Columbus Democrat. [volume] (Columbus, Miss.) 18??-18??, 1839-11-09
From ihs London TlmsI Of SEPTEMBER Il.
THE United STATES BANK

e.
i. To lBte gent Observers who have watched ~
c2era.Ioas ul the United States Bank lor the asi
tex yesrs, the obvious answer VIII naturally occur,
that departing from The e.unaie province of bank
ing. IL has constituted Itself great trading sHl
specC.adng corporation; and that, entering upon q
ned Of operations too vast tJr is own capitsi great
even As that IT, 70 has continued 20 trade and specu-
uate upon credit untd Il finds itself encountered
With q .arge mass Of stocks and securities OF al
kinds, and large quantity Of cotton, The Teallzl-
ton Of al which Is stopped by the state OF the En-
ropean money markets, but upon the advantageous
sale Of which it had implicitly relied to meet all It's
engagements abroad, and supply adequate funds for
as banking operations at home. Forgetting that
credit, however bright, aud however powerful, may
be furnished and worn away by constant and extern
,iye use. the United States Bank has rel.e! on the
magic OF It's name 10 stamp with value every bit Of
paper, and has thought II an easy and prosperous
game 10 borrow as much money in Europe al low
rates as could cJngregate, and 10 empIoYit IN the
United States IN indirect purchases oil stocks, and
of cotton, or in advances upon such securities from
which il contemplated rich harvest Of high rates of
interest little thinking that The time would come
when Ike money might be demanded in Europe,
whilst neither the stocks nor he cotton might be
wanted
alt is mmaeral Ia consider whether the money
was employed in purchase OF in advances, when It's
recovery depends upon the sale Of the commod- |
ties, The investment is almost equally dangerous and
equally opposed TO sound banking principles Mr. !
Bldde has shown himself man Of great ability aud |
great resource emergencies, but he has evidently
exaggerated his power as well as mistaken his du- /
ty. He has supposed, perhaps from patriotic mo- !
tyes and national feelings, that lie was placed in
position where he must by advances, furnish funds |
10 the panterS agrlcnIursts, and producers of the
great staple Of io United States, and at the same
time furnish the means TO States and companies for |
all their plans of internal Improvement. Thess ad. |
vahces naturally conveyed 10 him the control both |
of The cotton and of the bonds of States and corpo-
ratons and whether willingly or not, necessarily |
involved the bank N an attempt at monopoly of the |
produce and Of the loans and money transactions Of
the United States. That such was his view may |
be clearly seen by his declaration in letter to Mr.
Adams, that he had sent Mr.. Jaudon TO England
To protect the commerce and maintain the credit of
the States The result will, we fear show that he |
has unhlnged the trade in cotton, lowered the pri |
ceS Of all American securities, aud seriously damag
ed the interests OF the bank itself. Whether the |
bank can or will revert 10 sound principles must be |
nov a matter Of doubt. 1t is evident that il has |
entered path from which ii will require a consd- |
cradle time TO extricate ITSELF and ii is probably that
difficulty which has impeded the retransler of the |
agency 10 the London firm which formerly had |
some time back was about TO resume H. II may be |
surmlsed that the firm stipulated certain limitations |
OF credit and facilities To which the bank is unable |
or unwilling, IN the existing state OF its affairs, i'm
mediately TO concede for il must be remembered !
that whilst Mr.. Jaudon, as mere agent, had only
to obey the orders Of his employers, any indepen-
dent mercantile, Ur banking establishment must
look 10 the general effect Of the operations of its
correspondents on its credit, its business, and It's
engagements
The public seem rather to have lost sight Of The
guarantee secured whilst the agency was vested in
a vel known house engaged IN general business,
that the debts of the United States Bank in Eng
land would be confined to certain limits, and would
not he extended to underlined amount. Had a SC.
cond Mr.. Jaudon been established at Paris, there
is no doubt that there would have been no limit 10
his acceptances; but il is equally certain that there
would have been an increase of danger TO all inter- |
esed in the United States Bank.
with respect to future transactions between
the United States and this country, is evident
that check 10 the vicious system of the United |
States bank win be benefit 10 boIh countries al
though il is to be desired that it could be applied in
rentler mode. Mr.. Biddls is known to have con-
sidered the resumption Of specie payments in the
United States as premature. There s nothing IN |
past events 10 prove the truth of that opinion, but
they prove undoubtedly that the resumption was |
not accompanied by that curtalment of issues and |
engagements which ought both TO have preceded |
and followed it. He extended the system Of credit
in every direction, il eImined that the resump-
ton should not be permanent The fault, therefore,
is not that specie payments were resumed too ear
" bat that banking facilities have been extended
TOO widely and rasly.
"Trade will now resume its usual channels, prl-
ces will be regulated by supply and demand, the
merchants will be able to calculate, and the manu-
hpturar mill huv hath with tha ~ thatn
monopolst can at any time their operations, by
forcing, either from caprice or necessity bis over
whelming supply on the market Any combination
artiGcaly to raise or depress prices is not only I'M
WISE but must fail in its object. Unless planters
are disposed to act on the principle of the Dutch,
who destroyed great portion OF their spices in or
der TO enhance the value Of the remainder, the
knowledge OF the existence Of large supplies on eli
Their side OF the Atlantic, and thai they must ulti-
mateIy find their way TO the market, is sufficient 10
warn the manufacturer never to buy beyond his
pressing wants We observe that our Transatlantic
friends entertain the idea that manu- #lurers com
blue 70 Keep down the prices Of thesRaw material.
Let them be assured that the manuIaz8rers will be |
ready TO pay any price for cotton if they sell the
manufactured articles al corresponding rates 10 Sc
cure profit hut when il is notorious that during
great portion Of this year twist was selling at rates
which leit loss ON the purchase OF cotton, the A. |
merlcans must not accuse our continental custom |
ers OF combination, and they will understand that |
the agreement amongst masters to work short time
was in order TO adopt an uniform conduct towards
the operatives, and 10 place the poorer manuiactu-
rer cd the same footing with the richest capitalist.
Equally groundless is the idea that the Bank of
England made war against the cotton prices. Ii
raised (whether wisely or noil the rate Of discount
rapidly and largely TO protect It's own Golfers from
the continued drain Of bullion; that rise OF course
affected the prices of oil articles which were not
maintained by scarcity Of supplies but the Bank
might as well be accused Of desire 10 force pri-
ces mp in December, when it increased its facilities
and made money SO abundant as of wish BY its
conduct this year TO force down cotton.
Another advantage will arise from ckeck to
The unlimited operations Of the United States Bank
1t has lately acted as hot bed to nser every mush-