Martinsburg gazette. [volume] (Martinsburg, Va. [W. Va.]) 1833-1855, 1837-06-07

hoees 81 specie paying banks, the in
stant It's own deposit banks cease TO
pay specie, the Government must re.
fuse TO receive the notes Of lis own de.
post banks and can receive no notes
except those Of banks moi deposit banks.
On the one hand then the Government
- bound to pay It's debts in specie, and
II has no means ofprocuring specie ex-
cept from the banks not connected with
the treasury, so that these banks find
all their notes collected and paid into
the treasury for duties, converted i'm
mediately into specie for the use of tho
Governmcnt--while the deposit banks
will not pay their debts 10 the other
banks IN specie, nor pay The treasury
warrants in specie. Take, for in.
stance, this example: The claimant un-
der the French indemnity had certain
monies due to him in France. The
Government imported il in gold for
hlm---and when the day Of distribution
| arrived he obtained an .order for his
portion. But instead OF receiving his
own share of his own proper identical
gold, he has received neither gold nor
silver, but the notes Of dcposlte banks
which very notes the Government
itself would refuse TO receive from this
very claimeni for any debt which he
might owe to the Government. So
long, therefore, ms the Government
and the Government banks will not nav
specie to other banks, it would be rash.
ness IN those Banks to pay specie to
them, and as they cannot make dis
elimination in those whom they will
pay, the only alternative is to concur
with the Government, banks in tho &c.
general suspension. Our Philadelphia
banks saw this. They thought il use.
less TO carry on SO unequal un inter.
course in which they were to pay to
New York while New York refused TO
pay to Pennsylvania; for if the Penn
sylyania banks paid while those Of N.
York did not, tho whole revenue would
have been turned into Pennsylvania
notes and specie demanded.
In the midst OF these disorders tho
Bank of the United States occupies a
peculiar position, and has special du.
ties. Had it consulted merely its own
strength, it would have continued its
payments without reserve. But
LIST. Like all the other PepusyIvu.
MA Banks, i owed duty to The cil;-
zens of our own State; and it was not
disposed 10 stand aloof from a general
movement OF the other State institu.
tons, which However il might regret
II could not consure.
%. II was not inclined, moreover.
to dlscredt, by a refusal to receive it.
the paper Of the other State Banks
which had ccnscd TO pay specie, still
less to force, its Pennsylvania debtors
to pay theif debts in specie, when 9th.
or citizens in other States were allow.
ed TO pay in less costly medium; thus
breaking down for the benefit OF other
States, the merchants and manufac.
lures and mechanics of Pennsylvania.
Sd. While the vaults of all the other
banks were closed, the Government of
the United States would have no re-
source to procure specie, but the Bank
OF the United States, which ought not
to assume the risk Of being the only
source OF supply for bullion to the Gov
eminent and the land Offices, as well as
for expectation.
4th. The Deposit Banks ofthe Gov.
eminent would not pay their debts 10
the Bank Of the United States. Why
then should the bank of the United
States pay TO these institutions, on ac-
count of the Government, specie for
their notes when these very banks
would not pay their own debts There
would have been an equal want of re-
c'proclty and of justice in such pro-
ceeding.
9th. There was another reason
against it, final and decisive. From
the moment that the deposite banks OF
New York failed TO comply with their
engagements, il was manifest that all
the other deposite banks must do The
same, that there must be universal
suspensionthroughout the country. and
that the Treasuary itself, in the midst
OF It's nominal abundance, must be prac-
tically bankrupt.
In such state Of things the first con-
sIderation is how to escape from it.
how TO provide at the earliest practica~
Bile moment to change condition
which should not be tolerated beyond
the necessity which commanded it,
The old associations. the extensive con.
nections, the established credit. The
large capital Of the bank of the United
States reEder it the natural rallying
point of the country for the resumption
Of specie payments. 1t seemed wiser
therefore not to waste its strength in
struggle which might be doubtful, while
the Executive pcrsevered in its present
policy, but to husband oil its resources
SO as to profit by the first favorable
moment 10 take the lead H. IL, xe.s,..,..a