Vermont telegraph. [volume] (Brandon [Vt.]) 1828-1843, 1837-05-24

keeps them at par there, and thereby in
creases the difficulty, and diminishes the
ln 1ucement, TO collect them for the pur-
pose of Withdrawing the specie from the
country banks.
1t is inerpedient, because the capital in
vested in gold and silver. while lying in
the vaults, is unproductive, and, which is
great evil, is Withdrawn from general
circulation. Experience has taught the
proportion which the specie should bear
to the circulation, and for the reasons
above given, the retaining of an excess
above that proportion by the banks is in
furious both to those institutions and to the
public. 1t has been found more beneficial
and convenient in practice to keep on hand
a reasonable amount Of specie to meet the
notes likely to be presented at the counter
and to make arrangements with banks in
good credit in the commercial cities to re-
deem such of the bills Of the country banks
as are presented there Such arrange
mentS all the Vermont Banks have made
and have thus, in fact, redeemed not only
al their own counters, but in one, and in
most instances, in two remote places
These arrangements are still in operation,
and will be continued, and We hav+tht most
perfect confidence, that every bank in YER
mont would have continued to redeem,
both at home and at their usual places Of
redemption in Boston and elsewhere, were
it not for the extraordinary condition of
the money market aoithout the state.
The difficulty lies not in the diminished
means Of the country Banks, but in the
sudden increase of the demand for those
means, from abroad.
The obvious consequences Of the stop
page of the city banks, including those
which have been accustomed to redeem
the notes of the country banks Ito which
they are still largely indebted) is an i'm
mediate rise in the price of specie, as COM
pared even with the best paper. For
many purposes, especially on the seaboard,
specie is absolutel y requisite, and those
who are obliged to use it must have it at
any price. The effect of this will be, that
the Vermont Banks, unless they refuse to
redeem in gold and silver will be exposed
to an immediate drain Of their specie, by
the city brokers, who will collect their
bills for the purpose Of speculation, and
by this means, whatever coin remains in
Vermont will at once be Withdrawn, and
carried to the seaboard for sale If the
Banks suffer themselves to be thus drain
ed, land it is believed that very few days
would suffice for this purpose,) it must be
a very long time before they can accumu-
late sufficient supply of coin for the re-
demption OF their bills.
But, admitting the ability of the Yer
mont Banks to meet the demand for specie
there is another view of the subject Of ye
deeper interest and importance to the PEG
pie Of this State. 1t is very obvious, tina
if they continue to pay specie, they car
DnI ~ sustain themselves, in the presen
disturbed state of the currenc why calling
in all their available means, enforcing col
lections, andi utterly ceasing to discount
or even to renew discounted paper. Spe
Gle then being Withdrawn, and the Banl
notes called; in, we shall be WITHOUT !
CIRCULATING MEDIUM. The disastrous
effects of such state Of things in the sacri
fee of property by forced collections, :h'
general depreciation of all articles of sale
and especially Of lands and produce, tn,
,, destruction of all credit, and the conse
quent interruption Of business. will be read
ily perceived, and we cannot doubt tina
our fellow-citizens will do US the Justice tt
; believe US sincere in declaring, as we do
, that we are actuated rather by regard t
: what we conceive the best good of tn
community to acquire, than by marrow
views Of the private interests ofthe Banks
We are not ignorant that the suspen
sion of specie payments exposes the bank
to heavy legal liabilities, and we are as
saming solemn responsibility in advis
ing them to the measure, but we look t.
the intelligence and justice ofthe commur
f ity for our justification, and by the verdic
f which public opinion shall pronounce, w
e are content to stand or fall.
: In conclusion, we think it our duty t
0 advise bill-hoIders, both at home and 6
. broad, to make no sacrifice upon the note
- of any of the Vermont Banks, and we fee
ourselves perfectly safe in confidently as
surfing them that all the Banks of thi
State will very speedily be prepared to #
deem with gold and silver, dollar for do
ar, and that in the mean time the notes {
d all ofthem will be kept on par with tn
= notes OF the Banks in the highest credit /
> the Union.
7, THOMAS KENDR1CK, I
9 WILLIAM Henry, 8
E JOHN SPALD1NG,
J. JAsoN'STEELE, ::
IS CHARLES CHAPLIN, :
10 Read and adopted by the Convention.
~