Literary cadet, and Saturday evening bulletin. [volume] (Providence, R.I.) 1826-1827, 1826-10-21
BANK CIRCULAR.

DAMN SlhOOLhh.
Wecopy the following Circular into our column.
at the request of one ofthe gentl eman Of the Co
mitteei and it gives us much pleasure to present
so important document before the public. The
policy of the allied Banks in Boston is oppressive
in its operations it is unjust, unsenerous and arbi-
trary, and ought to be resisted by every banking
| institution in New England. The game they are
now playing has been severely felt by the Rhcde-
Island Banks, and il becomes us to make an effor:
to destroy it. If the plans suggested in the Circu
lar be adopted, we hope that the monstrous power,
now SO aristocratically exercised, by the Suffolk
Bank and its associates, will be completely an
nulled.
At meeting of Delegates from num-
ber Of Banking Institutions in Rhode-lsl-
and, held at PawtuXet, pursuant to general
notice, on the 9th of August, Thomas BJ-
fam, Samuel b. Harris, James +. Simmons,
Nathan f Diron, George w Iilinghast,
Wiliiam Rhodes, WiAiam Harris, Derter
Ballou, .abram Baker, Nathan b. Sprague,
and Jesse TourtelloH,
Were appointed Committee to confer with Banks,
not represented there, the subject Of the measures
OF the Suffolk Bank, in Boston, and its associates IN this
state, with view of agreeing upon some course to be
pursued by the Banks here, that will be likely to check
their operations and restore our business to
its former prosperity In pursuance of this, the com
mlttee deem it not improper addressing you to IN
vito your attention to the important effects OF these
measures on the Banking institutions and the public &C.
nerally.
The public professions made by the Suffolk Bank, at
the commencement, induced many prepossesslons IN Ia
your Of their system II seemed TO promise something
beneficial to the currency of England. But it is
I N.,plt to EnI in thn a
thing calculated produce such effect, and equally SO
to reconcile with their desire to restore healthy cir
cuaton," the promises made by them and in the circu
lars of their associates to take drafts on me with inte
rest off, in payment for bills from the issuing Banks
Thus establishing opinion that larger amount of bills
may be 3D. by accedng to their proposed arrange
ment.
1t is well authenticated that larger emissions have
been made the faith of their PROMISES and we have
yet learn what security the public have, with such ba-
sis, for the emission of bills. The fate ofthe Nantucket
Banks that entered into their arrangement, presents
practical illustration Of this part Of the system.
Falacious their pretensons to public utility
think less avouraby Of the system it affects the Bank
ing institutions of New England. On those Banks that
have not paid the price Of admission into the confede
racy, it has brought heavy expense for the collection
and transportation Of SPECIE by refusing (wha was be-
fore customary in the intercourse Of Banks) exchange
Of Bills 1t is to this and the extraordinary used
by the Suffolk Bank together with the unyeldng spirit
in which the business has boen con iuced (as publicly
exposed Worcester and Fall River) than to any
advantage that is offered that must attribute their
success in bringing so many into the measure
1t not only the unaccomodatng nature Of their trans
actions that imprcsses unavouraby, but rcvewing
the subject presented by themselves we see no equl-
valent for Welding them (wlthout Interes) portion
of our capital; It offers seeming advantage, which
CONNECTED is with the wholc) will not be injurious
in its operation
The effect ofths system of Banking, founded on con-
nued interchange Of bs has been create with those
interested, such avdty for the bills of other Banks
to meet their that very few OF the bills OF any ban
have circulation excepting the rotary one that Is con
tnuay in transit for the purpose of exchange, which
bank may be very large and yet unproductive.
The small (but only usefD amount, that escapes the
vigilance of their runners and is used for the purposes
OF business, remains to be provided or as before.
From thus view of the subject which we believe to be
correct one, nothing useful or productive, to
any but the Suffolk and Merchants Banks not even
guarantee that their exactons will not be increased wher
their avarice becomes whetted by time and the wa,
| smoothed by submission.
To relieve ourselves from the operations oil this svs
tenn, propose for consideration resolution agreed
by the delegates at the meeting, alluded to as foows
ResOlved, That we will in future redeem bills al
our counters, and will make arrangement will
either Of the associated Banks, that will have tendcn
to assist them in pursuing the system they have adop
ted. 1t believed that to adopt these resolutions gene
rally and to withdraw all support by deposit or other
wise would make it Improbable for them to continue the
| system toward us.
This opnron is strengthened by the circumstance o
the Suffolk Banks offering to associate here, the ex-
elusive benefit Of the levies the institutions Of this
State, and that they did expect bring the banks in
this state to the without this aid. Both hav
ing in view their emoument, the aid will be withdrawn
and the discontinued whenever Il to con-
tribute to their aggrandizement.
We would suggest the propriety of being uniform in
the Of carrying this resolution into effect. Com
prudence dictates that should carefully examine
and correct the bspresented and specie paid and unless
accommodating should be adopted by
the other party, nothing that should induce
do this at any other than the regular hours OF busi-
ness Such although less tedious than the law
points out, we believe will tho purpose; and
should the resolution and this mode Of carrying it
effect meet your views should like to be informed
by the ist of November, at which time 1t is proposed that
it should take effect
THOMAS BUFFUM, for the Committee.
SAMUEL E. GARDNER, Secretary.