Cheraw gazette and Pee Dee farmer. [volume] (Cheraw S.C.) 1838-1839, 1839-10-18
SUSPENSION OF SPECIE PAYMENTS.
Nep York, Oct. 14h


There was great excitement in Wall street
on "Wednesday, in consequence Of an an.
nounceneut of the u. 5. Bank of Pennsyl-
yania would no longer be paid at theircoun.
ter. Post. notes to the amount 40 or
so 900 dollars were due on that day, and
were protested for non payment. On
Thursday morning intelligence was receiv.
ed from Philadelphia /, that the Bank of the
U. States, and nearly all the other banks
in that city, and in Baltimore, had suspen-
ded specie payments. 1t is supposed that
the banks generally in the Middle and South.
ern States wilLfollow This example but that
those ofNev York, New England, and
some of the Western States will continue
10 fulfil their promises.
The best accoun, and explanation we
have been oble to 6nd Of this morifying
movement, are contained n the, following
extracts from Phladslphia letters and pi,
pers.
A letter dated Philadelphia, Wednesday.
Oct. Oh says,"Our Banks have this day
suspended specie payments. The drain
upon them for a few weeks past has been
enormous, and nothing is coming in from
the West. A meeting was held yesterday
upon the subject, a, which five, including
United States and Girard, voted for sus-
pension, and nine against it. This morn.
ing the u. States notified others that they
had determined to suspend, and of course
the otners, who had opposed it, were then
forced into it. They pay for the presen'
their five, dollar bills. The Baltimore Banks
| learn, have determined TO do the same
thing to day.
The Farmers Bank at Reading, in this
State stopped payment yesterday.
Socks advanced somewhat to-day
Vicksturg went up to 80 Kentucky to Is
U. S. Bank to lOl. the Bank Of Penn.
sylvana extended her discount line. Now
they have stopped, they must all do the
same.
The (PhiladeIphla) National Gazette o
Wednesday evening says:
"A combination of adverse circumstan'
ces has Reluctantly compelled the Banks o
this city 10 resort 10 temporary SUSPENSION
of specie payments. The failure Of III
harvest in England last vear, caused de-
mand upon the Bank of En- gland f,r more
t,an six millions of pounds sterling, abou
thirty million of dollars, whic, was draw
and silver from lis vaults and exported lo
The continent. to pay for grain.
This wi hdrawal Of so large an amount o
specie, produced at once depression N
the value of cotton and other American pro-
duce, and of course lcssened our means in
England Of paying for the lar 20 amount ol
importations Of foreign merchandise.
There has therefore been continued
drain upon our Banks for specie 70 ship to
Europe TO supply this deficiency. Nothing
can be more honorable to the character OF
our merchants, than the sacrifices they
have made 10 support their credit both al
home and abroad. In this honorable strug.
gie to maintain ;nvialate the commcrc!al
character of our country. they have re-
ceivcd every support which was in the pow
er Of the Banks 10 render lhrm. There is
however a point in human uffalrs, when
self servation is the first law of nature
That period is now arrived {; every effort
has been made by our Banks 10 stem the
torrent, but in vain.
In support Of this declaration it is only
necessary TO state, that since the late resnm.
pt:on of specie payments, the Bank of the
Uni ed States has paid out in specie up
wards oftwenty millions of dollars. In ad-
.uEIoii Ao siIs, Ilie Bank has made great sac.
nfces TO support lhe cause Of internal Im'
rovcmenls, MT only in Pennsy vlnia bu'
elsewhere.
OF the ability Of our Banks to meet all
their engagements, no one can doubt. The
safety of Bank does not consist in the
amount of specie iGle in its vaults, but in
the ample security which it holds ofits debt
ors. All lha, the Banks require, is, time
to collect the debts due to them, to enable
them 10 resume specie payments.
The Philadelphia Gazette of the same
dale says:
The afir is not one of choice, by the
Banks, bu'-a necessity not arising out OF
lack Of power to continue specie pay.
ments, but of self preservation, under the
form of keeping the specie from being
drained out OF The country.
This necessity has its chief cause in the
revulsIon Of the opium trade with the Chin
ese, trade Of say fifty millions! The in
s,rument of this trade is known to be OPT.
um. This drug can no longer be employed
as an article ofexchanse with the people.
Specie, therefore must take the place Of 1t.
The Bank Of fEngIand fairly reeIed under
these Iidiugs from China-and was forced
to make loan Of the Bank Of France, and
into the issue Of two pound noies. The bal
ance IF trade being ngains, US demands
came over here for specie, and every packet
e k,plE