Northern Times.
Liverpool, Merseyside, England, 1857-10-19 00:00:00

RETROSPECTIVE HISTORY.

THE SUSPENSION OF 1814.—1 n 1314 du ing the confusion
and excitement consequent upon the intelligence of the cap ore
of the City of Washington by the British, the B•tnks of
Philadelphia suspended specie payments, a measure which was
followed by the backs of New York, and by all others through-
out the country. The causes assigned for this action were
that the rigorous blockade of the American ports had prevented
the exporation of produce, and foreign supplies were only to
ho paid for in specie, 'I he importation of foreign goods in the
Eastern States was represented to be vary large, and for many
years there had been a constant drain of coin from the banks
in order to pay for these import's. This drain had been very
much increased by a trade in British government bills of
Exchange which had been extensively carried on, and which
had caused an extensive exportat'on of coin from the United
States. The barks averred that they were compelled to
suspend in order to keep the entire specie capital of the country
from being exported. In reference to this measure, a meeting
of merchants and traders was held at the Coffee House on the
day after the suspension. Thos. M. Willing, chairmen, enl
Rob rt Riclrie, sec. Tt was resolved to sustain the banks and
take their notes as usual. The Committee of D. fence, ap-
pointed to concert and execute 'measures against the enemy
made an address a short time afterward upon the subject, and
announced that the Bank of Pennsy!venia had agreed to loan
300,000 dols. in his own notes, which was commended as a
proof of the patriotism of that insti ution. The suspension
eventually cau,ed a great deal of trouble. The scarcity of coin
for the purpose of business was so general that large n. tubers
of notes fer small sums were issued by individuals. Those
were called '• shinplasters," and were the means of considerable
frauds upon the community. Ihr suspension by the banks in
1814 had led to great difficulties. The passage of the bill to
charter forty-one banks, in 1814, in despite of the Governor's
veto, was a measure fraught with immense injury. The sus-
pension relieved those insti utions from the necessity of
redemption, and, savained by the public determinatiou to take
their r otes as if they r epresented specie, they pushed out
their issues to an extravagant extent. Coin become scarce;
and to meet the public wants, Lanka and individuals issued
notes of denominations as low as two cents. Counterfeiters were
oared rich harvests. ft was a matter of difficulty to distin-
guish genuine notes from those that were fraudulent. The
number of brokers increased immensely, and they absorbed a
large potion of the wealth of the community. For a time
inflation of prices was the consequence. There was plenty of
money, and the temptations to speculation were many. This
state of affairs continued until the establishment of the United
Sates Bank, by act of Congress of April 10th, 1816. Before
that time the ac tinl depreciation of the notes of the banks of
Philadelp'ih'a was from fifteen to twenty p r cen'. ; but finally,
taking the alarm, they began to use prudence, curtailing their
loans and collecting their debts. This measure 'gradually
brought the value of the notes to within seven or eight per
cent of par by the month of July, 1816, but it was ruinous to
the community. The sudden contraction severely tried the
solvency and strength of business people, and produced painful
dis ress and bankruptcy.
RzarmprioN IN 1817.—1 n order to aid in ameliorating the
general distress, Dr. Meese had in 1816 laid before the City
Councils, the plan of a savings bank, to be conducted undrr
corporate authority. A report was made on this subject in
1817, and laid upon the table. In the meanwhile affairs
cut on without improvement, and graduahy growing worse.
About the first of January, 1817, the second batik of the
United States went into operation; being under a penalty of
twelve per cent. per alumni to pay specie on deer rn I. It was
against its interest that it should be the only institu ion which
redeemed its notes. There would have been too heavy a drain
upon it ; and consequently, the first movement of the direc ors
was to induce the other banks to resume specie paymets. Those
institutions were not in eco dition to hones'ly entry cut
this measure. But they trusted to the forbearance of the com-
munity that no demands would be made for heavy draf s of
coin. A committee of the Legislature in 1820 said that this
resump ion, which took place, Fobru•rry 21st 1817 was nominal,
and the members adduced as a proof, the fact, that fur a long
time afterwards, American and foreig►❑ coins were at a premium
over bank notes. By this means, however, the Unirr d States
Bank checked the tendency to draw coin from it, and was
able to sa isfy all demands upon it by payment of the promises
of other hanks. Having effected this much, the loins ty the
national hank began to increase enormously, and in a few
months there were more bank credits than there had been be-
fore the State banks began the work of curtailment. " Good
Times" returned ageiti ; there was "plenty of money," and
the public, relieved of the pressure, were pleased with the pro:-
pect.

THE CONTRAOTION OF 1817-'lB --It was a short respi e,
however. The Bank of the United States went on extending
its loans for a few months, when its officers became alarmed.
They foresaw that there was a possibility of there being a
demand in specie for that portion of the debt for the purchase
of Louisiant, which was in the hands of foreigners, and which
was due in October, 1818. The infletion of prices in
consequence of the over-issue of paper money, it was feared,
would lead to demands of specie for the enhanced value of
China and East India goods. Curtailment was the consequence.
It commenced about the let of October, 1817, and continued
for a year, in which time the reduction of the debt of the
national hank reached, it is said, seven millions of dollars, and
of the State banks located in the city, from two to four
millions more. The consequences were most distiessi,g, and
the ruin cf thousands of persons was the result.
THE PRESSURE OF 1836-'7.—As the community recovered
from the depression business matters apparently revived.
Prosperity seemed to have showered its 1.1 linings on the
country-. The banks expanded their issues, and for a time all
was well. But at length the tide turned, and a pressure
commenced which was made more severe by political causes.
In 1837, a time had been reached in the history of the country,
which was one of great depression and di,tiess. Trade was
dull, thousands of persons needed work, the collection of debts
was a mo,t difficult matter, and throughout the nation there
were indications of suffering and impending bankruptcy. The
opponents of tho national admListration attributed this state
of affairs to what was cal!ed the Treasury Circular or Specie
Circular. This was an order by the President to the
supetintondent and agents of the Land Office, requiting all
purchases of public lands to be paid for in geld and silver.
This poicy diverted the coin from the purposes of commerce
into the coffers of the government, and required frequent
draf s of coin from the banks.

Tea SUSPENION OF 1837.—There was a'so embarrassment
in consequence of over-importations, which required tla.
shipment of specie tr Europe, These causes operating at the
same time caused insolvency and a great " pressure " upon
the communi y. Failures began to take place in 1836 and
the early part of 1837, large banking houses and extensive
mercantile houses going down with a crash. On the 10th of
Nay the banks of New York suspended specie pa)ments—a
meastr.e which was followed on the succeeding day by the
knits of the city of Philadelphia and others throughout the
country. The gres'est consternation prev.ileel, and inanz-
diately thoughts were directed as to the best means of ob-
viating the necessi.y for small eliange. The City Councils held
their regular meeting on the evening of the day of the suspen_
sion. Peitions were {sr stinted, asking thv city to issue notes
.of the denomination of twenty five cell's, fifty cents, and one,
two and three dolors.

THE CITY SHINPLASTERS —The same evening the Fi-
nance Committee reported a bill entitled " An 01 dinanco
for raising supplies and making appropriations for the year
1837," which was immediately pa sed by both branchez. It
made detailed appropriations of money Err municipal services,
and authorised the Mayor to borrow ihe sum of 130,000 dola
in such sums and at such times " as the Consr&t-ee on
Finance should direct—and it provided for the issue of
certificates b.atifing interest at one per cent, and redeemable in
one year. Under this Ordinance notes of twenty-five and
fifty cents and upwards, printed in blue ink, were prepared
and issued, and for some time they formed a very considerable
pattion of the currency. Following the example thus -set, the
Districts of the Northern Liberties, Spring Gardens, Kensing-
ton and Southwark, and a'so the (.ommissianers of the County
of Pniladclphia, Lsucd small notes, thus adding to the ami.unt
of small paper currency in circulation. But theca expedients
did not satisfy the public necessities. Various associations
called Loan Companies, m ny of them voluntary and unchar-
tercel, wets create). They issued large quant'ties of notes of
the d nomination of five, six-and-a-quarter, ten, twelve-and-a
half cents and upwards, and its a short time the city was
burthened with these fit by, and in some, cases fraudulent
promises to pay, Mercantile failures were now too sad'y
prevalent. In New Yolk it was estimated that three
hundred business 4ms broke during the pressure, their debts
amounting to many uni.lions of dollars. In Philade'phia there
were many insolvencies, and from every quarter was heard the
voice of complaint. Rents went down, wages were reduc.d,
prices were low, and the effect upon the general prosperity was
oppressive. Petiti ,ns were sent from this city and other places
requesting President Van Buten to rescind " The Specie
Circular." This he refused to do ; but the suspension having
caused a derangement in the affairs of the Government, a
special session of Congress was called, to meet in September,
by which body no material measure of amelioration was
effected. On the 13 h of Augurs', 1838, the banks of New
York having been compelled by law to resume specie pay-
ments, the banks of Pennsylvania, Virginia, itaryland,
L Delaware, Massachusette, Connecticut, Rhode LOW, Km,.

M. PAtricio de la Essosurt, anther of articles published
in the Paris Presse, has been condemned on appeal and
by default at hladrid to Fevea year.' iunpri,onment and
interdiction of poli ictal rights during that period, fur
instft'ng observations towards the Queen and her busbenO,
subject, however, to the deface which N. Escesura may
make before the tribunal.
" OLD PisLos."—The Charter House has boasted of
many scholars who have sp-ung into eminent men ; among
others, Creshaw, rho poet; Addison and Steele, the essay-
is's ; John Wesley, the religious reformer ; and L )rd Ellen.
boroLgh, the Lod Chief Justice. To the list will surely
be added "Old Phlos." Toe net name Rill be remembered
by Carthusians, whose memories can go beck sums forty
yews or more. They will nut have forgotton the gentle
end thoughtful lad vho wed to stand looking on vsbile
others played, and whose gee eral meditative manner pro.
cured for him the name of " Pieilus,:pher," subsevently
diminished to "Phlos," and occesioraly applied as "Old
Phleo." That young and popular philosopher is the salter
at. whose name the hearts of Englishmen beat with honest
pride. "O!d Phlos" of the Charter House, is Havelock,
the hero of Cawnpore,..-dithencetcm.