The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1837-11-24

4 its silence, admitted the truth of the allaga-
ton and persevered, by its daily trades 10
excite the public mind, I'D enlist the heated
passions Of the inconsideratc, against all
banks not only for the purpose Of destroying
their credit, but 10 annihilate them altogether.
We have the evidence before us, that the
columns Of the Globe were closed against es-
says, having for their object to encourage the
banks to resume. A pamphlet entitled, the
two concluding articles Of IAN OBSERVER"
the two first Of which, it appears, found
place in the Globe on the 23d and 25th Of
May last, and the two last published in pamph-
let, because they were rejected by the Globe,
from one Of which we extract the follow
ing:--
The present state Of things have said cannot
long continue without change. The people will
not submit To IT, Therefore the banks have deep
interest in efeciing change, in common with every
individual member of society The question arises,
how and In what manner is change 10 be effected
The answer TO that Is plain: THE BANKS MUST
TAKE THE LEAD. Let some Of the banks In
the large cities call convention Of all the banks in
the United States which choose TO attend to meet al an
early day at some central point there to confer with
each other and exhibit each other their respec-
tive condition In this way the condition OF the
banks generally can BE- ascertained with tolerabe
degree of accuracy. Concert of action would be
thus produced, which must be had before specie pay
ments can be resumed, An early day mightbe fixed
upon for doing the same in another portion, where
perhaps the intervention OF another crop may be re-
quired to aid them in the measure.
The most important thing, in measure Of such
consequence and necessity Is fixing the period when
| shn ha aHn nfad hon hat ig daeti cd npn
every sound bank finds itself under an obligation to
go to work in good earnest to prepare for the event
They will call their debtors 10 pay up, and at the
same time, call in their outstanding circulation.
This course will become so universal that probably
before the day for resuming payment arrives, the
paper in circulation will have become much de-
creased, that the value Of paper remaining in circu
lation will have Appropriated that oil coin, and,
consequently that the precious metals will speedily
thereafter flow voluntarily into the country. The
precious metals are like fluids they will find their
level. They will flow from those countries where
they are the least valuable TO those where they are
the most so. The year 1919 was probably more
similar to the present than any other within the
memory Of man. Universal distress pervaded this
country. England was similarly situated then, to
what she now is, in her monetary affairs. The com
merce of Europe as well as this country was COM
pleely paralysed. The Bank Of the United States
was on the verge of bankruptcy. The banks in some
of the southwestern and western States suspended
specie payments An enormous contraction OF the
The consequence was, that the prices of foreign
commodities were reduced so low, that the precious
metals furnished the most valuable article TO large
extent which could be brought home in payment for
productions of our soil sent abroad The public
records show that, within the year ending the 10Th
September, 1921, their was imported from foreign
countries upwards of eight million Of dollars in
specie. Almost every nation OF Europe contributed
portion, well all the West India islands be-
longing to different nations.
b, h,tr from
state of imitation TO which the currency had lately
reached, to that which shall be sound and stable,
much distress must be endured but less, perhaps,
than most people apprehend. The work OF reduc-
ton has been going on for some time II is within
the knowledge of the writer, that most Of the solid
banks have been diminishing their circulation for
the past three or four months. Some have gone as
far as TO reduce one-halt. In one instance, bank
in the interior has reduced its circulation in less
than four months from upwards of two millions
down to one million of dollars There can be no
doub' but the banks in every part OF the country
have reduced their circulation greatly since the
| beginning of the year, mean the leading and
! sound blnks That all have done so, no one will
probably contend 1t may be fairly estimated that
than twothirds Of the banks in the country
can ever resume payment. The sooner the chan Is
winnowed from the wheat, the better for the solid
| banks and the community As soon as that can be
done the character Of the solvent banks will appre
ciate and that of the insolyent ones will fall In
what manner can this be SO efectnally ascertained
/
and fixing day for resuming payment by the banks
besides having the effect to lead all solvent banks to
| prepare themselves for the measure, will lead to
satisfying the public mind, and inspiring the public
| with confidence tn such banks as enter into the
solve. The public. mind will be prepared for It, as
| matter long decided upon and long anticipated,
and, of course the banks will have fully prepared
themselves for IT. and consequently there will be no
| runs on the banks by the community because their
confidence will have already previously been es-
ablished But, on the contrary, the very establish
ing Of confidence will lead to bring forth, simulta-
neously with the resumption of payments by the
banks, the vast sums of coin now boarded by the
community, owing to the want of confidence. 1t
may be fairly estimated that the amount in the hands
Of the community, and now boarded will amount
to double the quantity required for all their wants.
All that is wanted is confidence, to throw the greater
part of this into circulation.
After reading these facts, the public can
Judge of the sincerity of the Globe in its pre-
sent rejoicings at the prospect Of the banks
shortly rcsumng land Of the wisdom evinced
by the Treasury Department, in the measures
it adopted in its unwearied care and anriety"
to bring about that event, SO strongly called
for by 1.-The interests Of the public"
| RIGHT OF INsTRUCTION