The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1837-10-20

fesoped, That they had undiminished confidence
IN the PATRIOTISM and integrity OF William l. Marcy
and that his conduct IN the present emerReney eyinces
an elevation OF feeling, disnerestedness Of purpose
ana hrmness oil character, which entities him to
warmest appreciation"
Thus far he has retained the confidence Of the demo-
cratic party, and am happy to see that all the county
conventions recently. held in our State, resolutions
similar to the above have been adopted
the banks had stopped for the reasons assigned by
the Globe, then they merted the te to which the loco
iocos would have consigned them and the Governor and
Legislature OF State deserved instead OF praise,
Just condemnation "a condemnation which they virtually
ad receive from the Globe, for coming to their relief
Inc stoppage was characterized by the Globe as the
result Of base conspiracy for their reef"Gtobe,
May %.
a bare faced attempt defraud the abornp classes
by passing of in exchange for their products aud labor
Their deprecated promises to pay" Globe, May 26
The result off, combination amongst the merchants
depositors and the banks, melted by the Pennsyyan
u > Bank, for the purpose of delraudng the people
aud Of enabling Biddle to meet portion Of his enor-
nous engagements TO England" Globe, June 49,
"a design to enable Biddle to export ten millions Of
dollars for the relief of the Bank Of England and the
banks to pour forth their 1orihess trash upon the
munty" Globe June 49,
design formed to drive the lawful currency out
OF circulation, by unresained Of deprecated
paper" Globe passm
A fdgraHt breaeh Of faith, monstrous fraud by
refusing to redeem their notes. and withdrawing instant
iy the whole currency from USE substituting their
own spurious currency IN its stead" Globe, June 20
scheme designed to fill the country with spu-
rous paper currency, and TO buy up specie premium
to send abroad, deliberately planned and boldly execut-
ed by the federal leaders, (was all the bank directors
and officers federalists y force the government to
submit to the dominion Of a National Bank and one
which has covered its planners with shame" Globe,
July 7.
"A manifest and fragrant outrage the nights If the
country by voluntary breach OF the planest moral duty
the redemption Of their currency, which they have issued
for their own profit" Globe, July %.
An act (Which has placed them, (the banks,) by re-
iusng to fulfil their solemn engagements, IN an attitude
Of direct hostility the people, who the actual suf
ferers by the depreciation Of their paper" Ibid.
"A system OF deliberate plnnder," Ibid
More quotations might be given from the
columns of, this hard-noney ravng loco foco
paper, all showing its deadly hostility to the
dit and banking system of the States, all calcuat-
ed to shake public confidence in the honesty and SOL
vency of the banks thereby adding to the panic and
pressure, and deerrlng the day OF the resumption OF
specie payments. If the banks suspended for the
alleged by the Globe if they have been guilty Of
" fraudulent bankruptcy fragrant and monstrous
breach Of faith, moustrons fraud" of act calcu-
lated 10 cheat the people by flooding the country with
paper which they INTENDED toredeem, attempt
which would prove fatal to the reputation Of all
cerned then indeed is the reputation Of all who came
TO their relief consigned to fatality" Gov. Marcy,
and the Legislature, and the democracy Of New York,
who sustained them, in their action on the suspension
law all fatazed have no doubt it one Of the
objects of the Globe in these attacks, bring into dis
repue with the Republicans of State, their faithful
and time honored servants And how have the mad
voccratng Of this loco ioco prophet been fulfilled
Have the banks failedl No If the people had paid
them their debts, the banks would have been able to
have fulfilled their engagements, and divided surplus
of some thirty millions of dollars among the stock
holders Has the country been flooded with worth
less rag money!" No-as TO circulation, it is reduced
The testimony of the Secretary of the Treasury IN his
report TO Congress- alsltes the prophecy Tie
following is from his report-and should have referred
il before when speaking Of the able and faithful
ner in which the banks depositing and discussing
agents of the Government, had performed their duties
Besides the general cautions with respect TO the
excess of bank issues and the dangerous conse-
quences likely TO ensue which detailed in the
last Treasury report several instances occurred
where the course OF business OF some OF The deposit
tories appearing from their returns to be inudicous
special letters of advice were deemed proper, and
written. A rigid system in requiring addi-
tional specie also pursued in all cases of unu-
sual deficiency In regard to the effect of these steps
the banks it affords the undersigned pleasure to
add that from the completion OF their selection after
the deposte act passed. TO the last returns before
their suspension great reduction in the circulation
well as discounts of many OF them, had taken
place and, in several cases, much larger proper
tion of specie was kept on hand. Indeed, consider
out by them between last November and May,
amounting to near 20 millions more than their re-
eeiptS during the same period IS fact highly Gre
dtable 10 their prudence and ability that the specie
OF all reduced only from about fifteen TO thirteen
millions, and their circulation, instead of increas-
ing fell from near torty-one to thirty-seven millions
" As a whole, their specie compared with their
circulation continued To be almost as large in May
in November. II averaged more than one to
three, or much more than has been customary with
the banks in this country, and was over double the
relative quantity held by all the banks in England
at the period and was in proportion one-tourth
larger than that in the Bank of England ITSELF
Their immediate means, compared with their imme-
diatc liabilities, somewhat stronger in Novem-
Der than in May but were al both periods nearly
To l2 or greater than the usual ratio, in the best
times of most banks which have a large amount of
dcpoSiieS in possession. (See table a.
In this condition ofthings, the suspension OF spe-
Gle payment by the depose banks was an event not
generally anticipated
"The policy since pursued by most of them has
been favorable to an early discharge of their
gagementS to the Treasury, and 10 a resumption of
specie payments. Many have gradually reduced
their discounts and circulation, as well as paid over
much Of the public deposites. This may be more fully
seen in the tables annexed. Statement of few
heads of condition in November, March July May,
and AuguSt-see a. Since the LIST OF May, their
discounts, a whole have been reduced about So
.}SS 776, their circulation "a 99l 9l, and their pub
lie deposites Sl56O73l6 while their specie has di-
minished less than $3O0OOO0 OF the number OF
eighty-six banks employed at the time OF me sus-
pension ten or eleven are supposed have paid
all the public money which was then in their pos
session 10 the credit of the Treasurer. In the Gus
tody of than half the others, an aggregate of
less than 100000 remains unadJused. Several OF
the rest still possess large sums; but many OF them
have continued promptly to pay such payments from
time TO time for meeting the public necessities that
according TO the last weekly statement, the whole
balance to his credit remaining unpaid in all of
them was only $l24lS0lS The amount thus re-
tanned by each, may be seen in the schedule an
nexed. (R)"
Had the banks employed the most eminent counsel
to have written their culogy they could not have sue
ceeded better than MIR. Woodbury. has in his report.