The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1838-12-15
WHOLE NO. It's.
From nc Journal Of Commeree.

i The " > Bunk and the Merchants had hoped
not any in the discharge Of duty TO the public,
to animadveri upon the conduct OF the u s. Bank OF
Pennsy Il is certainly most desirable for the
country, well for the BanA that in the midst Of
considerable difficulty with which its extended opera
tons have surrounded the institution il should have the
coast left clear Of small impediments in its efforts
to regain easy position. The great discussion about
the resumption Of specie payments has passed off, the
event has happened bringing with IL abundant general
prosperity, leaving I'VE had supposedly the policy Of all
banks obvious, and giving the hope that the Bank
war over But the news from all parts Of the
South is, that Mr. Bidde again in the Cotton Market,
sweeping largely at the highest market prices Certain
events here confirm The declarations from the South,
and the opinion Of merchants generally is that the
letters 1t is understood that the South
western Banks, who took up the Cotton business last
year, will pursue 1t no further. few months ago.
was announced in the most positive in England,
that Mr.. Bldde would interfere with Cotton more.
Such assurance coming from the source it did.
ought have been final and settled all doubts yet our
merchants doubted and their doubts are turned into
confident belief that the declaration unfounded
That the Bank bought Cotton is denied, in
the letters Of the Bank, signed by the hand Of its CASH
Ter; yet every body believes the contrary The posi-
ton of things is certainly most exiraordinary
Bank has been established 10 this city with capital Of
100000, which the gentlemen establishing it most
positively declare is not established owned by the
Bank Of the IT, States in Pennsy lvania, and that the
Yet the public full Of the belief that all these decla
ra;ons but to up the real paw Of the "great
monster" and the Bank in New York, in spite Of all
ITS declarations TO the contrary, receives great favor
here and through the country, branch Of the Phila
dephia institution. Its deposits probably
millions, and almost wholly the ground that
great deal more than preends to be. Again, gentle
men appear in the cotton market at the South who
deemed and taken to be agents Of the Bank. from
rious circumstances connected with their operations
Rat tha.tI tba
are the public that they what they pretend be-
that great credits given them, upon the special
ground that their declarations are untrue. All this is
very strange and to our view very unsafe The Bank
ought to be engaged in business which is ashamed
to do openly, and if the public in about the
great power which sustalns these agents In fact the
Bank does not sustain them,lt ought not to allow the
merchants OF the country, so to deceive themselves
The whole system is plainly great and dangerous mys-
terry It is much or llttle every thing nothing just
circumstances require. The engine is pow |
erful to be thus covered up.
The first operations Of the United States Bank in
cotton, when all confidence was broken down, were
looked upon with acquescence, and generally with ap-
probation But to pursue the business under the cir
cumstances which exist, will be pronounced ex-
ceedingly improper by the universal of the
camille community. The charter Of the bank forDids il
10 deal in merchandise either by purchase or consgn
men so that Its operations in this way have from the
beginning been distinct violation Of its compact with
ought be sufficient But we feel obliged to believe,
with all the world that the agreement of the charter
and the propriety Of the have not been sufficient
to deter the President Of the bank from undertaking
again to control the cotton market Against this we
feel bound TO protest. and to throw feeble influence
in its way Whether the object of the banks is to hold
up and hold back cotton here, to produce avo
rable effect markets abroad, and get of with
more moderate loss its stock in Liverpool and Havre,
or to assist its finances immediately, to make direct
ollt IL ,,pal. Faat
far have conversed, does any appear to see
any suthcien. object for SO wrong movement The
bank is supposed to hold cotton IN Liverpool 10 the
value Of twelve millions Of dollars which the English
men said some time ago could not be closed up without
loss to somebody 0! two millions and half IN the
whole OF It's operatons and the opinion here is that
very heavy loss be avoided. To undertake the
control OF the crop Just coming upon the Market for the
purpose Of helping off this difficulty would probably be
only jumping from the pan into the fire. Such at
tempt for any purpose Of the bank, to ranght
with great nschiefs, certainly, and still greater pos
sibly.
LIST. We object to this movement Of the United States
Bank, because it nfrnges upon the fair rights Of all
those merchants who in competition with each other
have been accustomed to their living accumu-
late wealth, by managing this business for the country
The bank formed furnish them with facilities ncar
ying the tradenot by its colossal footsteps 10 crush
them. But If this were all, il bank could permanently
to do the business better than merchants as 10 make
the cotton nett to the planters why then should
perhaps be obliged to give up opposition to such sys
tenn and agree that merchants ought to seek other
channels of profit and that great banks should be char
tered TO export the cotton But the bank cannot man
age the business well for the country, the whole
the merchants could manage it. No man can do
every thing, either alone with the help OF agents.
Mercantile partnerships are a better organization for
ordinary mercantile business than bank interpretations
and IN the long the merchants would turn the pro-
duce Of the country to more account than the bank can
possibly do In fact much better the merchants
do the business that in spite Of the great sdvantages OF
the bank, they would eventually down the bank and
break tive not OF how many millions its capital
might consist. No corporation, shaped, can stand
against individual competition il the bank could ny
great means, if it had them, so hold on and hold up
cotton as for series of years to keep prices penny
pound above what they otherwise would be, the effect
would be disastrous in the end and especially to tho
planters for the high prices so created hctltiousy,
would stimulate supply while they retarded consumption
and so accumulate Stock which would eventually be-
too heavy for any power to sustain. The break
down under such an accumulation would do far
more mischief TO all interests than they had received
of benefits The laws Of trade the laws Of One
greater than Mr.. Bldde.
Secondly, we object, because the fact Of such an
operator being in the market breaks up the proper basis
Of mercantile calculation. The question Is not, as 1t
ought to be, what will be the demand and what the sup
ply but how will this great monopollzer move. The
and safe landmarks open to the vision OF ALL
are thus ost sgnt OIL ana a lew VINO can get hto Sc
which the many have not, make the money, and
empty the pockets OF theft honest and less ntrgu-
ing neighbors This Of things is useful to nobody
except the favored few 1t renders business unsteady
gives it gambling character, and results IN the ruin oil
all hands. 80 ."
Thirdly, we object, because arrangement is intro
duced into the exchanges Of the country, When our
great crop Of exported by the merchants, each
general thing takes upon himself burthen which
he control The resources and capital Of rich To-
reign bankers and factors brought into requston,
that the best disposition may be made OF every thing
But now the twelve millions of dollars worth OF cotton,
a.. A. k..l q. 7 ,,.nx.,al Il ,payaiaha Hmm