Herald of the times. [volume] (Newport, R.I.) 1830-1846, 1838-04-19

III q new anu puHh ~ III
eiuses to create new bank, and seeks toll
;fippe those in existence. Then we had
wo hundred and sixty banks--now We have
ieary nine hundred
In short, what reliance have the banks now
With the Executive hostile tc them? Wha'
like that OF the late Bank OF the
United States have they 10 sustain uhem'-
None Whatever.
The only circumstance not wholly unfa-
variable in the COMPARISON, is the low rate OF
exchange with England. But nothing ge-
neral or permanent eau be inferred from tins
which frequently occurs, and
on the present occasion Is wholly accidental
in New York, from the unnatural condition
into which her measures OF extreme rlgor nave
driven every thing. II under ordinary Cir
cumstances, while other things underwent
no depression, exchange on England should
decline, It might be Inferred that England
owes 10 the Il Unitcd States more than we have
vet drawn from her. But II is not exchange
alone that has fallen. Exchange on England
has not fallen in New York os much as the
internal exchanges, or stocks, or real estate,
or house rent have fallen. This fact seems
decisive as to the cause. Bat can tins de-
preston continue? Ceitainly not These
rigorous measures are understood to be only
preliminary only preparations for al expan'
sion by the banks in New York, which Is 10
restore ease aud confidence. We'll, the mo-
ment this ease aud confidence return, all
lhings will rise, and exchange oi course
among the number. Besides, this unnatural
condition will work its own remedy, as all
irregularities are cured by their own excess
o.. 10 sell every thing and TO buy nothing
Is lmpract!cablc, and when the English nave
bol ght all The produce we have TO spare, we
must of course buy from them what manu-
laclures they have to spare. AS soon as the
proceeds of our industry are realized IN Eh-
gland-whlle we have gradually exhausted
our supply Of English goods-our own mer-
chants will convert their property to fresh
supply TO be brought over or, II tins process
be too slow, the English manufacturers them
selves will send their own goods Tor SALE
Ia either case, the exchange will recover Its
equilibrium, aud of course will rise here, foI
between two such countries as America ant
England,a permanent inequality OF exchange
| as a basis of the metallic currency vi either
is impossible.
Il V. Perceiving nothing in the conduct o
Il the government to justify all early resump
ton, let US see if there be anything III the
state of the county which recommends IT,
/ Now what is the condition Of our affairs =
The suspension found US with heavy deb
to the bauks-nut less probably than five
hundred mllions-wilh large balances iron
| the Southern and Western states to the AT
antic cities, aud with avery considerable
debt to Europe. All parties were willing Il
pay almost all were abe to pay but grea
iurbcarance and great indulgence were ne
cessary from the creditor, and above all,aite
such a convu!sion, the great rcs'orer wa
| time time TO settle; time to adjust accounts
| time to send the debtors crops to market
| time to dispose of his property with the leas
| sacrifice, time to bring out his resources t
| pay his debts. In all the large movements
\ of human affairs, as in the operations OF ma
ture, the great law is sgentlcness-vlolenct
| is the last resource Of weakness. The dis
case of the country was an overstrained ant
distempcrcd energy. The remedy was re-
| pose. The question of the currency, though
important, was only secondary. The frs
| concern was to pay our debts, and especial,
not to depreciate the value of our means o
paying them. Accordingly 1t seemed to M
that after the suspension, the true course U
this country was TO begin gentle and grad
ual Elimination of loans, sufficient to prcver
the hazards Of expansion while the restrain
of specie payment was removed, and TO pre-
: paro for the resumption, but with no ras
competition as TO the amount which the Sc
J veral banks could curtal-to make no vloer
changes in the standard Of value, and to Civ
: time for settlement with foreigners, an
among ourselves, OH the same or nearly tn
same basis upon which these mutual engage
ments were contracted-letiing the crops g
to their destined markets without depreci lat
ing their prices. After this the resumption
with the aid Of Congress, would have becI
easy and spontaneous. 1t was in this spiri
that the Bank of the United States has no
diminished ten per cent. Of its ioans-whll'
it added about three millions TO its specie
and will have given the necessary facilitie
for shipping the crops of the south and wcs
to the amount probably of fifteen or twent
millions of dollars; placing its own confiden
tal agent in England to protest the greo
commercial and pecuniary interests of tn
country. This seemed to be its proper funC
ton. Ii was thus that it hoped TO discharg
: its duty TO the whole union. 1t was thus,to
ii could show its fidelity to Pennsylvania, b
aiding its public improvements-by keepin
Its business and its people in comparatlv
, ease, and by not suffering the prosperity {
IT'S commercial capital to be prostratcd--ot
jects these, far more important than whethe
specie payment be resumed few month
: sooner or later.
The injurious effects of contrary cours
are seen in all the relations of business
Take for instance the debts to banks and t
individuals. The debts were mainly con
tracted when the currency was abundant
They must now be paid in av very altere'
state of the currepcy-and it is necessary L
proceed with extreme caution when the re
lation Of the debtor to his creditor is change
by events which neither could control, be
cause if this change be not made very gradu
!, ally so as to bring at the same time all th
other relations of life TO the same STANDARD
) you nflict in justice or perhaps ruin on tn
debtor. II was thus that England continue
her suspension for twenty-five years, and b.
act of Parliament gave several years motto
of the progressive resumption in order thu
all the business of the country should udjus
itself to the approaching change. Of the ei
feet Of any sudden movement, we have be
fore us striking instance. 1t appears b
the published statements Of the banks Of lh
city of New York, that since the suspensio
to March !, 1888, they have reduced the
: loans and discounts frou ioriy-six millions t
= thirty million and their circulation from min
milio TO two miions--an aggregate d
minution from fifty millions to thirty
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