The star of the north. [volume] (Bloomsburg, Pa.) 1849-1866, 1857-11-04
SANK xUsrnNsfvxs-.-i1tE REMEDY,

! who have preceded us, with references I
, The banking -eyslem. snd observe how uni
form and concurrent their testimony hai
! been as to The evils flowing from ,pape
currency. Ftom WAsnINGToS, oil down th,
line OF American statenen, there has beeei
an almost uhhroken serions OF bold, vieorou
thinkers, who haSs pointed out The disastrous
consequences of dobaaching The currency of
people, and thus rendering labor al all tine'
the slave and follower el capital. The frs
Bank OF The United Safes was chartered in
direct opposition 10 The opinion and council
OF Jellefson, aud many patriots and states
men of that day. II was justified on the
grounds OF necessity, and each succeeding
renewal OF lis legal life was ae'aldcd and
supported by the same arguments. The
I Sla,s Baking System derived its origin from
The same supposed necessity, and all expert.
ence has demonstrated he Fact that both the
! Bank OF the uuined States, and those OF the
several States, have acted i,jutioHsly upon
all the best interests of Trade, Commerce
and Mauutaclnres by expanding credit 10 an
unw who!esome degree, indncing reckless
speculation, raising the prices of all articles
| 10 be coHsumed, and ending in wide spread
disasIer aad min such as zee have cause to
lament at the present line.
Pne suspens,on ofspecie pay men,s by the
Banks in all parts of The country furnishes
an opportunity for laying before the public
an extract from the message of Governor
JAMES K Polk 10 the Legislature OF Tennes.
see, in 1889, on the sutj ject of Bank susden.
sions. After having shown the causes OF the
financial trouble at that time to have resul.
ted from an inflated paper currency, starting
first with the Banks OF the Eastern cities, he
says:
"Upon the receipt OF the information tha;
some Of the Banks OF the East in little more
than year from their last resumption had
again suspended specie payments, the ques.
lion Immediately arose in the public miud.
what had produced The suspension, aud what
would he the course proper 10 De pursued Ivy
lle Banks OF Tenusssse'
=" AS far as we are informed, the suspen.
sion at the Fast is represented to have arisen
nat ont OF a lack OF power 10 continue spe.
Gle payments, but Of ll.pIeServatlon, under
the form of keeping the specie from being
drained cut of the connlry. Without the
means OF knowing how the iscl may be, il
is Tor asu.pension.ol payment by the banks,
bu' an absolute inabuy TO meet their res
possibilities promptly.
"And whatever may have teen The cause
OF the suspension Of payments by The banks
q! tie Fast it can furnish no sufficient
ground for the suspension OF payment by our
banks, 50 long as they have an ability TO
pay. Like individual debtors, they should
meet their liabilities honestly and promptly
50 long us they are able to pay. Wha, is
the effect II n contrary corrse lie adopted ;
! \ lew oI :he backs nj the Easl suspend, and
represent 10 The public that they are still sol.
! vent, and to so, no, from necessity. but to
/ retain their specie; and following their eX,
! ample, the banks in the m;erior, which are
! also represented TO be solvcn', suspend also
not because they are under the necessity 10
/ 90 so, but simpls because the eastern banks
/ have suspended so that the suspension oI
! the banks in = single city which may have
/ lndul2eG in excessive issues OF bank paper
and bank ctedils, and thus stimulated and
, promoted over.aclcn in lra1e, or which ihay
have ullctior objects in view, is made 10 op
crate as a suspension of payments ny al! The
banks of The country. Surely, il bank sus
2euds in Philadelphia, it is no reason for ou
banks 10 follow The example, unless they
are compelled BY their condition TO do so.
"The apprehension OF The drain Of the
specie can be no sufficient reason, for one
of The conditions OF their corporate privileges
is lhalIhey shall keep themselves at all time
in condition to meet their liabilities, Whel
a suspension of specie paymen's takes place
by banks, their circulation Immediately de
preciaes in value, and The loss falls not ol
the banks, but on the people. The labor O
the country bears the loss, whilst the banks
during period Of suspension, are often do
ing their most ptof,abls business"
The last paragraph Of the above exirac,
worthy OF being pondered a, ibis crisis
When bank commences operations it
with solemn charter-promisc to pay all it
liabilities in gold and silver. Upon the TAI
of that assurance, lis notes are used as Gu
, rency by the community. Not single not
would cross the counter OF a Bank il The gol
and silver feature OF its charter was omiile'
The traders and toilers have no time to III
J qnre into all The minor circumstances b
H, which bank may be surrounded. The
, cannot pause in the midst Of their daily ave
cations 10 examine into all the particulars
a banking system. They look only al tf
9 GomineIt fact hat each and every institute
d issuing currency is obligated TO give in e
:. change for paper promises gold and silve
n whenever demanded, and upon that claus
IS of The charter ol each Bank they rely (
e safely.
. As the Safe in It's sovereign cacaciiy
e guardian and protector of the people h