Alexandria gazette, commercial and political. [volume] (Alexandria [Va.]) 1812-1817, 1816-03-01

lars of bank notes, credits and h SsDl-
paper. in one shape or other. s"
DOSING thirty milIians OF Ties. - up'
in possession OF the banks tb.s ue
selves, there we're perhaps one no.
dred and seventy millions aetually Wv; =
circulation. Or on which The h,,' !"
draw interest. The proportion MY ~
tween the demand and supply wb it,
regulates the price of every th;"A
regulates ais" tue value Of tb;s nS S'
per. In proportion as the isspsr r.,
excessive. is depreciates in yaIno
and no wonder, when. since t8,o :
1911, the amount ofpaper in ciro "a
lation had increased frcm so Or oo
TO 200 millions. Mr.. G. here az, ~
mined the opinion entertained H.
some gentlcmen.;klt 9ask paperh,SA
not deprecated, but that gold AND
silver had appreciated, position h.
denied by arguments founded on ,bS
portability ofgold and silver uAieSk
would equalise their value 10 eye,vE
| part ofthe e. States, aud on The fart.
that gaId and silver cain had inc?casIl
ed ia quantity instead cfdjmiaishing,
and that the exchange with G. Bril-
tain had been, at gold and silver Va.
lue. for some time pa, in favor od
the u. States. Yet, he said, eo,d|
and silver were leav;n OF. shcrcs
In fact, we have des: tea the me-
ltaiiic currency: we have treated ID
with indguily. il leaves US, and seeks
An as, lum Oh foreign shores, Let
lii become again tie basis of bank
transactions, a ~. !; Will revisit us,I
Having established, as lie conceived,
lin the course. of his remarks, tlst
the excess Of paper issees vas Tie
true and only eaase Of depreciation
| of our paper currency. Mir. &. tum-|
| ed his attention TO the manner in|
which that excess had been prOdue.
led. 1t was intimately connected
with the suspension o specie pay
Iments the, stood as cause and ef.
feet first, the excessive Issues caus-
| ed the suspension OF specie payments
land advantage had been taken eftbstI
ssUs1crsion to issue still greater floods
lof il. The banks bad uGdertakeBtn
lido q new business, urcongeHiai Nith
1.-The nature OF such institutions they
iunderico!; 20 make long leans to so,
IvernmeEt. not as brokers bul as
observation-disclosures practice wholly in.
ico0sistent with the system Ct specie
lpsyments. After shelving the dif.
ference BY the ordinary business OF
a bank in discounts, and the Making
loans for twelve years, MIR. {. said,
Iindispulabiy the latter practice vas
Ia great and iea,liDg cause of the sus-
|persioD ofspceie payments of thI'
species Of property, public stock, lhe|
Banks in the U. State held on ne
lS0th day Of Sept. last, about elsa'
l:ren and half millions, and near
Il
lly equal amount OF treasury notes.
I esidps stock for long loans made
Ito the state governments. ameunt.
ling III together. 10 within a small
amount of forty millions, being a
large proportion Of their actual ca
In;tGl. This, he said, Vas the gee%t
!cause oflhe suspension efspeeie pay
!meuts. Had the banks, be now dis
Ieussed the question, the captefy &c
i.esuDe species payment II ihey
lhaye the disposition, he sald, lAcy
Imay resume specie payments iGe
lbanks are net iEsolvenf, be saiq;
They never were fnofe s0H'm' -
so. the term itself implies, thai, Il
iti,ne be allowed them. they may OO'
fore long he in conai'icn 10 t re-,
sumo payment Of specie II MV
banks would regularly and ceaseG': :.
!neousl, begin TO DISPOSE OF 'n .,ia
lstock, to call in their notes 'G' '''0
Trasury Notes they have, aho NV W.
derately curtail their FE'ac US 10
counts : If they wonld act ~ cn'vs ,'o
lin this manner, they m'SS' 'VS"" ~
specie payments. II 'hf} Sy'p oo!r
withdraw by the sale OF per- 'n a..
iof tbeirstock and tfe2sur} h'' -
ooo,ooo Of lheir notes FROM G'r ,.S :,
I;ion. the rest would be apfFec,,s1',o IN
par. or nearly, and they v1p'u -Grs
have Is millions CT s'oeH "F'0'g se