The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1838-04-12

u
stocks these TOO have sunk perhaps twenty hse per
cent on their price last year DOR resources hen are
diminished il value while debt u increasing 10y an
terest The consequence Is that the foreign debt IS
postponed TINS operates lnurlousy TO both parties
10 the domestic debtor by reducing his means OF pay
nrn-to the foreign creditor by the delay and the ha-
gard OF his debt Il II be could now receive his
money he would remit il home at low rate Bot then
the same scarcity which lowers the rate OF remittance
prevents his receiving any thing 10 renit-and so Ear
ifon being interested in the early resumption, II injuries
him essentially, because the forced preparation Tor Il
by crushing the Of his debtors renders them
alike unable and unwilling TO pay, What the foreign
creditor wants psymentpaym OF The debt not IN
better currency, but equal currency or u neces
sary in inferior currency, because he can better sup
por high RAE Of remittance than reduced or post
pUned payment
There prevails notion that the credit Of the country
abroad VIII be injured by not resuhlng Not IN The
least Every body connected with America knew the
reasons of suspendlng and entirely approved Of II
the only measure that could have sayei the country.
What Europeans want IS that we should pay our
debt That is first duty, and Il they see as they
cannot fail sec, that these premature Efforts to resume
specie paymenls prevent the collection Of what due
10 them they will perceive, that in endcavorng to
cure an object wholly domestic, they have been sacrhc-
cd Ia respect 10 the dividends aud the stock, payable
abroad many Of them are payable IN pounds sterling,
or guders or francs, so that we place the money there
al our own costand dividends payable here, they
have almost universally been remlted IN the equivalents
/ to specie What the general merchants OF France or
England desire, that should take their mcrchanI
dIse-ihat we should trade with them The state Of
our currency is very subordinate concern. You deal
with them and pay them in their own currency.
They know little and less about the sort OF
CIV in which you deal with the South and West. De-
SIDES, who reproach with the depreciation OF
our notes. The Englishl But The Bank OF England
suspended specie payments for twenty hive yearsdur-
ing nearly all which time every American Bank paid
! spcce-and in England forced by law TO
take the notes of the Bank Of England when they
at thirty per cent observation-disclosures man obliged
here take any note Of any Bank-and at this
a paper dollar in Philadelphia or New York, viii buy a
silver dollar delivered in London. The question: then,
OF the resumption 49, one exclusively domestlc-one
which, however important al hone does not affect the
credit OF the country abroad.
vi We now to the question whether If an early
resumption be practicable the month OF May is a fit
time. My impression is that the month Of May sa,ery
1 UNIT time. The resumption, TO be useful, must be
general and no arrangement he satisfactory which
does include the Southern and Southwestern States
These do not think yet ready 10 resume. They
are straInng every pay their debts Their
crops going forward TO provide funds 10 Europe aud
at the Norh-the Banks are lsboring meet their
at the Norththe Legislatures pedglng their credit
to raise funds in order that their people may pay their
debts. Why should repulse them All they want
Is time. They have not yet had the benefit Of single
CROP and they may require another and instead OF DIS
credng them or diminishing the value Of their produce,
or curtailng their facilities sending their crops TO
market, 1t Is better TO help them and wait TIL they
more advanced IN their preparations The employment
Of credit, either OF Banks Of individuals most useful
to the country at this moment, Is forward its produce
to Europe. Instead Of this the Banks reducing
these facilities, aud calling upon their debtors for pay
men, This seems very unreasonable. Ii Is stopping
| the locomotives they carrying the crop to market
The month Of May, too, is not the right time of the year
For example, II requires average about hity days
to take cotton from New Orleans TO Liverpool. Sup
posing ii immediately sold, the usage is at the end of
ten days TO give bankers acceptance payable IN two
months, that by the month of May there would not be
actually realized more than the cotton which left New
Orleans before January when than onc-iourth
one-ffih Of the whole crop had been shipped Much,
of course. is drawn for when shipped, but speak
Of the actual obtaining possession OF the proceeds OF the
the crop; and at all events not half OF the crop Will
have reached Europe 10y the month OF May. The sprng
Is the season when the credits given for the
shipments Of Southern aud Western produce, arc ma
turing the North and the crop from which reimburse
mens to come, remains unsold IN Europe The
Spring. is the time when the Western business has
brought from the interior the notes Of the Atlantic banks
when the circulation presses more upon them than at
any other PERIOD and when specie is wanted Tor the
trade to China and India, making that time particularly
/ unproBltious for the resumption,
VII. 1t remains to inquire how far these general
views Of the expectancy OF resumption in May should
be changed by the determination Of the Banks OF the
! CITY OF New York to resume al that period,
For the gentlemen Of New York who announced that
decision have great personal respect, aud under ord
nary circumstances would willingly yield my own con-
yclons to their better opportunities and understanding
Bat the natural influence of their judgment is weaken
cd y the knowledge of the fact that the banks of New
York would not have had the least idea OF resumption
! in May-but because the immunity allowed by the Lee
gsature will then expire and they fear that 1t will
be renewed. This WAS distinctly avowed at the Bank
Convention. and the Deputatlon who visited Phladc
phia repeated it again aud again. Now this may he
very good reason Tor the banks OF New York
/ but certainly whatever for the banks OF
Pennsylvania do the same. The States Of Pcnnsyl-
yana Of Virginia, of Kentucky, have Legislatures
well as New York has, and they have refused to direct
their banks to resume III May next Why should they
obey the Legislature of New Iork aud not their
Legislature The position OF New York is all
hands regretted. But how is 1t to be remeded
single Legislature out OF twenty-six Legislatures had
passed law loetng the charters OF the banks, If they
unable to redeem their notes IN specie. public
calamity overakes the country and the declining to pay
specie, far from being criminal, became act OF
public saiety-so adopted by all the banks and
frmcd by this very Legislature The provision orIg-
nay designed to guard against fraud, may thus become
the punishment Of honesty and ability. The Legislative
body which protected the banks for year
sion. and in twenty -four hours extend the ndemn
ty till appropriate season for ming. | pre-
4 sumo difficulty will occur in this Why should there
he Is II possible that such body with indh
ference the distress which perseverance this
must inevitably create, or permit the pride OF opinion or
any mere political or party consideration to prevent
them from lnerposng to protect their noble but suiier
| ing city ! II they decline, how OF Pennsyva-
MIA interfere Why should voluntarily place our
selves in the situation into which New York has
been forced BY doing we share only common
dsaser--instead OF outstanding our resources against
the period when our nteposition may be really useful
In the mean while, the eliectual service which
can render is to speak Of frank sincerity She
may perhaps bear from one, than whom she has