The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1857-10-19
Illegal Position OF the 8anA s-Ths Dslirium
Tremens In Finance.

Tremens In Finance.
We publish in another column several commu-
nications in regard to the present position of our
banks, and the course pursued by the Judges of
the First and Second Judicial districts Of the Su-
preme Court, in refusing to grant injunctions
against them, that will not fail to awaken public
attention, and lead men to reflect upon the
present anomalous position OF the banks, the
courts, and the majesty Of the law.
One Of the old red-mouthed loco focos of
1887 gives us rome startling revelations of the
course pursued by the bankers at that time to
procure the passage Of the bank suspension re-
lief act, and q favorable report from the white
washing committee of investigation appointed
by the Legislature at Albany. Another cores
pondent presents startling view Of the position
In which the banks now stand. He looks upon
them as having no constitutional or legal exist
ence, and consequently debarred from suing in
the courts or obtaining judgment-thus relieving
their debtors from every legal obligation to pay.
A third acknowledges the true cause of the
bank suspension to he the action of the Anglo
American banking houses here, who are stimu-
lated by a desire to promote the interest of
their principals in Europe, and not only stop the
call Of specie to this country, but to reinsate the
flow of It's current in the opposite direction. He
looks for fearful load Of suspended paper to be
thrown upon our banks within the next two or
three months, which, had the banks continued
their conservative policy, would have had to be
carried by the foreign bankers
A fourth dissents from the opinion Of the
Judges of the First and Second districts, and
maintains with much plausibility that the act of
lsi9 is a special act, and in no way repeats or
supersedss the provisions of the Revised Statutes.
He also argues that the Judges have erred in
another material point in holding that bank
ought not to be restrained by Injunction, If col
vent, and that the discretion OF the Judge is ex-
pressly limited by the fact of bank refusing
to pay its liability furthermore, that section
eight expressly declares that the Injunction shall
not be removed--even after II Is ascertained that
the bank lie solvent-until the demand Is paid.
The fact that all the banks refuse to pay does
not diminish the turpitude Of the act that would
be criminal In one OF them. A fifth discusses the
law and the determination of the Judges not
to grant iDjunctions from another point Of
view Admitting that they have discre-
tionary power In the premises, he holds
that it can be exercised only after
an examination of each particular case, in
order to ascertain whether the bank is solvent or
not; and that in presuming to give pre-deciaon
upon the policy and expedency of law, rather
than administering IT as they find it, they are
acting upon an unwarrantable assumption Of ju-
dicial power.
Each and all Of these suggestions are worthy
Of deep and mature reflection. As for the usual
proceedings of the bankers In endeavoring TO
procure some legal sanction for their course they
will receive the unqualified condemnation Of the
people 20 soon as the public mind returns to Its
normal condition, and begins to contemplate the
position Of affairs by the light Of true principles
A stay act of the Legislature, even II II could
have been procured under the excitement Of the
moment, would have brought upon them more
severe reactive legislation, az that of 1887 gave
rice 10 the act Of lsi9. The suggestion that the
present position of the banks IL one Of unconsttu-
tional and illegal existence, though warranted by
pre- decision CT portion Of the Judges of the
Supreme Bench, lie a startling one. II this il 70,
then they cannot 20 into court except as defen-
dants, and then they would appear there in form
that would bar them from attaining judgment
In their favor. Have the Judges who
determined not TO grant the injunctions
against the banks, as stipulated by the
law, determined also what course they will pursue
If debtor to bank should plead the present in
solvency Of the bank as barr Can they arrest
the whole course o! justice by q pre-decision
without an examination or hearing? And what
will the suspension Of the payments Of their debts
avail the banks, IL their debtors have the same
right TO Suspend Yet why should they not have
the came rights Have corporations lmmunities
not enjoyed by the individual citizen'
The supposition that the banks having now
suspended specie payments will probably expand
and thus re establish the flow of sptcie out Of the
ccuntry is probably the true view of the future
IL Is an axiom in political economy that an ire