The Rhode-Island Republican. [volume] (Newport, R.I.) 1809-1841, 1839-11-13
REPORT OF THE BANK COMMITTEE.

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Bank Commissioners communication.
REPORT
The prominent causes for the suspension Of
specie payments by the Banks in twenty out OF
twentv-six States Of the United States. are not
10 be found in the local position OF either one
State, nor 10 any particular expansion thai may
have marked their issues; hut can only be seen
by an extended view Of the busneis transactions
OF the whole commercial world. The immense
extent of the exchanges of the products Of ma
tious-the universal state OF peace which has
increased the productions OF ths SOIL and the
mnliipl,cation of machinery, 10 which the in
ccnuity of nations has been directed, each ex-
.r,inc itself to equal another, that the cspaci-
ties for production might not disturb the balance
of exchange, have given To the present age a
character for extended imitation, without paral-
he'll in the times preceding us. The universal
indulgence in luxurons extravaganza. with the
losses incident TO a transmission Of balances in
specie have diminished the amount OF bullion
which alone constitutes the Foundation OF the
whole operations of commerce, and we are pre-
scented with n novel spectacle OF quadrnpled
extension Of obligations, and a basis for those
obligations diminished at least twenty per cent
In the aggregate.
In order that the equilibrium Of balances
the agricultural productions OF each section OF
the commercial world should equal the demand,
and also should equal the necessities OF suchAs
had no other dependence. In lS37 this lnlla-
ton Of mercantile exchanges added 10 the un-
expcctcd position OF the United States govern
inert demanding lis revenues IN specie, alone
produced over onr whole country general sus-
pension Of specie payments by the banks, as the
only means by which our exhausted country
could breathe ia her race. and recruit IN her
resources. In despite Of the short crops Of as-
ricultur4l products ~ 1887, the energies OF
whole people were directed 10 restore AS to our
rank Of commercial equality and prcmaturely
in 1888 a resumption Of specie payments was
partially effected. This was aided by large
loans of bullion from England. which were sent
for selfish aud particular purposes. In 1888
snoihrr succeeding short crop in our country,
iistcaI of aiding us in resumption aud furnish
ing us with the means of exchange, required a
inriher importation Of grain, and drained the
speci. from vaults just opened 10 the grasp OF
commercial necessities
The short crop Of grain in Great Britain IN
1888, produced a demand from that country,
ior export. OF thirty seven millions ot her bull
Jon, all taken to The continent OF Europe for
aflim to sustain her population, and consequent
ly produced a contraction IN the means OF En-
gland to sustain her own extended manuiac
lures aud commerce. Our country, as the
debtor OF England, was loudly called on to sup
ply the means for this abstraction, and our open
pOrts and diminished duties upon rnpOrtatlons,
presented TO the English merchant a sure re-
source to rcsto,e to England her exhausted bull
iiou. The drain was steady and unrelaxing uu-
III our own basis became narrowed down TO a
posi,lop wholly insufficient for our own neces-
Ia. nrn,,ian ,,C .hun NJ crn ua
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 US that Great
Britain was again visited with another short
crop, and that all her commercial balances
would be required TO sustain the anticipated
drain Of her bullion TO supply TO dispirited
population necessary subsistence. The bank
pf England. the great centre of all the exchang-
.S Of commerce, had already been drained un-
al her position al the last advces was critical
in the extreme, and almost at the point OF sus-
pension. This institution. commanding always
the resources of Great Britain and enjoying the
proud monopoly OF dispensing the tribute from
other nations, which naturally flows into Eng
land in return for her industry, was standing
ulder liabilities of nearly twenty-seven millions
,souud sterling. with bullion in her vaults less
h.en broush TO the humiliating position of bor-
rowing about, two millions from her rival, the
more fortunate bank OF France such was the
position of England. and such the inevitable de-
mand upon the United States again to supply
Ia our creditor the means in bullion To sustain
her against the present deficiency ia crops
To pay our debts would be houest and fair. but
tn open our reduced resources 10 the necessi-
ties Of Great Britain and permit the import 10y
her subjects, OF the productions ot Their labor
and their supcrtInous luxuries into our country,
;ur which the last dollar in our banks might
have been drawn away, would have left us IN
hluLruptcv. not only to foreign nations, but
bankrupt with each other. and without the
means of generating currency Tor the ordnn-
~ transactions OF business. The question was
uomentous and resolved itself into question
af self prcser, alton; it become national bank
<uuicy or national suspension. The great State
af Pennsylvania led the way, and the entire
South and West followed in this course of pru
drncr aud necessity. The city OF New York.
which from her commercial position, is almost
alien to the true interest Of our common coun-
irv is yet IN the nomina! payment OF specie,
hat her merchants present picture OF unexam-
pied distress. That city has been sustained by
the Who'll. resources IN specie OF the general
government. and even the pi;iance OF revenue
received for dalies in our own State has not
BEEN spared to rs bu, has been taken TO aid
some favored banks.
New York. Ior political reasons, is 10 be sas-
taved, even by the prostratlou of every other
section of the country. The great English
Banking houses haze been forward in bolster
ing the 1eakeued resources of the city Banks,
and new loans, founded upon pledges or State
stocl. have been proaered to them to postpone
for a short lime the drain OF specie for exports-
ton. Ii is all delusion. and the result of willy
efforts, converting our State credits into means
nf guadatng individual Indebtedness. The
gIeat balances are not reduced, aud tho bank
raplcy of individuals is sought TO be exchanged
Tor the last resources OF an exhausted nation.
TINS example is proiiered to the county for
IL. - NL.rl NIL,