Martinsburg gazette. [volume] (Martinsburg, Va. [W. Va.]) 1833-1855, 1834-01-02

force all the State Banks, except those
employed by the government, to cur.
tail also, and the latter would afford
no relief commensurate with the de-
mand. The pressure would return
with more rigor than ever, and the
blame would be thrown upon the gov.
eminent.
We must not expose ourselves to
such an attack. If the Bank shall
produce a pressure, las she certainly
can by unreasonable calls upon her
debtors) the blame would now attach
to herself, and she will not have even
a pretence for casting il upon the go.
vernment.
Besides, in your city, the whole a.
mount of revenue receivable for three
months to come, will be available to
the State Banks receiving it for the
accommodation of the people, mas
much as no treasury warrant will be
drawn upon them so long as the Trea-
surer has any money in the Z. 5.
Bank. | understand the three Banks
have extended their discounts two mil.
lions of dollars, and the other Banks
in your city, probably, two more.
This is enough, in all conscience, and
think little too much for the time.
1t is not desirable they should go fur
Their; for a greater line of discount
cannot at present be sustained. 1t is
this which still makes the branch a
creditor Bank, and the more their dis
counts are extended, the greater will
this evil be. But if the State Banks
go no further, there will soon be a
change in the relative position Of the
Bank. The receipts of the distant
branch paper by the Bank, as well as
her own, must, if your Banks are pru-
IDENTIFY managed, throw the balances
on the other side. These balances
will be collected in coin, and in that
way it will be transferred. You men,
ton that the Merchants Bank drew
100000 from the branch; this will be
| followed by other drafts until the u.
S. Bank will find it difficult to sustain
the branch in your city. AS things
now are, that institution must keep the
means there to meet almost its entire
circulation, and it will have to become
great collector of specie from every
quarter Of the Union, for the ultimate
use of your Bank, and others who
may want it at New York.
Is 1t not better, then, TO let its specie
funds pass out OF the branch gradual
ly--to let her reduce her discounts
gradually--to enable the State Banks
to extend theirs gradually--to permit
the monster to pass silently out Of ex-
lstcnce, than, by an unnecessary blow,
force it in its agonies, to convulsc the
community.
No, sr--the policy Of the Govern.
ment must be steady and inflexible. 1t
must be to Preuent fluctuations, and
not to make them. The U. S. Bank,
requires the period it will take to ex.
pend all the public moneys in her
hands, to reduce her business so as to
be able to pay them. If FASTENED by
transfers, she would only press the
| Hui uCi upoii lCi utUtOIS, anu IL tOtl
suddenly and severely pressed herself,
she must explode. Then let us give
her all the time we can--not for her
own sake, but the public's. She will
have her hands full to save herself,
and the confidence Of the country will
remain unimpaired.
have sketched these views hastily,
but have great confidence in their
correctness-indeed, so much, that
think, on looking at the subject in all
its bearings, you will accord with me
in opinion.
The terms on which your house pro-
poses to furnish dollars at Marseilles,
are less favorable than the Depart
ment has received from other quarters,
but they are all so little satisfactory,
that the project the Secretary had in
view will probably be abandoned.
| With hiUh reUard 1yOur ob;t eary,,