Alexandria gazette, commercial and political. [volume] (Alexandria [Va.]) 1812-1817, 1816-11-07
.analysis Of the preceding tables.


Der cent. and the discounts six hun
dred per cent. beyond the specie.
9. That the discounts OF the Phlladet
phia Bank were 800 per cent and those
of the Farmers and Mechanics 800 per
cent. beyond their specie.
No. Q.
Itappears that the discounts in 1908;
were six hundred and fifty per cent. and
in 1909, nearly fifteen hundred per cont.
beyond the specie. At the latter period
the discounts Of the Boston Bank. were
twenty three HUNDRED per cent. beyond
its specie.
The Bills discounted were above $50
per cent, beyond the specie,
No. 4
The specie respon Utility was SF5 Pc
cent. beyond the specie.
No. s.
This is by far the most important ia
bile, as it refers to the former bank OF the
|U. States and is fairer object of com
|parison with the present one.
| From this statement it appears
That with capital of 1000, 900, II
discounted 1859 ,4G6.
2. That It's DISCOUNTS were nearly 5000
per cent, beyond its specie.
8 That its specie responsibility was
|s5o per cent beyond its specie.
q. That the mother bank, with 1,4oy-
ISIS. dollars in specie, discounted, 1881
ISIS {; that the Boston branch, with 474
|497 dollars in specie, discounted l,lSS
|9eS /; aud that the New York branch,
with $3.50 dollars in specie discounted
|S.919, 62S dollars, or nearly 7e0 PEI
cent beyond lis specie.
We have, in those statements, snex-
ceptisnable data, whereon to ground GU
reasoning, respecting the extent to which
banks may proceed with safety in the bu-
siness of discountirg. Let US apply
them to the case Of the new bank of the
u. S.
The specie capital ofthis bank area.
dy paid 10, is 100000 dollars. In ia
quarry next, there IS to be paid 100000
dollars, and in July, the same SUN.
The whole ought to be 100000. But
ii is very improbable that this amount
will ever be in the vaults at once. A
D.rt of the first lnstallment will proba-
bly, be d avn out previous to the pay
ment Of the whole of the second and q
part Of the second before the payment OF
the third.
make this statement preliminary be-
cause, / wish the argument to stand on
fair ground-and to obviate cavil or OBJ
lection, And moreover, as the failure in
paying installments at the time fixed by
law, causes no forfeiture, except of inter
est, it's probable there will be many
delinquents, especially if specie be scarce
or dear.
shall therefore suppose, that in ia
nuary next, alter the time for paying
the second installmeat, there will not
be more than 100000 dollars of specie,
is tse vaults, instead of 100000. This
will. trust, be allowed, liberal cen
|cessisn.f
Rea -oning from the operations Of the
three Philadelphia hanks, the bank Of
the United States in this city might, on
a specie capital Of two millions.f discount
he, O00.000 from those of the New Y
branch bank, 14,o0O.oo0; from those Of
the Farmers and Mscllaaicks' 10000, 00t
AMI from these Of the Philadelphia bank
l8,G00,000.
trust, this is decisive Of the question
It establishes far more than is necessary
FOR my purpose. The most superficial
examination of the above will satisf,
you, that the capacity of the bank OF tls
United States to discount, is far beyond
any supposable demand, II, in the pre-
sent state of the trade and commerce Of
this city. it discounts double the amount
lof its specie, it will be amply adequate
Tor all the purposes of the trading world
Tor long lime to come.
But some very wise people shake thei'
heads, sagaciously tarn up their eyes, e
leyate their hands. shrug their shoulders
and oracularly declare, that the public
confidence in bank paper has been 81
completely destroyed. that it cannot b.
restored for years, and that as soon a
the banks begin to pay specie they vii
be immediately drained ofit. 5 This j.
IL argufying the topic" very specifically
and displays very little knowledge o
human nature. There is none of ou
tpropensities more undeniable. or NOR,
striking, than that of consignins past e
wills and sufferings to Oblivion. ~ sol
der who has heen impri, onea-hal