The Alexandria herald. [volume] (Alexandria [Va.]) 1811-1826, 1822-10-09

mained large balancc due to Barring,
Brothers u Co. on account Of this con
tract. The country had been still fur
ther Invested of its metallic basis in the
interim, and pretence was only wanting
by too many individuals and banking in
stitutions TO stop payment. To them IT,
might have afforded immediate relief 6
profit. But to the bank of the United
States it must, as aheady shewn, have
caused inevitable ruin. Al every hazard
it was obliged to continue its payments.
Its ability to do so, depended on sustain
ing the credit Of the country, and restor-
| ing the soundness of the currency.
lifts own vaults had been better re-
plenished than they were, it could not
have relied upon them alone. The a
bility of this bank to sustain its credit at
no time depends solely or principally on
the specie in its own vaults-but on the
general credit of the country sustained
by the usual legal and moral Obligations
destroy these practically, and ell its
pow CT becomes feebleness. Thus il has,
at any given moment, from 90 to so mil
lions of dollars becoming due to it within
80 days, besides very large sums standing
IN balances against other banks, and fur
Their sums in the notes of other BANKS
Now suppose at any moment, that q state
OF things should arise which should de-
story the general credit of the country,
and disable debtors, who in their turn
depend on the same means for their abili.
ty 10 pay, 10 comply with the first, and
tempt them TO disregard the last OF these
obligations, what would be then the ST.
tuation of the bank of the u. States p
Yet that state OF things was OH the point
oftaking place, when the loan in question
was projected.
The country could bear no further ex
haustion, however small, until il had a
season to recover. But the second in.
stalment of the Louisiana stock, was to
&c paid in few months and the sum to
be Withdrawn by foreigners, exceeded
probably all the specie in the two great
cities of Philadelphia and New York -
The bank would have been bound to pay
II, had 1t received the local paper in pay
ment of the revenue and if it had re-
fused it, we have seen the disastrous con-
sequences to which it would have led
II was payment which the country
could not, at the time, bear, and the a.
1ility of the bank was necessarily limited
ny the ability of the country. Hence, in
! general view, the necessity and expe-
diency Of the loan.
1t has, understand, been said, that G.
vents have proved that the loan was I'M
necessary, regarding merely the direct
I nk1lTr~afIor,- f,G tho h.pl, 'El,te . Il
lection. which nc mind capable of com.
pretending the Just policy of a national
bank could make, if the foregoing views
be correct. But it is not true. Events.
on the contrary, proved it was indis2en-
| sihIe. What would the situation of
| the bank have been, if in October, 1919,
upwards of two millions of dollars
mad been in this section of the union,
where it was payable, drawn from its
vaults |! Although they had been by
hat day considerably strengthened, yet
all the specie IN the bank, and all the of
fees on this side the Potomac, could rot
have met the draft VIII it be said tia,
the government had not, at the time this
lnstaiment was payable, sufficient de-
posite to make The payment? Ilis true,
because the government as SOON as il was
discovered that the public credit would
not be made 10 suffer, diobursed the mo-
neys which must have been, and would
have been, reserved for this purpose :;
| and thus the bank and the community ge>
! nerallY, we're relieved from the foreign
drain upon them, in the manner in which
the relief was originally projected.
Again: the burthen of This loan has
been greatly misrepresented. It has
been supposed that in consequence OF
the subsequent want Of demand for mo
ney, which prevented the bank from full
ly employing its capital, therefore the in
terest paid on This loan was loss TO the
bank. This might be admitted, and still
the loan was not the less necessary. a
sacrifice of gain was expected and intend
ed. But the fact is not so. Although
undoubtedly there was long period d.
ring which the capital of tie bank was
not fully employed, yet it so happened
that the specific money derived from th
loan was employed, and has not ceased
to bring in six per cent. per annum, from
that day to this. Without it the bank could
not have taken the government loan oil
two millions OF dollars in 1920, which
remains yet unpaid, nor could it have
done the profitable business in foreign
exchanges which ii did in that year, nor