The Sun.
London, England, 1839-01-11 00:00:00

THE UNITED STATES' BANK,

LETTER FROM NICHOLAS BIDDLE, ESQ., TO
THE HON. JOHN QUINCY ADAMS.
Philadelphia, Dec. 10, 1838.
My Dear Sir—The general resumption of specie pay-
ments presents a fit occasion to close our correspondence
with au explanation of the course of the Bank of the
United States in regard to that subject. This shall be
done briefly and finally.
On the 10th of May, 1837, the banks of New York sus-
pended specie payments, and their example was imme-
diately and necessarily followed by the other banks in the
United States. The country was thus placed in a situa-
tion of extreme difficulty, from which it could be extri-
cated only by instant and vigorous measures for its protec-
tion. The dangers were—the total prostration of its
credit and character abroad--the depreciation in prices of
all its public securities and its staple productions—and, last
and worst, that the defensive remedy of suspension might
be protracted until it became itself a disease. It was ma-
nifest, too, that the calamity had outgrown the capacity of
mero politicians—that the country must take care of itself,
and rely only upon itself—and as, in times of peril, the
voice of the humblest citizen may sometimes be heard
above the tumult, my own personal position seemed to jus-
tify the assumption of instant and deep responsibility. Ac-
cordingly. at the very moment when this national misfor-
tune occurred, immediate measures were adopted to miti-
gate and to repair it. Of these in their order.
1. Aware that the first intelligence of the suspension
would degrade the character of the country, and subject us
to the reproach of bad faith and insolvency, I addressed to
you a published letter, which went to Europe, at the same
time with the news of the suspension, in which I ventured
to pledge myself for the fidelity of our countrymen. In
that letter, of the 13th of May, 1837, I said—" In the
meantime two great duties devolve on the Bank and the
country. The first regards foreign nations—the second,
our own. We owe a debt to foreigners, by no means largo
for our resources, but disproportioned to our present
means of payment. We must take care that this late
measure shall not seem to be an effort to avoid the pay-
ment of our honest debts to them. We have worn and
eaten and drunk the produce of their industry—too much
of all perhaps—but that is our fault, not theirs. We may
take less hereafter, but the country is dishonoured unless
we discharge that debt to the uttermost farthing."
For this purpose—the early and total discharge of our
debt to foreigners—the whole power of the Bank of the
United States was devoted. In such a crisis it was evi-
dent that if resort was had to rigid curtailments, the ability
to pay would be proportionally diminished ; while the only
true system was, to keep the country as much at ease as
consisted with its safety, so as to enable the debtors to col-
lect their resources for the discharge of their debts. For
the same purpose the bank, though entirely out of its
course of business, and in some degree of collision with its
own exclusive interests, assumed an active agency in col-
lecting the debts of the Bank of England, gave every faci-
lity for the recovery of all debts, and stimulated our coun-
trymen to this duty by earnest and constant appeals to their
honour aad their true interest. With what a generous
emulation that appeal was answered you all well know—for
it touched a chord which lies deep in all American hearts. If
the universal distress which pervaded the community could
not be witnessed without a painful sympathy, its melancholy
was redeemed by the high and manly spirit which it roused
throughout the country. For never, on its most glorious
fields of battle, was there displayed a more lofty sentiment
of honour and courage than was then exhibited. The
honest payment of debt—the homely duty of private life,
was elevated by its universality into a sentiment of national
honour, as the whole country in mass pressed forward to
its performance as to some sacred and patriotic obligation.
Whatever could be paid was paid instantly and cheerfully ;
what it was impossible to pay at once, was secured with
ample interest for the delay, with an utter abandonment of
mere selfishness, and a disregard of any pecuniary sacrifice
necessary to fulfil their engagements. Accordingly, the
manner in which the United States have settled their im-
mense commercial debt to Europe, is a lasting monument
of their integrity. No country could have better performed
its duty. Even in the calmest moments of prosperity such
a settlement could scarcely be imagined as was accom-
plished amidst the general wreck and confusion of all its
great interests with which the country was afflicted. The
consequence is that the general credit of the country never
stood higher than at this moment ; far it has now earned
a distinction entirely exclusive and characteristic—that
while the Government of the United States is the only
Government on earth that has ever paid to the last cent.
its national debt, the people of the United States have
discharged their private engagements with an unex.
ampled fidelity—a civil glory this, worth a thousand vic-
tories.
In the midst of these troubles, the character of our in-
stitutions was threatened by a combination of politicians in
Pennsylvania, who endeavoured to establish, as the basis
of American legislation, that a charter or other engage-
ment made by any State legislature, was liable to be an-
nulled by any subsequent legislature and still more
effectually by any political meeting called a convention,
which is only another form of extraordinary legislation ;
and an attempt was announced to carry that dogma into
effect at a convention then approaching. The assertion of
such a right by the State government, to annul all its en-
gagements to foreigners, put forth at a moment when the
eountry was labouring under a temporary inability to pay its
debts, was calculated to destroy all confidence in the in-
tegrity of our American institutions ; and I, theretore, said
to you in my letter, " This must not be. It must be decided
whether this Pennsylvania of ours is a virtuous community
or a mere society of plunderers ; nor will the honour of the
State be relieved either at home or abroad from the stain
which a few small politicians wish to fix upon her, until the
convention adopts some solemn declaration that there is
eo power in this nation capable of violating the sacred en-
gagements of the State authorities. That should be done,
and if any efforts of mine may avail, that shall be done,
fur the honour of this state, for the character of her sister
states, and fir the stability of our popular institutions."
Accordingly, when the Convention met, one of its moat
decided acts was the following resolution, passed on the 21st
of November, 1837
Resolved—That it is the sense of this Convention
that a charter duly granted under an act of Assembly, to
a bank, or QUIDr private corporation, is, when accepted, a
contract with the parties to whom the grant is made ; and
it such charter be unduly granted or subsequently misused,
it may be avoided by the judgment of a Court of justice in
due course of law, and not otherwise, unless in pursuance
of a power expressly reserved in the charter."
The obligation of the State Legislatures to fulfil all their
ongagements made with foreigners—and the anxiety of in-
dividuals to pay their foreign debts, being thus established,
the next care was to enable both to comply with their con-
tracts at s s little sacrifice as • possible. It was due to
foreigners that every debt should be paid—it was due to
ourselves to make the most of our resources in the settle-
ment. Now these resources consisted mainly in the public
I securities, and the staple productions of the country. The
shock
of suspension would, of course, sink both to the low-
•
est point of depression, and it seemed expedient to save them
from sacrifice by two Measures applicable to each.
There can §carcely be any form of Lectulty more safe

f

than the pecuniary engagements of the States. They hay
a most luxuriant soil, valuable products, infinite natural
ad% anfages, untiring industry in developing them. They
have every thing but money ; and for that they are able to
pay, and willing to pay, much more than the less produc-
tive industry of Europe can afford to pay. Their loans
too, instead of being wasted in wars or extravagance, go to
the direct improvement of the borrowing States ; so that
there can be no better application of the means of any Eu-
ropean capitalist than to double his income by American
investments. Yet all these require knowledge—local in-
formation, the means of exciting confidence ; and it was
thought most expedient to establish an American agency in
London, as the common centre and the general support
of all American securities, where, in addition to the ap-
propriate business of the bank itself, all the public and core
porate stocks of the States might find shelter and protection.
In like manner derangement of the currency placed the
staples of the south entirely at the mercy of the foreign
purchaser, who could have dictated the terms of the sale to
the prostrated planter. It was thought proper to avert
that evil by employing a large portion of the capital of the
Bank in making advances on southern produce. This had
two effects ; the first was to provide remittances to pay its
own bonds in England, issued to the New York merchants
in their extreme distress ; for as the Bank could not of
course purchase these staples, it made advances upon
them in the south, receiving in exchange, bills on
Europe. The second effect was to introduce into the mar-
ket a new competition, and thus prevent the uncondi-
tional subjectio❑ of the planter to the foreign purchaser.
These advances were made, not as in past years on tl:e
mere personal security of the merchants—which the con-
fusion of all private credit would have rendered too
hazardous—but on the actual shipment of the produce to an
American house in England, willing and able to protect
American property from the reckless waste with which it
has been too often thrown into the market, with an entire
disregard of all American interests. The combination of
these causes—the application of capital on this side, and
the prudent reserve on the other—have saved to the plant-
ing interest an amount which it is difficult to estimate below
ten or fifteen millions of dollars. I believe, too, that nearly
one-half of the commercial debt of this country to Europe
has been paid by the mere difference between the actual
sales of the securities and staples--and the prices they
would have realized had they been thrown unprotected into
the hands of Europeans. These measures were essentially
of a temporary nature—they were measures of emergency
adopted in the midst of a public calamity, and to be dis-
continued with the necessity which caused them. As soon,
therefore, as the capital and industry of he country had
time to subside into their accustomed channels these opera-
tions were relinquished, and now they have totally and
finally ceased.

3. During these movements it became important to un-
derstand distinctly the course of the Government. In my
letter to you of the 6th of April last, I stated my " con-
viction that there could be no safe or permanent resumption
of specie payment by the banks until the policy of the Go-
vernment towards them was changed." The change was
soon and happily made. On the 30th of May the specie
circular, requiring payments in coin in the land offices, was
repealed by Congress. On the 23th of June the Bill,
sailed the Sub-Treasury, requiring coin in all payments to
the Government, was negatived. In the month of July the
Government agreed to receive an anticipated payment of
the bonds of the bank to the amount of between four and
five millions of dollars in a credit to the treasurer on the
books of the bank—and arrangements were made for the
more distant public disbursements in the notes of the bank,
These arrangements, as honourable to the executive officers,
as they were beneficial to the public service, brought the
Government into efficient co-operation for the re-establish-
ment of the currency, and opened the way to the resump-
tion of specie payments. That resumption accordingly.
took place throughout the middle states on the 13th of Au-
gust, and in many of the southern and western states soon.
after.

5. It remained only to aid some of the south-western
States for the same object. Their activity in extending their
public and private improvements had made them debtor
states, and depreciated their currency by its excess. But
they had abundant resources, and perfect willingness, to
pay—and all that was needed seemed to be a longer period
to recruit their exhausted means—so as to derive from the
approaching crops, by a short anticipation, ability to meet
their engagements. The Bank of the United States has
used its utmost endeavours for that purpose by making ad-
vances to the amount of many millions to the banks in those
states, all of whom will, it is presumed, by the month of
January resume specie payments, and thus complete the
circle of resumption throughout the whole Union.
And now, upon reviewing- the events which followed the
suspension, it is a source of great gratification to see that
all that it was designed to do has been done.
It was proposed co protect the character of the country
from the first shock of the suspension—to effect the honour-
able discharge of our foreign debt with the least samifice of
the property of the debtors..--to vindicate the good faith of
the State Legislature—to discourage all premature attempts
to resume—but by a cautious delay for those states which
were less prepared—accomplish a ur.iversal resumption. All
these are done, and the troubles of the country have hap-
pily ceased.
Of the future, it is difficult to speak ; but in that future
the Bank of the United States will no longer occupy its
past position. The Bank of the United States had ceased
to be a national institution in 1836, and was preparing to oc-
cupy its new place as a state bank, when the troubles of
1837 forced it in some degree back into its old position ; and
it then devoted all its power to assist in carrying the country
unhurt through its recent troubles. Having done this, its
extraordinary duties ceased. For the future, it
o,ls,lleates
this involuntary power. It has no longer any responsi-
bility to the Union. It has no longer any controversies
with the Government of the Union. It nor: desires only
repose, and it will take its rank hereafter as a simple state
institution devoted exclusively to its own special concerns.
I rejoice, too, that this new position of the Bank absolves
me from many cares and duties. In the general confusion
of public affairs during the last two years it has been my lot
to be more prominent than my own inclination prompted,
and often to assume a station which would have better fitted
others. But public calamities justify the apparent forward-
ness they require—as great dangers are best met by defying
them. My task is now ended, and I gladly withdraw from
these responsibilities, carrying with me the only satisfaction
I ever sought in them—the consciousness of having done
my duty to the country as a good citizen.
With regard, yours, Ste.
N. BIDDI;E.

COPY OF AN AUTOGRAPH LETTER
OF THE LATE QUEEN CHARLOTTE.

The following exquisite specimen of a Queen's epistolary
style is said to be genuine
MY DEAR Mits. BOSCAWEN,--I know you are always ready
to come forward in distress, even when not called upon. I
have, therefore, no hesitation in applying to yr kindness of
conveying the small sum enclosed to Mrs. Moor, who I am
sorry to hear is a severe sufferer by the fire at St. J. Thirty
guineas are for herself, and ten guineas to be divided between
the two housemaids. I beg this may not be talked of. I
would willingly give you more, but have many calls upon me
at present. You will also receive a parcel with two silk gowns
for Mrs. Moor, and a small one for the two servants. But
this may not come the same day, unless a good opportunity
offers itself to send it by.
I am glad to hear you have not suffered essentially by the
fright, and trust that our dear Lady Charlotte Finch will soon
recover her spirits sufficient to leave her bed, as jam sure
that remaining in it for any time must weaken her more and
More.
I trust to yr prudence in not naming our correspondence,
and allll7l is the word.
CHARLOTTE.
Windsor, the 24th January, 1809.

TtiE
BREAD TAX.--At length this question is
absorbing the attention of the community. The pinch has
begun to be felt, The Ministerial papers have awakened
from their apathy, and are crying out lustily, calling upon
the people to look to themselves and save the population
from famine, commerce from destruction, and the country
from revolution, by insisting upon an alteration of the Corn-
laws. We are happy to find that the greater portion of the
farmers are now convinced that the Corn-laws are as inju-
rious to them as they are to the rest of the community, and
that they will not join those of the landlords (happily only
a few), who have declared their intention to maintain their
high rents at the cost of ruin to the country. We are
happy to see that the Marquis of Tweeddale and other great
landowners, following the example of Sir Thomas Leth-
bridge, are about to aid the effort to change laws destruc-
tive of commerce, oppressive to the poor, injurious to that
farmer, and beneficial to none but the landowners—and tir,
a few only of them, and to those few but its a small dTree.
—Somerset County Gazette.
'minced in
CWRW DA.—The year 1839 has cow
Carnarvon with an extraordinary circumstance. Without.
any reason assigned, or notice given, tl a lovers of that
exhilarating beverage, Cwrw da, fount?, to their constermt-
tion, that the price hadd risen with tile new year, and that
two-pence was demaned, instead of the ancient price of
three halfpennies. war was the consequence, and the
following was the first Sinners' Proclamation :
" _Harmony Disconcerted, or, Sinners versus Publicans.
" Whereas a combination is entered into by the Publi-
cans against the Sinners of the town of Carnarvon, by ad-
vancing the Cwrw from threepence to fourpence per pint ;
and the latter fancying the former are brined by the Tee-
totallers, the Sinners call a meeting of their large fraternity
from Whig-office and War-office, to meet this evening at
the New Market-hall, to consider this most grievous breach
of their ancient privilege, and to enforce the publicans to
reduce their swipes to its last year's price."—Caritareot
Herald.