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

,esnond;n0 degFeSsien in the slue OF
our great Staple Of exportin the Soutn'
bv which our merchants were uneA'
pectedly deprived Of the means upon
which they had relied, to meet their en-
gaqements IN Europe. The Crisis was
sudden, and presented no alternative TO
the banks but suspension Of specie pay
ments. The withdrawal oftwelve ml!-
lions Of dollars from the New 1orK
banks for distribution in the western
and Southwestern States, at a tme'
too, when the people of these States
were indebted TO New York a much
larger sum, was in itself quite suthclent
to produce the measure of suspension
at a period of such universal distress.
knew that the Treasury Banks had
been instructed not to let the pubic
deposites accumulate in their vaults,
and that they had been loaned ana
could not be safely returned IN less
than one, two and three years.
While the distribution bill was I'M
der discussion in Congress, / suggested
to two distinguished members of the
Senate a measure in connexiOn with
the distribution, which would have pro-
duced, if then adopted, the most saluta-
ry consequences. My proposal was
that Congress should issue thirty mil.
lions of Treasury notes, bearing a low
rateOf interest, payable in two and three
wears. to be handed over to the States
bv the General Government, and that
the deposite banks should be required
to redeem them at the periods sti pula-
ted, in the proportions which the Sec
rotary might prescribe to be paid by
each. Such a measure would have
placed the States in immediate poses
sion of a very large fund, which would
have been deposited with the banks or
discussed upon works of internal i'm.
provemGnt, and would have formed a
part of the circulating medium with
which the banks could have settled ac-
Cumulating balances. But, above all
other advantages, such ameasure would
have given ample time to the banks to
collect, in each of the three years pro-
posed, one third part Of the national
funds required for the redemption of
the Treasury notes, and the suspension
Of specie payments would have been
prevented.
The war now waged by politicians
of both political parties against the
State banks, cannot fail to be produc-
tive Consequences which we all will
hereafter have occasion to deprecate.
They are denounced daily in the pa
pers as being insolvent, and likely to
flood the country with worthless paper
with a redundancy of paper issues
never to be redeemed, &c. Such de-
nunciations are unjust, because they
own person knowledge that the 6aaRRg
in Baltimore are in a perfectly sound
condition, and l believe they are so
generally in our cities upon the sea-
board, and, with few exceptions, all per-
fectly good in the interior of the coun'
try where there is much wealth of a
solid character to support them, and
nothing is wanting to bring them into
credit and usefulness but the balance
wheels Of a national bank. take the
occasion to inquire Of some Of the gen.
tlemen who appear to be under the
impression that bank notes are not
money, or Of any value, whether they
would not like to get hold of a part OF
this redundant circulation so much
complained of; or, if they do not,
whether they will be kind enough to d.
rect where some wealthy men, that
could name, can obtain some of it in
exchange, or on loan, for productive
real estate or other unquestionable Sc.
curities. The fact is, that Ihave never
known period within the last thirty
years when it was so difficult for meT
possessing ample means in property tC
borrow money! mean bank notes
either such as are denominated current
or uncurrent, and state the fact with.
out much fear of contradiction, that
during the last thirty years, 1t would
have been easier at at any time within
that period to have borrowed one hun.
dred thousand dollars than it would be
now, upon equal security, to borrow
ten thousand.
Banks, like individuals, are liable to
insolvency from losses and misDanape.
ment, but IL the debts due to : IIs1l
are good, the want Of specie does not
constitute insolvency. Bank notes viii
now purchase at the same prices, and
indeed at lower rates, the same com.
modities that they would command be.
fore the suspension, and if they are
suffered quietly 70 manage their affairs
tor the benefit Oftheir stockholders. the
public will not be injured, as it is moi
likely that they will ruin themselves by
making loans upon insufficient securi-
~. The directors will also soon find
that the diminished business of the
country will not increase the demand
for discounts. If they should, howev-
or be compelled by public clamor, or
by ImPrudent Legislation, to consider
every description Of property as value
less except gold and silver, and proceed
to eall u their circulation and demo-
sites in specie, and wind up their con-
Germs, they viii, by such q course, ne.
csSsarIly become insolVent, and pro-
once &, a general state Of bankruptcy in
the country.
The hauf ouA;nn...