The Columbia Democrat. (Bloomsburg, Pa.) 1837-1850, November 23, 1839, Image 2

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    . ...
ann maintains me reception.
It may bo said, that it is no consequence
whence education comes, provided it comes
at ail, l hat may bo Very true ; but it is
n reason why we shonld ipend money
a id time in not being educated, nor is evety
; i! - . i.; ir , , . . i .
ono incuneu o exen inmseii in soiuuae to
this end ; still less, to commence the acqui
e.tion, of what ho is sensible he ought to
' have acquired in youth lato in life, when
ho is generally called on to act, and has no
longer timo to learn. If, as all are agrocd
-we must apply ourselves in youth to acquire
knowledge, because it is difficult to form
the necessary habits afterwards, it is essen
tial that the knowledge to bo gained should
be useful knowledge. It is said that the
practice of laboring at Greek and Latin,
woduces its effect in giving the general ha
bit of industry in learning, and in cultiva
ting the attention, the memory, tho taste,
And what not. That is, as if the man who
it to live by rope dancing were to labor for
tie instruction at the anvil. 1 he same
liboi in modern languages will confer the
knowledge and tho habit both ; the memory
the attention, and the taste, may be cultiva
ted by useful, as well as useless knowledge
.and thus two objects are attained by one
effort. Ho who means to raise cabbages
does not plant pine-apples.
Below we give the dignified and excellent
reply of Governor Porter to a call made up
on him by a meeting held in York, without
id'iatitction of party, for an earlier meeting
of tho Legislature than the time fixed by
law, accompanied by the suggestion that he
recommend tho Legislature to authorize tho
the issuing of certificates of loan of one,
two and lree dollars.
HiwnNOTON, Oct. 31st, 1839
'.To Messrs. 'Jacob Spangler, Jacob B.
Wentz and' Israel Gartner.
I have been honored with the receipt of
your letter of the 21st inst. enclosing the
theresolutions adopted -at a public meeting
held by the citizens of the Borough of
York, on the 10th of October. Tho two
principal resolutions are 1st, that the
vfJovcrnor be respectifully- rcqueeted io con
vene the' Legislature at an- early day, and
2d, that this meeting respecifclly suggest
to his excellency the propriety of ' recom
mending to the legislature the creation of a
-state debt of two millions of dollars, bear
ing an interest of two per cent., per an numj
and that-tho -banks of the common we, ilth
permitted to issue notes of the 'de-novm-nation
one. two and three dollars, to-the .a--rnount
of said loan taken by them.
Tne high respect l entertain lor the gen
tlemen composing this meeting, some of
whom have been long known and honored
with places of trust and-confidence by their
fellow citizens, has induced me to give to
their recommendations and suggestions the
most careful and deliberate consideration.
I am deeply impressed with the difficul
ties, in all our financial operations produced
by the sudden and unexpected suspension
of specie payments by the banks, It can
not'bc doubted or denied, that tho act on
the part of these institutions, connected
with the recent occurrences of a similar
kind has not only disturbed and deranged
our momentary condition, but has shaken
in no slight degree, the confidence of the
people in the banking system itself, or at
least, in the manner in which its operations
hare been conducted. Unhappily the
weight of immediate embarrassment has
mainly fallen on tho poor and the indus
trious the individuals least ablo to bear it
while those persons possessed cither of
credit or of money, have been subject to
little real inconvenience. In this state of
Jhings, I feel as anxious as any citizen can
feel, to extend all the aid in my power to
rtho3e v ho endure the hardships of our pre
sent eituaiion. I cannot however bring my
mind to .the conclusion", that this object
would be promoted by convening the legis
lature earlier than the pcriou' fixod by the
constitution. 0n a subject so vitally im
portant to the people as that of the" curren
cy, crude and hasty legislation, shou'd bo
eeduously avoided. Experience alone a
-safe guide. It would be almost impossible'
to find an instance in the history of govern
ments, where sound and salutary laws have
'had their origin in parties and agitations.
"When legislators take counsel from excite
ment orapprehension, reason and experi
ence aie seldom consulted. Temporary
expedients are resorted to, which are as
likely in tho ultimate tendancy to increase
the evil complained, as to correct it, and
in the end, the same work remains to bo
done, that might have been accomplished
upon due reflection at the .beginning.
These principles are so plain and obvious,
.that perhaps no person can be found in the
community to coptrorort them and they
have been and will continue to be, the
principles by which my course is regula
ted. Without enteringinto the details of the
mode pointed out in your resolutions or if
any other mode suggested to supply the
existing deficiency of small change, it will
lie enough to remark that the suspension of -payments is so recent the inconve
nience wc suffer so little understood, and
o dependant on fluctuating circumstances
to rrnder it extremely difficult if not al
together impracticable, to foim any other
whcnco ins Knowledge came holds, poace
first impression only
It may be proper for mot add, that I
feel cxticmely unwilling to inciV the public
expense, and to out the members m'thn
legislature to the personal incomvenience of
auenuing an extra-session, unless such mea
sures be demanded by the most imperious
requisitions of official duty. For1 the reason
abovo stated I do not conceive tlio present
to be an occasion callinr? on mni to adnni
it. ! . . ... . . . .r-
mis course, anu t must therelorc,
I with the
utmost respect for mv fellow c
itizens of
York who composed this meeting
to acquieaco in its well-meant
I am with great respect.
Your humble servant,
From the Keystone.
Whatever diversity of oninion
vaue me community as to the
... -
causes wnicn nave leu to a second su
...tii .
siou ofspecio payments by the banks,
cannot in our opinion exist any differ
of sentiment as to the imperative nece
of engrafting new, salutary and essi
relorms upon tlio system of banking
Experience and time, those unerring
ers of all human arrangements, havo
clusively demonstrated its radical imps.
lion, and admonish us, most loudly to a
such remedies as the necessity of the
c asc
demands. So lone as tho system shall re
main in statuquo, so long us new sl ue
guirds are not thrown around the intertsts
and well-being of the community, and I so
long as additional and important restr ic
tions aro not imposed upon banKs aiwd
bankers, the spirit of cupidity and the xlu
ay wasto our fairest prospects, and we will I
trive in vain to extricate ourselves Iron
the difficulties in which wo arc floundering
1 o rest upon our oars now, at a crisis sue i
as this, without cfiecting or attempting, ojr
ver proposing a change lor tho bcttir
would be to " sin against light" and uj
proximate to criminal indifference.
mong ine reforms most louuiy caueu. i jr
by tho public interests, wo will specif) a
tew, perhaps the most important.
1. 1 he passage of such laws as mill
increase the liabilities of stockholders n
effectually secure the interest of the not
holders. It would be superfluous to hi
duco roasons in support of a reform
confessedly salutarv and wise, so loudl
called for by every expression of the publi
BILL-HOLDER, we take it, should be
the leading and paramount feature in the
organization of a banking institution, and,
without such assurance engrailed in cm
phatic terms upon its charter, the commu
ity is right in characizing the issue ol pa
per "promises to pay" as a vno ami in
sufferable FRAUD upon them. A the
legislature have it in their power to remod
el', alter and amend all bank charters within
thfc limits of the state, is to be iioped, that
the)' will introduce a clause engrafting this
s&lutvry consumation into each and all of
. I'M restriction of bankissucs ton
specific limit not exceeding double or Ire
ble the amount of capital paid in. It can
not be controverted, that the great and fun
damental error in the management of our
banking institutions, is their almost unlimit
ed over-issue, transcending tho boundaries
of care and prudence, and often exceeding
the amount ofspecio in their vaults as fif
teen to one. To the wildness and excess
of all our banking institutions in this par
ticular may bo traced many, of not all, the
alarming evils that have been inflicted upon
the community. An over-issue of paper
money, such as we Jiavo periodically expe
rienced, of necessity produces a redundan
cy of currency, besides begetting in the
public mind an inflated sense of prosperity
which the sober second thought" invaria
bly dispels. Tho result uniformly has
been, ad always will be, a speedy fall from
their alms of visionary prosperity, into all
the coldness of sober reality. The transi
tion invariably leaves public affairs in the
lamentable condition we now find them.
The certain and 'unavoidable effect of these
enormous issues of bank paper is to banish
all specie from circulation, and render pa
per, instead of the precious metals, the cir
culating medium of the country. Ono of
the first steps of tho Legislature, should
therefore bo, the PREVENTION OF
OVti'R ISSUES, whereby much of the
fluctuation and "stale of glorious uncertain
ty" wo nevr experience will cease, and the
public be protected against tiie worst of
evils, a depreciated ahd in many instances
wholly worthless paper currency.
3. We cordially concur in the depreca
tions already so expensively manifested by
our contemporaries, of the lawless course
pursued by the hawks in declaring and divi
ding dividend, during tl"5 period when
they refuse the redemption of their paper
promises. At such a juncture " NO DIVI
DENDS" should be written in starting
capitals above the tables of the money
changers. This is a doctrine so entirely
based on the immutable principles of JUS
TICE, and a contrary course would bo so
diametrically opposed to every considera
tion of right, that the rigid enforcement of
the law against all who violate its whole
some and salutary provisions cannot he too
earnestly pressed. A number of our bank
ing institutions, acting upon these consider-J
alinns, we have been pleased to observe,
have declined, at their recent meeting to de-
estimate of it, than
J!..!.t.i. ... i . . ... .
uiuiu uinuunus, aim wc presume, will bo
consistent in such a course while the sus
pension lasts. Those, who with tlm nm
hibitory injunctions of unrepealed statutes
staring them in the face, from motives of
cupidity anil tho love of "filthy tcre,"
have yet ventured to disregard them, can
scarcely expect tne leniency of an Execu
live and legislature, pledged to a faithful
administration of the laws, and coming into
ollico with an unflinching determination,
that their dignity and power shall at all
hazzarus be scrupulously maintained1
i diljj, cquai in importance to any
uiav nas ueen suggested, would unquestion
ably bo tho appointment of BANK COM
mis&iuiimcs, either three or live in
number. Ilicso should be clothed with
ample powers, to institute, at all limes,
thorough re-search into the condition of a
our banking institutions, with a view to as
certain their solvency or insolvency. Pru
dence will dictalo that they should bo men
of enlarged views.great practical experience
and undoubted integrity of character. The
state of New York has long since appoint id
suen a supervisory power and it trie weath
ering af the storm by the banks there, while
uur uwu uavu necessarily yielded, proves
any uiing, me emcacy ol audi a power is
abundantly tested. We have not at hand
the law creating this board of commission
ers in our sister state, to ascertain precisely
the powers invested and duties imposed,
dui uo not uoubi mat mucli salutary and
essential information may bo derided from
it. t here, however, the power of appoint
ment is conferred by law upon the Govern
or, subject to the action of Senate, which.
we think would at this time in Pennsylva
ma constitute a safe depository. Petitions
praying the Legislature for tho creation by
law such a board of commissioners, are ex
tensively in circulation, and the prevailing
sBiiumeiii cieany muicates, mat the com
. II.,.. . a
munity looks to our lawercrs for tho a
doption of a measure so confessedly saluta
Wo present these crude sutreestions. not
Dccause nicy aspiro ti any novelty, but be
, o o
cause we Deuevu tncin to embody such re
lorms in our banking svstem, as the public
e.i eney imperative v demands. Them
may be, anil unquestionably aro numerous
oiner uiianires ol an essential character.
which the supniior experience of iheLefris-
lattire will puihans devise and ailnnt.
1'ime must developo these. Jld interim.
vb may uu pcrmiucu to exnress it as our
firm conviction, that the action of the Dem
ocratic members, who compose the ma
jority, will be of a character to promote the
interests and integrity of tho commonwealth
and maintain the " Supremacy of the
Laws. Keyslo ns.
To show tho opinions held in other states
in regard to ctirrency.we publish the follow
ing from the " Charleston Mercury," one of
the most talented papers in the Union. Il
will be seen that light is shining in all di
There could not be a more fitting than
the present to notice the following impor
tant distinction between two currencies.
If wc had au entire specie circulation, the
foreign balance against us in any ono year
would be settled out of that which cons'titu-
ted the whole circulated, and the pressure
would be to the precise extent of tho foreign
demand and no more. Tho effect would
be palpable and instantaneous, having ils
correction at hand in check of speculative
business and tho proportionate reduction of
prices. Willi a paper currency, the foreign
balance, on the contrary, is drawn, the ba
sis of that circulation.
Suppose that our circulation consisled of
120,000,000 of specie, and that from ex
cessive importation or debt thero were a bal
ance of ten millions in cash to he paid a
broad; it would abstract one twelfth of Ihe
circulation and naturally diminish prices 8
1-3 per cent., equal to a fall of about ono
cent a pound in cotton at its common price.
On the other hand let the circulation consist
of $120,000,000 of paper, resting on tho
" safe proportion" of 1-3, or 1-1, 1-5 of
that amount of specie; abstract from this
basis ten millions and you lake away from
the foundation from thirty, forty, or fifty
millions of paper, according lo the degree
of the expansion. One of tho two effects
must follw; either that the circulation should
bo circulated to that ruinous extent, or that
the banks overwhelmed with distrust and
and assailed by panic, should suspend spe
cie payments. Within two years, we have
now seen two suspensions of specie pay
ments, produced by a foreign demand not
probably exceeding the sum supposed a
bove. No w wo take the other side of the nic-
tvjre, Suppose tho balance in our favor and
specie to flow in from abroad. With a me
talic currency, tho circulation would be in
creased ouy to the precise amount impor
ted, and o.f course prices would rise and
speculation be promoted only to that ex
tent. With a paper curroncy, the addition
of ten millions in our stock of specie, is
giving a basis to tho issuo of 3, 4, or 5
times that amount of paper. The fluctua
tions, therefore, of a paper circulation are
from three to five times as great as of a spe
cie circulation, unless wo admit as an es
tablished part of tho system, that banks
may suspend whenever the balance of trade
is againit us.
We shall contider in another article
whether such suspension has not a still more
minous effect upo.i priees, upon isdustry,
and upon national a..d indiudual credit and
-i t .1.- . .t .
quest mo reader s careful examination of
the above,
wnon our Hanks suspended, those who
profess to be tho knowing ones' in finan
cial circles hereabouts, to d us thatthn Nnw
York Banks would suspend as soon as the
next steam packet sailed then it was to be
alter tho election. But both packets und
i.iuuiiuii3 uiiio passcu away, and still no
suspension no intention of suspending, as
appears ny me sutijoinctl extract from the
XNew York Gazette. How's this t Docs
ijotlian moan to persist m her contumacy
anu i;uiiaiiracy i
wui . iuiuuciiuiu menus nave tinallv
come to the conclusion that our Banks will
not conclude to suspend specie payments.
Thoy are quito right. They aro solemnly
assured that they need not havo the least
misgivings about it. They may bet if they
choose though wo do not' advise that, for
ueuing is a oaii uusiness, but we will just
nuuiiii muse wno oei against suspension,
that they are in no danger of losing that
is all. Isn't it about time, however, for our
i nuaueipnia brethren of the press, for each
and all of whom wo entertain very kind
feelings to withdraw some of their hard
sayings towards us poor Golhamitcs, who
nam uone notning in the world to offend
them, but choosinirto nerform nnr nrniinenc!
to the public ? Pray don't bo angry with
us, gentlemen, for askini? the aucnimi. Cm-
nnuiuig couiu uo lurttior Irom us than the
.t. ir. . "
wish io ask n offensively."
We are indebted to the Philadelphia Spir
it ol the Times for the following exhibit of
me staie ol parties in the next Cnn.r.
anu now me probable vote will stand for
i i . ... "ft-0")
Dcms. Fcdx. Cnnlnctml
rtiainc, it
Now Hampshire, 5 o
Vermont, -z 3
Massachusetts, 2 10
Connecticut, 0 0
New York, 10 21
New Jersey, 0 1 5
Pennsylvania, 17 10 1
Delaware. I n
Virginia, i- o
North Carolina, 8 5
South Carolina, 8 1
lieorgia, 0 1)
Louisiana, () 3
I ennessee, C 7
Ohio, 11 8
Indiana, f
Illinois, 3 0
Michigan, 1 0
Missouri, 2 0
Arkansas, 1 0
Alabama, 3 2
Kentucky, 2 11
Rhode Island, 0 2
Maryland, 5 3
Mississippi, (cstimated)2 0
121 111
There is a disputed seat in Illinois
Mr. JJoucLAss (dem.) is unquestionably e-
ccieu nut ihro the fedora contrivance of
the governor Mr. Stewart has the certifi
cate. In Pennsylvan'a, the death of Mr. Tot-
Ttn creates a vacancy. An election to sup
ply it will bo held on the 20th inst., and
the democrat elected will bo in his seat at
the assembling of Congress.
Although the election in New Yoik
State has had a less fortunate result than
many had perhaps anticipated, it neverthe
less affords strong ground for hope, amoun
ting almost to certainty, that the democracy
will carry the state next year. Our pro
gress in recovering the asr-endancy in the
popular branch of the legislature will be
seen by the following statement of its com
plexion during the last tlneo years, as de
termined by the fall elections..
At the election of 1837, the federalists
carried 100 members of assembly, the
democrats only 28 1
In 1838 the federalists elected 82 mem
bers the democrats 40. Democratic gain
of 18 members.
At the recent election the federalists hare
carried 08 members, tho democrats 00
showing a gain of 3 J members since "con
servatism" first broke out.
Tho popular vote indicates in an equal
degree the steady and unfaultering progress
of demociacy. In 1837 tho federal major
ity was not less than 17,000 in 1838 it
was reduced to 10,000 and at tho recent
election it has dwindled down to less than
three thousand !
If the election of members of congress
had taken place this year, the delegation
would have consisted of 21 democrats and
1G federalists, instead of 19 democrats and
21 federalists. In fire congressional dis
tricts, where the federalists carried their
candidates last year, the democrats are now
in the ascendaut.
The New York Courier and Enquirer of
oaiuraay says, "binco Me siispensinn.snuth
of us, the Philadelphia Transportation Line
has, on each and every day brought specie
amounting on an average to at least 30,000
dollars." On Friday 00,000 dollars in spe
cio arrived in lliat city by tho same lino,
and the dealers in tho article are said to de
posite more than thoy fell. It appears
from this that about a million of dollars in
I specie havo been taken from Philadelphia
4 to New York &inco ihe suspension,
r.iiarauicr. in wc mraiiuinc wo wouiil re
"TltUTIl VlTUOL'T rr.u '
Fon Pkksmhnt,
Fon Vicn Piuisidunt,
AND Tlir.
M,hat wo predicted some months inr..
in relation to banks, has now, to a consid
erablo extent, become a matter of hintory.
A general suspension throughout Pannayl!
vania and several, other States, has Uk
place. The frequency of bank suspensioni
is certainly frightful in interest to the pco
pie. as it should be admonitory to them.
from those consequences which immediate
ly hazard the stability of their business and
their fortunes.
It must be admitted that Bankinrr is a
licence of such attenuated precision,
when properly conducted, that but few
comparatively, of the great mass of the peo
ple, can attain to any thing more than a ve
ry limited knowledge of its sinuosities, or
the serpentine movements of Bank Direc
tors, or their fiscal agents. Yet most of
the people have sufficient knowledge to de
termine whether in tho main, those institu
tions pre conducted on principles salutary
to the interests of community or not To
them, therefore, an appeal, under the nro-
senl embarrassed and embarrassing circum
stances of our country, may be proper.
l ho lacihty with which bank charters
have heretofore beon obtained, has increas
ed the amount of nominal (for it cannot bo
real) banking capital to an amount almost
equal to the value of the whole sod of the
United States. And yot, real estate is not
generally a basis of banking operations.
Oold and silver are the only legitimate foun-
dations on which a bank should ever lm
permitted to stand. Tho known amount of
those metals now in the United States, may
be something like one hundred millions.
A sum insignificant indeed, compared with
the amount of fictitious bank stock crsatod
by too thoughtless legislative enactments.
This assumed, how easy for the honest
yeomanry of the country to see that tho in
terest of the people, and the interests of the
banks art antipopal to each other, and that
the timeg whon the people are under tho
greatest embarrassments (the seasons of
bank suspensions) is the time when bank
interests are the most flourishing, No fur
ther evidense is required to establish this
fact, than the enormously increased amount
of Bank dividends during the late suspen
sion. Jf there be, let ihe people become
acquainted with tho long suspension, if wa
remember right, of twenty-nine years of the
Bank of England. When that suspension
Inntf nlapp. in tinnL- tuna n.liniltrwl in hm.
ww 1 . 1 ...... 1 nv uui.i, nu. umiibu v -
insolvent to an immense amount. But, un
like individual insolvents, she had managed
to identify her interests with those of tho
government of Great Britain to such an ex
tent, that if the Bank found a grave, the
British government, as it then existed, was
in dangor too, of passing to the land of for
getfulncss. During tho long time that her
suspension continued, she was able to re
susitatc her capital through the monetary
difficulties she had brought upon the peo
ple; and upon her resumption, hydra like
for the one head that had been lopped off,.
she appeared with ten, icady again to gull
and gore poor John Bull, and all others who
might chance to throw themselves withm
the sphere of her influence.
So too in our own country, cverv sus-
pension but serves to strengthen the ener-, J
:. r t,.i. . -.r,.iiA "
gtto ui nit; uaima iu iuc ijiiho ouiicaoi.... i
upon the interest, tho rights, and the liber
lies of the people, These energies they
fail not to use with all their fearful efficien
cy. And should legislators still continue w
mad policy of multiplying bank capital, at
least without an entire reformation in th
present banking system, the lime cannot b
far distant, when the hie jacit of our conn
try' liberties may bo written by tho gilded
point of some ambitious Cxiar's tword,-
CpyiAllHA DKMOClui