Alexandria gazette & daily advertiser. [volume] (Alexandria [Va.]) 1817-1822, 1819-02-10

extent to which sales can be probably
made of the articles imported, and the
practicability Of obtaining The necessary a.
mount of specie for its prosecution: Should
the civil war which has for some time ex-
listed between Spain and the Independent
governments in the Spanish American pro.
vinces, be prosecutedfor any considerable
time longer, it is probable that thrse will
be general appreciation Of the pre-
cious metals 10 the civilized world, and
that the drain of The East Indies may not
cnly be greatly diminished, but that they
be imported from thence into Europe add
the United States. But there is no ration
al probability that 10 either event,the pres
sure upon the community which has pro-
daced this enquiry will be temporary in
its nature or that it will yield to any tenn
poary legislative expedient. 1t will be
removed only when our importations shall
be reduced below our expectations OF mer-
chandize to a greater extent than the a
mount Of specie exported to the East In
dies. Until this should be The case, the
pressure will continue, even should the
quantity of the precious metals in general
circulation be greatly increased. Whe-
Their the quantity be creator small, no part
of it will permanently remain in state "a
gainst which there is an annual balance of
trade, unless the coin of such state should
be so adulterated as to destroy its currency.
If these views he correct, we must look to
the state of our internal affairs for circum-
stances which may justify temporary pro
hibition of the expectation of the gold md
silver coin Of the United States. That the
currency is disordcrcd, and that much en-
barrasment is felt 10 the fiscal transactions
of the government has been stated in the
annual report ofthe treasury. In th. spring
If 1917, the principal banks in the COM
merciaI cities, in conjunction with the bank
of the United States, resumed specie pay
ment. Their example WAS ostensibly fol-
lowed by the immense number of local
banks established in the interior Of the Al
Iantic states. Ir the western states, spe-
Gle payments were also resumed by the
banks established before the refusal to pay
specie, in 1914.
In making the effort to restore the cur
rency 10: an equality with gold and silver,
the banks were seconded by the commu-
nifty, which manifested laudable forbear-
ance to demand specie for the bank notes
which formed the general circulation. This
forbearance, however, could not be expect
ed to continue after the banks had had
time to regulate their paper in circulation,
according to the quantity Of specie in their
vaults. In the mean time, the bank of
the United States, and some Of the state
banks, made considerable efforts to import
specie.
The expectation of it, during the same
period, has, it is believed, been equal, if
not greater than the Importation by the
banks and by individuals. 1t is presumed
that the banks will not continue thier exer-
tons to import specie, but leave that to be
effected by the commercial interest, which
alone can bear the expense but which will
certainly not do it, so long as it snail be
done by the banks When the banks cease
to import they must withdraw their paper
from circulation to a very great extent OF
stop payment. The demand TOR circula-
ting currency must be made imperious be-
fore it will be imported to any consIdera-
bic extent by the commercial interest. 1t
is only when gold and silver shall form
large proportion Of the circulating medium
of the nation, that the currency can be said
to be sound. Since the resumption Of spe-
Gle payments, in the spring OF 1917, this
has not been the case.
VIVA. specie there was in the country has
remained in the vaults of the banks until it
has been drawn by the brokers, to be sold
10 the exporting merchants. 1t has not en-
tered into the general circulation; and
there is just reason to fear that much time
will elapse before il does. What was the
result Of forbearance in the first instance
has been effected since by the operations of
interest or of fear. lfspecie could be free
ly drawn by the exporting merchant from
the vaults of the banks, at par, he would
not pay the brokers 8 or 10 per cent. pre-
MUM.