South Branch intelligencer. [volume] (Romney, Va. [W. Va.]) 1830-1896, 1837-05-27
MIR. BIDDLE'S LETTER.
PHILADELPHIA, NAV 18th. 1ss

!
MY Dear Sv:-You are good enough
to express wish to know my own
views ofthe present state Of things and
hasten to give them without reserve.
You may perhaps remember that in
my letter 10 you of the 18th of Novem-
Der last, | stated what seemed the real
causes of the endorsements then ex-
listing, and the appropriate remedies for
them, adding that by their adoption
| confidence would be restored in "a
hours, and repose at least in as many
days." Sixmenths' further experience
has only confirmed that opinion.
believe now, as I believed then, that
the events of this week might have
been readily prevented-and that the
unhappy perseverance in the measures
then deprecated, has reduced the coun-
try to its present condition. But have
no leisure now to discuss the subject
and no disposition to indulge in una
vailng regrets. 1t will be more profit
able to look distinctly at the present
position Of the banks and the country,
and to suggest their respective duties
TO themselves and to each other.
All the deposite banks Of the Govern
ment of the United States in the city Of
N. York suspended specie payments
this week--the deposite banks else
where have followed their example {;
which was Of course adopted by the
State banks not connected with the
Government. I say of course, be-
cause it is certain that when the Gov
eminent banks cease to pay specie, all
the other banks must cease, and for this
clear reason. The great creditor in the
United States is the Government. 1t
receives for duties the notes ofthe vari-
Gus banks, which are placed for collec-
ton IN certain Government banks and
are paid to those Government banks in
specie ifrequested.
Now if these Government Banks, the
repositories of the public revenue, will
not pay specie, for the very warrants
drawn upon them by the Treasury
the Government of the United States
from that moment ceases to pay specie
to the citizens Of the United States. As
moreover the Government receives for
duties only specie and the notes fspe-
cie-paying Banks, the instant its own
deposite Banks cease to pay specie, the
Government must refuse to receive
the notes of its own deposite Banks g.
can receive no notes except those of
Banks not deposite Banks. On the
one hand then the Government is
bound to pay its debts in specie, and it
has no means of procuring specie ex-
cept from the Banks not connected with
the Treasury, so that these Banks find
all their notes collected and paid into
the Treasury for duties, converted i'm
mediately into specie for the use of the
Government-while the deposite Banks
will not pay their debts to the other
Banks in specie nor pay the Treasury
warrants in specie. Take, for instance,
this example. The claimant under the
French indemnity had certain monies
due to him in France. The Govern
ment imported it in gold for hirn--and
when the day of distribution arrived he
obtained an order for his portion. But
instead ofreceiving his. own share of
his own proper identical gold, he has
received neither gold nor silver, but the
notes of deposite Banks-which very
notes the Government itself would re-
fuse to receive from this very claimant
for any debt which he might owe to
the Government. So long, therefore,
as the Government & the Government
Banks will not pay specie to other
Banks, it would be rashness in those
Banks to pay specie to them, g. as they
cannot make a discrimination in those
whom they will pay, the only alterna-
tive is to concur with the Government
Banks in the general suspension. Our
Philadelphia Banks saw this. They
thought it useless to carry on SO une-
quail an intercourse in which they were
to pay to New York, while New York
refused to pay to Pennsylvania; for If
the Pennsylvania Banks paid while
those of New York did not, the whole
revenue would have been turned into
Pennsylvania notes and specie deman-
ded.
In the midst of these disorders the
Bank of the United States occupies
peculiar position, and has special du-
ties. Had it'consulted merely its own
strength it would have continued its
payments without reserve. But
LIST. Like all the other Penhsy iSaaia Banks,