Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1818-12-29

| which they could not control, tue origin of
which may he referred 10 the state of The eur.
rency, and of domestic exchange. at the period
immediately preceding the the establishment
OF the bank the consequences of which are
yet visible IN the monied operations of thsse
places.
The funds OF the cities east of Philadelphia,
derived from the sale of their imported COM
noGities, had been suffered TO accumulate
dining the late war, and, until the establish
ment OF the bank, Chiefly in the C tiles OF Phi
tadeiphia and Baltimore, 10 an immense a.
mount, i'm anticipation of that event and the
prospects entertained of tie consequent i'm
provementin the currency. The public reve.
nue. had also accumulated in the middle and
western sections Of the United. States, to the
amount of many millions, particularly in the
Banks OF Philadelphia, Baltimore, aud the
iClstrict OF Columbia and the banks of those
places were greatly Indebted 10 those to The
eastward OF them respectively.
ShoriiN after this period, as you will recol-
leci sir. the banks of New York, Philadel-
poia, Baltimore, and Virginia, agreed TO re-
same specie payments on the 10Th of February,
hndcr special agreement with The Bank of
the United States, which in order 10 bring
abont this desirable and Indispensable event,
engaged its credit and resources in protecting
Tue debtor banks, aud in liquidatinC these
immense balances, by actual remittances TO
tie eastward, III specie and bills at par, as the
oniy possible meaus of maintaining what had
b-en so happil, BEGUN. IN The mean time. the
puDlic depOs!tes in the hnnks of those places
witch had been transferred 10 the Bank of
ule SnltedSi States, and the revenue Subsequent
~ Collected IN the same, were chiefly eNpend
ed IN the cities east of the Susquehanna.
These circumstances have constantly main
tanned so great demand for exchange in The
eastern cities, that the directors have been
unable 10 extend The discounts at The offices at
New York and Boston, as they have earnesti,
uesiredto do, without gettiug Into debt to the
banks ofthose places. and incurring the imnie-
uiHte LIABILITY to demand of payment in spe
cie OF the large importations OF whic h by the
Bank OF the United States, al "a great eXpcnce,
sol one dollar has been expended south or west
OF Philadelphia. 1t is fact, corroborated by
the experience OF all banks, that their opera
TONS must necessarily be regulated by those OF
inc banks IN their Immediate vicinity; other
wise, those which are most prudent parsimo-
nous, will become the creditors of those who
are the mostl liberal or extravaganza; lie conse.
quence OF which IS IA lmme di5tc sptcie respou
sIbitiy. The Bank of the United States and
It's offices do not form an exception 10 this rule
and facts have demonstrated, that bank of
very knitted resources, governed by an ayari
cious policy, aud applying its means, not TO
the purpose of public accommodation. but TO
the ir tic in specie, by collecting the bills of
other banks, drawing out the specie for sale,
ana repeating the operation daily, may sub
Ject the largest capital 20 incessant contribu
ton. 1t is cOuceiy ed, that what has been said
Will satisfactorily prove thatthe Bank OF the
Chited States could not remit and iquiddte
debts OF the southern. western and middle
sections. To the eastern cities, and at the same
time, loan large additional capital to tie lat
Ter; and that, ifthe latter have not pariicipst-
cd Ia the loans of the bank, in proportion 10
their great wealth aud commerce, they have at
least derived as substantial benefits from the
Operations OF The hauk as any other section of
the Union
In regard to The discount on bills secured bY
The pledge OF public and corporate stocks, IT is
respectfully observed, that these loans orjgi
mated IN the sudden redemption OF Si3 ,0G0,U10
N he uh r4ot "A. .l.e - II al
bank, with the public funds which had been
transferred to the bank in Tie manner repre-
scented.
THIS event took place "A few months aftertle
bank had commenced its operations. when few
OF It's oihces were IN operation, and while the
circumstances of the institution precluded tie
possibility of an equitable distribution of its
capital.
IL. therefore, became desirable object to
emp .ey this Captdl Tor the benefit OF the insti-
tutlen, without delay, and the only question
which tie case appeared TO involve, was,
whether the loans ought to he made on the col.
lateral securit! ofpubiic and cooperate stocks,
or on the more precariOus security of mere
personal responsibility, where that species of
accommodation did not appear TO admit of so
great an extension. The board determined
upon the former course, and proceeded TO dis
count bills on the pledge OF stock, without
regard 10 persons or place. and ndiscTimlnate-
iy to the extent which it was offered, anu Of
course the greatest iOaus have been where the
greatest amount OF stock was held. The whole
amount OF the loans pledged stock of every
description, have not 81 any time. reached, by
two millions, the amonut of funded debt re-
deemed by The government, although the ORR
gIrIai amount OF The funded debt part of the
capital of the bank, was intended 10 have been
SO 600 coo. 10 have loaned these faBds in
New York and Boston, would have required
their previous conversion into specie. Or the
funds OF those cities, which, from the course
OF exchange, ami the extraordinary dcmand
tor specie, was inpTacticahle and, TO have
demanded the iInInr diate payment OF specie
due 10y The banks il, Phiiadripliia, Baltimore.
District OF Columbia and the western country
would haze been 20 require imporsjbilitieS.
lie lundS were, therefore. loaned where they
we're current. and iu their operation produced
lie gradual dlminuiOn of tile debts due bv The
banks in those places to The Bank Of the Unit
ed STATES, which they had not tie ability to
discharge iH Sperie, or demand. The ieasOn
why no part ot The coin, in possession Of the
pa"S' Is exhibited IN the statement No. 2, of
lie existing capital Of the bank IL assigned i'm
The uOie annexed TO that statement; hut the
whole amount of specie i'm the bank and its
oincc', al that time, was SZ,Si5 20S Sc, as ex.
lubted ~ the general statement rendered 10
the department.
The crisis in which the directors Of the Hank
OF the United States have acted. has been one
OF peculiar deiicacy and difficulty. Tie policy
aud eject Of Their administration cannot be
appreciated by an abstract view of any single
measure: Il must be taken in connection with
every other which itinvOlves. They have ear
nestiy cDdeavored 10 promote the interests Of
the public aud of tie Institution, but they dis
claim the presumption that wOnid exempt
them from error
! have the honor to remain, with great res
pect, sir, your ohedient servant,
WM. JONES, President.
TIE hon. Nm. ~. CramJord,
SECRETARY If The yTeasOrg, " Washington CITY.
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