Constitutional Whig. [volume] (Richmond, Va.) 1824-1832, 1832-05-18

h' Hdl'IhN, IN the concluding part OF tntlr
report intimate the opinion that the bank, by its
inprudcnt and excessive issues, has had consi
dcrabl" agency in producing the OvcrtraGins and
excessive unportotions of the last year.
Whatever show OF plausbiiity there may Inc IN
inns opinion facts demonstrate that 1t IL entirely
erroneous. IL will be from the statements
herewith cyh bi,cd, that tho domestic discounts of
the bank had not increased pcrc"ptibly, from
March. 1929 to March, 1881; but that they main
TUNED an almost uniform level during the whole of
the intervening period. Tho excessive importa-
tions, however, commenced in March and April
1881 and must have had their origin in causes
month, anterior. IL is apparent therefore,
That these excessive ifuportatlons not produ.
cod by the excessive ISSUES of the bank and must
Havc "rlgIn't"d In other causes connected with
the state OF Europe. The more correct view OF
tho subject, is to consider the excessive imIorta
lions as producing state of things which render
cd it necessary for the nix TO extend it's DISCOUNTS
with ayicw to relieve the community from the tcn
porary pressure to which it thus exposed.
III 80 happened, that at the very time the country
stood most i'll need of bank accommodations, the
bank had increased means and inducements to CN-
tend those accomnodations.-Thc government is-
wing paid oil, within the last eighteen months ten
inlillons OF it's stock, which was held by the bank
the directors found that if they did not increase
their discounts considerably, millions Of their
capital must be idle and unproductvc. 1t thus hap.
pcncd that the wants Of the community, the means
of the bank, and ii may bc added, tho obligation
- >''~ directors TO the stockholders and to tho
son of bank accommodations, which, so far from
having produced ovcr,rading and excessive import
atoms, has been the means of correcting and mi.
eating the temporary evils and cmbGrrassmcnts
which thcsc irregularities of trade would otherwise
have una. odably produced.
Inc minority of the committee deem il to be
thcir indispensable duty to notice that part OF The
report OF the majority, which institutes compar-
son between the resources of the bank and the
condition Of the country in 1919 and at the present
trno. They cannot but regard Tic comparison
thus presented by the report unfair and partial
and calculated TO produces impressions on the pub
lie mind as absolutely erroneous As they would be
pos tivciy pcrniuious.
Ii it had been tho design OF the majority TO pro
ducc scene of general cmbarrassmcn and distress
IN the commercial community, i'll the absence of l.
ny natural causes for such a state of things they
could not have adopted cicciua mcanr
oi accomplishing such an object than they have
done i'll this part of their report.
Fortunately, however, for tho country tho com
ncrclal community of the United States have too
much intelligence to be thrown into panic w the
loose, diSointed and glrblcd statements the crude
spcculations, and the random couicctu7cs in which
u part oil the committee have thought il expedicnt
TO indulge. III d general alarm has not cnsusd.
producing a ran upon The banks, curtailmeut of
discounts, and general Of failure and dis
trcss, particularly among tho government debtors
IL our principal importing cities, it is because the
community understand the subject better than
portion o! tho committee, and have placed proper
cStiIEatc on their statements and spcculatious
lhcro are no two periods of our commercial his-
tory so utterly dlSSimilir those which have been
selected for the comparison instituted BY part OF
the committee. In 1919, the bank was cnrarcd in
the painful but necessary Off q of CORRECTING re-
dundant and deprecated currency, produced by po-
i!tica causes, and having scarcely any connection
with the state of trade.
At tins moment, whatever may be siiI TO the con
trry, our currency is in sound state DIS that of
any country III the world; and this is conclusy,ly
Pfo'cd by the state oil our foreign exchanges & the
relative value OF bank paper and coin iii our own
markets. The foreign exchange is en- intnlliblc
barometer TO Indicate the sounducss or unsoundn.ss
OF our currency. \ reference to the state of the
eIchIngc between this country and Great Britain
at this time VIII furnish conclusive reply TO the
charge brought against the bank, of having cnccu
ragged over trading by excessive issues, and de-
prcci1tcd currency. In TACT, specie is now flowing
INTO tho country, by tho natural Of trade
phenomenon which is utterly Inconsistent with the
alleged depreciation of our currency.
After making partial and imperfect statement
CT the relative resources and responsibility of the
bink III lSl0 and 1T the present time. tho report
expresses the opinion that Eat period in 1919
when ihe bank was very near suspcndng pa mcnt,
was 1t less able to extend relief to Il SUFFERING com
munity, as tthan?l at the present moment"
Now, the very complaint urged Ivy a part of the
committee against the bank is, that it has been too
liberal III Its discounts, or, in other words, that it
has granted too much relief TO suffering comnu-
nifty already; and yet it is here down, as y sub.
J"ct OF laIncntatlou, that the bank is not a.
bic 10 ertend this relief still further The coun-
Try has just been laboring under n considerable
but temporary pressure upon the money market
during which the bank, " it'll as much liJcrality az
Judgment has put forth all it's resources TO sustain
and relieve the commercial community. The cri-
sis Of this pressure has already passed by, and the
necessities of the merchant for bank accommodate
lions gradually diminishing and Il is precise
ly st this point that part CT the committee, hav.
ing complained thai the bank went too tar in lis
accommodations when they were necessary, com.
plaza, also, that ii cannot go StI! further now that
the emergency IL passing away.
The actual resources of the bank will now be
stated, with view to show It's perfect ability 20
nont all It's engagements. The specie in lis vaults
on Tie first Of the present month, was 81 800.
BIZ, being NJ ards million more than it was in
March last.
There due, then, from the State Banks,
3126, l96. The domestic bills OF exchange held
by the Bank the LIST OF May, amounted To
S23,O52,912, ten millions of which will be paid
liz the course of amOnth and none of which have |
a longer period 10 run than ninety days. These
sums united, make 1891 500 SIS, fund the great
or part of which may be considered as available
for any probable emergency Of the Bank, as so
much specie in its vaults. These domestic bills
Of exchange founded upon the actual ouern
tons OF our internal trade, and arc in fact drawn
In anticipation Of the southern and southwestern
crops, which regularly arrive in the northern and
eastern cities III time to pay them They arc uni.
tormly " promptly paid at their maturity, without
any expectation of renewed accommodation
from tho bank, in the case of discounted notes
In addition TO the already stated, the bank
has good notes discounted on personal and other
security, amounting to Sj4I375.O78 and real
estate and foreign bills, amounting 10 S3,O1o. a25
The Whole OF the available resources of the
Blnk VIII nc thus seen to amount 10 s,S2, OJ7 1873
at least one bali of which could on any cIucrgcn.
cy, be converted into cash, in the course Of 4 lc,y
months. GA the other hand, tho whole amount of
Tho rcspons ibics Of tho Bank includju.- tho
circulation, foreign debit and public and private
dcPoscs, amount to only S 81, GSjGO3.