Columbus Democrat. [volume] (Columbus, Miss.) 18??-18??, 1839-12-21
From tks Philadelphia SPirif Of fhs Tunes
THE POVERTY or The UNITED STATES
RANK

The suspension Of specie payments hy the Bank
cannot have been q matter OF surprise % those wha
have watched It's proceedings lur Tic last seven
years; II may not therrfIre, Be amIss 10 look back
and cal the attention Of the reader to many Of IL
ao1s showing that Tor years that institution haa been
living BY Iis wits that II has been constantly en-
barrsssed IN finances and that, whenever u grant
cd iaeites l. e. out Of the city on large scale Il
ever cOnirved 10 be borrower, rather Than leader
by the transaction.
Its expansions in is3i-92 for The purpose or de-
Icaiag tie Fe-eeciIaa o. GeneFsl Jackson amount
ing IN period ul eighteen months. to about $40.
OO000o, lad the foundation OF is succeeding diff
euliies The first Indication Of lis weakness became
manifest IN ls39. Government directed il Ia paw oil
the remaining million Of per cent stock If the
United States, which was held in Europe. At the
time the order ar 30 doing issued rum the trea-
suty. the Bank had in lis hands upwards of eight
millions OF the Government money. Instead, how
ever. OF promptly complying with the demands OF
the treasury, By taking up that stock, aud returning
the cerlfcatss 10 be eancrled what was the course
Of this treaifhs institution Why, il despatched an
agent to London, TO bay up the stock for the Bank
which he did ; aud for the security Of the payment
Of The million the stock itself was pledgcdin vul-
gar pariahee, "spouted"-by the Bank What
better evidence Of abs lute porertvof INDECENT ne.
cesslty-eoud be demanded than this Transaction nf-
lords But, the most extraordinary part Of the
Transaction thus: after the Bank had become
the owner Of the million OF per cent. BY borrow.
ing the amount from the Messrs. Barings, and
pledging 10 them The original certificate. i discover
cd that i Ind no nigh, 10 deal in stocks aud was
consequently obliged 10 beg The favor OF the Bafings
TO take The stock their own account This act of
poverty on the part Of the Bank no doubt led final
" 10 the removal Of the depostes. Gould IL he 9th
erw,se Was an institution to he trusted with the
keeping If the public money, which could not, on
hnts. II L.. q
the amount deposited IN ite hands
The next in order, Of its large transactions was
the loan OF some millions TO merchants Of New York
In the early part Of 1897. How many millions were
discounted IoF them we have no means Of ascertain.
ing but the Bank, by its accommodation 10 the
merchants OF New York, intended TO accommodate
itself by The of the rhois amount of the loan for
period Of eight months, with prospect Of extend
ing It 10 twenty months, or ns much longer as the
capitalists oil England would take ts bonds The
Bank discounted The New York paper AZ three or
four months date TO raise tin lundn 10 do NJ. IL
sent its bonds 10 London for The amount payable In
twelve month"; after date and relying on their sale
there, drew agans, them for the amount Of the
loan TO New York. How much the Bank has been
able 10 collect Of these notes we know mol but
have reason 10 believe only a small portion Indeed
Ia 1888 these London bonds became due To NEE,
them. Mr.. Jandon was sent To England aud il is
believed be carried out new bonds IN the hope of be-
ing able 70 dispose Of them and thus take up The old
Ones That scheme, We rather think. did not take
certainly 10 the extent that was desired.
In May, 1897, the Banks throughout the United
States suspended specie payments BY its new char
ter, the Bank OF the United States, on refusing to
pay its notes IN specie was subject 10 payment Of
interest al the rate Of IL per cent per annum, from
the day Of their presentation tor payment. Here
an expcdIent was reset led To- which has never been
thought very creditabe 10 the Dank--allhough per-
lectly in keeping with the pedgng of the one mill
ION Of the three per cent? after nominay paving
them of. We will tellit II was thus On the ex-
p,raton OF the old bank as il NAV be called in con.
tradistincllon TO the present one, It's outstanding
notes were deposited with q new President ,f the
old Bank Mr.. Bldde being transformed to the new)
MANY millions Of the notes Of the old Bank Ia which
the Government Of the United States was . part.
nsr, aud consequently liable Cor their redemption
were IN the possession Ut these two Presidents lor
the purpose Of being destypyed~ihcv were, hnwey-
or, destined - very different end. 'rhey were
sent by the new Bank 10 The south and southwest,
to the amount Of some twelve or fifteen million of
dollars, and sold, and The amount INFESTED IN cotton
Thus, 4 will be seen, the bank purchased cot.
ton 10 that amount, with notes which did no, be.
long 10 il. and for which, 50 long as the suspen-
sion Of specie was threatened, no one could Oh.
tain payment, or even demand interest. This
was famous, though d fraudulent lltt. The cot.
ton was shipped TO England and France. and the
proceeds applied 10 the redemption OF its bonds
due IN England With these old notes. there
fore, which the Bank absolutely IN manner pur
totasd 10 use, did il carry on It's transactions il
cotton, and AVOID thereby, ssung lis new notes
on which il would be liable 10 demand Of spe
Gle. subject, on refusal, 10 an interest of twelve
per cent as already stated. Such trick woult
have blasted the credit md reputation Of any IN
dlyiduai but such was tho lniaiuation oil lhs
friends OF the Bank, its most dishonest practice,
were looked upon as the mere ebuhton OF supe
rior tact and fit subjects, accordingly, for lauda
,ory strains. These were fine times for tn
Bank. To prevent return OF specie paymen
every neiye was now strained by Mr.. Biddle b.
FIRST coaxed and then threatened New York viii
Waterloo defeat; and actually lnsulled lhos
who opposed the obnoxious measure. No won
der: so long rs he could pay his own debts vii
ether peoples money with Impunty, !, was yer
natural for hun 10 desire such state Of things a
would enable hun to continue il and hc did con
ilnue Il, until Mr.. Gtundy's bill made tia pens
offence TO reissue the notes Of the old Bank il
which the Government, was interested.
We now come 10 more recent acts. Fa
months. the Bank Of the United States has beef
selling post notes al o dlscoun, OF abou, Is or q
per cent. pei annum. They have been sold il
every direction, from Name to New Orleans
The country has been flooded with them. WI
the proceeds, in Bank notes received in paymer
for them, specie has been every where and olte
very rudey demanded, The banks thus drdnes
were in seEdeience, compelled TO reduce tbej
discounts; and we hazard nothing in saying iha
H.. -. l. A
siana who has not been n sufferer, and some Sc
we're sufferers, by The sale OF these post notes
They exhausted the country Of It's hoOling capi
tai; drained The banks Of their specie ard il
our belief, have been the sole cause OF the sus
a,rt he atha~ kacL A.