The Rhode-Island Republican. [volume] (Newport, R.I.) 1809-1841, 1838-04-18
Dyou rant to see some Of Mr..
Biddie's reasons for refusing to re-
sume specie payments, READ THE
FOLLOWING ARTICLE -
From the Charleston Patriot.
U. S. BANK OF PENNSYLVANIA.


Our correspondent q" W." whose com
munication is inserted below, has followed
up our views. stated in general terms, on
the commerce and exchanges of the country
from the conduct of the Unite d States Bank
of Pennsylvania, by some practical details
of value. We would add, as an additional
suggestion to the remedy he proposes, that
the solvent banks throughout the Southern
country, should enter into an agreement to
refuse to receive the notes of Mr.. Biddle's
Bank on deposite, as one of the means of
curing this evil. 1t would form a proper
subject Of deliberation, by the Mercantile
Convention, which is to meet next Monday
at Augusta,
The United States Bank of Pennsylva-
MIA, by special deed, bought out the old u
nited States Bank, the stockholders, by their
proxies, appointing or electing commission
ers to wind up the business of the former
bank and its several branches, Mr.. BiddIe
and directors Of the United States Bank of
Pennsylvania, coming under the obligation
to redeem all the engagements of the old
bank, and, amongst others, the notes in
circulation. These notes, thus coming in
to Mr.. Biddle's possession, [the much larg-
er proportion of 26 millions handed over
by the commissioners of the old bank, have
been reissued, by indirect evasion Of the
conditions of the charter of the new bank.
Thus, to explain the operation, the new
bank, by refusing to redeem its paper for
certain period, forfeits its charter. Mr..
Biddle, preparatory to issuing the order for
suspension of specie payments, secretly and
calls in the entire circulation of
the new bank, replacing it by the reissue of
notes of the old bank, which still obtained
the confidence Ct, and credit amongst, the
in the belief Of their being E.
qually entitled to payment on demand at
the counter of the bank, as lis own notes,
and on the knowledge that the new bank
was pledged to redeem them ultimately. |
{ In fact, they are virtually notes of the new
bank, which is in fact new contrivauce of
the stockholders Of the old concern under
new frm.)
MIR. BiddIe having succeeded in this
scheme, is now preparing to say, can and
will pay specie for the notes of the United
States Bank of nnsylvania but If pay |
ueUl Is ucUiuudcu VI tHc ho'eS " WV VIZ
bank, then it is alleged to be mere bar
gain between the parties, that the new bank
will pay the debts Of the old bank, time not
specified, and the holders must wait bis con-
venience, or take the tedious and expensive
method Of suit to recover.
Thus, MIR. Biddle, maintains a irredeem-
able circulation, and cvades the penalties of
Eis charter. Besides, under such proceed
incs, he can bank or trade with twenty-six
millions capital, which does not require the !
advance of one dollar. The whole positive
capital Of the bank may be returned to the
stockholders there is the most profitable /
substitute on hand.
These notes are circulated at great
distance from the centre Of negotiations,
New York; to be exchanged for produce,
local bank paper, or exchange in other
places. The issue Of this paper costing
really nothing to the bank, its agents can
afford to give nominally higher prices for
all kinds of produce, speciaIties, bills Of ex-
change, etc. Itthus monopolizes the bus-
ness for the purpose Of concentrating mass
IS Of capital, raised out Of its purchases by
is own irredeemable notes, at New York
and elsewhere. Meanwhile, the merchants
,nd traders Of the Southwest cannot rs
usual find either produce or bills Of ex-
change to remit in payment Of their last
vear's purchases, or for new Investments
heir own paper, payable a, their places of