Alexandria gazette & advertiser. [volume] (Alexandria [D.C.]) 1822-1824, 1822-06-27


himself stating he wa. we'll and in an EN-
poyment for which he received salary
at The rate of15,ooo dollars per annum.
Boston, June 20.
COMMERCIAL DISTRESS.
hrA list of De names of Merchants,
we understand was sbewn yesterday in
public, who have failed or stopt payment
within the period OF a little month. -
Several of these were undoubtedly cases
arising out of positive insolvency; yet
not only these, but others, were immedi-
,ately occasioned by the precipitation Of
several of the Banks, in calling on their
debtors for instant payment, without
granting them renewal or accommodation.
The Banks were obliged to coerce their
debtors in this way, TO save themselves
but The radical cause was their own COM
petition aud overtrading. The extent of
failures thus produced we believe is with
out example since the shock upon trade
produced by the short peace Of Amiens-
The Banks have been to blame for SUI.
fering themselves to be in such situation
as to be exhausted Of their specie at a
blow. They should have looked better
TO hesr interest and the interest of the
community, and have made exertions to
purchase specie rather than TO have dis
tresseG their customers. But they at
tempted to transact business with the least
possible coin in their vaults, because
coin is an expressive commodity 10 keep
on hand, when they must have been sem
sblesthat an adverse state of Exchange on
London, must have a tendency to draw
off their Gold and silver. They know too,
or ought 10 have known, that the profit OF
their establishment, is founded upon the
very principle of overtrsding, which they
blame in individuals. They are the guar
dams Of tie public currency-and i: is
their duty 10 preserve it in a healihful
state. Their neglect has not only pro-
duced extensive evil among those who
have failed-but it has seriously affected
the credit Of those who are solvent and o.
biiged them to make great sacrifices of
property 10 maintain their engagements.
1t is vain to say the distress is not exten-
sive. The radical error is in the Legis.
lature in supposing that the Banks estab-
lished as ours are, upon paper basis, tor
it is little better can be able 10 sustain
the pressure OF long contended adverse
balance of trade. The sooner such incor-
porations are abolished the better for the
country, unless they can be either restric-
ted in their ssues--or obliged at all times
to preserve their whole amount OF capital
tn specie, in their vaults. As it IS, the
community seriously suffers, to save these
institutions, from the consequences of
their own imprudence in easy times.
The Marquis of Londonderry during a
recent debate in Parliament, proposed
further to extend the period limiting the
issues of one pound notes by Country Ban
kers, in order 10 enable them 70 supply
the channel of circulation with pa per cur
rency.
An extract given below from Mr..
Brougham's reply, is prophetic of state
of things, bearing the strongest resemb-
lance to the condition of things in Boston.
1.-The Noble Marques wished 10 ex-
tend what he called the banking system,
and for that purpose the restrictions on the
number of partners in such concerns were
to be repeated. Now. the Noble Marques
overlooked the fact, that there existed no
difficulty whatsoever 10 get even gold to
any amount on loan, provided those who
sought that loan were able to give the len.
ders competent security ihear, hear J.
And no matter what the new law might
provide-no matter whether the NUN.
Der of partners ~ Bank were limited TO
six, or extended to sixty, unless security
was given, no money would be forthcom-
ing. What he feared The effect OF this ia
clity TO the banking system would be, was
that it would encourage bank speculations
[hear, hear! that it would attract to that
pursuit specializing and adventurous indi-
viduas, ready 10 risk tor the chance o!
large profits. There zroald be q rivalry
betzaeen The old and new establishment the
neU apould decoy the customers from ihe
older establishment, they 7pould commence
Their e1srt'o'ls jy Gtordingia greale- TO-
cttaty Of accommodation, Till at length The
transaction terminated zgih no 6enefs to
the otds~ establishment, zcith loss TO the ne7v
branches, and ruth ruin to the parties Svho
uere induced to borrow. For what was
one great cause of the present evil Was
it not the spirit and facility Of over-trading
the effect Of paper accommodations
[hear J ? And yet with that knowledge,
painfully felt by every man acquainted
with the subject, the Noble Marques was
ready "a pyieDd systeTO the result 0f