Delaware gazette and peninsula advertiser. [volume] (Wilmington, Del.) 1814-1820, 1818-12-30

diale liability 10 demand of payment in
specie of the large lmportations Of
which, by the Bank of the United States
at aeafsai expense, not ons dollar has
! been expended south or west Of Philadtl-
',phla. 1t IS a fact, corroborated by the.
experience Of all banks, that their opera
tions must necessarily be regulated by
those Of the banks in their immediate
vicinity, otherwise, those which are most
prudent or parsimonipus, will become
the creditors OF those who are the most
liberal or extravasant the consequence
lot which is, an immediate specie respon.
sibii.,. The Bank of the United States
and its Offices, do no form an exception
10 This rule, and facts have demonstrated,
tina, bank of very limited resources
governed by an avricious policy, and
applying its means, not to the purpose of
\ in specie, BY collecting the bills of other
banks, drawing out the specie tor sale,
\ and repeating the operation, daily. may
J subject the largest capi'al TO incessant
contribution. 1t is conceived that what
i has been said will satisfactorily prove,
n, 81 If
not remit aud liquidate, debts OF the
southern, western, and middle sections,
to the eastern cities, ard, at the same
time, loan large additional capital 70
the latter and that, ii the latter have not
participated in the loans of the bank, in
4 proportion to their great wealth and COM
merce, that have a, least derived as SUD-
stantial BENEFITS from the operations Of
of the bank, as any other section of the
I Union.
In regard to the discount on bills, Sc.
cured by the pledge Of public and corpo.
rate stocks, il is respectfully Observed
that these loans originated in the sudden
redemption of $4,000 900, Of the funded
debt, part of the capital of the bank, with
the public funds VIII ch had been transfer
ed 10 the bank in the manner REPRESENT
ed.
Thi. event took place few months
after the bank had commenced IT'S opera
| lions, when few of its off ces were in
lone cation, and While the circumstances
lnr the institution precluded the possibility
fan equitable Distribution Gifts capital
Ii, there fore, became DIS rab!e object
10 employ this capital for the benefit {
The institution, without delay, and the only
question which the case appealed 70 ~.
/ yolye, was. whether the loans oughtto he
made on the collateral security ct pubic
land corporate stocks. or on the more
Ipre carious security Of mere personal
responsibility, where that species Of ac-.
commodation did not appear to admit O.
lso great an extension. The board deter
mined upon the former course, and pro-
|ceeded To discount bills on The pied &c OF
|stock, withoutregard to persons or place,
land indiscri nirately to the extent which
/, was offered, and Of course the greatest
loans have been where the greatest amont
Of stock was held The whole amount
Of the loans on pledged stock OF every
description, have not at anytime reached,
Iby Q millions, the amount Of funded bebt
), redeemed by the government, although
1.-The original amount Of the funded debt
lpart of fhe capital Of the bank, was in
tended TO have been S528 100000. To
have loane ID these funds in New York and
Boston, would have required OF their pre-
vous conversion into specie. or the funds
Iof those cities. which, from the course Of
! -xchans e, and the extra rdinary demand
8 for spt Gle, was imprac.icsble; and, te
a. have demanded the immediate payment
'e Of specie due by the banks in Philadel
lphia, Baltimore, District OF Columbia
> and the western country, woul have beer
to require ilnpossiblliiies. The funds
Is were, therefore, loaned where they were
ic current, and in their operation produced
Sc the gradual diminuiion Of the debts dut
Six ihe hanks in those places, to the banl