Rutland herald. [volume] (Rutland, Vt.) 1823-1847, 1837-05-30
ADDRESS.

hc suspension gu sNCclc payments bv those tn.ts.
ions, aud giving such explanations Of The co..
md purpos,s Of the Banks az nigh, be decD.J :.
essaty. think !, proper in tic outset to stat, IL,
here Is nothing in the condition of the B.nk. ,L.-
selves, whether we regard the amount of sp,.,, :
heir voulis, tho extent Of ihcir circulation 81.
credit in the Atlantic cities, or tao sousS....
heir discounted paper, tn render The su,pcn,o. ',
specie payments necessary ; but that tho nc,,,
has been forced upon them. rs The only mesa
safety 10 themselves, aud of rthcfto the puhli.
hc extraordinary aud unexpected Condition NJ ,,o.
~ affairs in the Atlantic cities and by the coo,,.
which The Banks of those cities have found il c,O,
dicn;. in self.defcncc, To pursue.
1t is notorious to all persons at oil conve,sn
with tho principles Of banking, that ii is neither N,
cessary nor oSpedient for those institutions to IL,
nj al times on hand n sutliccn, amount of .pr,
to redeem all their bills in circulation. Iii. "
necessary, because, their circulation being s6,-
dlfluscd their notes can never be collected in as
cieni sums TO exhaust very large amount Of ,,l
aud silver. the more especially as the rcd"tnpl,s
their bills by agents in tho Atlantic cities kr,
them at par there, and thereby increases the A.
Guilty, and diminshes the iujuccmeni, to coll,
them for the purpose Of Withdrawing the s..
from, the country banks.
1t is ctpcCient because the capital inve,F
gold and silver, y lille lying IN the vaults, i.,,
ductise and. which if great evil, is wis,,,
tion general circulation. Experience has Inv,
The proportion which the specie should bear tow
circulation, and for the reasons above given. n
retaining of an excess above that pioportionby
banks is injurious both to those institutions Su
the public. II has been found more bcnefca,s
convenient IN practice TO keep on hard ressoa
BILE amount of specie TO meet the notes likely TOW
presented at the counter, and 10 make arrnnpemn
with banks in good credit in the commercial cNn
to redeem such Of the bills Of the country banksu
are presented there. Such arrangements all IN
Vermont Banks have made. and have thus in far
redeemed not only ot their own counters, but
one, ana most Instances, IN two remote Places
These arrangements are still in operation and wi
be continued, and we have the most perfec, conf
dence that every bark in Vermont, would l,u
continued to redeem both at home and at their
sUal places o. redemption in Boston and clsewher
were II not for the Extraordinary condition Off
money market mithoui he State.
The difficulty lies not in the diminished mas
of the country Banks, but IN the sudden ncre.
of the demand for those means, from abroad
The obvious consequences of the stoppgs file
city banks, including those which have been acu-
omed to redeem the notes of the country baHa
TO which they are still largely indcbred) is an lu
mediate rise in the price ofspccie, compared es.
en- nth the best paper. For many purposes. 'es'
pecially on the senboard, specie is absolutely re-
quisite, and those who are obliged TO use II mus
have It at any price. The effect of this will BE-,
hat the Vermont Banks, unless they refuse to rt
deem in gold and silver will be exposed 20 an in
mediate drain Of their specie, by the city brokers
who will collect their bills for the purpose Of Pa.
uiaiion, and BY this means, whatever coin remains
in Vermont will at once be Withdrawn, aud carries
to The seoboard for sale. II tho Banks suffer then
selves to be thus drained, land it is believed tbs
very few days would suffice for this purpose,) .
must be very long limo befnre they can accumr
late sufficient supply ofcoin for the Redemption
OF their bills.
Bat, admitting the ability of the Vermont D..,.
to meet the demand for specie, there Is nnoths
view Of the subject of yet deeper interest aud in
por'ance TO the people of this State. II is YER
obvious, that if they continue to pay specie, the
can only sustain themselves, in the present disiur.
bed state of the currency, by calling in all their
available means, enforcing collections and u'ler,
ceaslng to discount, or even to renew discounted
papers. Specie then being withdrawn, and The
Bank notes called in, we shall be WITHOUT as.
cuLATiNG MEDIUM. The disastrous effects Of such
state of things in the sacrifice of property by 70
ccd collection, the general depreciation of oil or
ries OF sale, and especially Of lands and psodur
The destruction all credit, and he consequent
errupion Of business will be readily perceiysda an
VIC cannot doubt that our fellow citizens will do "
he justice 10 believe US sincere in dcclareing. u
we do, that we ure actualed rather by regard
what we conceive the best good Of the commung
acquired, than by narrow views Of the private ID
crcsts Of the Banks.
We are not ignorant that the suspenscEs
pccie pa ymcnis exposes the banks to heavy lsa
liabilities. and are assuming solemn responfo
y in advising them to the measure, but wc loo
he intelligence aud Justice of The community for
and by the verdict which public OPT
on shall Pronounce,wo are content TO stand or 10"
In conclusion we think it our duty to ADVISE
'lll-holders, both at home and abroad, 10 make 90
acrihce upon the notes Of any Of ibe 'e''"o''
tanks and we feel ourselves perfectly sale 10 con
identity assuring them that all The Banks Of 'O'
State will very speedily be prepared to feo.e"
With gold and silver, dollar FOR dollar ana '"'' :"
he mean time the notes ofall Of them WIZ DC s'P
N n par with the notes Of the Banks IN the hg''t'
redil in the Union,
Thomas KEsDElcK, ! q
WILLIAM IiENRr,