New-York daily tribune. [volume] (New-York [N.Y.]) 1842-1866, 1858-01-06
To m, Senate and assembly:

To the Senate and assembly:
The circumstances in which we meet for the dis.
charge Of our respective duties under the Constitution
are Of more than ordinary interest.
Toward the close Of year marked by general
health, abundance and prosperity, with overdowing
harvests and busy, peaceabe and contented people,
we suddenly found ourselves involved in one of those
financial commissions which unavoidable, and
almost regularly periodical among enerprsng people,
free to pursue every branch Of industry
Confidence the vital breath of trade, which had
been so great and unquestonng, was struck down,
AZ il WERE in an instant and persisted; and undertake
iDgs and engagements of widest reach and range,
based upon its continuance, although backed by un-
doubted wealth and resources forced into quida-
ton. most honorable struggle was indeed MAN.
tanned BY the business community against this calami'
tons alternative But the banks, under ordinary
the helpers of the mer-
chant became, in their turn, dependent upon the
forbearance of their dealers whom, in order to avod
the discreditsble and dangerous resort to suspension
Of specie payments they were obliged, by constant
and stringent reduction of their discounts, TO disap
point Of accustomed supplies Instead OF reciprocal
aid and cooperation, it became strife VINO coua
endure most and longest. The consequence was
Obvious. After many and disastrous failures among
the perchn...-. tuc nuuks themselves followed and
on tbs i4b of October last those of the City OF New
York suspended specie payi ents Inc country panh'
of this State and the banks, indeed Throughout the
United States, with the exception OF t."se VI new
Orleans were swept away in the same vortex. now
far by udiciOus concert of action, and more consd-
crate watchings of the signs of the times the banks
might, by earlier adoption of restrictive measures,
have sverted or mitigsted the calamity-or Whethei
when became certain that unless the sharp and sud
den contraction of the circulation resored to BY the
banks could be arrested, and more liberal view be
made to prevail, commercial credit would be pros
trsted and panic take its placeit belongs not to TINS
place. TO my purpose to inquire. Suffice it To say,
the panic came, and banks alike with individuals,
were pOwerless against it.
II 10 noticeable characteristic Of this suspension OF
specie payments, that it came in no sense FROM and
was not occasioned BY, the bl-holders BY the wise
laws Of this State the bills of banks effect
uay secured, that about their essential value il not
immediate convertibility, no one had doubt. 1t was
the depostors that made the upon the banks which
forced them into suspension 1t was the owners OF the
property that combined to carry of from the depos,
tories which they had chosen for il, and where it had
ceased to represent capital for furnishing discounts
This fact seems TO point in the direction in which
preventive for the future may be found.
In the alarm and confusion consequently the sus
pension urgent appeals were made TO me to convene
the Legislature in extra session in order that mght
consider Of the measures ft to be taken In such an
emergency.
listened with all respect and attention 70 the srgu-
mens for such course addressed to me by the depu
tatons which came 10 the seat OF Government froui
the cities Of NswYork and Albany but without being
moved from my early and steadf.st conviction that
such step not expedient. had tho fullest CON
fdence that both from sn enlightened sense OF duty
and from wholesome fear of the legal consequences
Of prolonged suspension, the banks would make siren.
nous efforts to resume specie payments at the earliest
day, If not unwisey hsrassed or more unwssiy IN
dulged. A judicial opinion from the Supreme Court,
promulgated in the City Of New-York, Quoted the
immediate apprehension Of the banks Of being forced
into liquidation. And the whole business community
pledged themselves to stand by and aid. instead OF
crippline or annoying them II l.. therefore, with the