The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1838-04-05
RESUMPTION OF sPEcIE PAYMENTS.

RESUMPTION OF SPECIE PAYMENTS.
The convention Of delegates from the banks
of many Of the States, meet in New York on
Wednesday next, the 18th instant, to confer
upon the important subject Of resuming specie
payments.
We are asked daily, even hourly, what will
they do! VIII they agree to resume on
given day The only answer we have been
able to give is, pe hope so.
No one in the country would more heartily
rejoice than ourself, at the returning prosper
ity which would follow the restoration Of a
sound currency, by a resumption of specie
payments by the banks
While we thus ardently desire this soon
summation devoutly to be wished" we are
well aware that the difficulties which inter-
pose, and which must be overcome, under the
most favorable circumstances, are great and
mighty. These, we are satisfied, the banks
would willingly take the hazard of meeting
and of overcoming, if others more potent and
alarming did not stare them in the face.
The difficulties of an ordinary character to
be overcome now, are not greater, and prob
ably less than those that existed on the 3lst
day of January, 1877, when the banks re-
solved to resume specie payments on the goth
day of February following. The banks in
the large cities were not then as well prePar-
ed, probably, as they now are. The ex-
changes were as much deranged then as now.
But how were the difficulties overcome then
The first step taken by the banks, was to sup
port, reciprocally, tho credit of each other in
the several districts, upon any emergency,
until the balances existing between them
should be entirely hquidated and each one of
the banks was to pay all demands upon them
in specie. E.'E5 -..
This was not all nor could the banks have
succeeded, even had they made the attempt,
at that time, without something else to aid them.
The Government then, lent its whole force Of
means, as well as countenance and protection,
to encourage the banks on to the undertaking,
and to induce them to persevere in accomplish
ing it.
Mr.. Crawford, then Secretary Of the Trea-
sury, in November previous, as an inducement
to the banks to undertake an early resumption,
and to aid them in their operations, informed
them that the Government would withhold
from circulation as much of their paper, then
in the Treasury, or which might afterwards be
received, and for as long time, as the de-
mands upon the Treasury would permit In
fulflment of this pledge, the Bank Of the
United States, acting for the Treasury De-
partment agreed to hold in its vaults uncalled
for until July following, all the public balan-
ces due by the banks which had collected
them, excepting so much as might be actually
required by the Secretary Of the Treasury,
to meet the current expenses. The sum thus
retained in the vaults of the Bank Of the
United States, of balances due the Govern
ment by the State banks, was very consider
able.
The example Of the Government at that
period, led to inspiring confidence on the part
of the community, and to a united support of
These are the facts of the case attending
the re sumption Of specie payments in 1917.
With like feelings existing, and with like eff
forts exertcd now, we should look for like
favorable result to follow the deliberations of
the convention about to assemble. But do
such feelings exist, or will similar interests
be united now as then, for the accomplishment
of one common purpose, in which all are
equally interested, and to be equally benefit
ted To our sorrow, we can but say, no.
The GOVERNMENT ITSELF, MAINTAINS HOS
TILE, IN PLACE OF AN AMIcABLE ATTITUDE.
The great master spirit, ,cho rides upon the
phirllcind and directs the storm, has proclaim
ed "Now is The time TO separate the Govern
menf from all bdnkS-recciue and d'sburSc the
reucnuc in nothing but gold and siluer coin. y
" The history Of tile ,oorld neUer has recorded
such base reachcry and psrfdy as has been
committed against The Government" "FROM
THE CONDUCT OF THE BANKS
AND THE MERCHANTS, THEY DE-
SERVE NO FAvORS FROM THE GO
VERNMENT.'
He who stands pledged to :" 10 tread in The
footsteps of his Nastrious predecessor, his
ministers near his person, and his chief finan-
cial representatives in both Houses Of Con-
gress, have, up to the present moment, taken