Yorkville enquirer. [volume] (Yorkville, S.C.) 1855-2006, 1857-12-03

iS well aS every uiulHouity -Auu thc ohhei
of money should not be denied the privilege
of lending it except through the artificial,
and sometimes costly medium OF a corpora
tion. Banks, too, should be allowed to
take, for the use of money loaned, whatever
it is worth in the market, and be thereby
relieved from the tempting facility of evad-
ing the law in order to increase their profits.
SUSPENSION OF SPECIE PAYMENTS
Regarding the recent revulsion in finance
and the currency, I will not attempt to
enumerate its causes, but will venture to
direct your attention not so much to the
Banks as to the system of banking. 4 sys-
tenn which sanctions the issue of paper
money to so large an amount, leading to in
fated credits, inflated prices, ,eztravagant hab-
its of living and recklessspeculation may be
supposed calculated produce crisissoon
Or later. The unhappy sinkingof a ship pwith
bullion fromCalifornia, or any event sufficient
ly exciting to create momentary panic, was
enough to precipitate it. 1t has had the
effect to paralyze the arm ofhonest industry,
wherever labor is opposed to capital to de-
press the opening market for produce-and
to impair the confidence between man and
man. The banks in this State were effected
by the common panic, and felt the pressure
severely-some of them yielding to its in
huence, have suspended specie payments
The suspension Of specie payments by a
bank, is failure to redeem its notes ON de-
mand-a forfeiture of its promise to pay in
gold or silver, current coin, the full value of
every bill issued from its counter, promise,
on which is based the privilege granted by
the State, to issue bills, and to circulate them
as currency. However, it may be supposed to
afford present relief to the business interests
of the country, which, unfortunately, are so
wound up with the banks as to suffer inevi-
tably from the contraction of their credits
and their stringent demands; it is demoral-
izing in its tendency.
The banks of this State, with which 1 am
at all familiar, are we'll administered
Several of them have bravcly withstood the
shock, and are prepared to do legitimate
business as usual. All, it is believed, are
solvent If however, there be some, so de-
pendent on the banks and brokers Of New
York, as to fail in their pledges to the pub
lie, when the Northern banks fail, it is their
misfortune to have to answer for the sins of
others, as we'll as for their own mismanage
ment. The consequences to the quiet, un-
initiated, and the laboring community, are
alike distrust and loss, leading to want and
suffering, too often to moral ruin and crime.
The State, too, suffers from the abstraction
of coin and the depreciation of credit in the
sale of her bonds, both for building the
New State Capitol and for aiding the con-
struction of the Blue Ridge Railroad. cor
the former, J. signed 100 certificates on the
9th March, and of the latter, 100 on the 4th
May.)
Whatever the exigency, it will be long
before confidence is generally restored, and
commerce can move TRANQUILITY and safely in
its usual channels, though not near so long,
l trust, as in 1887. Then the suspension
in Charleston took place in May, and lasted
Is months; now it occurs in October, at the
opening of business season, with a fair,
(thoush not large,) crop of cotton and rice
on hand, as the basis of commercial COM
municaton with capitalists of the home
market, and of exchange with Europe.
The moment of excitement, apprehension
and financial pressure, is not time to legis-
late respecting the banks. The existing
laws, if sound, will be vindicated in prac-
tice; if otherwise, it will be wise to repeal
or modify them, when the public mind is
calm, and commercial confidence shall have
been restored. In enacting statute law, the
statesman to whose wisdom and ndintegrity the
public welfare is entrusted, will not, for the
sake of doing something when in position,
yield either to the crude suggestions of his
own observation, or to the outside influence
of opinions, created by undue excitement
on the one hand, or by interested individu-
ais or corporations on the other.
Meanwhile, may not omit to invite at
tention to the admirable operation OF the
system of finance, separate from banks, long
since adopted by the Federal Government
in sanctioDing which, that Government has
entitled itself to the respect and confidence
which are due to superior wisdom and fore
sight. During the recent confusion and
consequent panic in commercial circles, it
has done much to break the crash upon the
people of the unstable framework erected
upon the credit system, and to save them
from the full effects of the collapse of an
inflated bank currency.
In a pecuniary sense, merely, salaried
officers are not injured by such convulsions,
which must reduce prices. But of all clas-
ses, the least liable to be affected by them is
the planter, who is happily out of debt, who
properly drains and plows deep his soil, and
whose contented family illustrate, in their
daily life, the beauties of simplicity and
virtuc,-the social cheerfulness of industry
and just economy. Let him send forward
to market his crop, as tits prepared Every
sale that is made, every debt that is paid,
every hundred dollars which eirculates from
hand to hand, will help to restore the
general credit, and to re-establish healthy
currency, so necessary to prosperous and
stable markets. Planters, as we'll as others,
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