Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1835-08-21
POLITICAL.
From the Globe. /
,,.s. From the Globe.1
HE BANK EXPANSIONS CEASED A REAC.
IiON COMMENCED, AND PANIC OPERA
TIONS ORDERED >|A

THE BANK EXPANSIONS CEASED: A REAC.
TIONS ORDERED.
Two months ago, warned the community tina
%he the wane OF operations OF the Bank of the United
States, seemingly indicated expansion only there was
full action. '"' :"
treasury, which we have been permitted to examine
shows that expansion has ceased that the waves Of
full view ~ "
In furtherance of its ulteror designs the Bank wen,
on extending until like the flood tide, its power was ex
pended It's ability to expand TO greater extent has
been exhausted. The action which has for some time
past been operating, hidden and secretly, has now
reached the surface and the whole crreat moves wild,
fearful force the way. 1855
Let US examine some of the important items. retro
spectively: ' ~
First, in relation to specie
IN March last, the Bank had specie, Si6567 500
On the LIST OF July, it had ............. 1929 32S
Diminution, .......--..... S3l2s 4G5
Now, as TO crcui6:ion-
In March last, the circulation was .... SIo 5Io 771
On the LIST OF July, it was ........... % 332 $50
r.o Increase, ............... $5,sl3o4
linen, as to its loans
In March last the loans of all sorts were s14 4Oa
On the LIST OF July, they were 65 Ig7 $50
Extension of loans 81. 3s3 2a9
we have selected the LIST of March, because ,ycconsi.
der that the period when ii between The
Bank its Senatorial counsellors and advisers and The
leaders Of the Bank Wing party generally the coursc
which that Institution should pursue in lie n,r, bh
was assigned TO 1T to act and the lst JULY because lis
expansive operations had at that time reached their ma
mum.
What have been the operations of the Bank for rbe
month of July? We will show;
The aggregate of its loans diminished .... Sss3a74
Ihe specie lessened Observation-Disclosures. S45 asa
The circulation thrown back upon the Bank OO3 SOS
The individual deposites reduced ......... 05O7I7
ANA at the same time, cash balance due 10 State
Banks of over Itoo Millions Of Dollars
This is the effect of the for one month
immediately succeeding an unprecedented expansion for
many months This may be compared to the moving Of
the waters which follow tho flood tide but little aeyond
what is termed dead acatcs.
1t is maxim, universally Acknowledged correct that
one extreme succeeds another The exonusons az fla
Bank have been unprecedented; the contractons will
be SO also This would be the natural result
The Bank does not possess the power to STAY or che
IL, IT wished The Bank docs not wish to stay H. ar
check II. That would defeat its very obiect in ca
pandIng That was, to make the reaction as great as
possible
Now when the Bank has found that II can expand no
Ia'her; ana that reaction has already commenced we
are t9iu through the public prints that has issued its
mandates to It's officers in the great commercial cities 10
extend no arthc and through private sources we learn
h1t the orders gwen from the periaL palace at Pha
dephia, TO some of the important Offices are TO
en1taa their loans im1acdiateiy
Ahe power OF the Bank is be employed in making
the natural action aiready in full operation the rot
The above order, issued at time when the Bank has
twenty-four millions of dollars of domestic bills run
nIng to maturity, fifteen millions Of dollars Of which
d. is believed, are payable in New York and Philadc
Pna within sixty and ninety days; principally in the
former city The branch there is cuTail all this time
Who is to furnish the of paying this yas aronnt
The city banks, of course; and also the curaincnts of
ainsf fIo c;f,
Danhs In favor OF the branch for which Il will demand
specie The city banks must, in sclEdefence cali in
Their loans, and refuse dscounts and thus the panic
commences F
The Bank stands indebted TO the Cbarlestoo b,n,s
more than a MILLION AND HALF OF Dol
LARS How was such debt crea,cd !, Dot ~
asked? - 10y w
We answer, it by the p,rchoso Of domestic bills
~ charleston by the branch. These bills principal
ported from there back to Charleston to Ionjdate the
oance. me course of trade is such between the two
Places that be done only with specie Yes sncc
must be sent from New York TO Charleston IN nav ,s
debt which the branch owes the local banks there
hesitate not to say that the Bank itscfs not aware
OF the tremendous reaction which now operating upor
IT, We understand that the OF notes of the Rank
OF tue United States and branches which the Deposie
tanks alone mad on hand, by their latest returns 10 the
Treasury Department, are without parallel These tic
Bank will speedily find itself called upon to redeem.
But this is not all This re-action has taken pIacc
this order Of the Bank follow IL with curtaiIments M
been gwen just at the moment the domestic Fail trade
aoout Commencing az the period when the merchants
mestic manufactures to supply that trade ,g6en tbe
quantities Of foreign manufactures arriving and ordered
are unusually large ia consequence Of the rood ,narI
the same found IN the SPRING owing to the constant I
pansons OF The Bank and the sUperabuadaDce of money
which they caused.
No one who has been an attentive observer o. the
movements IN the commercial and noneycd market for
Few months past can say that there are not large oan
uies oil foreign merchandise on hand i'm or, ,yat
commercial cities; neither can any one fcd . ;,5,;e
cauon IN denying That the Bank, by tia enormous cr
tneir importation Yet the Bank before the season bas
opened for vending and distributing them has directed
It's offices IN the places where they are TO be 6,st de-
posed of, to cUrtail their discounts ~
What was Mr.. Biddles language 10 the invesG,,,;,,,
committee in April, 1892? lie said, then . W,il,,|tS
having eonuiDuted to produce them, the Bank f,und
aoCUt hne months ago, torge ip0rtfons requiring fy
Ietr gVny'gH uFogh die country icrcased aeiies con
Jsesso , eaNh"g having the Of giving them
oeg t"Jaet oreaed for the purpose of Ibe0 II av
them We differ much from he decisr,,inn ~ NJ
blooe that the Bank did not contribute to produce the
Try anPoitauons az thst time, as he probably would
IRON ours, that the Bank contributed ~ a.. - ~
ggrtauonS now on hand and now daily arfigin1
We say the Bank did contribute 20 The {ssgc T.,
Pol'%sVhs Which IT found on hand then, and s,vb;ch
are on hand now We have, however the sdno;a
son OF Mr. Biddle, that the large importstons tger
on hand required FIR their diffusion Lro,,oL ~
county increased facitics conaecied rim 6oot; ~"
ana 90 not the large imporstons now on hand AID a.