The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1838-09-01
COMMUNICATIONS.
FOR THE MACEDONIAN
SPECIE PAYMENTS.

SPECIE PAYMENTS.
Mn. EDrTon Now that the day Of specie payments
has been met-and met readily without harm TO any,
and with benefit to all-it may prove beneficial to
look little into sundry passing events, for the sake
of providing some useful data for future govern
ment, in any future similar exigency. To do this
honestly and usefuy, we must divest ourselves and
the subject Of all party considerations--we must re-
gard things only as they are in themselves.
1t is a fact then that we have banks return TO
specie payments, with only the same forty millions
Of specie at which they stopped. No difficulty oc-
ours, when they simultaneously resolve upon re-
turn TO specie payments. This they do fully and
ceptably at time when the country is lessened
of its specie, from twenty to thirty millions-the
amount actually purchased by British agents, and
transmitted to their principals, in England The
amount they needed, we have seen that they actually
procured notwithstanding all the restraints and pro-
hibons. The gave the premium which allured it
out Of the hands Of the individual holders That they
did not drain the whole mass nor stop for want Of
further supply is proved by the fact that the want
diminished, the premium fell, until at last,
il was obvious to all that ras ranted 10 be
sent abroad and therefore, safe to open the bank
vaults. They have opened, and no call for foreign
expectations is witnessed We arrive then at the
conclusion, that with forty to fifty millions in the
hands Of individuals, and forty millions in banks
we have had an ample amount al all times to have
met all through the period of our late difficulties the
amount required for any foreign debts and demands
Il has been officially estimated that the balances
against US may have been at from fifty to sixty mil
lions OF this it was fair to suppose, that American
houses would be content TO pay interest, until home
productions could enable them TO make Jemiances;
but British agents, acting for principals abroad,
would transmit funds in their hands, let the premium
cost what it mihht. So they did act and when
they done the premium for silver and gold went
down.
We infer from the premises, that If the banks had
never stopped their payments, and thereby increased
the panic, which they at first felt and acted upon the
amount of specie could never have been exhausted
and therefore, the alarm and its rnos consequences
would never have been experienced The mass of
silver and gold, it is granted, would have been di-
minished; but so long as it was allowed 70 come and
go freely, none would inquire how near Il might have
beento exhaustion Exhausted could never be,
The well known principle that "want produces Its own
supply" Il is fatal and pernicious misconcepon
and error, that banks be considered nsolvent
because they may not have the amount of their circu
lation or capital in specie Men, who know officially,
that only forty millions was in all the banks, must
know il is almost as nothing 10 the amount of bank
ing business done therefore, their ability pay their
notes, has never rested upon their specie in vaults
No, indeed! Their solvency and means to pay was
always founded upon the wealth and property OF the
persons to whom they had made their loans If they
had no specie they might not be the less able to pay
all their debts, in the common received currency of
the country. In this connection we ought to consi-
derthe fact asserted from high authority that there
Is not above ground in all the world suficency of
metallic money to conduct the common domestic
business OF country like England" and with il goes
the corallary that any commercial nation, which
endeavors to force restriction within the bounds of
an exclusive metallic circulation, is sure to ruin it.
SELF and to dsturbthe commerce of the whole world"
We can readily conceive of cases. where an inordi-
nate spirit of speculation, and sinister interference
IN the monetary system by interested rulers for po-
htlcal purposes, may produce state Of embarrass-
ment in our foreign relations by creating heavy
balances against but can never be so excessive
as not to be met and settled by some two or three
years OF more economy-less orders for foreign
Injuries, and more productions at home In the
meantime let our money go freely for its legitimate
and proper useas much counters to settle balances
While we have enough of the precious metals TO
count Tor such balances, we never feel the evil
resulting from mistakes in over mportations or in
failures of productions at home. The same Provi-
dence, which has guaranteed the perpeuy of seed
time and harvest time and the production Of bread
to the eater" has also provided safe eorrcctre for
errors in trade and commerce, by the very natural
exercise of common sense-to spend less and pro-
duce more, just SO long as the inequality exists
FRANKLIN