Southern Argus. [volume] (Columbus, Miss.) 1834-1842, 1837-08-08

lpanic and loss of confidence 10 paper
securities, whether issued by banks or
governments, in the shape Of stocks or
bills. / need only remind those who
may read this article, that during the
war, after the burning of the Capitol,
the Treasury notes then in circulation
were greatly under their par vlIue, in
bank paper, aud would not be received
on deposite or in payment by the banks,
although they had all suspended specie
payments, excepting some II New
England. Treasury notes were then
refused in payment for the necessary
supplies Of our armies, while the notes
of the State banks were freely receiv-
| ed by all classes ofour people ind cir
culated without distrust. Andlet my
readers also bear in mind the fact, that
notwithstanding the banks in our sea-
board cities might have been sacked,
and their securities have been thus de-
stroyed at a blow by the enemy, who
had just burnt our capitol, still Treasu-
ry notes, THE OBLIGATIONS OF THE MAJ
TIoN, would not be received by these
banks which were at depreciation Of
20 to % per cent. below coin; at the
same time the public debt, bearing an
interest of 6 per cent. per annum,
could not be negotiated by the Govern
ment on better terms than so cents in
!. the dollar, payable in bank notes, being
in fact but so cents in the dollar for
specie; and remembering these things,
let all in authority who have now to act
with reference to the currency also
bear in mind, that they occurred when
our country was deprived of the regu-
lating power and aid of national
bank; for the want Of which the nation
sustained losses during the war equal,
in my opinion, to twenty-five millions
of dollars; and as corroborative of this
fact, l will state a circumstance which
occurred at a period of the greatest de-
preston Of the public credit: A bank
m the District of Columbia, chartered
by congress, loaned to the Treasury a
consid cradle amount in its own notes,
not redeemable in specie, and received
in payment the stock of the Govern
ment at 80 cents in the dollar, thereby
realizing a profit of twenty dollars on
: each hundred by the mere act of manu-
featuring the amount loaned in bank
notes.
The day after the burning of Wash
ington | received . letter franz tbs Sc.
Campbell, who was an able and jeaI-
Gus officer, soliciting my aid in the pro
curement ola temporary loanto supply
the pressing wants of the government,
until the meeting ofcongress, and offer
ing to give an interest at the rate OF
eight per cent. per annum. Having
been engaged in making loans to the
government prior to that period, and
indeed from the commencement of the
war, l was induced from the purest
E motives, at the gloomy period, to enter
into stipulation with the Treasury, to
loan one million eight hundred thousand
> dollars, payable in monthly instalments
, of four hundred and fifty thousand dol
lars each, at the rate of eighty dollars
! in money for one hundred ofthe gov.
eminent stock; and / had the good
fortune to succeed in making all my
81 payments to the Treasury to meet its
: wants at the period stipulated, but moi
without great difficulty and sacrifice
as the capitalists generelly at the NORTH
!. had refused to buy stock, or to loan up
: on it at any rate of interest, after the
: destruction of the Capitol-and the
banks in the middle states had becom
unwilling to extend their loans upon
the government securities.
e Subsequent to that event, no othel
Y Individual would make any offer for thc
d loans which the government needed
Y and mine is the only name to be founC
2 on the books of the Treasury as a len
der from that period until the conclu
4 sion of the peace, except for very limi
Z ted amounts. Ifthat happy event haC
= been delayed but two months longer
n the last great loan which / engaged t
! make, under the most fearful apprehen
!. sions, would have proved my utter rl
. in; but the enemy were at our door
y devastating our country, and resolved
q to risk all my pecuniary possessions Il
+ its defence; and / was stimulated t
!. do so by the valor and patriotism dls
: played by my fellow-citizens in Mary
j land in driving. the enemy from on
shores at every point at which he al
,fl temptedto land. At this memorable
!. crisis the drafts ofthe authorized agent
4, lof the government were under protes
g in all parts of the United States, TO
want Of funds, and every thing apPeI
i tanning to public credit was utterly ~
! state Of arrangement and uncertainty
81 and these things happened when "
: had at the head ofthe Government on
To- of the purests and most enhghtene
- statesman that our country has eve
= produced. need not say thai T we
= James Madison. / am aware that
y viii be said that these thing happene
= during the war, and coul e aaye o
Cured in time 81 peaees but g y
NAV belagain involved inWaF. and haS
y occasion to experience like ocenrTeI
~ =. ces. 4 should be the duty Of the Repr
- sentatives Of this great Republic e g