The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1839-10-30
THE PHILADELPHIA BANKS IN ExPLA-
NATION OF THEIR COURSE

Al an adjourned meeting OF the Delegaiesfrom
the Banks In the city Of Philadelphia and adjoining
districts, held on Wednesday evening, Oct- I'D,
10 prepare and report an address 20 the citizens Of
Pennsylvania, presented the following, when wa
read, unanimously adopted, and directed 10 DC syneu
by the Chairman and Secretaries, and Pupishea IN
all the daily papers:
To tAe Ciiizens Of Pennsylvania.
The Banks Of Philadelphia having decided %
suspend for time The payment Of their no'es 10 spe
che deem 4. their duty to explain 70 'he eizens o.
| Pennsylyania, The reasons OF that measure. This
they viii do frankly and briefly:
In NAV, 1886, the Banks In New York suspended
pa ymens 10 specie and The rest Of the Union follow
| ed their example. This Just and necessary nea-
sure WIS required by the commercial relations pc
tween this country and Europe ard all The Banks
OF the United States Immediately directed their Ell
forts assist the country In the honorable discharge
OF lis foreign debts, and TO prepare Tor The resump-
lion OF specie payments. These operations were
proceeding In manner easy for the country ana sa-
iisfactory It's foreign creditors when their pro-
gress was disturbed by premature effort for gene
| raj resumption OF specie payments The Banks OF
| New York were unfortunately constrained oy law
| TO resume on given day, whatever might DC me
state OF the country; and they naturally endeayored
to induce all the other Banks TO do voluntarily what
they were compelled to do This purpose was ell
feced, aided as II was by The Impotence o The pup
appropriate TO their respective sides the popularity
expected from Fastening the resumption, and by feel
ings Of local pride, which prevented many from de-
Ginning 10 do what in reality they disapproved aud
4 accordingly day Of resumption named.
! The banks OF Philadelphia were quite ready to
resume those who were most xious 10 Begin for
they had greatly reduced their liabilities and one Of
their number had no less than 81 1851 900 In It's vaults.
But they believed that the country at large had not
yet sufficiently recovered from that violent shock
be ready for resumption They recollected that un-
der similar circumstances the Bank of England had
| continued her suspension for upwards Of twenty
tkase. .kan.. tk.sa
sumption in the unprepared state Of the country
| must be followed by relapse. Overrnled in this
judgment and obliged at the hazard OF greater evils
TO unite in the resumption, they sincerely cooperaed
In IT, and, being satisfied that the In order
TO be useful permanent must be general they made
great efforts and large advances 10 the Southern and
Southwestern States who were thus enabled, almost
exclusively by the assistance of the Philadelphia
Banks, To unite in the resumption. But the inefca-
cy OF the measure soon became obvious. The South
ern and Southwestern States placed by the resump-
tion too much in advance OF the crops, which alone
could sustain them, gave way at the earliest demand
for Specie thus breaking the general line OF resump-
ton, and weakening the Atlantic Banks by the
amount OF the advances made to support them
| Nor was this ALL
The delusive appearance Of the resumption work
ed injurousy on both sides of the Atlantic. In this
country il caused the belief that all The danger was
over and individuals rushed into enterprises,
and States undertook new improvements, relying on
the enjoyment OF The old facilities of credit Abroad,
the extraordinary and honora bic efforts made dis
charge its debts exalted the character OF the
try; and merchants FASTENED To sell on credit, and
| capitalists to lend on the public securities Of
people who had been thus faithful to their engage
ments
II was then that the anticipalions under which the
Philadelphia Banks gave their reluctant assent to
| the measure, were realized. Ard now, after liue
| more than year OF nominal resumption, the South
| ern and Southwestern States are more embarrassed
than ever. The Atlantic Banks are weakened by
their fruitless endeavors aid those Staes-he CON-
mercal debt 10 Europe is larger than at the resump
tion-the debt Of the States in Europe much larger,
| and the specie means OF the country much dimin-
ished The premature resumption OF specie pay
ments therefore has le the country in state OF ex-
haustion which has prevented It's being able TO stand
the new shock which forms the more recent and d.
rect cause Of the present suspension and drain Of
specie to Englond.
In our relations with England, she is largely and
habually creditor. Like all other creditors she
| is willing TO buy more and lend more while her own
pressed, she TO lend ceases to buy and pro-
ceeds al once to exact payment Thus In ordinary
times she receives payment for her goods in our own
produce, or In our own funds, and rarely requires,
because she rarely needs, specie. Blu, sudden trou-
bic has come upon England which reverses the
whole of our relations. Her crops have failed and
she IS forced TO protect her people against famine
by purchasing food, and this from our own coun-
try, which might furnish market Tor our crops but
from her neighbors who can furnish it cheaper than
we can-and as these are comparatively small con-
sumers OF her products she must pay with specie for
her food. Accordingly the Bank Of England alone
! has been obliged to furnish more than hrty-fve
millions OF dollars in specie to be shipped abroad
drain that has threatened that institution with sus-
pension. BY the latest statement of her affairs it
appears that with immediate demands for which she
is liable of f25 the whole stock of specie is
only 600, and this AFTER borrowing from the
Bank Of France f2 600 OO0-so that without this ex-
traordinary aid, her position would have been ex-
| tremely critical
The consequence is that money has risen to twice
or three times its ordinary valuehat the staples of
this country are unsaleable except al ruiDous sacri-
6ces-that the stocks of this country sent by the
States OF by the banks or by individuals are wholly
uncomfortable, leaving as the safest and the favo-
! rite mode Of payment the expectation Of specie
The demand for this article is still further increased
by the efforts made IN England to produce relief at
| home.
/! The manufacturer, pressed by some urgent want.
empties his warehouse into the packets and selling
his goods here at small sacrifice, for notes which
are discounted at second sacrifice he ships the
specie which reaches England in time TO relieve
| him, leaving this country flooded with goods with
on! any regard to its wants or its consumption.
The result is, that the coin Of this country is want
ed IN England to send to the continent for foodlha
very large portion OF II has already gone and that
The rest will probably follow. The banks of Phila-
delphia have already contributed many millions
one single bank OF their number having since the
resumption in August, 1898, paid out no less than
s,7l2OO0 dollars, in this city alone, and the demand
| seems 10 increase, instead OF subsiding.
onder these circumstances, they have had to adopt
one or Two allernaives-either force the comrnn-
nifty by sacrifices of its properly to pay its debts to
the banks, in gold and silver 10 be shipped forthwith
10 England, or else TO resort to temporary suspen-
sion until the community as well as the banks could
have time to recover from the effects of these foreign
troubles They have not hesitaled to prefer the lat
ter as being the most conducive to The true interests
the State and they confidently rely that their mo-
tves VIII be duly appreciated by the public authori
| lies OF the commonwealth. To that commonwealth
they owe their existence, and they regard her pros
perlty as paramount consideration, 10 which they
nave always SACRIFICED their own merely pecuniaIy
interests Every loan wanted for the service of the
State every great improvement for the development