Herald of the times. [volume] (Newport, R.I.) 1830-1846, 1839-11-14
[WHoLE No. 473.

OF THE BANK COMMITTEE.

:
Y REPORT.
\ Tho prominent causes for the suspen-
sion of specie payments by the banks IN
twenty out of twenty six States in the
United States, are not TO be found IN the
local position of either one State, nor ~
any particular expansion that may have
marked their issues but can only be
seen by an extended view OF the bnsi-
ness transactions OF the whole CONNER.
c,al world. The immense extcm OF the
exchang es Of the products OF nations
the universal slate of peace which has
increased the productions Of The soil, and
the multiplication Of machinery, to which
the ingenuity OF nations has been direC-
ted, each eXeriing itself 10 equal another.
that the capacities Tor production might
not disturb the balance OF exchange,
have given to the present age cbarac-
ter lor extended initiation, without paral-
lei in the times preceding US. Tho
universal indulgence in luxurious cx-
travagance, with the losses lncidept 10 a
transmission OF balances to specie, have
! diminished the amount Of bullion which
alone constitutes the foundation for the
whole operations Of commerce, and We
are presented with novel spectacle ot
n quadrupled extension of legations,
and n basis for those obligations DUNN
ished at least twenty per cent III the az
gregate.
In order that the equilibrium Of balan-
ces should be preserved, it is as ind's-
.pensable that the agricultural productions
Of each section of the commercial world
should equal The demand, and also should
equal the necessities of such as hac no
other dependence. In 1887 this inf1a-
ton Of mercantile exchanges added To
the unexpected position of the u. States
government demanding its revenues IN
specie, alone produced over our wlrole
country general suspension of specie
payments by the banks, az the only
means by which our exhausted country
could breathe in her race, and recruit ~
her resources. In despite Of the short
crops Of agricultural products IN 1887,
the energies Of whole people were
directed to restore us TO our rank OF com
merciai equality and prematureIy IN
1888 resumption OF specie payments
was partially effected. This was aided
/, by large loans Of bullion from Engla
which were sent for selfish and partico.
lar purposes. In 1888 another exceed
! iD2 short crop in our country, instead Of
aiding US in resumption and furnishing
us with the means OF exchange, required
a further importation Of gram, nnd drain
ed the specie from vaults ust opened 10
Il. ,,f nj tIea
The short crop of grain in Great
Britain in 1893, produced a demand from
that country, for export, thirty y-seven MD
| lions OF her bullion, all taken TO the con-
tincnt Of Europe for grain 10 sustain her
population, and consequently produced
a contraction in the means Of England
to sustain her own extended mannfac'
lures and commerce. Our country as
the debtcr of Eng was loudly called
on to supply the means for this abs'rnc.
ton, and our open ports and diminished
! duties upon importations, presented TO
! the English merchant sure resource
TO restore TO England her exhausted but
'Ilion. Tie drain was steady and unre-
laying, until our own basis became mar
llowed down TO a position wholly insuti-
cient for our own necessities. In 1889,
the promise Of abundant crops assured
us of our strength, and The firm resolve
! to maintain ourselves was responded TO
/ from every section of our country. In
: September last past, the intelligence
reached vs. that Great Britain was again
| visited with another short crop, and that
| oil her commercial balances would be
required to sustain the anticipated drain
Of her bullion, 10 supply TO y disprited
population necessary subsistence. The
! bank of England, the great centre of al
! the exchanges Of commerce, had already
been drained until her position at the
! last advices was critical in the extreme,
and almost at the point Of usrension.--
! That institution, commanding always the
resources Of Great Britain and enjoying
the proud monopoly of dispensing the
! tribute from other nations, which batu-
! rallv flows into England in return Tor
her industry, was standing under liabili-
ties Of nearly twcniy-seven millions
pound stelllng, with bullion ~ her vaults
less Ihnn three millions. The bank had
already been brought 10 the Illuminating
position of borrowing about two mil IONS
from her rivnl, tho more fortunate bank
or France such was ihe position Of
England, and such the inevitable de-
mand upon ,he United States again ~
supply to our creditor the means " bu''
lion to sustain her against The present
deficiency in crops. To pay our debts
would be honest sDd fair, but To open
our reduced resources TO the necessities
of Great Britain and permit the import
by her subjects, Of the productions of
their labor aud their supeiiluous luxurics
into our country, for which the last dol
( lar in our banks might have been drawn
! away, would have left us in bankruptcy,
not only To foreign nations, bot bankrupt
with each other, and wbhou, the meuns
of generating q currency for the ordinary
transactions of business. The question
was mo,noD Dtous and resolved itself into
question Of self presers alton 4; It be-
came national bankruptcy or nalion"I
suspension. The great State Of Penn
sylvania led the way, and the entire
: South and West followrd in this course