The Sun.
London, England, 1840-08-19 00:00:00

EVENING EDITION.

BANKING IN THE UNITED

STATES.

The American Papers contain, long after the date of
the discussion (according to the common practice of
American journalists) a full report of the debates on
the Bill for extending the charters of the Columb'en
banks to the 4th of July, 1842, in which several remarks
the
on
principles and statements ol' the practice of
these banks are contained. The common argument in
favour of extension—namely, the distress which it
would occasion—is met by Mr. Peterkin, who is a
Prominent anti-bankist. This distress be denies, as
the macs of the people owe the banks nothing, and
the banks themselves would be the last to distress one
smother. However, he considers the conduct of
these banks to have been so grossly fraudulent, that,
even if a partial distress were produced, it would be
overbalanced by the moral good to be effected by a
Punishment so justly inflicted. These very banks
had, within six years, three times suspended specie
payments, depreciated their stock and notes, and at
tills depreciation, at a discount of from 10 to 50 per
cent., the directors had repurchased them. Four
gmes, said Mr. Peterkin, bad the " swindling doings"
of these banks been recognised by Congress, and now
t aey were again the object of sympathy with certain
legislators. He said that during the Session of 1837-8
he
examined into the condition of the Columbian
banks, and, though founding his views on ex parte
statements of the banks themselves, he was then
satisfied they were a rotten profligate concern, unable
to Pay their liabilities, and imposing upon the public.
The amendments submitted by Mr. Peterkin were,
that the president and directors of each of the banks
should he liable for the bank debts, chat they should
slot declare dividends while unable to pay their liabili-
ties in specie, and that justices of the peace should hare
Jurisdiction in actions against the banks for sums less
"so $lOO. Mr. Vanderssuel opposed the extension, on
the ground that Congress ought to set a better example
to the states than to sanction open delinquency. He
contrasted the position taken by banks and that taken
11 individuals, and pointed out the advantages so
aejustly assumed by the former. Thus an honour-
able merchant during a period of ernbarrassmeat
Would sacrifice the largest sums to preserve his credit,
but banks suspended payment directly it became a
little inconvenient to make them. Mr. Vanderssuel,
regarding the measure as a deliberate sanction of abuse,
ingeniously brings forward an opinion urged by those
or the opposite party, that it is the duty of Congress to
reitulate the currency. The rechartering of banks,
Which arc daily in open violation of the law, which al-
though they cannot pay their liabilities, make dividends
While in a state of suspension, would be a strange
method of regulating the currency. Mr. Steenrod,
another opponent of the measure, saw in it nothing but
agrant of a privilege to the banks to hoard up the pre-
. "a metals in their coffers, and to issue valueless
paPer„ Then the argument used by the Whigs
en the occasion of the Sub-Treasury Bill, that the
measure introduced one currency for the Govern-
Thent and another for the people, was introduced
'With good effect, as it seemed singular that the
a%lne parties who were so startled at the Government
receiving its dues in gold and silver, should be perfectly
Willing to allow the banks to retain gold and silver,
and d."al in paper. One of the most favourite
argurnen,-4 in support of the banks is this prac-
tical advantage—the facilities they afford in the con-
struction of works. To meet this, the history of
America from 1788 to 1804 is cited. At this period
banks were unknown in State legislation, commerce
Was never greater, there was no inconvenience in the
'transportation of money from point to point, and the
tcredit of merchants was far higher than that of the
banks in the present day. Another Member of the
ouse of Representatives finds his arguments against
the extensinn in the history of these banks. An Act
Was Passed in May, 1820, extending the charters of such
of them as paid specie, and only so long as they should
continue to pay specie, to June 1, 1822. In March,
1821, they were extended to 1836 , and again to 18:38.
On the expiration of their charters in this year, they
Were again renewed to July 4, 1840, on condition of
redeeming all their votes of $5 in specie, after August
1, 1838, and resuming specie payments in full before
isinuary 1, 1839. Now, as these are conditions prece-
dent, and have not been complied with, a request for
further extension is regarded as an act of the greatest
audacity. In 1821 there were 11 banks in the district of
Columbia, the capital of which amounted to $5,214,641,
and lour of these, the capitals of which amounted
to $1,994,694, have failed. Without any exact basis
for calculation, it is roughly computed that the peop!e,
iiat the district lost by those four banks above $1,700,000
'in the shape of capital, circulation and deposit. The
Capital of the other seven was originally $3,279,629.
elf which they have severally purchased up $1,258,887,
aid hold in pledge for debts $205,488 700., which
lea.ves their actual capital less than one-third of that
with which they first commenced operations. The
speaker very properly dwelt on the bad practice of a
bank buying in its capital, and advancing money on its
''avin. shares, Obviously vicious as is such a system, it
'tis known to exist even in London, where Directors
some Joint-stack Banks have expressed a willingness
to
„14'..1',e the shares
of the institution as security, not
e,
• d "31aerirgr that this is but allowing the proprietors to
praur haeCthe:r capital, and thus t 4 destroy the gua-
:tee which the prospectus of the institution offers to
'
he public.
those discussion' are important, as well for showing
some
of the cogent reasons for which the extension of
the Columbian banks was refused, as for the facts and
°Ptm°las that are elicited, which must be highly inte-
-1,4%4'g to all who watch the progress and practice of

„,
4-IIE TWO HUSBANDS AND THE
TWO WIVES.

1)11. Matifal belongs to the National Guard of Paris, ,
1 Navin44
aving absented himself from the guard-house,
was called up before the Council of Discipline of the
7
Let.ision, to which he belongs, to explain the motive
such anti-military behaviour.
Presiden"—Why, M. Matifal, did you leave your
I)°st illegally for the space of six hours ?
Matifal—Th:ough a very singular circumstance. I
t 142 at the mairie the arrondissement, and at seven in
e evening, having mounted my guard, I said to my
commanding ffi .! wish to go go away for an hour
for „ t, o Cer,
the purpose of paying a few indispensable visits and
leaving some cards.
President—He granted you art limn.
Matifal—And I remained absent during six. But
ist", you shall see how it happened. I said to myself,
l
an hour there are generally sixty minutcss, so there is
° ttmQ to lose; and consequently went to fetch my wife,
and though in uniform took a hack by the hour, in order
(4) go quicker.
President—Has this anything to do with the case ?
Matifal—A great deal I can assure you. I first
rordered the coachman to drive me and my wife to
cousin, whose daughter had just been confined.
4IY cousin deals in lamps ; he is a very enlightened
lean. I expected to have merely to leave my card ;
but he was at home, and so I was obliged to go in,
42 I did not wish to pass for a bear. However, I
stopped barely fire minutes, for my wife was waiting
for toe in the coach, and I knew that she must get im-
patient, as it is by no means an agreeable thing to be
deft alone in a coach, as there is no means of talking,
c coachman on his box being placed very awkwardly
tor anything of that kind.
President—But all this is no excuse for six hours'

absonoe.
111..atifal—Stop a minute, I beseech you. I hurried
down dressed in my uniform, with the exception of my
grenadier's shako, which I had left in the coach, for
tear I should frighten the new-born baby. When in
tne street, I bawled out, " Where's my coach?"
"" Here, Sir," said the coachman ; " you are with a lady,
;Islet .you " I flatter myself that I am," rejoined I,
and with one who is worth two any day." Allow me to
tat'( you that Madame Matifal is fat enough, God knows.
President—Pray come to the point.
Miraifal—l then said to the coachman, " Drive as
fast as you can pelt, my good fellow, to the Hotel
du Coroirt*, in the rue St. Denis." There was
an *pillitunin there who was buying large quan-
titicW of„' divers articles. My wife sells stays, and
l'l3' motive for going with her was to help her in
Settinmgood Price. We had already been in the
"sell ..•e`ntiouteji, and my wife had not said one word.
" Qh, I'd I, unaceustomed to such silence, " she
is reflectin the price she must ask the goddanz:
&\ll 'on a den my wife said to me, "Do youA
shall stkffer 'much when I have it drawn?"
" What !" said I, did not. know that you
vvers<! going- to have- anything drawn?" " Why, we are'
-going to the dentists for me to have my tooth
nut—a rt.l't we r."
To the dentist's," said I ; " what
are you- talking about ? We are going, to sell your
stays!" "How do you mean to sell my stays; I
have got but one pair, which is three times my size,
it is 'true-1" " Oh, pretty Pop," said I, " how
can you sey so ; what a cracker you are
telling me, who see it so often, and know so
well that it is not a bit too big." " Hallo! there," said
ray companion, " you surely are not my husband !"
"What, said I," ;mite in a tremor, "are you not my wife?
diet me sec," and I felt ii.er arm. " Alt ! good Heaven,"
" I thought I was with my wife." Lo ! I was with
a grcat Pole, to whom 1 certainly had never promised
any k,'ad of protection. " What," said I to the lady,
" have j'ou not got my grenadier's s'usko ?" " I never
saw your 2,, hako ; I don't make use of those things, but
I want my husband. \t' here is be ?"
• President— We can easily see that this ocea‘iono
some loss of time, but how did it occur ?
Matifal—lt appea,-s that there were two hacks before
my cousin's door, and by a singular circumstance each
Was occupied by a national gag dsman and his wife.
• 14ly comrade came out first, for he gbose his coach,
• and, perhaps, his wife too. I, of course was obliged
'., take his leavings. —(Here 'much laughter pre-
- vb. ;led.) I found the ravisher at home with Madame
M. Altai ; he rgained me my shako and my wife,
wb could not BliVevailed on to go to the dentist's.