Piesident Irtietla
To the PeOpie qf the United &Wee.
Falb* CiTzings: Defeire nrif arrival
at the Seat of Goverttniont the painful com
munication was tirade. to you by the officers
presiding.over .the several; Departments of
the deep)y tegfetted• - dellth of NVlLLtsin
tuNtiti .I.l.4ttintsox, late 'Presiti , ,nt of the.
ilted .States. :Upon, hitn you bad con
ferred your suffrages for the first office, in
:Our gift,- and had selected as your Chosen
instru metit_to_correct-and-reform-all-suelr
errors and abuses as had manifested them-
selves from time to time 'in the practical
operation - of the -Griverninent. While.
--standing atilt° threshold of this great-work,
he has, by the dispensation of an all-.wise
NthiNence, been ; retnoved • from amongst
tts, and- by the:prOvisions of the Constitu
tion the,efforts to be directed to the accom
lilishing of this vitally important task have
devolved upon:Myself. • .This same-occur
rence has subjected
.the wisdom and - stiffig
• money
.of Qur institutions:toa . neW test. —
_
For the first time in'our. histort the person
elected AO the Vice Presidency of the Uni
led- States,' by, the happening of a •contin;
-gency prOVided-for in the Cionstiintioni- has
had. devolved upon him the Presidential
race. , "The spirit of ; faction, which is di
reedy
s upposed tothe- spirit of a_lofty pa
triutism, may and in'this occasion for as-
Odle-'upon MY administration. And in
succeeding, übtle`tsircumstances siTsudden .
and unexpected, and to responsibilities so
greatly augmented, to the administrational
public- affairs,-I- shall place-:in dot' inteli
'gene% and patriotisM of the people my on
ly sure reliance-, My earnest prayer shall
• be constantlfaddrossed to the all-wise ant:
alltpOwerful.Being who made me, and by
wioise dispensation am called to the high
Office . of President of this .Confederacy.
understandingly - 46 carry out the - prinCiples
of that Constitution which I have• sworn
•• “to protect, preserve, and
. The usual opportunity-whichis afforded
.to a (Thief
.Magistrate upon his induction
tO offide - o(presetitingiin his eountr'ymen
an exposition of the 'policy which wiitild
guide'his adinihistration in' the fOrm of an
_ inaugoral
.a_d_dress,-_nut__having, under the
peculiar circumstances which have brought
• me to the. discharge of the high ditties of
4. yreiiidencettlinU 'nited'StateS'•beeri-atrOrp
i• ed.t.o \ ine, a brief exposititili off the prinei
. pies which will 'govern me-in the, general
—course of, my administration of public of- .
•. fairs would seem to be due as well_ to my;
self -as to you. In regard to -foreign na
lions, the groundwork of my , policy -will
' be justice on our part _ to all, - submitting
_to
injusticerom none. While 1 shall sedu
----lously cultivate-the;relations of-pea Ce-and
- amity-with one •and - all, it will be-my most
imperative duty to see- the honor of the
country-shall sustain no blemish. - With a
view to this. the contlitio - n of our military
defences will become a matter of -anxious:
:solicitude.: The Army, which- has in
• other days covered itself with renown, rod
.the Navy, not inappropriately termed . the
right arm of the public defence„ which has
• spread a light of
_glory.__over the 'American
standard itt. all the waters orthe eartir, -
should be 'rendered 'replete With *efficiency,
In view of the fact, %veil avouched by
history,-that , tha tendency of all human
in
astitutions is to concentrate power in the
-hands of a single mail,' wad - that their Ulti
mate downfall has proceeded from • this
cause. I deem it of the most essential im
portance that a complete separation should
take place between, the purse any the sword.
'• No matter where.or how the public mon
-eys.,
.shaff be deposited ; so long - as the..Pre
sident can exert the power el: appointing .
• and removing, at his.pleasure; the agents : ,
selected for their custody, the Commander
inttO.:Meref_.thelArtny. and .Navy.is_in,fact,
the 'Freseurer.' A permanent and radical
6
change shoutl therelese - be decreid, The.
patronage incident to the Presidential of
fice, already great,: is , constantly inereas;
jog. Such increase is destined to keep
pace sVith the •ffrowth of our population,
until, without a c.
figure of speech, an army
of office-holdera may spread over.the
The unrestrained power exerted bVselfislr
-,iy ambitious men, in order either nr-per
petuate his authority or to hand it over to
swine favorite.as his, successor, may lead to,
the erepleyment 4 -. 811 Ate _means within
his control, to accomplish his object. • The
right to remove from office; while subjec
ted- to - no -juSt \ reatrainti . is - inevitably des.;
tined to produce.a spirit of crouching ser
' vility with the official corps,-which ; in or
der-tit uphold the hand which'feeds them,
%I/Mild lead to 'direet and.active interference
the elections; both Ste -
_and Federal.'
-- Ihrely - subjecting 2 the courskofState legis
' lotion to the ilictattoe of the Chief . Execu;
• . rive Officer, and making the will of that
officer abselutp and supreme. I will, at a
proper time, invoke, the option of Con cess
upon this subject; and shall readily acqu'-
esc'e in the adoption of all proper measures
which are 'calculated to arrest these evils, ,
ordanger hi their tendency. , I will]
remove no incumbent from office , who has
faithfully and honestly acquitted himself •
of the duties of his Office; except in..,e.u.cir
cases where such officer has beep guilty of
aft active p_ar.isanthip;or_byeeeretuieatur
. the less manly c andtherefore the'pirite ob
yeetionable—has given hiiolfieialtiallnenee
rotbe purposes.of.party,"thereby bringing
the patronage of the Government in con Pict
*Mille freedom of elections. • Numerous
removals .may • beeinne necessary under .
this > , rule, These will be , Made by me
through:tit) acerbity of feeling.
have hail; nri,-"eatrae , to eiterislibr indulge
uniliniFfeetinge••tentar*anY,,bet my conk
• duct' be. regulated. by, at profound senee
of what ii r dlin tb• the% eirstry andits.inati,
tutione; nor shall T . .negfeet:tkr aPPly,the
eatne..unbentling ride to ttiose pt. My own.
appointment;, :Freetlartrof Opinion, wilr he
toliiited, the fUll'enjOyinent:Of the right of
sOffeage will be Maintained as birthriglij
of,'Wvery',Atnerican:eitiien;',6o 1" say em 7
Ohntieitily to 'offieiakeerps, "ihne:lar
ando:forilio.”. - ' - , I • hive dwelt tWpcipiej ,
trOn*tlitkritthiee.i,!becanse,:rernOals from'
si*etneeliitelY - Orteite'arlie;`and I would
.414 :,!*:.'nountryinetit'th understand:: the'
priticiplejerthigxecutitra,,aittion,
;p f '.' e
x pitiiiituresokhe- Most rigid
. econennyuthonld be resorted miii, ap one
of itooOliso o Fillilic,.debttiO•iiitte of gclasa,.
• —,---7-7 •;' '
;thef,lienticby the resolutio n s passed on ,t , ai , , ~ n : notesi• for .less an r
• - lite t enl fee Of ha k - ‘'' - di 1' Ili
3d . - "of APrililB4oi9which'-buspencletl e. &Mitre,. Ao the ,'amount of': , ,ei*:l - ,rnillions ' . 4t
jilting penalties lbrikst'ineeting their en- dellarirankiiiiiyards, and . ive might' then
'gagements drilll the 15th -Of January last, well despair tending a dollar of specie in
it Vat hoped *bold have enabled them circulation. '
then:fully to resume: Then I:-approved, r• Whatever 'arguments - might - be. adduced
- these resolutions, I believekit was neces-, in favor of allitnite,d'ainoont,of mall notes,.
sery tico'give . the - hanks'and the - people'eome
.fora short: teeid in the restitription
tithe to meet their engagethents. That of specie_payments, theforee,,of whichltak
'given, - however, - Wee - greOter . --than--1- . then nut been conclusive. upon: troy-raindf:thea
apprehended, to, be' necessary,- or, , ,exectlys mount authorized ° livAkiskal, , ato 1
satisfactory to the public:- -Jim' as it wrs a
-mere question:of expetliency-tts • tittimeil
' yield l d my assent, rather then run the risk
of having no legislation MI t he - Subjeet.- 7
The indulgence thus given, was' dictated
liji - a --- Sphirof'eXtraordinary - forbearantie, - .
and' the - ftfiblic Telly -'expected that .-ac the .
tiine appointed, the - bootie -.W.orchid - Jo fully
able to: meet their engegements.. `Such
were most certainly 'My own expectations..
Those expectations, - unfortunately,- have
proved to 'be:groundless,. The . batiks are
now in-a,-state of-general. suiipetiSicin;.and.
this bill is designed by-the Legislature as a
remedy for the evil, and a relief to the corn- .
ntunity. -, Let us examine hoiy . farit seems
'likely, to answer the end propoeed.".
• '• The priiielpelfeatures of it- - are, - that - . it
repeals. , abeolutely 'and unconditionally the
'penalties .-, and.' -forfeitures; -to which the
banks - of this . Commonwealth are Stibjeet;
for the - non-payment of their liabilities on ,
demand;and renders 'the batlike liable, as
natural persons or_indivicluals . are / agreca
lilt, to the lews'of this contmonreelth, for
payment of their bills, notes and other
-- liqbilities; anCl_olsn; Wet - it authotites - the
banks for the terin of five: years after the
'passage of this act; to issue, circulate, acrd.
receive bills or 'neles of- the denomination
I of one, twooinc.l three;tl6 - 11irs, to an arripuiit
,not exceeding fifteen per - cent. on - the a - -
tnount of- \
• capital actually paid in. - 1 7 '. It 'also
proVides sundry regulations, and imposes
I certain restrictions'. and. regulations upon
the banks. , - 80 me of these restrictions and
,regulations-are wise and-salutary, but-many
ofthem_are„,in..ney....oplition:_caleulatekto
produce far Miechief than-geed: - --- -.
.--.:-In-relation-to the .repeaholthe .penalties:
and forfeitures, and .placing the banks on
the , Same footing . - of.- tie - tit - rill persons, 'it
'.seems to . mc, that• the bill is peculiarly ob
jectionable, in several material , respects.._ It
.Prescribes no time when , this repea tr sa
cease .to be operative, and- it saves none of
the special provisions of.: law--under
I which, inde.peUdent of•the penalties and
forfeitures It) vic Ilia - the - batiks are Subject,
-they may- be required-to pay - theirliabili
tiee. - It -seems to me that it
_would have .
been far better, if any law of This-iiiture°
is-to-pas 6 • at all, instead - cCrepealing disci
:lately the - penalties and - forfeitures; - to - Cita- -
pend the - law imposing 'then ler some de
finite period of time. -They - would then,
at-the expiratioit• of that time, again take,
- effect without any positive - legislation upon
the subject. But,, agreeably' te the p - rovi-•
Mons of this bill, they_are - repealed forever.
Should subsequent - events require their re,
enaetment, we might be met with the ob
jection, that the charters are inviolate; that.
the provisions of the bill in question, when
accepted, becomepart of the same, and that
the Legislature possess no power- to re-in ,
, force the existing penalties so 'taken off. ---.
-,Greet, caution should he-exercised in the
passage -of-laws-affecting torporatione or
private rights, and privete - remedies
.in.re
gard to them. • Corporations being crea
tures of the law, and acting puly by its ex
press authority, and being responsible only
in. the manner pointed out by the law, may;
by a. hasty and inconsiderate alteration of
the.law, the .who'e operation Of which w..as
not forseen•at the Aline - dr its --pessage;-be
ruinously, crippled in their, actions or plac
..ed,'S '' i ii i iiiii the reach or the citizens, who
.. ~ ' may have dealings with them, or demands'
SOTIN TIMER. upon them: There are so Many different,
WAsnixoros, April 9, 1841.
modes in which the banks of this common
'
• ~ . .
wealth are connected with the . general in
,
..--,.......-----. terests of the community, and themare•so
..
l'elo of Ilse Governor On the many legal provisions regulating WM - Cint
Bank Bill. ..• flexion, that it appears to me to be airez 7..
To the Senate and'House of -I?eprescnta • tremely hazardous experiment 0 say, tha t.
~.... . .. again st them in
• ' lives - of the Comnionwcalth of ..Pbin- so far as respeCts demands
~
• • sylvania: ' , - • their corporate capacity, they shall be ,
,
re -
GENTLEMEN t--The bill entitled "an act pealed; and -.the banks- be--placed on the!
relating to Banks
,and to provide
,for the footing of na tural Person:PM: individuals.—
better • government thereof," is herewith At the first' lance itappearito be plausible,
preju
returned to the Senate, in which it origi- but it may esult in a manner very
natea, Without the Eiectitive• apprcbation, -' ""- la
1 . .. I-to the ommunity,-ot :to the banks,
• , ~ , following •• . . •- _
antrWitit - ine - reasons ' Why:that or post
. blito: both. • Witheut -tracing its
operations 'further; it - Weiliriefiere Wit
sanction is withheld.. .
- banks from a serious hiconvenience in gisi-
This bill relatesto-a subject of deep and
-•
universal interest to, the, people of peon-- ing bail, on suits brought , - and'on'appeOls
sylvania; acid to its consideration, I have . fro m *awards obtained on suits against them; I
although the popular impression is, that it I
brought all_ theenergies. of ,my mind,and
all' the liglits.that an experience_ottfp*ards_ _There may
Would - free - thein-froin -no - such --- liability.-1
of hallo century has' furnished: - I cannot • ti -
be-other changes wine it would ;
persuade' myself, that duty or patriotism- effect, lipt I - shall" not occupy any time in
would justify my sanction. of its provi-, - following theni out. It would have been
dons. Some things contained in it, I would perfectly -convenient to have simply pro
glodly apprOve,hut I cannot believe that. vided orrthis subject,-that so much of any
t s e penalti esimposed on the banks, so far laws of this commonwealth' 'as - relates to
1 \ elatoc to the, citizens of this
. n p - penalties-imposed upon the banks, or -the
ealtwought to. be repealed, or .that t common forfeitures''of their 'charters, : should have ,
'been. Suipendeik leaving all the other laws
issue o \ miteri under the denomination of for enforcing demands agiiinict - th em ti n-
fitio dollars the banks, to an account of touched .
nched. • Then all the questions that can
'six millions \qf dollars for a term
,of..five relate to the enforcement of the law for the ,
-years;„flientillsr_al_ftlUirized-i..-------------7-- collection of demands against - the -banks',
--- It ivouldhe useless to 'go into a discus- would have . been provided for, and-it would
sion of . the causes which have' lee) to:the -have been known precisely What thencmc,
Present derangement, and ' embarrassment dition of-the banks was; but: net so under ,
of our monetary affairs. It is enough to this lair, - which places:them - ,in • the. same
knottr.thiit ther'exist and that Our :banking' 'general class with-natural persona or itfilit'' l
Insti4iiono,••gencially:', - haye• been 'unable to vicluels;• , ._,. - -. ••- • ..'''-”" • ' •
meet thrill "engager acts. • We • have had SO far as:respec the authority gtven to
three Bank - suspensions. in kill than four t'the banks to issue and cireulate , noterunder. ~
years.. The xesultici pn .ahnost entire d 6. the denotifinationlof firedollarajbeg leave
etructiumiAtini confidence of the public in , )to tefer.youi to my annual messages, -trans.',
°Ur banking. institutions. The .-intimate mitten to the Legislature of lest yearand to',
connection: 'existing,. between our banks, , the present 'Legielatureifor - iny• general-,
hack inivelvedi Alm: one common fate:— views; :The untoward itirennisitineer 14hiCh , i
Itheee conducted , witty. prudence and care,_ hare 'placed :the' . bids; Of this : do'mtnoti=
'are suffering `fine the.' unsconduct - tf others; Wealth• in their kesent-'nitnitioni_tin tb I
~ b i
That there are - some• great- and - cardinal deeply.regrettedoind iii - no partictulnitnerei l
1 errors in - the. mode of condeetine our bank- So than I. in , ' , the i etebsoasstnentli ithereby-.
Ling operations, must be obvious to all, or ereated; - in•precurint , tintall - arr.tetii•tor tits
thosethinge 'would not oeeur so frequently ' common purptnieci'of change"titiOne - thii;,
as they !have: done.. • ' ' , The! 'public -, will, citizemii -, iii . theiiivarlous, tranit*lblit-
seeking the public *good,' hail reiluired- that,Thetio - entharribeinentattrif anthitibtediri4O,
theec,.errors. ~ should ' be- Mirrected.':: :That minrinstaiMes, , ii - seitere likedshlp trimm the ',
correction , all• Most be .awarti,• cannot take - :ceinnittniCii - - tut kthie-qiiestion
,preeentiiii!:ifor
place at an-y. tinitt 'Wight:Mt- caseirkie indi4: - consideration ,is,: whether this meide•,;of re.!.
vidual masking_ ind: haidehipt: Thestritre lief would;ink:. itf..the'.!endi, - 'be more M.N . '?
to be _regretted, b u t 'yetl - ought : - 4t tol'ine . kinua.' , .to the community then:the temporary'
vent the Correction. Or stviater'etrilailek the' iticsiiivigenckthey 4 no*iiilffo: i lhis . :oo.:
.ptiblip atlarge,-:, The-Indulgence - giVen. , te, - visiero.lvotild . .eittheilze!thelssuing . and - cir
. .
befisedtilounly wise and pa
trinttcconsAffieney will never object tothe:
imp.osftiou'if neCessiary burdens for,nSeful
eti4; an& trtie Wisdom .dictates 'the resort
'cri.,such. means, in order to supply•the de
fieiencies in the revenue, rather than -to
those doubtful expedients; which, ultima
,ting' in .a 'publie debt, "serve to' embarrass
the resources Of the country •and to lesson
-its'ability to: meet rang- greatTernergency:
which may arise. All sinecures should be
abolished. 'Ulte_apPropriatione-shotffil. - b'
direct and explicit, so„ps...to leave as limited
• a share of discretion. to the ,diebursing
agents, as mill N . found compatible with
tha public service. strictsesponsibility
on - the'part - ofiall , the - agents of the Govern=
mentihould he maintained,.and peiiidation
or defalcation-visited with immediate ex
pulsion from office and the most condign
punishment. . •
s'flie public interest also demands • that,
if a war has existed between the Govern
merits- and the currency, it, shall cease.-.
Measures of a . financial - character, now
having the sanction of-legal enactment,
shall be fefilifullyenforced until repealed
6ythejegiSlative . authority., But, I owe it;
to myself to declare that" regaril-existing .
, enactments as unwise and° impolitic, and
In a high degree oppressive.-- I shall
proMptly .. give my sanction to any:eonsti
to tional measure WlfiCh7itiriginating in- Con-
Shall have for its object •the restora
tion of a sound - circulating- medium,rao.Cs
sentially necessary to give confidence in
all the transactions.of life, to seetr:e to in ,
dostry its -just-aml - adequate' - rewards, and
to re;-,establisli ih prilvllle prosperity.. In
'deciding upon tie .. adoption of any such
Measure to' the 'mid proposed, as well as - -
Its Conformity to 'the ConstitutiOn, I shall
resort to theFathers.of :the great Repub
lican • school ft;r advice .and insiruction,lo
he drawn from their.sage views of our sys
tem of Government, and, the light of their
ever glotiouS example. ' _
Tht, _institutions under. Which we live,
my.cminiiYinen, sceure each L perion in the
lickfett - eninyment of his rights: Th - e
speetaele is exhibited to the world of a
Government tleriying, its powers from the
consent of the governed, and having: ha
parted twit only so: much Rower as is
,ne
cessary fir its successful operation': Those
. a re' - , eharg - eil-its 7 ailintmstratioli
should:eAraully abstain, ftoM All attempts
to ettlare the range - of 'powers-thus grafn.
ed fire severai,departnvents of_ the -Gov
ernment; other than by.an-lappeal to the
People for additional-grants, lest by sodu
ing they- disturb,: that . balance which 'the
patriots -and statesmen - w1t0. , -framed-the
Cointtifution designed to bstablish - between
the - Federal-Government amt-- the - States
'composing - the Uition. The observance
of theseralei is enj'oined upon us by that
feeling of reverence and uffeCtion . - which
finds a place in the heartiof every patriot
for the preservation of union and the bles
sings of union—for the .good, of our chil
dren and our children's children, - through
counties's generations. An opprisite course
could not fail to generate factions, intent
upon the, gratification- of'theirselfish Inds;
to give birth to local and sectional jealous
ies, and to ultimate either in !waking
asunder the. bonds . of. union, or in building
up a central systerrt, which would inevita-.
bly end in a Woolly sceptre
. and 'an iron
crown.
In • eon - elusion, I beg you *to be assured
that I 811E11 exert myself to carry. the fore
going principles into practiCe during my'
administration of the GsWernment, .and,
Confiding M. the-proldetingTeare of an ever
watchful and °vet:Ming Providence, it shall
he - my Jiist and-highest duty - to - iireserve.
unimpaired' the free institutions Under
which we live, and traremit-thsm to those
whoi shall_secceed_ me_ in I.lieir__ full-forceand vigor:
elore. ; ,tli; i•I i,,Ai It g'- - 01.4 Tv 4,,:71 - :•P'-•;/,' 41:.-t!!. ..0 . :;1t7 6 10..i9 ti.i . * i 9 Ir.c4:::
riod of time during whicli they are permit
ted,. are ; in my judgment,' greater . thati can
be required by the, exigency. of..the,occa
mon, or than the , people of the' common-
Ir
wealth, would. willingly tolerate. The tat=;,
tet. - part:J:4'th sanie-.-.sttctiOthTtoo•i-fcir-the
first time in'the legislation of P.enitsylvenia,'
„expressly sanctions the issue_of past notes.
No portion of our citizens, as far as I have
been•informed, have asked this at the hands
„et the; Legislatur e; and the policy. of. isso- I
mg thein:by• the banks has been more than
-rendered doubtful-bv_the - experience of.past
years, and, has-been loudly reprobated,
I have already stated that, the regulations
and restrietionalm.posed_ uppn the banks,.
!Were; some Of them, wii§e and salutary,
;Mind I shall - confine my notice onlY._ to' some•
of the principal eves, which I-consider pe
' culiarlyobjeetienable,.. In the 'first,place,
this bill provides that he directors' of any
hank; individually or collectively, shall not
contract any liabilities'to the hank, exceed
ing certain lintits: that is,'ivhen the Capital.
stock ;tetually paid in - does 'not._ exceed.
$250,000, the •amount of, such liability
ahall . nat . exceed - the - o,ne4ix • ilr - part - of the ,
aggregate, loans of such bank, and proceed;
ing to ..provide that. as the capital of each I
i bank increases in amount; the relative Prp
portion of liabilities shall also be increased.
At a aursory.glante; : this provision might •
appear:to• be_ a very considerable security .
to the public 'against the monopolizing ra- .
!wit) , of bank'directors but upon. more
: mature ConsideratiOn; it will be manifestly
fraught with dangerous consequences. • One
„of_tite moat grievotte.:complujotiogttiost the:
'Yanks of this eomiiiatwealth.has been their
over: issues, and" expansions. The direct:
tendency of this provision "seems to me to
• be; to produce - Th . on. if, for instance;
bank has made loans: to an- amount of
$1450,00, 'the liability-of all the- directors
can: only amonnt , to-une;sixtirof - this - sumi
But should they wish -to Obtain more - , , qh •
have_nothing. to do but ..to increase the ex- -
toot of loans to 6200',000, or to any other
sum; without limit, - and they can = increase
•their-own liabilities to one•-sixth of_liiit
amoinit.- - It is evidently;.therefore, "offer.:
tn a- - direct inducement to expand their
circulation,` ndthat, too, perhaps, by loan
ing their -money-to ;unsound --borrowers or_
for p•urpasei•natcalcufated to ifromote the
interests of the_ : public... I ea,nntit,._thereT
fore;, yield say_ assent , to sneh... a i provisiUn
as this... . ;
..:.• - •
.' .
The - cashiers of the banks are bpecially
entrusted - with all their cash and other pro
perty; yet byy, The sixth - section:Of - this bill,
they are prohibited frbm keephig any pri
vate or individual account with the banks
of which they are cashiers. If there be
\ wisdom; or additional security to - the pub
lic in this; it is, I confess, beyond my com
prehension..
A material change in the number of.votes
to which Stockholders .of - banks shall-be en- titled,. is also, 'made. It is provided 'that
every share of stock not exceeding fifty,
shall be entitled tb a vote, and. a propor
tionate increase of. votes to the numbera
shares of stock held, is extended, wan in
definite number.
: By the law os'lrstood
before, fifty 'shares_of stock.-there entitled
to- thirteen votes with a relative proportion
for any number of shares.' It appears to
me, that the effect of this change would be
to Place - the control of each bank 'in the
hands of q few persons, and to enable them
to monopolize its management. Fcan'not
thinkoherefore, that this provision is cal=
culated to advance either the interests of
the banks or seciiie'the interests of the
public.
This bill further provides that directors
'hereafter to be elected in banks with 'an
;amount. of capital stock paid - in — not - lose --
than three millions of dollars, shall be hold
ers in their own right of not less than three
thousand dollars of the stock of said bank; -
and extending . a likeEroportionate quali
fiation to the directorswelected- in all the
4other banks. And further proyiding, : that .
I persons tote elected State Directors, in the
Bank of Pennsylvaniq and in the Ptiltidel
phia *bank, shall be-stockltolders - to the
amount of one thousand tloilars, and in the
COlumbia Bank
,and Bridge company to
the amount - of five: hundred -- dollars. - -"
whole system, here proposedjo -be estab
lished of requiring the directors, of
,the se
veral banks.of this commonwealth to be the
holders of stock 'to , so large tin amount,
seems to me to be - exceeding* objectiona
ble.. It places the control of thebanke at
once in the -hands either of the rich, or of
the large stock-jobbers and stockholders.
So far 'as respects the country banks in
I particular, its operation will be-a hard'one„
It will amount to a disfranchiseinent of
•
some of the most competent and efficient
.
bank directors in , the commonwealth, and
eventually place, the banks in far less com- form and details of this bill; that present
peknt hands,,than even those that now ma-. themselves to my mind; and in addition to
nage them. The banks already aristo- these; there are others which would.render
°ratio enough, without the additiOn of this, this bill as a measure of rehef,-either to die
?which is, in effect, a property qualification, bankr or, to the.public, wholly unavailing.
Cto their directors. I can see nothing so, I have retained this bill without returning
peculiar in the character and -duties of al it to the Legislature, almost to the latest
bank director, as
,to- require that he shall' period when I could do sa, with the power
penes& from *five 'hundred to three thou- of returning , it with - my objections, for the.
saiiddollarref property, - 'to) quality hini 1 purpose of ascertaining,_ if possible, the
for it,- when. no other -office in this corn, vieltor of the „Most-enlightened prectiCal .
menniealthrequites.a similisr qualification. 1 bonniest merlin the community, is relation
Nor do I know thatexperitmce shows, that to its walnut provisions; and I speak ad
'it is a wive- standarti to .'measure "a man's i visedly Whiner say, Ahat if this bill were
intelligence•or capiscitrby.. the length ; of' to become' a laW, it' is qintifiimabl&whether
his purse, Nor can I believe that in this one-tenth of the banks of the, Common ,
enlightened; age; such a standard L ought-tn .Wealth Would' acceprof iteproviaiona.
.be adopted: AR iesPects' the state diree-7 deedaciiii acarcely find ,among.ecther,the
- tore in the. banks referred to; it appears, to . ftiendi or the-foes-of the banks: or among
'Pe, that the 'interests' of the public will be . Amy party, i notwithstanding- the; eXtent of
-
"fer.mere'likely lo.be'securedi by the elec- - with. the citizens of the
Lion of state directions who have.- no sto - Ok s • commonwealth, from 411 . .quartere, any in
'e -
r' a verY' small . amount,' than by ~the eke- titillgentl person who now believee that Ah is
'iion~ofithose-.who are= interested in having' hill ought to beconie a law. - When it wag.
inSiatge - an amouritlotstockes this first presented to me 1 examined it insv'aits
. 'Flue stockholders ;in these Sweat', for ,a single .'provision; which promised
banks atelbily represented by the 6601011er to give relief to ;the bantio, Oito.the.
tors whom they elect - theMselvers, and the' popleond ' , feel strongly.. fortifiedin my
litate,*hich has full= proportion ~ of
rppre.sqlOpoil in; the beard sof 4irectom,,ae f ,
sort ing,to'tlie', amuOtit 'of 'stock she holds',
is supposed, in_ theciy, at least, to be repie
sented.hy. the state directors elected hy,,the
Legislature. •Is ii not uhreasonable, there- -
fore,, :to require 'that ,those who. are, n, re p - .
ledentific_iiittregts cif ih6 state; which may
.B,o4 . ietimes.be,.adverse to those of the stock;.-
- boldersi - shinild - also - be-so-deeply - interested -
Liftikpraeafing . ,tb RthaliOrd eriij 2 W-66-haVO- ,
mote than their fair share of representation
already? I' cannot approve 'this feature' in
the r . .
, The ' , provisions in ihe, 18th section, re- !
quiring4lte.banks of:Odd - commonwealth' to
notes, —
without -issue-inul-pay-,-outnotiebuttheirown- the ceitieit.Of the parties to - whoin
the same are,-tendered ,=is;-=rendered wholly
hugatory'• by ilia exeeptinn of " special
,contracts.". Banks,can very easily evade
Ithe-cperatioW of this section,, by making a
special contract with'all those who deposite
money with them, and; obtain discounts
froin them, to take payinent for the- same
in 'current bank notes, or in - suck, manner
*they. may choose to tipecify, 'lt is use
less. to enact a law, which can be-so easily
rendered inoperative.
The authority given 'to the: stockholders
of the Bank orthe United States, : to reduce.
its.capital friim 35.t0 . ' 14 millions of dol;
fats, has .never been asked for, by either
the,,directors- or ,the stockholders of that'
bank, and in the form which this bill pre--
•peribes; 'seems 'to' trie; to be_ unwise and un
•necessary. If: the -Legislature is of - the
- iipi►iiii►s as a — greatnienreitiiene'or th - e`
commonwealth undoobtedly are, that the
Capital of that bank is' ion large, this bill"
shduld have provided imperatively,. that in
order to-entitle'ilie bank to enjoy- the iridul
genCe which it gives, the capital '.should be
reduCed to such' sum - as seemed compatible
with the'public safety and public Interest.,
This bill, howeirer, leaves it entirely to the
discretion of: the stockholderi whether its.
'capital should, be. reduced, alai in case the
itoekholders slialLehoose to, make the : re- ! .
-ductiOni-Ahen_tlie__lank is to be 'released,
from the obllaetion imposed upon it by"its
charter,•of making a permanent lOan to the
„commonAvealth not exceeding six millions
• fdollai.can4 a le — m - Piiiiiffoin not exceed- .
ing one'inillion.of.dollars,-in any one year,
at - alt interestof 4" per cent,. The bank:is
. to Conti n
loges: fur the length of 'tiine• for winch it
was incorporated; - andto he released from
this obligation, which'et_,the tinie.of, its,
creation was considered one' - of the most
beneficial, fo the_ • public contained in its
charter. - - The bank affects' to treat its
charter as a contract between its stockhol
ders. and ..the_state. _lt. has very recently.
-succeeded in pleading that contract, as a
protection igainst - theprovieions of the. te
sumptioh resolutions, passed . , 3d of April,
A highly aompetentscontt. has de
.
cided, that, under thelaws.and "constitution,
_this charter exempted it from the operation
of-those resolutions of the legislature, With
out proof of the assent of the bank to be
bound by those, resolutionst. and now it is
proposed 'by this bill to. extend a most li
beral boon to the bank, without subjecting
it to the laws and'regulations , of the Legis
lature, which control the other banks of the
m
.commonwealth. -'But in, relation to .thi s
section of .the bill, a uch more grave
question is,-presented. The 25th section
of the Ist article of.the constitution of this
commonwealth provides, that "no corpo
rate body shall be hereafter' created, re
newed or extended with banking or dis
counting privileges,. without six months
previous public' notice of •the applieation
for the same, - in - such-Manner -as shall ,be
prescribed by law. Nor shall any charter, ,
for the purposes aforesaid, be granted for 8,,
longer period than twenty-years, and every
such charter shalrco ntain a clause,-re
serving to the legislature the power. to al
ter, revoke or annul the same, whenever
in their opinion it may be injurious to the
citizens. of the commonwealth, 'in such
Manner however that no injustice' shall be '
done to the corperators . ." .
• his . conceded that no-notice, such as is
-requiredby this sectiot of the constitution;
and the act of Ist June, 'lBB4l, passed hi
pursuance thereof, has been given- in rela
tion to the ,bill now under consideration.
The 17th section of this hill-thiestertainly
absolve the bank of the United States from
some .of the conditions . imposed - uponit,
by the act granting its. - echarter, and if 'the
provisioes of 'that sectioil . dd not cane
within the letter of:the 25th'seetion of the
let . article of the constitution, certain
lytheti
come' within the intention of it, which
-was-0-gitre-the -Public-notice-of -all-inten--
lied -applications _ for . creating. or_ changing
the charters of monied institutions. If this
section of ,the bill in. question, should be
deemed to come within the section of the
constitution Opted, it omits the very im
poitint provision which the Constitution
'requires, of a reservation to 'the Legisla
ture, of the ".potirei to alter,. revoke, or
annul the same," when found injurious to
the citizens of the commonwealth, upon
the . termi of doing no injustice to
_ the cor
,
porstors. .;
. ,
• These are the principal objections to the
' •
evictions upon tle su tojec , h e coin
cjilenOti Pf opinions, of elinoL4 all‘;Prac.
tical Version's Aho, tio far- kuow, have
pinions in all quarters of the
commonwealth, and •engaged in - all pur
suits of life. •
T 'citizens of
condition - cif,' .the banks', and'
the citizens Of. Pennsylranta, is calculated
to awaken -ear most earnest • and: serious
consideration. With an ample amount of
omit. a to meet - all their liabilities a
with - the . asSurarice that those ,reeources are
bodily Multiplying, our pecuniary affairs
are surrounded with einbarrassm.ents.'and
difficult} , and the forebodings of many,,for
the.futurei•Seem'to afford little to cheer or
to. encourage;Tl ao inyielfs
that ther& is. any..real• ground 'for . :_the' dds
pendency that. seems - , :generally to prevail.
We. have met .with, - a slight 'revulsion of
fortune; and without waiting to estimate
its true extent.artiseized. with panic and.
'apprehension.. I fear, that neither ,the
measures: adopted by the Legislatnre, nor
the language ;held. by many of its members
is rcaleidated to 'dispel• this panic and,ap
prehensien: It _is ..one ~of .the_incidental
evils of a government like -ours, that'ntit
only the condition of ihe . public, but every
action of these,, with the govern
inent; is liable le innocent misunderstand
ing, or to' interested misrepresentation.
the instant a slight disturbance 'in' the
prosperous liminess of , the country occurs,
either fromany derangement °Ellie general .
laws of trade, or from Bui•inieinailageMeilf
of the banking . institutions - of -- the country,
or from any combination oreausei; ea
sily developed, it. is seized hold of, and
made a theme of party declamathm against
those
.who happen to differ iti c ilieir politi
cal 'opinions:fro lb -- the - deeliiiineit -- Thitti
is: too often...sacrificed to expediency, and
the welfare of the public made - to yield to
the - private or personal interests- of those
who are contending for, power. By such .
means as these, is. the public mind -harm
sed and disturbed,. - business men- checked
or, diiVen, from vocations-there-
sources of the .Country depreciated and the
ineaeureqesigned for the relief of the. peo
ple thwarted and - rentlerediruilless, What
tint the_e_peyalien- of such a state of - tVings
thiS could have produced the prevalent
impression -that - the great -and -substantial
rState of Pefins3ivatita, with ltcr ric(r and
I ca
mines—her numerous furnaces and-foun
dries, was on the verge of bankruptcyher
citizens - Within - the Very jaws of ruin, her
business mien of ail kinds_ tanguishing,':on
- the-very.point of general prostration and
,annihtlation. -It is true that the batiks of
Pennsylvinia,havu suspended qtecie•pay
-menis—and,many..of her Oitizems
engaging somnivhat too extensively in - bu
qiness or speculation. become considerably
involved in debt and enibarrassment, but
.
her banksovith possibly pne or ,two .ex
ceptions; have ample means' to meet all
the
. demands'upon the, and those of her
citizens who are einbarraSsed, with few
exceptions, have. abundance or property,
which may' not be convertible instantly
into money, sufficient to pay..all their debts,
but the resources of the entire people, of
the 'state would almost in a' single year,
liquidate all the demands.that can be made,:
upon them frOm -abroad: Under such
.cir
comstatices asilicsenommunities.must re
giilate- themselves by the same general
rules of wisdom, prudence and economy,
which never fail to extricate individuals
&Om difficulties; The substantial
means of the people of Pennsylvania; to
pay off all their liabilities. are not in the
slightest degree impaired. • The people of
necd.oothing_b_tit a lit ,.
tie . ' tiiiie - -:- - 4easonable patience' under tem
porary evils-the application of their own
- persevering - and , hardy industry in - produ
cing and transporting to,: • market her two
great staples Coal and Iron, intl the propi
tious blessings of Heaven upon her harvest
fields, to replace them upon that solid foot
ing of prosperity and independence which
they so proudly occupied before they were
hurled' froth it by the rash and headlong
spirit of speculation.. 'Chose who with
their eyes- open, to:_thcse things, will per
sist that Pennbylvania, and lier citizens
have been precipitated into the bottom ,of
the golf of bankruptcy, must be permitted.
to cherish the phantoms of their own crea- .
tion and wait until the coeimon sense of
.the. people„.and the 'return of prosperous
iimes7hatrtimvinced=them of . theirerror. -
'Those. who believe that their own inter
ests, or ihrise of the political party with
*Mali they happen to be associated will'
be 'prompted by traducing the credit of the
state,_endr.represthiting_her condition to be
onnor hopelessinsie_hitedness and .distren,_
must be allowed to pursue thticourse which
they have 'seen fit to adoptoiptitthe uner 7 _.
ring intelligenCe of the people, hei detect-'
etl the deception, and held them .up to the
reproof of all' honest men, for attempting
to practice, upon their eredulity*-Ptinnsyl
vania, like most of , the sister states of the
Union, and some Of the commercial nations
of Europe, his engaged beyond her availa
ble means, in trade, enterprises 61'..imnrove 7 .
,ment, and speculatioN'but her recuperative
energies will enable her to take.the lead'
of all of °them, in extricating herself from ,
the embarrassments which beset her. Her
*resources , are nitature th'at' Seldom fail
itt furnithino an' annual supply { tindAtever
can want a• market. TheinduritrY of her:
'citizens -ialnitiriog. ; and, they love not only
their. °lvo : State, ,but its ; independence too
well to repine'at the paym!nt'ofa few.dol- -
lars..tat,nr the - . sinflerineW temporary.
inconvenieWee, to see that State placettbe
rola the' 'technic fruitless-demands mode.
upon her justice, or-unanswered calls upon
her 'honor,------41--few -may be • found 'Who
•WOuld, ; persuade then). that their., ,pronerty
industry are tw.6e.titeif : liiievei,•:and
Wh - 0 ,tvoulttinculcaw the,t-miworthr
Mont,. that, those who artilitletfoi"of
al'ain
taining the faith and honor Otthe' . ,State un-.
tarnished, are iliereieti•Crthir 'people . ;'• but
they meet with -nci . .:. - erinciiiragement . 'from.
the , graariltafia : of hottest - mien,:lied anti jUat
tie.',faithlesa
sets.. Un ,; this iniportani' 'Subject; publie,
Ebeling` Ss? sontid<and: .- uoitedt.and'Will !dti
Mech . to direct
fid
mice a ndresolution.amoog.our citizens:.
'Owing tilits:pOidiar gpoplOicol nosi
tion;".d* city. Oriihilidelphiiis iftilethe
.
. 7
tstributing mart or foreign_and do- •
Inegiti,‘ - :goods, and manufactures fora large
portion of the Western and Southern states
of the I.lnion„ This. circumstance
•rendercd:•.both the.. banks and, her eitiientf,
debtore to . 'a„litrge amount to . New York . • '.
and the Nortly . ,E . astern states and to En':
rope, and rendered; the puichasers of theii
comniodities in . the West and South; in tlfe
same - manner - indebted - M-Philadelphia - .
' -he-moment-the--I:iaaks.-or-PeOesylvania
resumed specie paymentimi . the 15th Jan- •
tiarY last; large, demands upon . the banks, , •
:merchants -and
been
of Thiladelphii;
which had been held in reserve in New 1. , •
.York and the Eastern States; both on the; '
a - crown rottli - i3'itit - ep a - of - Alio se , s tateiVaW
on account of the foreign creditors of Phil
adelphia were presented to the Philadelphia
banks for.. paynient in specie: Nearly
eleven.. millions of dollars- in specie '.and
speCie * funds, were, I.believe, drawn . from ,
the Philadelphia Lomita, during the nine 7 '
teen days they continued . specie payments;- ,
and immediately takes out of the - state.—
• This enormous sum .so drawn out of the
Philadelphia_ .banks., and the .. .manner, -in .• •
which it was disposed of, strongly leads
us.to the belief that there must have been . 7
some' combination ov.onderstanding among
those by whorit it- was obtained,lo. make . •
almost simultaneous rush . upon . the
Philadelphia batiks, either for the purpose • '
of compelling them again to suspend,-or-of
restraining in some way their general ope
• •. _
' rations.
• It is believed .that there are.large sums
.still - dtie Trent - the" banks and - citizens of
_-_-
Philadelphia, to the citizens of other states,
and to foreign creditors.. Under the laws
of this onimmonwcaltliimposiiig penaliiiii—
aittranymen-ted-rates of 'interest tiport - the --
banks; these demands will undoubtedly be_
'made, and their efforti..for the relief of the
citizens of this 'commonwealth, be fatally
restrained and crippled. , • •
The banks-of-Pennsylvania having been •
established for the benefit of the pecipleof • •
Pennsylvania, the_enforcement of . •the pen- . . •
alties to wfiieh•they are. sebjeet,
- safely the hands -Of the people. • S
y o _
Jong as the existence of ihe
Hared •to.he useful, and: their general con-,
duct -•is such as to deserve and. secure the
confidence of the public, they will not he •
disturbed, although-hourly:liable
fiction, oi.the-penalties_which the laws.
prescribe:•Experience on former occasions,,
duridg • suspensions,l - elearly. demonstrates. -
This... If the interest of - . the - publier
that the - banks should` continue to .exist,
is Ake interest °film banks to conduct theni
selves, in.:such_ a manner -asp satisfy:the
• public that such is the - fact. If the public •
forbear towards Ahe. banks to 'enforce the _ , - - =
penaltieli, the bank's should doubtless for- '
hear towards the public, to produce distress- .
and entberrissment. The banks can do
mulch by the niode in which they treat. .-
- theiridebtors, to create or-to - diminish. our ..
pecuniary difficulties. , They have not on- •
ly a right, but itis their duty to exact ade
quate security from their debtors, but should •
they press them • unreasonably,—should _
they bring to a sheriff's isle and conse
quent sacrifice, the property of those who, .
by a safe and reasonable course of treat
ment, might have paid them, they:will.per- •
il that public confidence. which under the
law is the shield of their protection... 'ln- •
times of hardship and- difficulty like the
lit•etient u mutual justice and mutual forbear- . -
mice on the part of the banks and- the peo-* •
ple, is :he great guaranty for the rights and
interests of both. Let the banks of Penn !!
sylvania therefore act with discretion and "
justice and they have nothing to fear from •
the_citiz_eriCof_this_COmmonwealth. - -But --
the citizens of other States and the foreign •
ereditOrs to whom I have above referred,
Have neither the same interests nor perhips -
the same- inclination, in extending. ,
genet" to the banks of this state; to promote
Mutualady a ntage. • It will be within their '•
power. to harrass them,•and thus• to aug
ment in a very great measure the difficulty
and embarrassments under whiclithe citi- •
zens of this Commonwealth stiffer. It '
seems to me to be the- part of duty, and I
can see no injustice whatever, in protecting
the - citizens of this Commonwealth front •
this impendino'calainity. I regret that the
Legislature after-a session of three months--
should not have devised and presented to
me something that would secure
,this salu-•
tary object: ['would most cheerfully ap,
TWO - YeTif any measure that - will protect the
banks of_.this__Contmonwealthlrom being'
crippled in their operations,
'and front the
forfeiture of-their charters, bycombinations - -
of ,broker atid•shirpereef other states, and
of Etirepe, to-exact:-Lthe penalties which-
_were_originally_designetLfor e_safety and.: .
security of the people ; of this . Common-'
wealth. Let those persons fistring demands •
against our banks be • deprived of no civil •
remedy, which canbe afforded by the ion.'
let our dourts remain - .open fo them,; let' -1 •••
themreCover judgments and enfOrce•them • -
by execution,"with such interest as is al- - •
lowed in other like cases of. debV but
' penalties, which can be exacteitonly at the•
hazard of creating. embarrassment and dill ! '
Acuity among oUr.eitizent., ehould be.re-'_ .
served to be enforced by our own
who • are so deeply interested:in dle
quences." Let those WHO are tcr feel'
effects- judge who thus will-strike the blow.-.
Such a• law as this would. be' e-meastire . or„:
self • preservation, and .could give no just'.
group - ad. -eoniplaint to tho.se_wha•-lould;
lie - deitriediif no legal they itoteed=
joy, •
:Red: of :fiti privilege but that df
ing,tind disturbing : their_neighbork,Without!
Obtaining any49e,fit,for themselves. • • .
In al! :buill4TX alive j iCti .*e' should re='
member, that -Withont encroaching upon
the right-e(Ahe.eitiZene of _cither_States;•;•;•4
'nut first end
.Nigi;*.dtity" ie to take ear4i.of
the; intereste Pennsylvadia. : Thhili(eil; --
:peeled , frerh • us: bY the :tieettle; :arfd* less
thSn- title ivoild . b*sd inipallonable -
log fecan 00duty,: . ,
. . '. DAVID R. 'PORTER.
RAeti7.l*.-I.,Cuesp* . qf
Fit - 13;4144L,•'‘ic , u.5
• Mon:lut.Theyelue of theekpoitei f iiiiii\,
Mobile, for the past year, reaehesihe'latid-,'
'some sum tic $10; 1 7,11p,,.`498; being Op*Srdn:\
of three; 'add . mord: than. the'''.
exportß Ortharlestoti, •a .city mumberiiiit
•tarty thousand inhabitants..
a
M