Herald of the times. [volume] (Newport, R.I.) 1830-1846, 1834-01-30

traordinary case produced by an extra
ordinary cause. :.
In the next place, sir, l agree entirely
with the I lth Boston resolution, as tt
the causes Of this embarrassment. W,
were in a state of high prosperity, com
mercial and agricultural Every brasil
Of business, and especially manutactur
ing, was pushed far, and the credit, Al
well as the capital Of the country, EN-
ploye ed to near its utmost limits. In thp
state Of things, some degree of overtrad
ing doubtless took place, which, bowev'
err, il nothing else had occurred, wooIe
have been seasonably corrected by the
ordinary and necessary operation o.
things. But on this palmy state OF things
the last measure OF the Secretary fell
and has acted on it with powerful and
lamentable effect.
And think, sir, that such course IL
entirely adequate TO produce the effect
that il is wholly natural; and that i
ought to have been foreseen that il
would produce such effect. Those mus
have looked at the surface OF things only
as it seems to me, who thought other
wise; and who expected that such an op
GRAFTON could be gone through with
without producing a vsry serious shock
The Treasury, in a very short time
has Withdrawn from the Bank SO, ,OOO,-
600, within a fraction. This call, oi
course, the Bank has been obliged to
provide for, and could not provide foI
without more or less inconvenience to
the public. The mere withdrawal of sc
large a sum from hands actually holding
and using it, and the transferring OF it,
through the Bank collecting, & through
another Bank loaning it, II it can loan
it, into other hands, is itself, an opera
ton, which, ii conducted suddenly, must
produce considerable Inconvenience
And this is all the Secretary seems to
have anticipated. But this is not the
one hundredth part OF the whole evil
The great evil arises from the new atti-
tude IN which the Government places it.
self towards the Bank. Every thing is
in false position. The Government,
the Bank OF the United States, the State
Banks, are all out Of place. They are
deranged, and separated, ard jostIing
against each other. Instead of alnity 4,
reliance, and mutual succor, relations OF
jealousy, Of distrust, of hostility even,
are springing up between these parties.
All act on the deiensive-each looks out
for itself;--and the public is crushed be-
tween the upper and neither mill stone.
All this should have been forescen. Ii
is idle to say that these evils might have
been prevented BY the Bank if it had
exerted itself to prevent them. That is
mere matter Of opinion; it may be true,
or it may not but it was the business OF
those who proposed the removal Of the
depostes, to msk themselves how it was
probable the Bank would act, when
they should attack it, assail its credit,
and allege the violation by it Of its char
teri, anG thus compel it to tale an atti-
tude,, at least, of stern defence. The
C ommunity have certainly right to hold
those answerabie, who have unnecessa-
rily got into this quarrel with the Bank,
and thereby occa.ioned the evil, let the
conduct of the Bank, in the course Of
The controversy, be what it may.
In my opinion, sir, the great source OF
The evil is the shock which the measure
has given to confidence in the CONNER
cial world. The credit Of the whole
system of the currency Of the country
seems shaken. The State Banks have
lost credit, and lost confidence. They
have suffered vastly more than the Bank
Of the United States itself, at which the
blow was aimed.
The arrangement of internal exchan-
ges is one OF the most disastrous conse-
quenccs of the measure. By the origin
Of It's charter, by the unquestioned solid
ity, by the fact that it was at home every
where and in perfect credit every where,
the Bank of the United States accom-
plished the internal exchanges of the
country with vast facility, and at an un-
cheap rate. The state banks
can never accomplish this; for the rea-
son given in the Boston Resolutions they
cannot act with the same concert, the
same identity Of purpose. Look at the
Prices Current, and see the change in
the value of the notes of distant Banks
in the great cities. Look at the depres-
sion of the stocks Of the State Banks
deposit Banks and all. Look at what
must happen the moment the Bank of the
United States, in its process of winding
up, or to meet any other crisis, shall
cease TO buy domestic bills, especially in
the southern and southwestern, & west
ern markets. Can any man doubt what
would he the state OF exchange when
that takes place ? or can any one doubt
its necessary effect on The price of pro-
duce The Bank has purchased bills to
The amount Of sixty millions a year, as