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

shis was, lnueed, appalling news
When reached w ashIDgtoD, received
hourly proofs of the probability of this
event. In Philadelphia it was generally
expected. My memory deceives me
muchii found any one in or out of bank
who entertained a saDguine belief OF It's
being able 10 sustain its payments much
longer. On the contrary there was (I
think j, cannot be forgotten),a public and
general expectation that the nation was
about to suffer the calamity OF currency
composed entirely of irredeemable pa.
per. The evil which thus threatened
the country, is not at all to be compared
with suspension Of sound currency in
times of war and great national emergen-
cies. The former can only be conceived
by people who have suffered under q
paper currency in profound peace. What
a train of evils does it produces The de-
struction of public and private credit, the
rational torpor, the individual ruin, the
disgraceful Legislation and the prosiration
of the morals of the people, of Which you
may discoverwilhin your own territories,
some examples, viii give you some bur
yet faint idea of the calamity which was
ABOUT TO tall on the country.
On the bank it must have brought i'm
evitable ruin, for if il had failed, from its
own Encouragement, to serve the great
purpose fer which il was just before es-
tablished-that of restoring and preserv-
ing the soundness of the currency-tbere
is no doubt that the hostility which its
great and habitual public usefulness can
not now appeasc, would have oyerwhelm-
ed it. Indeed it would have had no claim
on the sympathy or the justice OF the
government, and would have suffered
merited fate. No exertions and no sacri-
fees were therefore too great to avert
this calamity, II was not 10 be accom-
plished without sacrifices : But they have
been small, and Infinitely less than W as
expected.
Thus stood the Bank at the organi-
cation OF the present administration
l was elected and took my seat as
President of the Board on the 9th of
March, 1919. But some time of
course was necessary to look into the
state of the Bank before measures of
relief could be projected. Its danger,
AOhCNNi3 was tOO lidlhCot, anu tOO
pressing to allow much time for this
purpose. The principal errors which
produced the danger were fortunately
of easydiscovery, and TO them the pro-
per remedy was Immediately applied.
The southern and western Offices were
Immediately directed not to issue their
notes, and the Bank ceased TO pur-
chase and collect exchange on the
south and west. A special meeting Of
the Board was called, which the nom
resident directors were summoned to
attend for the 9thApril (the next month)
& a correspondence with the secretary
of the Treasury was commenced, en-
treating his forbearance and his aid, to
which beg leave to refer. (6) To this
officer should be ungrateiul and I'M
Just, i'll were not publicly to acknow-
ledge my obligations and those OF the
I!ank, for the countenance and sup
port which he afforded to both in this
struggle.
At the meeting Of the Directors on
the 9th April, which was very full, the
state Of the Bank was submitted to
them, select Committee appointed,
TO whom the subject Of IFS difficulties
referred, and after very mature delib-
Grafton that Committee made a report
whichwaS UNANIMOUSLY agreed to-
The principal means OF relief proposed
and agreed to were
/. To continue the curtailments PRE-
vIoUsLY ordered. 9. To forbid the
Offices to the south and west to issue
their notes when the exchanges were
against them. 8. To collect the bal
ances dueby local Banks to the offices.
4. To claim Of the government the time
necessary to transfer funds from the
offices where money was collected to
those where it was to be disbursed. as
well as like time (unti the difficulties
Of the bank were removed) to transfer
funds to meet the notes OF Offices paid
into the bank or other Offices than
those where they were payable accord
ing to their tenor. 5. TO pay deben-
lures i'll the same money in which the
duties, on which the debentures were
secured, had been paid. 6. To obtain
a loan in Europe for sum not excee.
i. n m