American watchman and Delaware advertiser. [volume] (Wilmington, Del.) 1822-1828, 1822-10-18


ment OF the Louisiana stock became payable. Tht
sum necessary to make the payment stood to ths
credit of the Treasury IN the bank and was trans
e red to the credit of the holders of this stock TIL,
agent of Barring, Brothers s. Co had, for foreign
account, at one moment, 2,410,000 dollars at hi
dit at the Bank in Philadelphia, and the sam,
day all the specie in the Bank and all its offices die
moi amount to as much. II was impossible 10 have
paid 4, aud the Bank was Obliged to enter into
contract to pay it in England by given time, with
interest In executing this contract it employed the
whole opel atoms Of the next season of business ir
foreign exchanges and paid very large amount o
interest; and at the time this loan was projected
there remained large balance due to Barring Bro
theirs & Co. on account Of this contract The conn.
try had been still further Invested Of its metallic
basis IN The Interim and pretence was only want.
ing by 100 many individuals and banking institutions
10 stop payment To them il might have afforded
immediate relief and profit But to the Bank of the
United States it must as already shewn, have caus-
ed inevitable ruin. AT every hazard ID was Obliged
to continue its payments, Its ability to do so. de-
pended on sustaining the credit Of the currency.
Ii Its own vaults had been better repenished than
they were, it could not have relied upo. them
alone The ability Of this Bank to sustain its credi,
at no time depends solely or principally on the spe-
Gle in its own vaults but the general or iii OF
the country sustained by the usual legal and moral
obligations destroy these practically, and all its
power becomes feebleness. Thus it has, al any
given moment, from 30 to 80 millions of dollars
becoming due to it within 80 days, besides very
large standing 10 balances agains, other Banks
and luther sums in the notes oil other Banks Now
suppose at any moment, that state o things
should arse which should destroy the general Gre
dir of the country, and disable Debtors who their
turn depend on the same means Tor their anllity to
pay, to comply with the first, and tempt hem to
disregard the last OF these obligations what ,uld
b. then the situation OF Bank OF the United otate,:
Yet that state OF things was on the point of tikln,
place, when the loan in question was pr oected.
The country could bear no further exhaustion
however small, until it had to recover But
The second instalment of the Louisiana Stock was
70 be paid IN few months; and the sum TO be with
drawn by foreigners, exceeded probably all the spe.
Gle in the two great cities OF Philadelphia and New
YORK The Bank would have been bound to pay
1t, had received the local paper in payment of the
revenues and it il had refused it, we have seen the
disastrous consequences to which would have led
il was payment which the country could not, at
the time, bear, and the ability of the Bank was ne
eessarlly limited by the ability Of the country.
Hence, in general view, the necessity and expe-
diency OF the loan.
1t has, understand, been said that events have
proved that the loan was unnecessary, regarding
merely the direct obligations OF the Bank This is
an objection which no mind capabit of comprehend
ing The Just policy OF q national Bank could make,
little foregoing views he correct But it is nt true
Events on the contrary, proved it was ind,spensa-
he. What would the situation OF the Bank have
br-1 II IN OCTOBER, 1919, upwards oil two millions
oil dJliars had been, in this section OF the Union
where it was payable, drawn from its vaults? Al
thlngh they had been by that day considerably
strengthened, yet all the specie the Bank and all
the oftiHes on this side the Potomac could not have
met the draft. W it be SAID, that the govern nent
han not, at the time this instament " IS payable
a sufficient deposit to make the payment Ii is
true, because the government, as soon as it was
discovered that the public credit would not be made
10 suffer- disbursed the monies which must have
been and would have been reserved fnr this pur-
pose and thus the Bank and the community gene.
rally were relieved from the foreign dram uoon
them in the manner in which the relief was org-
naly projected.
Again--the burthen Of this loan has been greatly
misrepresenled. 1t has been supposed that in con.
sequence OF the subsequent want OF demand Tor mo
neY, which prevented the Bank from Iully employ
ing its capital therefore the interest paid ON this
loan was loss to the Bank. This might be ad
United, and still the loan was not the less necessary
Il sacrihce OF gain was expected and intended But
the TACT is not so. Although undoubtedly there was
long period during which the capital of the Rank
was not fully employed YET ii so happened, that the
specific money derived from this loan was emplov
ed, and has not ceased to bfng IN SIX per cent. per
annum from that day to this Without it the Bank
could not have taken the government loan OF two
millions OF dollars in 1920, which remain yet IN
PAID nor could have done the profitable business
IN to eign exchanges which it did in that wear nor
have distributed capitals early as it did to the
northern offices, which infused into them new
ife nor could have sustained the character or the
usefulness OF National Bank, until 1t should have
collected by slow and painful means its scattered
capital.
have said so much of the loan, not only because
it's an IMPORTANT clrcums ance in the management
of the Bank, but also because is measure closely
ID ,uit the EIaap..al : - -!