The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1837-09-30

This is not the only evidence afforded by
the Secretary Of the Treasury Of the solyency
OF the many Of the deposite banks, and the
reliance placed upon them 70 aid in redeeming
the country from its present embarrassed con-
dition--on the 18th Of the present month,
while the bill authorizing the issue of Treasu-
ry notes was depending, the Secretary adj
dressed the following letter 10 several Of these
institutions, proposing to them TO purchase the
Treasury notes which shah be authorized,
and to pass the proceeds 10 the credit Of the
Treasury as specie 70 be paid as the wants Of
the government may require--this Is the let
ter:
aTREAsuRY DEPARrxErT,
September 10Th, 1887.
Sra A bill Is now before Congress 10 authorize
the President Of the United States to cause the issue of
Treasury notes for such or sums as be may think
cxpedient but not exceeding in the whole amount OF
notes issued, the of twelve millions Of dollars and
Of denominations Of not less than hundred dollars
for any note be reimbursed the Treasury Of
the United States, after the expiration of year from
the dates Of the said notes respectively.
II will thank you to state whether, IN the event Of
the passage Of this BILL you will agree 70 take the said
notes from the government and give the Treasurer Of
the United States credit for the amount TO be drawn
for asmay be necessary, andpsyabe in specie requred
and, II 80, TO state what amount you will receive, and
the lowest OF interest 10 be borne by said notes.
am, very respectfully
Your obedient servant,
LEVI WOODBURY..
Yes, sir, some Of these faithless and un-
worthy institutions are appealed to, to pur-
chase Treasury notes, and pass the proceeds
to the credit Of the government, and hold it
until it was wanting by the government.
n. IL. ll.vu I.~~.ss I'll
pie, that the sonndness Of bank is 70 be
determined by the proportion Of Its actual
specie capital to its circulation, the deposite
banks are sounder than the Bank Of England,
or the English Joint Stock banks Upto the
25th July last, the relative proportion be-
tween the specie capital and its circulation
was as follows:
Specie.
Bank of England 26,l50,0O0
Private and Joint Stock Banks OO,0O0,000
July i. s26,l5o,oOo
Circulation
Bank Of England 81, 3O5, 900
Private and Joint Stock Banks 1852, l65
SOC, 6e7,l65
Specie.
United States Deposite Banks ll,429,0l2
. Circulation
United States Deposite Banks 3l,779,s74
From this comparison it is manifest that the
deposite banks in the United States, were in
a condition better to sustain sound currency
and specie payments than the English banks,
unless some other cause should operate
different effect. Yet, although the same
causes which embarrassed the commerce and
credit of the United States existed in En-
gland, the Bank Of England continued specie
payments, and the Bank Of the United States
suspended Why! four causes are manifest:
l. the Government of England continued
their confidence in their institutions, ours with
drew its; 2. a large debt was due from the
American to the foreign merchants, and a
necessity for large specie expectations pro-
duced; 3. the continuance Of the specie cir
cular; and 4. the execution Of the deposite
act of the 23d June, 1886.
Ito be Concluded.)