The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1837-09-14


From Ms Nsw York Eagle and Standard.
SPECIE PAyMENTs.-That the banks will
resume specie payments so soon as they can
with safety, admits Of no question, and that
they can arrange their business so as TO meet
any amount Of their notes which may be pre-
scented for redemption within the time allowed
to suspend, is also freely admitted. To Of
feet this object--so much desired by many
all that is necessary their part, is, TO curtail
their issues, collect their debts, and have no
more paper afoat than the amount Of specie
in their vaults. This, whether it be six thou
sand, or twenty thousand dollars, is OF no con-
sequence, so far as the redemption Of notes
is concerned The banks will thus be free
from the charge Of extortion--of reaping un-
due profits from their capital, of being mono
poles, and will stand in the same position
with individuals who have small sums of mo-
ney to loan. We repeat, it is possible for
the banks TO shape their business so as TO re-
sumo specie payments within the period al
lowed them to suspend The question is,
will the public interests be promoted or con-
suited by the measure; glance at the actual
condition of the currency may assist us in
forming right conclusions.
Take, for instance a country bank with
capital of 100000 dollars The amount OF
its notes in circulation in the month Of Au-
gust, l2l 1875 dollars notes and bills dis
counted, 369,l54 dollars; total, 490,2S9 dol
lars. Now suppose the notes and bills col
lected and the circulation reduced to 1921
dollars-the amount of specie on hand, and
what would be the effect upon community
where the bank is located? Would the pub
lie interests be promoted by striking out of
existence, at blow, the amount Of 4S3, 200
dollars in single county! And what would
be the effect upon individual prosperity, were
the banks 10 show no lenity to their debtors
Would it be possible for such large sum to
be collected in times like the present without
the most disastrous consequences to commu-
nifty at large And let it be remembered that
the banks suspended specie payments at a
time when there was the greatest amount OF
specie in the country; every man doing bust
ness requiring change found no difficulty in
obtaining it to the required amount. The
high price of produce made money plenty
among the farmers, and there were but few
who had not accumulated more or less of the
precious metals. But when the loco focos
succeeded in exciting distrust in the banks
when it was found that large balance was
due to foreign merchants and that instead Of
having surplus ofproduce there was great
deficiency, and as a matter Of course the
foreign debt, if paid at ALL or Immediately,
must be paid in specie, then it was that rush
was made upon the banks, which would have
drained their vaults Of the last dollar, had not
the Legislature interposed and allowed them to
suspend the redemption of their notes. But
to go back to the starting point, we would ask,
in all Difference, whether the public has not
been as much benefited as the banks by the
operation OF the suspension law Constituted
as society is, the foundations cannot be broken
up and the landmarks removed without great
and irreparable public loss. All debts, con-
tracts, &c. were made with special reference
to the then state of the currency. The debtor
for one hundred dollars-without special
agreement-expected to pay the debt in the
currency Of the day. He did not expect that
what he had received as bona fde cash, would
with no other object than to realize the Vi
sonary speculations of modern reformers.-
He expected to pay his debt in the currency
of the day at par value without a shave of Is
per cent for specie. Had he been told that
his one hundred dollar purchase would cost
him an additional 5 per cent. for Constitu-
tional money, and he would have been slow
to make such a bargain. Yet suchis the light
in which we should view the subject, if we
would examine it soberly, dispassionately, and
by the light Of truth.
Let us accustom ourselves to look at things
as they are, and not embrace theory, plausi
BILE in the abstract, but which can never be
reduced to practice. IL there are any one
who will be content with 25 cents per bushel
for wheat when their neighbors are receiving
1875, they, doubtless will go the loco foco doc
trnes. But we imagine there are few such.
The great mass of community will bear up
under the embarrassments of the times as
they would submit to an unavoidable general
calamity. They are content to go with their
fellows, believing that, without good and sutii-
cient cause, a war upon the sincws of society
can be attended with no good results. They
will put their shoulders to the wheel, uniting
their resources and energies to meet the crisis
as becomes men, not only accustomed, but
willing to meet the vicissitudes of life as be-
comes an enterprising, high souled, noble
spirited people.
From the LynchJug Vryinian