Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1838-05-01

AE5 T. s,a2 lis draia iro"nei GroH dEd I-Is a'II
the bills drawn in the u s. upon credits. hey cpui"
no onuer he discounted Hence The rclsinn. the tall
ure OF some If the American houses, (as ihey were
termed) in England, and the excessive pressure upon
all of Them the dishnnnr and return oil bills, WIN All
their consequences and the sudden demand or iats
balance not expected TO be called Tor Exchange rose
specie became better remittance, and specie organ 10
rush out
.Ai the same time our great staple fell in England
The Secretary of the Treasury computes the less 10 le
u S-upon half the crop then disposed Of at no less
sum than twenty millions Of dol!urs. lie computes the
comme cia debt of the U. al thirty mors Of dollars
If these estimates be correct, then the cotion II II laa
not fallen would have paid two-liGs oi the debt, and
the balance reduced TO ten millions ui dollars would Eo'
have been sufficient TO cause any very serious rmoaf
rassnpnt further appears, from the statements OF r
Secretary of the Treasury Especially from his report IN
Drcernber lc6 that while were getting in debt l"
England we importing sPrcs, and that The amount
added stock ni gold and silver was more Than H."
amount OF debt iust mentioned IL follows that the gold
and silver he considered Ia that amount. as having
been bought uv0n credit, and not paid iu cGn'rE Int"
the banks nevertheless with nothing upon them !" show
this IMMUNITY; it wnuld be dealt with any olh'r mo.
nPy in It's vaults and dprmtd Justify expansion 1T
credits Such is brief, but in the opinion Of the MN"
riy q! the committee, accurate sketch Of tie times
Immediately preceding the Suspension, IN which are 10
be sought IT'S CAUSES
IL should be rrrna krd that the Specie Circular ia
where mentioned in this report cause OF suspension
The prominent uoCrd Is. line drain al spce '"n
England and The cSPrtnn al iiIs BhER oil t.nPlHhu ~
prpyent IT, which caused H. Ia tr"wn upon bills drawn
npnn that country The second cause assigned, il, lhe
fall nf the price of cotun i'll Eng!1nd, which accustomed
loss Of twenty millions NJ dinr- in that single article
The causes assigned rs the minority OF The c"mm:llrr
Of magnitude sufficient to produce The elec! when
followed
The report of the New FORK Bank Committee TO
which before REFERRED PrThaTs more occra,sy ennme'
rates the Of tie susprnson Than even The report
of The minority OF ,hs ccnm:'er. II says:
i,I,ht linar lip
banks of the CITY nf New Yu5k 10 suspend sprce pay
menls on tie lD'h Of May la>, are we'll knpwn ire
simultaneous withdrawing a. the large pubic De P"S'S
and of excessive freTn credit, combined WITH Tie geai
and une peeled fall in the price OF the pincIpa article
of pnrts with ilpor' OF corn AID bread s'"s
such as had never before occurred ana vii! Tie c"'se
quent inability Of the cnuniry "i Inc S'"n
western States to make The usual aad expected remit
ances did al and the same tune tai pnnc'Iaiy ana
necessarily upon the greatest commercial emporium OF
the Un.nn Aiiera long ami most ardn"us struggle dur
ing which tbr banks though no! aI!ngchrr n!sncctSs
fully resisting the imperative i"rign demand '"' 'he
rrpcrus metals gradually deprived OF great pnr-
lion Of their gpecie unfortunate incceniS ~ TO-
c. nature operating in concert with ether previous excl
inv Causes produced dIsirus end panic ard hnaiy one
81 Those general runs, winch, il continued, no banks
sl issue papsr monry payable demand can eV1r re.
s;si and which put il out OF The power oil those o
hIs city Ia susain sprcs aynlrns.
ADMIN il viii BE- observed, the Spccie Circular 10 not
named among the o! *uSrms"i, nor IL he de
nunca,irn oil bark notes by the ESerniVe he nn'y
one nf tie causes mrul;al.d by NJ Bdd'a 10 which
this committee adves. IS The distribution "i The pnhc
demsrlps Among i:C d,fi-Trnl STATES Sir old Albert
Gaa;in wnnd hzIr hts reputation a. Stars:r7r,
by the assertion l, the Specie Circular was nae at Tie
causes which produced the Suspension. NJ, lie has
brpn t"r lnnr earning and csari>hny his ia"e, to
risk it for any ;,assIng political advantage
Let us nov see what have been tiis elects oil The
cause. oF susprns.oh which c!afgd substantially.
against the Executive of the Cai,rd states ! H. Sp"'
Gle Circular The frs; n them m nnnrd III The 'rter
upon which am commenting Why waS IL issued: ~
The irs: ina:iry which every should ;iaae, who
desires IL fora Just Judgment of It's merits at he
time il was s-led, the U;ed SAFES were being nIun'
drr, ii all their sp"ce: such FxtrhnS "tTr HaII as
had rerer before bern witnessed, t, pro:ure tie gold
and silver of this country. 10 rrp!en'sh u" c"iis I" '
Bank OF England The Then President ct the United
States saw tins, aud resisted IT, by creating demand ter
tie precious mnIa!s in The United SUtc and this, 10
certain extent prevented their expectation.
Further at that time. such was the rage Tor purchasing
and sprcuIana in The public lands that large companies
were formed in every quarter {" The country, VITO were
napol znr the best portions ol The pubic domain,
and max 3p ~ yrncnt in bank paper II vas believed
that If Ibis course Of things continued IN shot ':Ine
all the public lands OF much valuc would be IN the hands
OF s3pculaors and thus the public would ba dcsPnrd
Of lis valuable domain, and have lis stead and N pay
n"" 5rrdeemnble bank nisr nrua ne ,E nnd
p.triosm which dIcia:ca the measure i'h' specie,
considerable extent, has been rea:-d ia the country
thP - -
The u STATES sill The lands except 81 lar rs they
have hepn needed and purchased for cultivation Surely
this 10 a better state Of things than that which would
ha existed had the Specie Circular never been Issued
Blu. fur It, the lards would have been IN the hands OF
snacu!aturs and the Government the possession oi
bank PAPER of up value. Another hene:icia! e.!
!ec has been produced: 'te extravaganza OF bank pa
per Issues was checked and so far US Government de-
posted It's specie in lhe Western Danas, they We're
strengthened
Ia, ,nn hat nj no
snccp cnlIrGtod under that circular. was immediately
exncrded by the Government, IN s disbursements, tor
the protection of the Western irGn,Ii; The remainder
was deposited the S"r'h western hanks, where 1t
was when their doors we.a closed Had 1t been IN
tie banks Of the Eastern cities, It would have been
transported 10 England nr have been III the possession
Of non specie paying banks AT one moment III" com
plau agains' the Executive is, that The pubic money
crrceG for the customs IN The East - not permitted 10
remain ,Irrr, although law Of Congress, and not The
Executive has caused the distribution. In the next,
the complaint is that The money COLLECTED from the sales
Of the pubic lands has been partly kept and expended
in the protection of the Western frontier ana the re-
meiuder placed in Western banks 1t would seem that
nothing less than the OF all the public money: where
collected is required for The accommodation and be-
urft Of the Eastern banks Ii banks would trade, aud
rely upon their capital and credit more and not de
pend much upon thu public money. IL would hs better
for both The hanks and the community. II the idea shall
prcyaI that The convenience ard interest OF ' banks
are he consulted in the disposition Of the public mo
ncy. the great Objects for Inch the Government was
formed will be dsrrgarded; your expenditures Tor The
protection Of the inhabitants of the frontier and all The
means Of national defence must be paaly zrd, until the
banks consulted, and shall be ascerlanrd whether
their operations may not be mcnnmodcd uhstiucled.
Instead Of this Government being carried on upon The
prime pies and for the PURPOSES Intended by the C"n-
its main business will BE- 10 collect nancy Tor
tie benefit of banks, and expsnd 1t as may best suit their
convenience
On the grounds which have thus rapidly reviewed.
Ito
spirit IN which The Specie Circular originated was pa.
utic upon hs whole, lis effects have been prndnc
tive %! much practical benefit | do not undertake 10
derry that at tie pTcsPn, time the circumstances and
condition oi The country very different from those
which txisied al The time iSsGPd and that the ne
4 nracilcnl u