Constantine republican. [volume] (Constantine, Mich.) 1836-1838, 1837-09-13
From me New York American. |;

FROM ,ne New YORK American. s
Brnk Ccneat;on- Resumption Of Specie
rscssaLs.--We referred some days since
to a meeting held by our city banks on the
subject of some general measures for bring.
ing about a resumption of specie payments.
In the Madisoaian of Wednesday we
find tie circular addressed by the commit
tee of the New York banks, to banks in
other states. We copy it below. 1t pro-
poses, ii VIII be seen, the latter end of Oc-
toher as the time, and this city as the place,
ofholding a general Convention of Banks
The most distant period suggested for
resuming payments is between January
and March OF next year.
New York, August Is, 1887.
SIR--At general meeting Of the Off
GERS of the Banks ofthe City OF New York,
held on the 18th of this month, the follow
ing resolution was unanimously adopted
viz:
Resolved, "That committee be APP
pointed to correspond with such Banks in
The several States as they may think prop
er, in order to asccstain at what time and
place convention of the principal banks
should be held, for the purpose of agreeing
on the time when specie payments should
be resumed, and on the measures necessary
10 effect that purpose"
Having been appointed committee in
conformity with that resolution, we beg
leave to call your attention TO the important
subject to which it refers.
The suspension of specie payments was
forced upon the Banks, Immediately by
panic and by causes not under their con-
troll, remotely by the unfortunate coinci-
dence Of extraordinary events andinc,dents,
the Ultimate result which was anticipated
neither by Government, nor by any part
of the community.
But it is neverthe ,ess undeniabe, that, by
accepting their charters the Banks had con-
tracted the obligation of redeeming their is
sues at all times, and under any crcum-
stances whatever; and that a deprecated
paper, ditloren: in value in different places,
and subject to daily fluctuations in the
same place, has thus been substituted for
the currency, equivalent to gold and silver,
which, and no other. they were authorised,
and had the exclusive right 10 issue.
Such state of things cannot and ought
not to be tolerated any longer than abso-
Lutte necessity requires it. We are very
certain that you unite with us in the opn-
ion that it is the paramount and most sa-
cred duty of the Banks to exert every eff
fort, 10 adopt every measure within their
power, which may promote and accelerate
the desired result; and that they must be
prepared to resume specie payments with
III the shortest possible notice, whenever
favorable alteration shall occur in the rate
of foreign exchanges.
We are quite aware of the difficulties
which must be surnounted, and of the i'm
propriety of any premature attempt. No
banking system could indeed be tolerated,
which was not able to withstand the ordi.
nary and unavoidable fluctuations of ex.
change. But the difference is great be.
tween continuing and resumng specie pay
nents; and we do not believe, the banks of
the United States can, without running the
imminent danger of another speedy and ia
tai catastrophe, resume such payments,
before the foreign debt shall have been so
far lessened or adjusted, as to reduce the
rate of exchanges to true specie par, and
the risk Of an immediate expectation of the
precious metals shall have thus been re-
moved.
The appearances in that respect have be-
come more hattering and it is not i'm
probable that the expected change may
take place shortly after the mex: crop of our
principal article of exports shall begin to
operate. Yet we are sensible that we must
not rely on conjectures; and that the banks
cannot designate the time when they may
resume, before the ability to sustain specie
payments shall have been ascertained by
the actual reduction in the rate of the ex.
change.
But even when the apprehension of a
foreign drain of specie shall have ceased,
the great objectin view cannot be effected
without concert of the banks in the sew.
cral sections of the Union. Those of this
city had the misfortune to be, with few ex.
ceptlons, the first that were compelled to
declare their inability to sustain for the
time specie payments. 1t appears that it
became absolutely necessary for the other
D""NS W puiouS. tic S'liilc COuTSc, ttiu III
would be likewise impracticable for those
ofany particular section to resume without
a general explanation of at least the princi-
pal banks of great part of the country
A mutual and a free communication of
their respective situation, prospects, and
opinions, seems TO be necessary prelimi.
nary step, TO be followed by convention
at such time and place as may be agreed
upon.
AS relates TO the banks ofthis city, we are |
of opinion, that. providep the cooperation
Of the other banks is obtained, they may |
and ought to, we should perhaps say that
they must resume specie payments before
ncxt spring, or 10 be more precise, between
The first OF january and the middle of
March, 1898.
Both the time and place Of meeting in
must of course be determined |
n conformity with the general wishes Of
he banks. In order to bring the subject
,ctore you in definite shape, we merely
u,-ge,t the latter end of October as the
rope, tit.'c, and this city as the most elig.
lie place ,r,,r he proposed convention.
A sufficient tire will then have elapsed
. enable US to Judge Of the measures which
congress may adopt in reference 10 the
ubjcct. Whatever ma, be its action on