L. 1.1
VETO OF THE BANK BILL.
7's the Senate and House of kepresen
Salim col the Commonwealth e Penney!
va nia.
Genrutunx :—The hill entitled " An
act relating to Banks, and to provide for the
better government thereof," is herewith
returned to the Senate, in which it origina
ted, without the Executive approbation,
and with the following reasons why chat
sanction is withheld.
This Bill relates to a subject of deep
Anil universal interest to the people of
Pennsylvania; and to its consideration I
have brought at the energies at my mind,
and all the lights that expel ience of up
wards of half a century has furnished. 1
cannot persuade myself that duty or pa
triotism would justify my sanction of its
provisions. Some things contained in it,
I would gladly approve, but I cannot be•
lieve that the penalties imposed on the
Banks, so far as relates to the citizens of
this Commonwealth, ought to be repealed,
or that the issue of notes under the denom
ination of five dollars by the Banks, to
an amount of six millions of dollars, for,
the term of five years, should be author-,
ized.
It would be useless to go into a discus
slim of the causes with have led to the
present derangement and embarrassment
of our monetary affairs. It is enough to
know that they exist, and that our bank
ing institutions, generally, hare been un
able to meet their engagements. We
have had three bank suspensions in less
than four years. The result is an almost
entire destruction of the confidence of the
public in our banking institutions. The
intimate connection existing between our
banks has involved all in one common
fate. Those conducted with prudence
and care, are suffering from the miscon
duct of others. That there are some
great and cardinal errors in the mode of
conducting our banking operations, must
be obvious to all, or those things would
not occur so frequently as they have done.
The public will, seeking the public good,
has required that these errors should be
corrected. That correction, all must be
aware, cannot take place at any time,
without cases of individual suffering and
hardship. These are to be regretted, but
yet ought not to prevent the correction of
greater evils to the public large. The in
dulgence given to the banks, by the reso
lution passed on the third day of April,
1840, which suspended existing penalties
for not meeting their engagements until
the 15th January last, it was hoped would
have enabled them then fully to resume.
When I approved those resolutions. I be
lieved that it was necessary to give the
banks and the people some time to meet
their engagements. That given, how
ever, was greater than I then apprehended
to be necessary, or exactly satisfactory to
the public. But as it was a mere ques.
tion of expediency as to time, I yielded
my assent, rather than run the risk of
having no legislation on the subject. The
indulgence thus given, was dictated by a
spirit of extraordinary forbearance, and
the public fully expected at the time ap
pointed, the banks would be fully able to
meet theirengagements. Such were most
certainly my own expectations. Those
expectations unfortunately have proved
to be groundless. The banks are now in
a state of general suspension, and this bill
is designed by the Legislature as a remedy
for the evil, and a relief to the community .
Let us examine how far it seems likely ti
answer the end proposed.
The principle features of it are, that it
repeals absolutely and unconditionally
the penalties of "forfeitures to which the
banks of this Commonwealth are subject
for the non-payment of their liabilities on
demand, and renders the banks liable, a
natural persons or individuals are, agree.
able to the laws of this Commonwealth
for the payment of their bills, notes ant'
other liabilities; and also, that it authori.
Les the banks for the term of five years of
ter the passage of this act, to issue circu
late, and receive bills or notes of the de.
nomination of one, two, and three dollars
to an amount not exceeding fifteen psi
cent, on the amount of capital aetuall3
paid in. It also provides sundry regula
tions, and imposes certain restrictions up
on the banks. Some of these restrictions
and regulations are wise and salutary, but
many of them are, in my opinion, calcu
lated to produce far more mischief than
good.
In relation to the repeal of the penalties
and forfeitures, and placing the banks on
the same footing of natural persons, it
seems to me, that the b;11 is peculiarly ob
jectionable in several material respects.
It prescribes no time when the repeal shall
cease to be operative, and it serves none
of the special provisions of the law under
which, independent of the penalties and
forfeitures to which the banks are subject,
they may be required to pay their liabili
ties. It seems to me that it would have
been far better, if any law of this nature
is to pass at all, instead of repealing ab
solutely the penalties and forfeitures, to
suspend the law impo.ing them for some
definite period of time.—They would then,
at the expiration of that time, again take
erect without any positive legislation up
on this subject. But agreeably to the
provisions of this bill, they are repealed
forever. Should subsequent events re.
quire their re-enactment, we might be met
with the objection, that the charters are
inviolate; that the provisions of the bill
in question, when accepted, became part
of the same, and that the Legislature poa•
sees no power to re-enforce the existing
penalties so taken off.
Great cautinn • shnuld he exercised in
the postage of laws affecting corporations
ir private rights, and private remedies in
gaol to them. Corporations being crea
urea of the law, and acting only by its
express authority, and being responsible
only in the manner pointed out by the law,
may, by a hasty and considerate altera
tion of the law, the whole operation of
a hick was not foreseen at the time of its
,passage, be ruinously crippled in their ac
tions, or placed beyond the reach of the
citizens who may have dealings with them,
or demands upon them. There are so
many ditlerent modes in which the banks
i of this Commonwealth are connected with
the general interests of the community,
and there are so many legal provisions re , -
plating that connexion, that it appears to
me to be an extremely hazardous experi
ment to say, that so far as respects de
mands against them in their cut porate ca
pacity, they shall be repealed, and the
banks be placed on the footing of natural
persons or individuals. At the first glance
it appears to be plausible, but it may re ,
suit in a manner very prejudicial to the
community or to the banks, or probably,
to both. Without tracing its operations
further, it would relieve the banks from
a serious inconvenience in giving bail on'
suits brought, and on appeals from awards
obtained against them ; although the pop
ular impression is, that it would free them
from no such liability. There may be
other changes which it would effect, but
I shall not occupy any time in following
them out. It would have been perfectly
convenient to have simply provided on
this subject, that so much of any laws of
this Commonwealth as relates to the pen
alties imposed upon the banks, of the for
feiture of their charters, should have been
suspended, leaving all the other laws for
enforcing demands against them untouch
ed. Then all the questions that can re
late to the enforcement of the law; for the
collection of demands against the banks,
would have been provided for, and it
would have been known preeisely what
the condition of the banks was; but not
so under this law which places them in
the same general class with natural per
sons or individuals.
So far as respects the authority given
to the banks to issue and circulate notes
under the denomination of five dollars, 1
beg leave to refer you to my annual mes
sage transmitled to the Legislature of last
year and to the present Legislature, for
my general views. The untoward cir
cumstances which have placed the banks
of this Commonwealth in the present sit
nation, are to lie deeply regretted, and in
no particular more so, than in the ernbar
ra,ments thereby created, in procuring
small sums for the common purposes of
change among the citizens in their vari
ous transactions. The embarrassments
are undoubtedly, in many instances, a se
vere
hardship upon the community, but
the question presented for consideration
is, whether this mode of relief would not,
in the end, be more injurious to the com
munity than the temporary , im.onveni
ence they now suffer. This provision
would authorize the issue and circulation
of bank notes for less than five dollars,
to the amount of six millions of dollars
•Ind upwards, and we might then well de
spair of seeing a dollar in specie iu cir
culation.
NVhatever arguments might be adduced
in favor of a limited amount of small
notes, for a short period, to aid in the re
sumption of specie payments, the force
imf which has not been conclusive upon
ny mind, the amount authorized by this
'till, and the period of time during which
hey are permitted, are, in my judgment,
;neater than can be required by time cxi
‘ency of the occasion, or than the peo
lle of the Commonwealth would willing
y tolerate. The latter part of the same
section ton, for the first time in the legis.
.ation of Pennsylvania, expressly Banc
ions the issue ol post notes. No portion
sf our citizens, so far as I have been in
formed, have asked this at the hands of
•he Legislature; and the policy of issu
ng them by the banks, has been more
!ban rendered doubtful by the experience
if past years, and has been loudly repro
mated.
I have already stated, that the regula
tions and restrictions imposed upon the
'inks, were, some of them wise and salu
tary, and I shall confine my notice only
to some of the principal ones which I con
cider peculiarly objectionable. In the
arst place, this bill pr,tvides that the di.
rectors of any bank, individually or col
lectively, shall not contract any liabilities
to the bank exceeding certain limits; that
is, when the capital stock actually paid in
does not exceed $250,000, the amount of
such liability shall not exceed the one.
sixth part of the aggregate loans of such
bank; and proceeding to provide, that as
the capital of each bank increases in a•
mount, the relative proportion of liabili•
ties shall be increased. At a cursory
glance, this provision might appear to be
a very considerable security to the public
against the monopolizing rapacity of bank
directors; but upon more mature consider•
ation, it will be manifestly fraught with
dangerous consequences. One of the
most grievous complaints against the'
banks of this commonwealth, has been
their over issues and expansions. The di
rest tendency of this provision seems to
me to produce them. lf, for instance, a
bank has made loans to an amount of
8100,000, the liability of all the direc
tors can only amount to one-sixth of this
sum. But should they wish to7obtain
more, they have nothing to do but to in-
crease the extent of loaua to 8200,000, or
to any other sum without limit, and they
can increase their own liabilities to one•
sixth of that amount. It is evidently,
therefore, offering a direct inducement to
expand their circulation, and that too,
perhaps, by loaning their money to un
sound borrowers, or for purposes not
culated to promote the interest of the
lic. 1 cannot, therefore, yield toy assent
to such a provision as this.
The Cashiers of the banke arc special
ly entrusted with all their cash and oth
er property; et by the sixth section of
this bill, they are prohibited from keeping
any private or individual account with
the banks of which they are cnshkr,
It there be wisdom, or additional secmi•
ty to the pubic in this, it is, I confess, be.
yond my comprehension.
A material change in the number of
I votes to which stockholders of banks Fha
be entitled, is almost made. It is provi
ded that every share of stock not excee
ding fifty. shall be entitled to a vote, and
a proportionate increase of votes to the
number of shares of stock held is exten
ded to an indefinite number. By the law
as it stood before, fifty shares of stock
were 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 con•
trol of each bank in the hands of a few
persons, and to enable them to monopo
lize its management. 1 cannot thirgic,
therefore, that this provision is caicul.;
to advance either the interests a the
banks or secure the interests of the pub-.
lic.
This Bill further provides, that
tors hereafter to be elected, in batiks with
an amount of capital stock paid 1.1 not
less than three millions of doil,k,
be holders, in their own right, of
than three thnsand dollars of
of said bank, and exi,a.
portionate qualification, to the &tem.,
elected in all other banks—and I. it;•e,
providing, that persons to be elected 8141.,
Directors in the bank of Pennsylvania
and in the Philadelphia bank, shall he
stockholders to the amount of one the.)
sand dollars, and in the Columbia Bank
and Bridge Company, to the amount of
five hundred dollars. The whole ,ystim,
here proposed to be established, of r ef ! l.-
ring the directors of the several
this commonwealth to be holders of
to so large an amount, seems to me to oe
exceedingly objectionable. It places the
control of the banks, at once, in the hands
either of the rich or of the large suck job
bers and stockholders. So fa..., respects
the country banks in par!.irol.,,it4 ow-ra
tion wiil be a hard one. !I i t , 'mint
to a d:sfraticht, 7 ., , f the
emit
tots in khe t_!,:roo and will event
sally Waco the banks in far less cornpe,
tent tiands than even timie 7.7.7.;;ke
them. The banks are already aristocrat
ic enough without the addition of this,
which is in effect, a property qualification
to their directors. t can see nothing so
peculiar in the character and duties of a
bank director, as to require that he shall
possess from five hundred to three ttioe•
sand dollars of property to quit!l4 him for
it, when no other office in the common
wealth requires a qualification. Nor du
1 know that experience shows that it is a
wise standard to iner.sure a man's intel
ligence or capacity by the GI kis
purse. Nor can I believe that in this en •
lightened age, such a stanc - ad ought to be
adopted.
As respects the State directors in the
banks referred to, it appears to we, that
the interests of the public will be I:qr
more likely to be secured, by the election
of state directors who have no stuck, or a
very small amount, than by the election
of those who are interested in hilving so
large an amount of stock as this Dill re. ;
quires. The stockholders in these sever
al banks are fully represented by the di
rectors, whom they elect theins,l , Is, and
the State, which has nut a full preportion
of representation in the board of Ilirte•
tors, according to the amount of stock
she holds, is supposed, in theory, at le. Itit,
to be represented by the State (11•••,,,,,
elected by the Legislature. Is it .
reasonable therefore, to requ'•-•
those who are to represent the •
of the State, which may sometime:.
verse to those of the stockholders, ; I
also be so deeply interested in repre,
tine the stockholders, who have more ;,;
their fair share of representation aft,- ,41y?
I cannot approve this feature in the Bill.
The provisions in the 18th section, re
quiring the Banks of this Commonvvealili
to issue and pay out none but their own
notes, without the consent of the narti..
to whom the same are tendered ;i• •
ed wholly nugatory, by the exece,g,,,, ~1
"special contracts." Banks can very
easily evade the operation of section
by making a special cootc, w : all
those who deposits money ',Nit"
discounts• -
inent for the same in carrell.. uat,k
or in such manner as they may cliou, ,
specify. It is useless to enact a law,
which can be so easily rendered inn s ,
tive.
The authority given to the Strnk , iolil.
ers of the bank of the United S.uLei, to
reduce its capital from thirty-five to four
teen millions of dollars, has never been
asked for by either the directois, ur the
stockholders of that bank, and in
fora► which this bill prescribes, seems
me, to be unwise and unnecessary. if
the Legislature is of the opinion, as a
great many of the citizens of The coot•
monwealth undoubtedly ara, that the cap
ital of that bank is t. , large, this bill
should have provided imneritively, that
in order to entitle the bank to enjo%
the indulgence which it gives, the capital
should be reduced to such sun as seemed
comparable with the public safety and
public interest. This bill however, leaves
t entirely to the discretion of the stock
udders, whether its capital should be re
keed, and in case the stockholders shall
to make the reduction, then the
ink is to be released from the obligation
onposed upon it by its charter, of making
t permanent loan to the Commonwealth,
'at exceeding six millions of dollars,
old a tem:ioriry loan not exceeding one
million of dollars in any one year, at an
• itecest ii! foor oof cent. The bank is to
:witinue to ,-ploy all its exclusive
tar tite leogill of time tor which it
,as incorporated, and to be released from
this obligation, which at the time of its
creation was considered one of the most
beneficial to the politic contained in its
chatter. 'the bank affects to treat its
charter as a contract between its stock
holders and the State. It has very re
cently succeeded in pleading that con
(roc+, as a protection m:rtinst the provis
ions of die .• , , , 7inu, • . ; .
ed 3d. it, 1340,
court has d Tided, that, unuee toe s
xnd cons:.in . ion, this charter exempted
it from 11w operation of those resolutions
~ ,t the I;• .;• ore, without proof of the
of eank to be bound by those
now it is proposed by this
bill to exte.:t• most liberal boon to the
bank, without sel;jec.— i• fo the laws
and ri! ! die Legislature which
control the other banks of the Common
woa!th.
But in rqation to this section of the
tw.ch more grAva question is pre
sented. The .25th thr, Ist ar
ticle or the coubtitutionot is iS Ciri:1111:1n.
alth provides, that no corporate body
'I Le hereafter ere,ted, renewed, or
with banking or discoolitiog
rivile without six months previous
•', c , .. 'cr of the application for the
:• , manner as may be prescri.
Nor shall any charter for the
purp , , s . ;oresasil, be granted for a longer
pe , .,:d than twenty years, and every such
charter shall contain a clause, reserving
tc, the Legislature, the powrr to alter, re
r4. er the same, whenever in their
is nity be injurious to the citizens
,tritlionwealth, is a nner
• u ti 7',3t no inje3tice shall be dune to
do ! eor i , oeors."
• ~,,c odeil that no notice, such as
is rt.t; b, this section of the Consti
tution, • the act of Ist June, 1839,
pas, ! !i, ••-soance thereof, has been giv
).! r d o the bill now under con.
•r. :lie 17th section of this bill
certain'•
. :4 1 .4.0150 the Bank of the
Uaited Sta; conditions
imposed upon it by the act grant:tg its
charter, and it the provisions of that
44-
uu not come within the letter of the
• 25th section of the Ist article of the Con
stitution, they certainly come within the
intenbion of ;t, which was to give the pub
tic notice of all intended applications for
rre.o in . ); or changing the charters of mu
insihotions. if this section of the
II it. iieestion should be deemed to come
w.thin the section of the Constitution quo
td, it omits the very important provision
,ne Constitution requires, of a res
ervation to the Legislature, of the "power
to alter, revoke ur annul the same," when
fout.l injtnious to the citizens of the Com
monwer.! th, upon thl terms of doing no
injustice to the corporators.
These ars the principal objections to
the form and details of this bill, that pre
sent thomselves to niv mind; and in ad
hi'eon to these, tnere are others, which
yonder this hill, as a measure of re
I L•f, or to the banks or to the public,
oat o ling.. 1 have retained this
t room:rg it to the Legislature,
,s!tie last period when 1 could do'
so, It ttte power of returning it with
rn iojections, for the purpose of ascer
taininit, it possible, the views of the most
enlightened practical business men in the
co , -inuiiity, in relation to its various pro
• visions; snit I speak advisedly when 1
• that if this bill were to becomes law,
questionable wit, one tenth of
ot . • .
It . " Of Ili 1,1
11 . Cely ['lad 1.1-
ute co t i.nc "oaks, or among any par
I. no , ith,tanding the extent of in
our, wt..• the citizens of the
,t, from all (porters, any intel
on who now believes that this
tl t, ttocome a law. When it first
, •, 1 examined it in
• ',ogle provision which promised
to d ive relief to the banks, or to',
neople, and I feel strongly fortified in
wv ronvictions upon the subject, by the
of the opinions of almost all
ab I r.nrcv,
have cipressed opiniott_ i
the Commtrawealth, and engaged in all
pursuits of life.
The present conditi o n el the banks and
the citizens of Pennsylvania is calculated
to awokea our most earnest and serious
ioeration. With an ainplo amount of
rc olirces to meet all their liabilities, and
with the assirance that those resources
are hourly multiplying, our pecuniary af.
fairs are surrounded with embarrassments
and difficulty, and the forebodings of many,
for the future, seem to afford little to cheer
nr to encouraps. I do not myself believe
that their is any real grva.,l for the de- 1
sp.indency that seem.) generally to prevail.
We have met with a slight revulsion of
fortune, and without waiting to estimate'
its true extent, are seized with panic and
ipprdiension. I fear that neither the
.masures ailn:,ted by the Legislature, nor
the ianguage held by many of its members,
is calculated to dispel this panic and ap
prehension. It is one of the incidental
evils of a gov. , ninem. like ours, that not
only the condition of the public, but every
action of those entrusted with the govern •
inent, is liable to innocent misunderstand
ing, or to interested misrepresentation.
The instant a slight disturbance in the
prosperous business or the country occurs,
either from any derangement of the gen
eral laws of trade, or from the misman-.
i agement of the basking institutions of the
country, m from any combination of cau
-1
ses, not easily developed, it IS seized hold,
!of, and made a theme of partizan deck.'
mation, against those who happen to dif
fer in their political opinions from the de
claimer. Truth 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 harrassed and disturbed ; bu-'
siness men checked or driven from their
avocations; the resources of the country
depreciated, and the measures designed
for the relief of the people thwarted, and
r!;(!rred fruitless, What but the operas
• ..,•11 of things as this, could
• ,• .
that the great anti sulisluntial State of
Pennsylvania, with her rich and cultivated
fields—her inexaustable coal mines—her
numerous furnaces and foundries, was on
the verge of bankruptcy --her citizens
within the very jaws of ruin--her busi
ness men of all kinds languishing on the
very point of general prostration and ani
hilation ? It is true that the banks of
Pennsylvania have suspended specie pay
ments, and many of her citizens have, by
engaging somewhat too extensively in bu
!siiios or speculation, become considera-
I bit in debt mid ciAartnssed ; but
with/nibs ibly one or two excep
tions, have ample means to meet all de
mands upon them ; and those of her citi
zens who are emharrased, with few ex
ceptions, have abundance of property,
which may not be convertible instantly
into money, sufficient to pay all their
debts; but the resources of the entire peos
ple of the State, would almost in a single
year, liquidate all the demands that can
be made upon them from abroad- Under
such circumstance as these, communities
must regulate themselves by the same
general rules of wisdom, prudence and
l economy, which never fail to extricate in
dividuals from similar difficulties. The
substantial means of the people of Penn
sylvania to pay off all their liabilities, are
not the slightest degree impaired. The
people of this Commonwealth need noth•
mg but a little time, reasonable patience
under temporary evils; the application of
their own persevering and hardy indus•
try, in producing and transporting to
market, her two great staples, coal and
iron. and the prepitit'.l:; blc;etngs or ilea
yen upon her harvest fields, to replace
them upon that solid footing of prosperity
and independence, which they so proudly
occupied, before they were hurled from it,
by the rash and headlong spirit of specu
lation. Those who, with their eyes open
to these things, will persist that Pennsyls
vania and her citizens have been pereipi..
toted into to the bottom of the gulf of
bankruptcy, must be permitted to cherish
the phantoms of their own creation, and
wait until the common sense of the peo.
ple, and the return of prosperous times,
have convinced them of theirerror. Those
who believe that their own inters_ is or
those of the political party with which
they happen to be associated, will be pro
moted by traducing the credit of the State,
and representing her condition to be one
hopeless indebtedness and distress, must
he allowed to pursue the course which
they have seen fit to adopt, until the un
erring intelligence of the people has de•
tested the deception, and held them up,
to the reproof of all hottest men, fur at.
tempting to practice upon their credulity.
Pennsylvania, like most of the sister
States of the Union, and some of the com
mercial nations of Europe, has engaged
beyond her available means, in trade, en
terprizes of improvement, and specula
tion, but her recuperative energies will
enable her to take the lead of all of them,
• .1 extricating herself from the enibarrass•
• •. • . ll.ir resources
:a.
'fishing au annual s..p . ply, and never can
want a market. The industry of her cit-
izens is untiring, and they love not only
their own State, but its independence too
Avell, to repine at the payment of a few
dollars tax, or the suffering of a tempora
ry inconvenience, to see that State placed
beyond the reach of fruitless demands
made upon her justice, or unanswered
calls upon her honor. A few may be
found, who would persuade them that
their property and industry are to be tax
forever, and who would inculcate the
-mvorthy that those who are
in favor of •r; the faith ant honor
of the State untarnished, are the foev of
the people, but they meet no encourage
ment from the great mass of honest men,
and are justly regarded as faithless or in
terested advisers. On the important sub
ject, public feeling is sound and united,
and will do much to direct the efforts,
and inspire confidence and resolution a
mong our citizens.
Giving to its peculiar geographical posi
tion, the city of Philadelphia is made the
great distributing mart of lot eign and dos
mettle goods and manufactures, for a!
large portion of the Western and South-'
ern states of the Union. This circum
stance has rendered both the banks and
her citizens debtors, to a large amount, to
New Yo•k and the Northeastern states,
and to Europe, and rendered the pur-
chasers of these commodities in the West
and South, in the same manner indebted
to Philadelphia. The moment the banks
of Pennsylvania resumed specie payments
011 the 15th January last, large demands
' upon the banks, merchants and citizens,
of Philadelphia, which had been held in
reserve in New York and the Eastern
States, both on the accoant of the citizens
of those states, and on account of the tor
eign creditors of Philadelphia, were pre
sented to the Philadelphia banks for pay
ment in specie. Nearly eleven millions
of dollars in specie, or specie funds were,
I believe, drawn from the Philadelphia
banks during the nineteen (lays they cum
, tinned specie payments, and immediately
taken 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 some combina ,
Con or understanding among those by
ho in it was obtained, to make an almost
'simultaneous rush upon the Philadelphia
banks, either for the purpose of compelling
them again to suspend, or of restraining
in some way, their general operations.
It is believed that there are large
sums still due from the banks and tit'-
,
zen, th, citlzens of
other stales and to foreign creditors.
der the laws of this Commonwealth, ion.
posing penalties and augmented rates of
interest upon the banks, these demands
will undoubtedly be made, and their et
forts fur 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 people
'of Pennsylvania, the enforcement of the
penalties to which they are subject, may
be safely left in the hands of the people.
So ion; as the existence of the bunks is
believed to be useful, and their general
conduct is such as to deserve and secure
the confidence of the public, they will
not be disturbed, although hourly liable
to the infliction of the penalties which the
laws prescribe. Experience on former
occasions during suspensions, clearly de -
monstrates this. If it be the interest of
the public that the banks should continue
to exist, it is the interest of the banks to.
conduct themselves in such a manner as.
to satisfy the public that such is the Let.
If the public forbear towards the banks to
enforce the penalties, the banks shbuld
doubtless forbear towards the public to pro
duce distress and embarrassment. The
banks can do much by the mode in which
they . treat their debtors, to create or to
diminish our pecu Mary difficult ies, They
have not only a right, bat it is their duty
to exact adequate security from their
debtors; but should they pass them un
reasonably—should they bring to a Sher
iff's sale, and consequent sacrifice, the
property of those who, by a safe and rea
sonable course of treatment, might ha‘ e
paid them, they will peril that public
confidence which under the law is th,
tshield of their protection. In times of
hardship and difficulty like the present,
mutual justice and mutual forbearance
on the part of the banks and the people,
is the great guaranty for the rights and.
interests of Loth. Let the banks of Penn
sylvania therefore act with discretion aml
justice, and they have nothing to tear
from the citizens of this Commonwealth.
But the citizens of other states, and the
foreign creditors to whom I have above
referred, have neither the same interests
nor perhaps the same inclination, in ex
tending indulgence to the banks of this
State, to promote mutual advantage. It
Will be within their power to harass them,
and thus to augment, in a very great mea
sure, the difficulty and embarrassments
u nder which the citizens of this Common
wealth suffer. It seems to me to be the
part of duty, and I can see no injustice
whatever, in protecting the citizens of
this Commonwealth from this impending
calamity. I regret that the Legislature,
after a session of three months, should
not have devised and presented to inc
something that would secure this saleta
ry object. I would most cheerfully ap
prove of any measure that will protect
the banks of this commonwealth from be
ing crippled in their operations. and from
the forfeiture of their charters, by comi•
titnr; of broker., anal sharpel s ut oiler
and to exact the
ties which were originally designed for
the safety and security of the people of
this Commonwealth. Let those person.
having demands against our banks be de
prived of no civil remedy, which can be
afforded by the law; let our courts remain
open to them ; let them recover judgments•
and enforce them by execution, with such
interest as is allowed in other like cases
of debt ; but the penalties which can be
enacted only at the hazard of creating
embarrassment and difficulty among our.
citizens, should be reserved to be enforced
L,y our own citizens, who are so deeply
Hnterested in the consequences. Let
'those who are to feel the effects, judgt
who thus will strike the blow. Such r
law as this, would be a measure of sell
preservation, and could give no jus
ground of complaint to those who wuult
be deprived of no legal right they now
enjoy, and of no privilege, but that of an•l
noying and disturbing their neighbors.
without obtaining any benefit for them
selves.
In all our Legislative acts we shout(
remember, that without encroaching up
on the rights of the citizens ofother States
our first and highest duty is to take care
of the interests of Pennsylvania. This i
expected from us by the people, and les
than this would be an unpardonabl
'shrinking from our duty.
DAVID R. PORTER,
EXECUTIVE CHAMBER,
April 8, 1841,
We never yet knew a dandy that coul
take a hint unless accompanied with a kicli