The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1837-09-12


the Treasury for suit This has already been done IN
nine cases in some matter OF precauton 10 obtain
additional security beyond what had been gwen and IN
Others take the preliminary steps for action against
the sureties well as the principals
Some Of the additional banks, rendered necessary 10
carry into effect Of the provisions OF the late dePo
site act have this occasion, proved the least prompt
and efficient in meeting their obligations but though
the losses Of few may be- severe and considers able de-
lay may arise in dischaging their engagements; ana
though has been proper and has eyinced comnenda
BILE state Of moral feeling in many OF them to strike at
the root OF the present IN paper by curtang
largely both their issues and DISCOUNTS and thereby 70
make serious sacrifices yet the condition OF them all
appears to be such will, with the collateral security
taken in cases, render the United States probably
safe against any ultimate loss Considering The wide
spread pressure Of the times, which had involved some
of the banks, well their debtors in extraordinary
embanassments and that the public money, as gene
raj rule had previously been called from them only IN
moderate sums needed for expenditure and transfer
il was not TO be expected that several Of them would be
able pay at once and in specie, the whoie oi e
| large amount then in their possession
More especially was this not TO be expected, when,
from the great accumulation Of deposites the specie OF
all OF them at the time Of the suspension, as well as Tor
many months before, though larger than the proportion
held by most other banks did not equal and could not
without making sudden and great change IN the prac-
tce under whole banking SYSTEM equal one-hali OF
their Indebtedness the Government alone ispre-
sumed that considerable portion OF the money SINCE as
well as formerly, paid by the banks on transfers and
drafts has not been demanded nor paid IN specie,
But no persons have been required TO accept any
thing else nor according the views Of the undersgn-
ed could they be, without violation OF law and sound
policy.
The drafts OF the Treasurer for debts when drawn on
banks aud discharged presentmeni have, under
instructions from this department. been often taken up
in its behalf by the collectors and receivers order rs
much possible to relieve the public creditor from de-
lay and loss. (See +. and circular instructions, ~
New drafts when the first were not paid IN an
acceptable manner have also in been given
other repositories, and have helped to promote salts
factory adjustments.
Since the discontinuance of most of the hanks as de-
posores, this department has also found the use Of
drafts made directly receivers and collectors very ac
ceptable the public creditors and by the specie Tor
tunatey then on hand and collected by the re-.
ceivers with part Of what before in the Mint and
some occasionally supplied by few Of the banks and
collectors large amount Of claims has been paid ana
the Treasury ready pay Others so far as practical
ble at points and in a convenient TO many But
till the indebted banks specie payments, or m
creased collections be made IN specie OF what Is
due from them and from the merchants, It must be OBJ
yious that the department. however anxious TO pay all
the public creditors and officers in specie, when de-
handed, is unable to accomplish so desirable an OBJ
jcct.
This is one of the evils incident to the existing state
Of the moneyed Of the country and which can
means, until specie payments are generally resumed
Some intermediate losses, by depreciation OIL bank
notes. must therefore, fall those, whether creditors
officers Of the Government who consent to take them
rather than submit to delays in payment
Hence it seems highly reasonable that the Govern
ment should hasten fast possbe the restoration
of specie payments, at least by its former fiscal agents
who still in its debt.
This would put an end to such losses 1t also
proper that those deposte banks which have gene
m, Tho Them, huth av
nued receive full interest the deposes they had
loaned out should be required pay it on the sums
still retained and from the periods when they failed to
fulfil their obligations the Treasury Is manifest
that the members Of Congress, coming from every sec
ton Of the country would be the best judges Of what
further eny severity might properly be exercised to-
wards them, and, knowing more intimately the causes
and consequences Of the suspension Of specie payments
by the banks in their respective neghbohoods, can de-
eide with greater accuracy whether any indulgence
could hereafter be extended to them appropriately
cept the condition Of early resumption of specie
payments, and allowance Of interest during any delay
in meeting their fiscal engagements. With the means
Of information possessed by the undersigned he does
not hesitate to express an opinion that It should not be
done without a compliance with such conditions As
further evidence Of the ability of most Of them on this
subject, it will be necessary only to advert to the alb
stract Of their last returns which has been previously
annexed.
From the mode of doing business in the southwest,
by making much Of their circulation not redeemabe
home, but at distant points, and providing for it there
by bills Of exchange, ESQ many Of which, during the past
season, have failed to be paid the situation Of several
of the banks there least eligible not only for early
resumption Of specie payments, but for speedy and
satisfactory adjustment Of their debts to the Govern
ment But in the western, and probably in the eastern
and middle States if elsewhere, the ability to
tain such payments appears, by their returns much
greater than has been customary in this country Their
specie, compared with their circulation, one to two
and one to three and their immediate MEANS compar-
| ed with their immediate liabilities, to three
Hence it has been hoped that the efforts which the
banks bound to make would lead, in most places
to the desirable events above mentioned, without very
long delay circular, w The objection usually
urged against early resumption that the unavorablc
balance of trade against this country would IN that
event. OF the specie in the banks to be drawn
and shipped, WILL however true in point Of fact, pos
much less force when 1t is considered that the delay
hitherto has not prevented the export Of specie On the
contrary, considerable sums, which were in ordinary
circulation have since the suspension, been withdrawn
and portion OF them abroad, while their place
badly supplied with deprecated paper. So happily ad
justed however the laws Of trade in their in
huence on the precious metals that while custom
house books show export the 18th OF May last
chiefly England and France, of 49, 800 of specie
they show during the time imports, chiefly from
other quarters, Of So 10000 Though the actual i'm
ports and exports have both doubtless exceeded those
amounts since that period and the ratio of difference
has been somewhat greater yet the total drain has been
much less than many have imagined, and produced less
effect the general ability Of the country and the banks
to have specie payments resumed and successfully
tanned. Congress having power pass bankrupt law,
it would be worthy of consideration, if the power be
exercised, whether all banks. and in any event.
recommended by Mr.. Dallas and Mr. Crawford, all EN-
poycd by the Treasury should not be subjected to its
provisions, and any important and deliberate failure
in their pecunary duties, be compelled at close
their
In respect the banks in the District of Columbia,
as well others connected with the General Govern
nen it seems desirable that the measure adopted in
relation to them, by Congress- should have strong
dcncy to encourage the earliest resumption OF specie
payments which is practicable aud safe For this pur-