Constitutional Whig. [volume] (Richmond, Va.) 1824-1832, 1827-12-26

ways falls in proportion OF the supply He
had Clearly shown that there existed surplus capital in
the U. States from the Government having paid of sixteen
millions public debt This very surplus of money ia
market Mr Med. argued, entered into the price of the
Stock. IL the "ary, there scarcity of cash in
market, the stock would not bling its value. AS to
by the gcut!eaus calculations that
the real valwc OF money in the United States is at present
no more than three and half per cent it had no bearing
all present WhcRcvcr the Government
into market all the principles resulting from
demand aud supply, operate with lc,-ind
power. The Government is mammoth seller, mann
nnh buyer: wirn the G"ycmmcu, comes into market
buyer, the price at stock beyond all poporlpu
hen it III seller. depr.sscs II beyond propor-
II upon this principlc, that though money
actually worth as the gentleman saws ouly three ard
half per the Government when il passed law
eXchaucc lis stock for stock Of
Hcnae at later period, could get it; whilst
Government into market borrow morrow,
the whole sixteen millions has paid off, the stock would
issue, would in Ivy" days Time be at 10 per ad
AR. Med said that it therefore always TO be re-
crcted that Government should arket, because
Us presence there nvoun iriy produced great effect
The market, IN every way.
Mr.. Med. then made statements to show that
refined arithmelcal calculations proper data
~ all cases 10 legisate upon. lie presumed that #
would be admitted, general proposition, that the
stock OF the Bank OF the United States certainly worth
as much 10 Government, as il s To individuals. To the
latter its value regulated upon principles which
un err - now p per cent above par If il is of that
rane 10 individuals, il is upon the principle, of
the same value to Government. WHY. The Govern
rent receives per cent interest upon the stock in the
Bank, whilst 1t pays only per the amount
of its own stock. The difference therefore, is per cent.
the whole amount interest the Bank,
reny thousand dollars per clear profit besides
IT'S interest in the balance which! The Bank ALWAYS re-
10 meet contingencies If them you sell your
Stock III the Bank. surprising you sell ii at the
present market price, make, according to The gen.
uenan's calculation present gain OF million six
hundred thousand dollars whilst you annhiiae a CAPT
tal which will produce, to the end of time, if the Bank
Continues to exist of seventy thousand dollars
year But so far from being able to dispose Of the
Stock at tlie present. advanced price in the market, Mr.
Ac believed, that. this resolution were now to pass
the Stock of the Bank would be reduced par
an the market, upon pecupiary calculations And
why Mr. Med. here entered into calculations 10 shcw
the effect, upon the value Of the Stock from int
NATION OF disposition, the part OF the Government,
Ia restrict IFS existence TO the duration of its present,
charter and traced its present high price the market
TO the general confidence that tie charter would he
continued. The effect OF bringing the Government
shares into market, MIR. Med. assumed would be to
REFUGE the price OF the Stock TO par not below par.
What, then, would be the effect of this measured
We sell orT stock at par, said hc do enable OUR
selves, by doing TO pay off, the gentleman suppo
any portion OF the National Debt. no: for the Sc
ven millions should receive for orr Bank Stock
would only TO pay to tie Bank Of the United States
tbs seven millions for that Stock Tie ouly
operation which would really and efectualy extinguish
any portion of the debt of the United States would be
sale at the profit of million six hundred thousand
tallars which the gentleman calculates npon under
the err"neois notion that large portion of stock
would command the present market price. But, If we
sell the stock NJ IFS par value, Mr. Med had assumd
That we should do sell il at ALL then, instead of
gaining the calculated, VIC should actually lose
the Identical! su'n of million six hundred thousand
dollars. For the gentleman had himself shown that the
Stock worth twenty three per cent above par
and il it disposed of yield only its value at
the difference would certainly be lost tue United
States.
Nr, Med. said he should not pretend TO follow the
honorable member in his most ingenious argument,
IN his calculations. But he woul call the aen.
ion OF the House to fact, by which would appear
chat all parts of the Tinted States were Interested in
This matter. II fact, of which he was apprsed
fam various and from the very highest sources that at
tris time The stock Of the u s. Bank constitutes the
medium 10y which the balence against the u. States
trade with Great Britain is discharged and the ne
Ccss!iy OF thai balance in specie averted. What
tie asked would be the effect OF DESTROYING the conf
deDCe oil the foreign creditor the value this stock
ogeoteman, al all acquainted with the subject would
deny tina; the bare knowledge of the passage of such
resolution as this would knock down 10 point nuci,
below par, tue stock OF the Bank of the United States in
foreign countries. What then would be the conse-
qIeDCe? Instead Of using that stock for renittauces
the balances due to the merchants of Europe mist be
rcmied specie. This specie must be paid from e
vaults Of The Bank. upon the Bank wouId inc
viabiy eusne fer millions upon millions What would
&c The rcsn!'' Every gentleman VIM knows the usual
proportions between the paper OF Bank circulation
and the specie III lis vaults, know that there is no
Bank capable of meeting Of this kind. The Bank
iuS upon must curail its DISCOUNTS IFS paper must
SC called in, creditors distressed. Vino are in this
The creditors Of The Bank obliged to call upon
lem? She State Bank,! There is hardly one oc ttem
IN the United Siacs te is not completely in the power
o. Tie Bank of the United States, and that has not re-
ceyed from that institution, Notwithstanding all the
complaints against ~ as much indulgence that Bank
possibly extend. The local Banks will then have
to their creditors and general coucuss
and pressure will be produced all over the country.
single fact you'd shew Tie effect of the passage Of
such resolution as this Suppnsing it would lie
believed it would at once depress the stock 10 n par
price in the market that operation alone, would be
dim'nntiOn of the property Of those who hold stock in
the Bank TO The amount Of six millions ard half OF dol
lars, being the amount Of the present premium upou
tie twenty eight millions Of the stock held by ndyid
nals Government, possessing the power TO produce
such sudden and injurious changes in the value of pro-
pHry, ought TO be exceedingly cautious in the use of
such power. Ifany great public object required, and
6Ey called vP2n him. MIR Med said let the injury fall
where ii might, tic would discharge his duty. Bu; he
happy - hear tte gentleman ln.e who had Eo-