The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1839-10-16


cash payments.
This state Of things in England has reacted upon
this country with irresistible force The credit OF
States has been completely paralyzed they
longer negotiate loans there; numerous public works
have consequently been arrested in an unfinished state
and remain reproductive, while the interest on
the debt already contracted abroad INST be paid
Some Of our moneyed institutions which in hours OF
difficulty had furnished lhs State with the means Of
dschargng their obligations TO the labores the pub
lie works, The faith Of reimbursing themselves from
abroad, have found from this sudden frusiraon their
active means unexpectedly diminished Anxious TO
fulfil their legitimate functions, they had IN some
hypohecaled the loan certificates Of the States with the
foreign capitalist and applied the money received on
them TO facilitate the operations OF our merchants and
manufacturers when the present pressure commenced,
But u has gone increasing in both hemspheres, and
instead Of sales being effected Of the stock hypohe-
Gated the Institutions have been called upon to refund
| the money borrowed, or to witness a degradation Of
credit which would be greater misfortune than any
imaginable sacrifice Of property. Thus situated, no
alternative remained but to payment from their
debtors at hone, who were already IN a state Of eK-
haustion, and whose un would but sggravsle the eI
istlng evils.
] But cannot even here close the details Of Ills
against which the country is struggling and will
be found to struggle, for time TO come, There
remains 10 be added the quantity Of foreign
chandlze, which has been poured 10 upon for
ket, swell the OF imports during the pre-
sent year. Tar beyond the proceeds Of exports The
amount OF these imports has doubtless been much in
creased by the gradual reduction Of tariff, operat-
ing as check upon the products Of our home manu-
factories The estimated proceeds Of our exports will
be also greatly diminished, by the decline in the price
| OF our chief staple, cotton, in foreign markets.
The various disturbing causes. above adyerled to-
have been operating upon the country, aud gradually
gaining intensity, for the last three four months.
immense amounts Of The precious metals have already
been exported within that period is believed that
the port Of New York alone has witnessed the departure
Of probably not less than ten millions Of dollars, the
fruits chiefly Of her collections for tho sales OF foreign
goods here and elsewhere. Every packet for Havre,
mas carried large quantities Of silver, to Increase
| the cumbrous amount Of useless millions piled up in
tho Bank OF France the packets Of England departing
every i've days, all take their quota aud the great
steamers each with her millions with each other in
acceierating their speed, to repensh with means,
ere be too ate the exhausted vaults Of the Bank Of
England an Institution, which, standing their
vast resources, backed by the credit Of the Govern
ment has had to seek temporary support prevent
postpone her failure, from her great rival across the
channel
| This export enormous Us i, has BEEN we regard az
but the beginning Already has the demand become so
great either Tor export to replace Ia the Banks that
which has been taken from them for export, that
see the specie leaving the parts Of the Union,
by the waters Of the Mississippi and various other
routes, in vast sums which no sooner reach
ports than II Is placed ship board and transferred to
foreign land. .,.
The position of Philadelphia at this crisis is Of pecu-
lar Importance, and be specially considered in
reference to the great question of suspension of specie
payments at the present time. Her banks resumed
August, 1888 as has already been shown, obedience
to public sentiment, but against their own Judgment
II was as obvious them Is now, that from her To-
cal position, being the great distributor to the West
and South, Of the products Of our Eastern manufaco-
RES and OF those from abroad, imported chiefly New
YORK; the banks OF this city could pay specie for
all the obligations incurred by our merchants here, u-
less they could receive II from their debtors Accord
| ingly, great efforts made TO enable the instu-
lions OF the South which the enfeebled, TO
resume with 10 nearly simultaneously. Cash adr
vanced and credits literally furnished by Of
banks, to accomplish this object
La the reduced state Of business at that PERIOD those
credits were readily made available and the thus
furnished went into the Golfers Of the merchants, hero
and elsewhere, who had debts in the South and West
for their liquidation. But the country had not had
time to recuperae from the prostralion OF 1887 Tho
obligations gwen Tor the means supplied by cannot
now be met after short struggle the institutions of
several OF the States sank again the increase Of bust
ness since the resumption, the belief by citizens
that the difficulties had been surmounted requires the
means that had been advanced fo the above patriotic
object, while the debt Of the South, which post
! poned 10 1888, requires farther postponement.
/ At season of such universal prostralon it will be
easily seen how this requirement operates upon this
| city and her institutions The grave question was
could they, under all the general advantages which have
4 ~ I.
those more special, arising from their local position
conlnne to pay the accommodating demands OF the next
tiree months IN coin, by pursuing course Of policy
which could be pointed out We reply they could not
they might is true, have protracted the struggle for
some time longer and by relentless course towards
their debtors have ruined traders arrested the
come from public works, depopulated our factories
OF their industrious occupants with their families; but
had all this been done, would no, have been sufficient
to have avefed the impending catastrophe nor could
ka.A k.l, -
make, have deferred it long. The community are
will bear witness that the banks have not shrunk
from their duty IN striving for months past to sur.
mount these difficulties and preserve the only true cur
rency, CON- al the risk Of sacrificing all these invaluable
interests. >.. .. .......
Finding these efforts Intellectual and satisfied that
the list OF preventves had been exhausted the banks
resored to the only alternative temporary suspension
OF specie payments. This will give time to the people
and Institutions of various parts Of the country TO qu
date their claims each other and prev ent for the
being, the foreigner from furnishing with larger
supply OF his abcs than be paid for by the fruits
| OF our current industry.
As Pennsylvania institutions, deriving their existence
from the State, and owing eaty to H. the banks feel
that they have shown, on trying occasions, readl-
sustain credit and promote It's welfare, ny
furnishing when all other sources failed, for the
prosecution of our internal improvements and we think
| they may rely with confidence upon the liberaty and
protection Of the people OF this Commonwealth and their
constituted authorities.
With a rigid adherence on the part Of the banks, to
determination avail themselves OF the non re-
demption of their notes specie, TO engage IN an IN
due expansion of their business and issue OF their pa
paper we believe that the currency may be preserved
in sound condition, and the business Of the country
may be transacted without any Of those serious difficult
ties some may apprehend until the day Of resumption
shall again arve when all interests shall be fully pre-
pared for ii.
| From the Ne,c York Times,
SUSPENSION OF THE U. STATES BANK