ought they
to turn around and say, Gentlemen, take care of
yourselves; We have no money to lend Pay us
all you owe, bat don't ask us to lend you any
thing?
This cannot be right; and therefore. since it is
neither right nor expedieUt to hold on, all the
oanhs tiaouShouI the natlon ought TO suspend,
as in 1887, and give opportunity for the liquida-
tion of all outstanding demands. In that event,
all solvent houses could pay up without making
sacrifices, and all insolvent ones would be closed
up. There must be general suspension or gen.
eral destruction. Which is the worst?
1t may be sad alternative but 1t is the best we
can have, and we ought not to hesitate for a mo-
ment. Our position is the result, not of bad
management on the part of the banks, but of the
pad system under which they act. The present
distress is the necessary and NATIONAL aye, the
inevitable result Of the system of currency We
have inaugurated in this country. If we don't
like general suspension or universal bankruptcy,
we must. when we have time for reflection, change
the system. SENEx