Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1857-10-02

failure Of many lous established commercial houses'
+, leading to the destruction Of confidence, and TO tns
threatening to affect disastrously the credit oi thr
commonwealth, and the great industrial interests W
the people.
And whereas an occasion 80 extraordinary require,
prompt and efficient action 10 relieve an alariilou anu
suffering community
Therefore, | James Pollock, Governor OF the Com
nonweaIth of Pennsyl. ania, by virtue Of the powers
conferred ON me- by The CONSTITUTIONS. do hereby con
vene the General Assembly OF this Comnoon~eai'n
and require the members Of the Serate and House u.
Representatives TO meet in their respective houses
in The capitol az Harrisburg, on Tuesday the six'l
day Of October, A. D. 1857, at II o'clock ut noon
OIL that day, then and thsre to take into conslne'
ration, and adopt such measures Of relief in the pre-
mises as the present e1'gency may ecen 10 them III
their wisdom 10 demand.
In testimony whereof l have hereunto set NY hand,
and caused the great seal Of the Commonwealth to be
affixed, at Harrisburg. this 18th day of September, III
the year of our Lord 1857. aud Of the independence OF
the United States the eighty-uecond. BY the Cover
nor: ANDREW G. CUKrIS,.
Secretary OF the Commonwealth.
The Ledger remarks on the proclamation:
The efforts Of the members when they meet should
be directed 10 a resumption OF specie payments at the
EARL, 81 practicable period. An indefinite suspension
would be an extended evil. The community believe
that suspension has besn forced upon tho banks as q
temporary measure, and sound policy should induce
the banks so to regard it, and use every means in their
power 10 plAC6 tnem-tlVrb ID q proper position OyTo
sumipg at The earliest day.
The Philadelphia Inquirer, in defending the call Of
the extra session, says:
l, Is probable that on Saturday last %. 900 hands in
the city of Philadelphia vera either dismissed or ~.
ceivrd only part payment of thsir wages. The read
ar may we'll imagine the inconvenience that must
have been experienced under there circumstances.-
In Frankiord and Manayunk, for example nearly all
the mills we're stopped, while We are told that in
Reading 1900 worknen were dismissed, and the same
number in Lancaster. This lamentable condition of
affairs must be terminated as speedily as possible. II
IL not worth while al the present moment To enter in.
10 any elaborated exposition as to the causes. The
discussion of that subject may be postponed with pro.
prieiy for months. What we now desire are measures
of relief; and hence an extra session of the State LIE
eislature has been deemed advisable. Meanwbils,
the banks should not only act with harmony amongst
themselves, but should extend all the aid in th-ir
power to their customers. This course is absolutely
Indispensable.
IMPORTANT ACTION OF THE BANKS.
The Presidents Of the various Philadelphia banks
! on Monday held a meeting, and decided upon the
following important measures:
II. A suspension OF specis payments on all notes,
large and small. y. TIE prompt issue Of their own
notes of smaller denominations for checke, and all
other obligations against them. ). An increase Of
discount to their customers, with the object Of afford
ing immediate relief"
In regard to the third proposition, there may be
different opinions as different desires actuate those
| VINO entertain Iuetn. III Ib " CnlCuidlcu " cutCt Uu
early resumption, and the Legislature should author.
ize no movement which will tend to delay beyond a
limited and reasonable period that desirable event.
1t is manifest to the cornmonest intelligence that the
+ banks cannot resume till they have reduced their
business, and increasing their loans is not such q re-
ductiou. So says the Ledger. The North American
ON the same subject, remarks:
The immediate result of these arrangements will,
undoubtedly, be to restore business, at least partially,
IL its accustomed channels; and ultimately to mitigate
in a large measure the embarrassments under which
We new labor. Already some OF the banks have dis
counted freely, and the rest. IL Is understood, will do
80 at once. The action we have indicated mse,s with
the general appreciation Of the business community
BANK REFORMS.
The Philadelphia Press" 10 sons lengthy remarks
OIL the present financial troubles. says: The consid
erations suggested by the present e1gency of affairs
relate TO, first, q clearing house syatem; second, Il
sworn statement weekly mot yearly az We now have
/, I'LL ofthe means and liabilities ofthe banks; third, alaw
TO regulate the proportion OF specie to the amount
not Of mere circulation, but OF the entire liabilities
I, of tho banks; fourth, an Increased specie circulation
( by abolishing ali notes under q certain denomination
and fifth, in due time a more radical change III the
whole system Of banking than these few heads com
preheDd. These reforms would 10 Tar, but we ieaI
not far enough, to prevent q recurrence OF u moneIa
ry crisis like that which now exists.
Shall we, TO a certain extent, Ut leasi, require tina
r State stocks shall be Deposited as a security for The
payment in specie Of the notes issued hy the banks
vr shall VIZ abolish all notes under the denomlnatipI
r Of twenty dollars. These ara questions which ough
to be- settled. But whether the evil of an immediat,
r reform of this kind be not greater than Il temporary
tolerance Of the present issue ia q consideration ina
9 must give US pause. However this may BIZ, our PEG
pie are unanimous in favor of some law to regulate
the line of discounts to BIZ allowed to the customers
] of a bank.
II can no longer be borne that one man, whethe
1 from favor or for profit, shall be allowed to draw
r from a bank one hundred and hfty thousand dollar
! Of loans, while the merchant, the manufacturer, th'
1900. a-l H.. ort;onr ID aatrirfAd IN fhA I'm Il
amount of credit. The undue amount Of accommo
dstion given TO the one is just 80 much taken fron
5 the wants of tho others. If a speculator, tor instance
1 can, by the aid of a bank, mouOpoIze q single branci
, Of trade, whom does he injure whlle he IL enrlcliins
[ himself He Injuries tue consumer and among COZ
sumrrs the laburipg man feels it the hardest and I'M
soonest, by iocreasu. IN: price o! the artic!s. Il
Injuries nlso, and perhaps drives out of blala9ss
, that other merchant of mora limited capital, ~h"
for the want Of a portion OF the very aecommo
dation that has bsen granted ~ the large operator
has beeu wholly unable to enter the market as
purchaser. Thess facts, which We use as iIlustrs
!, lions 10 our subiect, oenuot DO ga'ueayed. Ina
| ths practice is wrong cannot be denied, AMI tbs
III, evil must be remedied IL not the senti-aan's o
. a few who are complaining from a sense OF dis
l appointment and injury, bur the demand III I'M
{ entire public. The very stockholders themselve:
should REQUIRE II, else they will find too soon thu
their stock will become worthless in their hands
At present tho circulation of q bank Is three time
5 the amount of the bullion IN ts vaults BUT ms II
not sufficient. II IL no security 10 the depositnrs
&, aud it permits too great an expansion on too small
! specie basis. Ii is so obviously inadequate fur ih'
redemption of the notes Of a bank, that our specia
8 wonder is that such a principle was ever tolerated -
This particular theme is fruitful Of ideas, from which
great profit might bs derived. .
We will not attempt now TO elaborate this subject
but we are Inclined to think that 30 long as We ar
obliged to have banks the rule should be- one third y
oue.four,h Of specie TO the amount OF liabilities whe
Their they BIZ for notes iu circulation, deposits on hant
or otherwise. This Limitation would always sIort
security to the note holders, and they being secure
there could be NO runs on banks, aud therefore NJ
suspensions, while depositors would not take alaru
so long as the note holders remained satisfied.
from tho National In,eligencer.J
THE PANIC.
We feel convinced that ths views Of the writer o
the subioinsd communication from Philadelphia ar
strictly correct, and that there was no just foundation
t for the panic aud alarm which have been prevailing
in our commercial cities, and which have caused tn
suspension of specie payments by 80 many of tn
> banking Institutions.
The principle on which banking business is trans
.o,od ali oyer thp world does not presume the abilit,