Herald of the times. [volume] (Newport, R.I.) 1830-1846, 1832-10-11

Of the institution without Inconvenience.
His language is, "the time allowed for
the Bank to close its concerns is ample,
and if it has been well managed, its pres
sure will be light, and heavy only in case
its management has been bad. Ifthere-
fore, it shall produce distress, the fault
will be its own" Sir, this is all no more
than general statement, without fact or
argument 10 support it. We know what
the management Of the bank has been,
& we know the present state oiits affairs.
We can Judge therefore,, whether it be
probable, that its capital can all be call
ed in, and the circulation Of its bills with
drawn, in three years and nine months,
by any discretion and prudence in man
agement, without producing distress
The bank has discounted literally, in
compliance with the wants the commu-
nifty. The amount due to it on loans and
discounts, in certain large divisions Of the
country is great SO great, that do not
perceive how any man can believe that 1t
can be paid, within the time now limited,
without distress. Let us look at known
facts Thirty millions of the capital of
the bank are now out, on loans and dis
counts in the states on the Mississippi and
4 its waters /; ten of these millions on the
discount Of bills OF exchange, foreign and
domestic, and twenty millions loaned on
y pronssory notes. Now, Sir, how Is it
| possible that this vast amount can be col
ected in SO short period, without sut-
fering, by any management whatever !
We are to remember, that when the col
lection begins, at the same time, the ex-
listing medium Of payment, that is, the
circulation of the bills Of the bank, will
, begin also to be restrained land Withdrawn
: and thus the means of payment must be
} limited, Just when the necessity Of max
ing payment becomes pressing. The
whole debt is to be paid, and within the
: same time the whole circulation with
: drawn.
, The local banks, where there are such
will be able to afford little assistance
t because they themselves will feel a full
: share of the pressure. They will not be
in condition to extend their discounts
: but in all probability obliged to cnrtai
: them. Whence, then, are the means t,
}, come for paying this debt, and in what
] medium is payment to be made If al
$ this may he done, with but slight pres
k sure on the community, what course o
D conduct is to accomplish it? How is j
! to be done? What other thirty millions
y are to supply the place of these thirty
d millions now to be called in: What 9th
= er circulation, or medium of payment, i
: to be adopted, in the place of the bills o
" the bank? The message, following
a singular strain Of argument, which ha'
|. been used in this House, has loud la
IS mentation upon the suffering of the Yves
N tern States, on account OF their beln'
st obliged to pay even interest OF this debt
is This payment of interest is, itself, repre-
C sented as exhausting their means, ant
l ruinous to their prosperity. But if the in
+ terest cannot be paid without pressure
II can both interest and principal be paid !
'e four years without pressure! The trut
\ is, the interest has been paid, is PAID
> and may continue to be paid, wlthot
st any pressure at all; because the none
of borrowed is proftably employed by thos
'e who borrow it, and the rate OF intere
IS which they pay, is at least two per cen
IN lower than the actual value Of money
{; that part of the country. But to pay tn
he whole principal in less than four year
u losing, at the same time, 1.-The exlstin
s. and accustomed means and facilities
1t payment created by the bank itself, an
c. ito do this without extreme embarras
n. ment, without absolute distress, is, in m
Judgment, impossible. hesitate not
ye say, that as this VETO travels to the Yves
ot it will deprcciate the value Of ever
IS mans property, from the Atlantic State
C. to the capital of Missouri. Its efiec
IN will be felt in the price Of lands, I'll
'rs great and leading article OF westel
% property; in the price of crops; IN Il
8 products of labor; in the repression
nd enterprise; and in embarrassment to ev
is, ry kind of business and occupation.
nd take this opinion strongly because ha,
Nj no doubt OF its truth, and am willing
ne correctness should be judged by the
70. vent. Without personal acqualntan'
lui with the Western States, know enout
hrs Of their condition TO be satisfied, tn
'et what l have predicted must happen.-
oi The people Of the west are rich, but the
ng riches consist in their immense quan
'se ties of excellent land, in the products
oil these lands, and in their spirit Of ente
es, prise. The actual value Of money,
ng rate Of interest, with them is high, b
us, cause their pecuniary capital bears Int
ION proportion to their landed interest.
're an average rate, money is not worth le
tn than eight per cent. per annum throug
OIL out the whole Western country; notwlt
Ill