The Rhode-Island Republican. [volume] (Newport, R.I.) 1809-1841, 1837-07-26

led good evidence of such an ;n,..,;
ihis 10 not, OF course, meant 10 be ch.."l
on The banks collectively, for there So
not IN SO wide field be a general 60.
eracy for such purpose, but on those MI wh;eL
have taken The lead on the oec..;on "e.
winch are all among the most wealthy and
powerful institutions of the kind in the Uni-
TED tates. In general when banks ,too
payment the destruction begins among the
smaller and weaker corporations, but here
the case is reversed, and the banks which
take the lead are of such character and re-
sources, that the others do n,t stop to cal
cnIate and to examine into their means.
compared with their engagements, of sun
porting their credit, but follow az once the
example set them.
After the high tone adopted by the Bank
OF the United Staes, with its vaunted large
capital of S35 200 900, it might be erpec-
ted that this at least has escaped the gener-
al wreck, but it is not so. The President.
however (Mr. Biddle,) in letter to the Hon
). q. Adams, which is published in the New
York papers, undertakes, in a very elaborate
argument, to justify the stoppage of tina,
bank also.
At the same time with the general stop-
page OF the banks, the journals acquaint US
with some of their panacea for supolyinu
the place of gold and silver crcuation'
which is by an issue Of small notes of from
halt-a-dolIar TO three dollars, that is, from
Is. to l2s, or thereabouts. The ALBANY
Journal observes, with very amusing, self
complacency, the bills Of our banks are
just as good, and more convenient than gold
or silver"
In its general effect, this universal stop
page of payments, so far as the United
States are concerned, has produced, as
would he anticipated, sensible relief The
merchants were no longer under the necess-
ity of exerting themselves to obtain gold for
remittance to Europe; their correspondents
would see at once, from the state of things
described, that 1t was altogether out of the
question. Prices had risen, and would no
doubt continue to rise, for where the med |
'um OF payment was mere paper, uncon-
Vertable into specie, there must necessarily.
among themselves, and for the moment, be |
, general advance.
The important question as regards this |
country is, in what manner, our prospects
'f obtaining payment of the debt due to US !
IRE altered by the seoppage of the banks,
md we have been surprised TO find very
general prevalent opinion in the city that
We are much better off in consequence of
I. This is course of reasoning which it
utterly impossible to comprehend or to
Explain, excep, by the supposition that men,
,laced IN situation of great peril, wiIfuIly
latter and deceive themselves as to the con-
equences. Before the events which we
low know had occurred there was pros
'ect either that specie must be forced from
he American banks, or produce so much
owered IN price as to make that an eligible
emittance but the first consequence is
low put totally out of the question, and rs
he produce growers will not he compelled
0 sell, the other seems equally so, and the
ndlng means of payment foi the Euro
can creditors removed further off then ever.
)f the American paper which has got into /
regulation here, and been adopted to some
xtent among the securities negotiated n, I
ne Stock Exchange, there will be nothing
} substitute for it, when it has run on to 5
'nturity, but other paper, of the real worth /
which six months hence no man can t
'rm an estimate. The fact is, that the A b
'ericans have proved too cunning for us, t
nd the European creditors may 90 whistle r
n their money. Failures of banks in the y
Mon by wholesale are nothing new-,hey {
appened almost as numerously as now, in Il
TO The then existing numbers, in 8
'l4 and in ISIS; but the present case g
ands alone in one respect, that of being o
cans of evading payment to the foreign =
editor. o
The character and effects Of the Dstri- '