Phenix gazette. [volume] (Alexandria [D.C.]) 1825-1833, 1833-12-11

ouybt 10 be spared to defeat it, aud avert the Cd
Iamity. All the money-ali the arrangements
Of commerce, the value Of the paper oi all the
Ranks Of the United States. and 70 some mea'
sure the price of all the products OF asr'eu.'use'
will be at the mercy of the President, or DIS oe'
cretary. subject to their VIII.
By the removal Of the deposltes from tne Dsnh
of the United States, to Banks elected oy h'o''
self. the ultimate effect must be to give 10 inc pa
per of the favurite Banks greater Vaioe .han
other Banks-since il will be sustained by the
nsn,r,ment Of the Treasury. and, therefore,
more current. This will place the whole com
me,cs of the Southern and Western States, and
ali the debt of those States, at the mercy OF Two
or three Banks in the City Of New YORK. man
aoed by friends and favurites Of the Secretary OF
the Treasury very large proportion OF the
imports made into the United States, IS entered
and paid a, the port Of New York, perhaps ma
nv millions annually. of the whole revenue OF inc
Union This sum is deposited IN those BANKS
managed by mer chants or other friends IN that ci'
~. who determine to substitute the notes oil their
Banks for those Of the United States Bank, ana
Law the whole mercantile community OF the Unit
ed States under contribution, who, Tor self'pre'
seryation, are compelled somewhat TO aid the
scheme and, IN doing so. inJure the state bank'
which necessarily lessons the price OF produce
when brought to market by the farmers and plan
tiers.
merchant in the South or West will find
b,mself once year if not ofIener. obliged to en-
ter the market at New York for the purpose OF
merchandise for the necessary supply OF his Gus
toners at home-for part of this purchase, he
is, in the usual course of trade, compelled to
give his bond PAYABLE in, say Ole year from the
datc-this bond, according To the laws OF New
| York, will bear an interest OF seven per centum
per annum, and when all the debts OF all the
merchants Of all the States are included, will
amount to many millions annually. The mer-
chants and others who owe this money, IN
the mean time, transport these goods to the
| West ard South. and sell them to the consumers
who are their customers, and take their oblIaa'
ton to pey at the period their own debts become
due in New York. These bonds BY the laws OF
Virginia, and it is believed most other Of the
Southern States, bear an interest OF SIX per CEN
tum per annnm. which at once is an annual ba.
lance 10 favor of New York of one per cent up
on many millions of debt, levied upon the West
and South.
! When the merchant returns to discharge his
bond, or even to pay for the merchandise then
purchased. and shall produce his money for that
purpose, which proves to be notes upon the State
Banks Of the State of which he is citizen, he
is then told that bis money cannot be received IN
payment. as it is passing at a discount OF hve per
cenium in that market-remOnstrance is in vain,
: the country merchant is referred TO the brokers,
and usurers to sell the notes upon his own State
Banks, for New York money, or for gold and
silver; he is. at the same tune. informed, that
they will take hereafter, at par, notes upon any
Of the deposite Banks of New York, or other
Banks of that city, the paper Of which these
Banks, under the influence Of the Secretary Of
the Treasury. may designate In the mean time,
six per centum is paid to that State upon ell the
debt incurred for merchandise by the South and
West, aud five per centum discount is paid upon
all the muney Of the other States which Is sent
to that market. 6r the whole supplies OF the other
States. When the distant merchant is thus IN
formed that New York bank notes will be taken
at par, he Immediately informs his customers,
that. II they present him those notes. they viii be
received in discharge Of debt at par, to the ex-
clusion Of the paper OF The Farmers Bank OF
Virginia, which must sink to five per centum be.
low par, even in Virginia-as they will not bring
more in commerce. Our farmers and our plant.
ers will in due time be informed, that the Bank
notes of Virginia will not be received except at
a discount. in discharge of their debt; and in
pa ment for their -four or tobacco, II any notes
are paid them which are not at par in the depo'
site Banks Of New York. the price must be low
in proportion TO the scarcity Of the notes sought.
or they are paid in their own deprecated paper.
BY this means the notes Of the New York
Banks will soon supersede the notes Of the Banks
Of Virginia, and by the system thus establish
ed, six per centum per annum, will be paid to
those dependents Of the Treasury. upon the
whole commercial transactions of that CITY. per
hap. amounting to sun aImos, equal to the COM
merce Of that city.
Nor is this all-tbis becomes political engine
which is welded by the Secretary Of the Urea
surv, who. by this agreement. is authorized to
send one or mnre agents TO espy into the condi
ton of the Banks. and report as h. may think
proper OF Banks IN which even the commonwealth
itself is intereste'l--an1 such is the nature Of
the agreement between the Secretary OF the Trea.
sury. and the Bank Of Virginia. and IT'S office at
Norfolk, that they have actually agreed to pay
ian adequate proportion" Of the expenses OF
the Secre'ary's Agents. whenever he may think
it necessary to dispatch one, and acknowledae
themselves " in the service OF the Governments"
fhor a. In rr,Lo ,uookty nj their