The Sun.
London, England, 1838-05-01 00:00:00

UNITED STATES.

'-lent of the United States Bank, has addressed
Mr. Biddle, the Pre... '—ve not room) to the Honourable John
a long letter (for which WP - ~ •
ecte payments, which thus con-
Quincy Adams, on the resumption or ,
eludes : . the Banks ought

" On the whole, the course which in my judgmen..
to pursue is simply this :
" The Banks should remain exactly as they are—preparing to resumt,
but not yet resuming.
" They should begin as the Bank of England did under similar cir-
cumstances, by paying the small notes, so as to restore coin to all minor
channels of circulation, but not make any general resumption until
they ascertain what course the Government will pursue, employing in
the meantime their whole power to forward the crops to market. The
American Bankb should do, in short, what the American Army did at
New Orleans—stand fast behind their cotton bales until the enemy has
left the country.
c;':h great respect and esteem, yours,

" N. BIDDLE."

" Philadelphia, April g, 1808."
NEW YORK MONEY MARKET.
(From the New York Daily Expi7ss of the 9th of April.)
SATURDAY, P,M,—This being packet-day the rate of exchange on
England is established. The market is full of bills from the south,
Canada, and elsewhere. A large amount is also created tieic by the
transmission of stocks to London. Exchange is therefore most .abun-
dant—it opened pretty freely at 103 in the morning, but it soon fell to'
104 to 1041, with a decided impression that it will go lower.
" The loan by the state of any number of millions of state stocks to
our banks will give greater confidence, but at the present moment it
would be very difficult to send the stock abroad and draw against them
unless at a discount that the banks would hardly submit to. By the
last advices Ainnican securities were getting into favour in London,
and unldss the amount sent out should be so great as to be forced upon
the market, there can be no question that they will be readily taken.
At list quoted rates, however, remittance: of stock, if drawn on at
proept rates of exchange, would give a serious loss to the holders."

MONEY and COMMERCIAL MARKET.

perfectly agree with our contemporary of
MORNING Cintoxicr.e.—We
the Times, that the immense amount of the stock of the United States
Bank which is held in this country renders it a matter of consequence
that the state of affairs of that institUtiOn should be always open to
inquiry ; and this we feel convinced is the opiaion of all persons con-
nected with it ; but we protest against the publication of statements in
an authoritative manner, which arc wholly devoid of fouilflation, and
taken, moreover, from journals which can be only classed with the
scurrilous unstamped publications which are hawked about the streets
of the metropolis by ragged boys, the mere ebullitions of ma'ice
Our contemporary accuses us of endeavouring to evade the chief
points of what he himself terms his " attack on Mr. Biddle's Bank ;"
but we think the public will see that we left out nothing but what
we conceived was notoriously known. However, we will now
as easily dispose of the remaining parts as we did the former. The
Times declares that "Nothing is said, for example, of the sus.
picious Conduct of Mr. Biddle, in resisting first, and then endeavouring
to postpone, to return to cash payments ; of his disputed accounts with
the United States government, and the transactions connected with the
re-issue of the notes of the Old United States Bank ; of his involvements
with the various state banks, formerly his own branches, in different
parts of the union ; or, lastly, of his speculations in cotton which are
calling upon him so rauch reprobation all over the United States, and
which, though not specifically mentioned in the attack referred to, have
been dwelt upon on many former occasions, and would naturally have
found a defence, if any could be adduced, when the general credit and
conduct of the bank was to be justified.
1. We have so repeatedly dwelt upon the first point, that we should
have thought it scarcely necessary to have said anything more in refe-
rence to it. The reason Mr. Biddle assigns for having hitherto resisted
the immediate resumption of specie payments is his recolleetion of the
embarrassments occasioned at former periods when this vital and impor-
tant step has been adopted. Whilst the exchange was so adverse to
America that gold was going out of the country, still there were those
who clamoured for a return to cash payments, although the whole of the
specie in the Union would not, perhaps, have paid 10 per cent. on the
liabilities of the banks, and Mr. Biddle resisted the proposition, because
be foresaw that another and almost 'immediate crash would have been
the consequence of so precipitate a step. He now wishes to postpone
the resumption till abundance of gold shall have arrived in the United
States, through the turn of the exchange, and the large shipments of
bullion which have been made by the Bank of England and other parties
here.
'2. The only disputed account between the United States Bank and
the Government is a matter of about 30,0001. sterling, the charges made
by the bank upon the protested bill upon France, which tho government
had drawn for French indemnity ; and in this the bank is precktded by
the Constitution from moving. The bank has repeatedly requested the
Executive to take legal proceedings against them, but this they have
always refrained from doing, notwithstanding that the bill which was
passed by the Legislature about two years since, in reference to the ac.
counts between the government and the bank, left this point, and this
point only, for legal decision. The government declares that the bank
had no right to make the charges, and the bank doclares it was justified
in treating the protested bill of the government in the seine manner as
if it had been on merchants' account. The bank cannot prosecute the
government, but the government can prosecute the bank ; and the only
inference which can be drawn by their allowing two years to pass away
without doing so is. that the legal decision would be in favour of the
bank; but however this may be, there is surnly no plame to be at-
tached to the bank because this one undisputed claim fzstrlains unad.
jested.
3. As regards the re-issue of the notes of the old United States Link,
which does not amount throughout the whole of the United States to
more than 3,000,000 or 4,000,000 dollars, the Bank having possessed
them previous to the dissolution of the old hank, has clearly as much
right to circulate them as long as the public would pass them current;
and to declare that such a step is unjustifiable is only tantamount to
saying no one has a right to make use of a bank note which he has in
his pocket. The notes are the property of the bank, and are currently
received. This, moreover, was only a temporary convenience.
4. We have so very recently entered fully into the question of the
branches of the United States Bank that it would be only taking up the
time of the public with the details, and must refer our contemporary to
our article on the subject, in which we undeniably showed that the
" involvements," as he terms them, were mere matter of account. A
good deal has been said by our contemporary lately of the Merchants'
Bank of New Orleans, but he forgets that this is notoriously a branch of
the United States Bank.

Lastly, we come to the accusations as to Mr. Biddle having speculated
in cotton. To this we are enabled to give an unqualified contradiction,
and declare that the Bank of the United States has never purchased
a single pound of cotton, or entered into any speculation directly
or indirectly. The Bank of the United States has made advances
upon shipments of cotton, but why and when did it do so ? To this
every impartial person must reply, to assist the trade and commerce of
the country at a period of distress and anxiety which had never before
been witnessed in the United States. It was of the most vital import-
ance to the mercantile interests of America that the cotton crop should
be brought forward; it was of equal moment that the cotton should be
received here as a means of liquidating debts; while to the manu-
facturing interests it was likewise requisite it should come to market ;
but such wss the prostration of confidence and credit, that there was
really no one who would or could effect it. The Bank of the United
States stepped forward at this critical moment and placed the merchants
of the United States in a comparatively independent position, while it
enabled those indebted to this country to liquidate their debts in part
or full, and this they have done to an increased extent through the
facility thus offered to them. The Bank of the United States deserves
the approbation not only of the commercial interests of both sides of the
Atlantic, but of the public at large; for had a contrary course been
adopted by this institution, the state of affairs would have really been
frightful, and business of every kind, both in the United States
and in England, would have been completely suspended. We
'repeat that the Bank of the United States has never entered into any
speculation in cotton, or purchased one single pound, the whole of its
operations consisting simply in making advances upon shipments of this
commodity, and paying the difference to the parties when advices were
received of the sale, which can be easily tested by reference to letters
from any person of standing in New York. We have now, we think
shown that we had no wish to evade any point whatever of the " attack"
of our contemporary, and proved, moreover, the untenable character o
the arguments by which he would attempt to malign the management of
a bank, the credit of which it is equally as injurious or ruinous to the
people of England to undermine as that of almost any banking establish-
mer.t in the country at home.

We have one paper, at least a portion of one, from New York, dated
the 9th inst., but it contains nothing of moment. The rate of exchang
was 1041.

TIMES.—By the packet ship Louis Philippe. from New York to. Ha
vre, off Falmouth, a paper of the 9th inst., has been received late in th
day at the North and South American Coffeehouse. It contains aloe
letter from Mr. Biddle to Mr. J. Quincy Adams, in explanation of hi
views on the question of the resumption of specie payments. He recom-
mends the banks, in the first instance, to pay off their small notes, and
urges the impossibility of their resuming on the 10th of May, as pro-
posed, his opinion being, that if they do, they will again stop payment
in theee weeks or a month afterwards. It seems to have been antici-
pated in the private letters of the 4th, that this would be the line of argu-
ment by Mr. Biddle. One of them says—" His (Mr. B.'s) friends affirm
that we shall stop again in ten days, but we have no fear of it. Gold is 2s
per cent. premium, which will be reduced almost to nothing by the re-
sumption, and the difference will be added to the discount which exist
in all other places. United States Bank notes are 334 per cent. dis-
count. The real cause of the great financier's reluctance is his
trading in cotton, for it would not at all suit him just now that our cir-
culation should be restored to a healthy state." A resolution had been
laid on the table of Congress, to the effect that, as the commerce, cir-
culation, aed exchanges of the country were in a deranged
and embarrassed condition, and a portion of the Banks
hail expressed a desire to return to specie payments, at an
early period, it was the duty of the general Government within the
j limits of its constitutional attributes to aid such banks in regaining
I public confidence, and to sustain them in their laudable efforts to fulfil
j their obligations towards the public, and to restore a sound circulating
medium.

The day previous to the packet's sailing the exchange opened at 105,
but owing to the number of bills from Canada, and the soutt ern states
being thrown into the market, the rate declined to 1041, and it was
expected would go lower. United States Bank shares were 1131
There was nothing of any importance new from Canada.

MORNING PosT.—By the New York and Havre packet, Louis Phi_
Lippe, arrived off Falmouth, advices to the 10th of April have been re.
ceived from the first.named place. A great sensation had been created
among the mercantile classes in the northern cities of the Union by the
publication of a letter on banking affairs addressed by the President of
the United States Bankio Mr. John Quincy Adams. The principal ob-
ject of this document is to give currency to the sentiments of the writer
as to the policy or the impolicy of an early resumption of specie pay.
ments. The New York Banks are preparing, as we have before inti-
mated, to redeem their notes in the middle of May, the Legis-
Liture having decreed that unless they do so on or before the
fith of that month, they shall forfeit their charters ; but Mr.
Biddle is of- opinion that such a step cannot be taken with
safety, and this opinion he maintains by arguments which are suffi-
ciently conclusive. The Legislatures of Pennsylvania, Virginia, Ken_
tucky, and other States bays declined to follow the example of that of
New York by requiring that their banks shall resume payment at a
given period; and Mr. Biddle very properly explains that if New York
should be in advance of her neighbours in this respect it will be for the
simple reason that she is compelled to be so by a legislative enactment.
Mr. Biddle puts forth a very triumphant statement with regard to the
position and resources of the great establishment of which he is the
principal Director. It appears that the notes in circulation of
the United States Bank do not, in all, exceed six millions
of dollars, whereas there are, to meet these liabilities,
no less than faur millions of dollars in specie in the
cellars of the institution, and eight or ten millions of funds in Europe.
This esplanation is, of course, given, in order to show that the United
States Bank has, individually, .no cause fir holding back, and that the
course recommended by Mr. Biddle to the other Banks has not been
suggested for a se;fish purpose, but for the convenience and benefit of
the Banks generally. He wishes to make common cause with the rest,
conceiving that the prosperity of the country is identified with its bank-
ing system. Mr, Biddle alludes to the fact of the schemes of the Go-
vernment at Washington being expressly directed against the Banks ;
and states his belief that, in the event of their resuming specie payments,
and being obliged again to suspend, every advantage will be taken of the
circumstance—every effort will be made to turn the popular clamour
against"thern, and to persuade the public that the financial measures of
the Administration have not, after all,been so unwise as many may have

supposed them to be. It is much to the credit of the President of the
United States Bank that he should again impress'upon the minds of his
countrymen the urgent necessity that exists for paying off as promptly
as possible any balance of debt that may remain due from them to their
correspondents in Europe. Such an admonition, coming from such a
quarter, cannot but be attended with a good tact. The resumption
cash payments would in Mr. Biddle'. opinion tend greatly to- retard the
adjustment of this balance. He says, with reference to the question—
whether or not, if a resumption be practicable, the mouth of May is a fit
'me for it:—
_

;:nprcssion is that the mouth of May is a very unfit time. The
resumption, to useful, must be general, and no arrangement can be
satisfactory which rn not include the south-western Statcs. These I
2,C,'
do not think are yet rear to resume. They are straining every nerve
;
to pay their debts. Their croc° are going forward to provide funds in
attire are pledging their credit to
Europe, and at the north the Legis:
raise funds, in order that their peoplenZaY pay their debts. Why should
you repulse them ? All they want is time, They have not yet had the
benefit of a single crop; they may require ent,ltber, and, instead of dis.
crediting them or diminishing the value of their I.:*oduce, or curtailing
their facilities in sending their crops to market, it is b.'tter to help them,
:Ind wait till they are more advanced in their preparati,:ns. May, too,
is not the right time of the year. lt,requires, on an averag,,, about fitly
days to take cotton from New Orleans to Liverpool. Supposing it imme-
diately sold, the usage is, at the end of ten days to give a banker's ac-
ceptance, payable in .two months, so that by the month of May there
would not be actually realised more than the cotton which left New Or-
leans before January, when not more than one-fourth or one-fifth of the
whole crop had been shipped."
nom'. 23iddle remarks that the Legislative body (New York) which pm_
felted th 6 banks for a year it now in session, and in twenty tour hoots'
can extend Uhl' indemnity till a more appropriate season for resuming,
and that there will be Po difficulty in doing this. His recommendation
cannot fail to have great Weight, and we shall not be surprised to find,
on the receipt of the next accounts from the United States, that it has
been acted upon. The Boston banks will not proceed in concert with the
New York banks in resuming so earlv, and they can oever hope to pass
successfully through the ordeal, without the support of the other States.
In our last City article we gave the reader to understand that the
United States Bank had been extensive purchasers of cotton, for so they
have been very commonly represented to be, both on this and the other
side of the water ; but we are assured by several American merchants oC
eminence that such is not the fact, and that they do not hold a single
bale of the article on their own account. Their practice has been, it
seems, merely to make advances to the shippers to a certain extent,
for which accommodation they were remunerated by the payment of
i..terest on the bills given them, and whatever profit may accrue to
them from a favourable rats of exchange. They are precluded from
becoming speculators in produce by the provisions of their charter. The
Exchange on England at New York is quoted dr to 5
.prem., and
United States Bank Shares 113 to A.