Herald of the times. [volume] (Newport, R.I.) 1830-1846, 1839-10-17
NV HOLE No. 479.

tacit non resumption in Philadelphia aud all
over the South, but in the face OF an scuve
Opposition. They were Told from high au-
thority that 10 resume without Philadelphia,
would of course be failure. But some men
thought Otherwise, and II proved that resump.
ition else where vas in no wise important.-~
The diHerence was adjusted at once ty tie
rate of exchaDge, and for four months our
banks paid before Philadelphia resumed, and
in fact she never resumed,-for post notes
STAYED Of the whole thing. During most Of
this time drafts on New York were north
specie and premium, all over the non paying
territory. Ii will be so always; and ofcourse
no drafts will bs made on US Tor specie from
that quarter.
A few shares of u. s. Bank were sold af-
ter the suspension was known, at 30, aud
some sight drafts on Philadelphia at "a 3
dis.
An intelligent correspondent has handed
us the following:-
"The refusal by the Bank Of the United
States Of this city of the notes Of the Phlla-
deplia Bank, is considered as the forerupner
to suspe nslon IN that city. Ii this should
happen, the natural aud necessary effect viii
be that of relief to all other places, and es-
pecially to New York, from whence Phila-
delphia has taken large sums for export end
otherwise, by the sale Of post notes, which
must now cease.
! "The effect has been to compel the banks
of New York To contract their engagements
and place themselves in position OF positive
safety and their deposites aud circuiation
are SO reduced, that with about four million p
dollars III specie, they are beyond the reach
of any contingency.
"Ihe export demand for specie lIHs been
more for the wants of the Bank than for the
regular trade, and as our crops are near at
hand and the amount due abroad small, we
look for gradual melioration IN the money
market, and feeling of increased confidence
and security"
from the National Gazette.
Suspension Of Specie Payments.
A combination Of adverse circumstances
has reluctantly compelled the banks OF tins
city to resort TO temporary suspension ot
specie payments. The failure OF the harvest
in England last year, caused demand upon
the Bank of England for more than six mil
lions of pounds sterling, about thirty millions
of dollars, which was drawn in gold and silver
from its vaults and exported TO the continent
to pay for grain. This withdrawal of so large
an amount of specie. produced at once de-
pressiou in the value Of cotton and other
American produce, and Of course lessened
our means in England, Of paying for the large
amonnt OF importations Of foreign merchan.
disc.
There has therefore been continued drain
upon our banks for specie to 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 at home aud
abroad. In this honorable struggle To main-
tain inviolatc the commercial character OF our
country, they have received every support
which vas in tho power OF the banks 10 rem
der them. There is however point IN hn-
nan affairs, when 1t becomes necessary 10
resort 10 self preservation as the hrt law of
nature. That period Is nov arrived every
effort has been made by our banks to stem
the torrent, but in vain.
fin support of this declaration, il is only
necessary to state, that since the late re-
sumption Of specie payments, the Bank of inc
United States has paid out IN specie upweros
Of twenty millions of dollars. In addition to
this. the Bank has made great sacrifices To
support the cause of internal improvements,
no, only in Pennsylvania but elsewhere.
Oft6 ability OF our banks to meet all their
enGanements, no one can doubt. The sale
ty of bank does not consist in the amount
Of specie idle in its vaults, but in the ample
security which it holds OF It's debtors. All
tina, the banks require is to collect the debts
due 10 them, to enable them to resume specie
payments.
I'VE are requested to state that the Com
mcrcinl Bank Of this city has not united IN
suspe nding specie payments
From The Philadelphia Gazette.
II is unnecessary, as it is impractcabe, to
90 suddenly into an ample elucldaflon OF TINS
great measure. II is sufficient to know. that
II is not one OF quick and desperate maturity:
it is one of cool reflection, OF well weighed
facts, and well deserted results-wbich, IN
any event, can scarcely fail OF afording reiief
where before there were perplexl,ics, dis
,ress, and struggling confidence. Or the
main momentum 10 this point, operative IN
both hemispheres, we propose 10 speak
briefly.
The affair is not one Of choice, by tho
banks. but Of necessity-a necessity not arls-
ING out of lack Of power to continue specie
payments, but Of self preservation, under the
form of keeping the specie from being drained
ont OF lhe country.
This necessity has its chief cause in the
revulsion Of the opium trade with the Chi-
nose. a trade of, say fifty millions The 'n'
slrumont of this trade is known TO be opiuni'
This drug can no longer be employed rs an
uricle ofexchangc with the people: Spcc,e'
therefore, must take the place OF IT, The
Bank of England fairly reeled under these
,idings from China-and was forced to make
loan of the Bank of France and go inio 'ne
issue of two pound notes. Tue balanco 0.
,rndc being against us, demands came over
here for specie, aud every, packet snip wenr
on, carrying away from hali to million oi
dollars. -.
This was the greo, cnusc of The late s'rc.
,uro in our banks discounts-iheb banks couid
no, discount paper. because their issue came
back upon them directly, Tor specie. Tho
MERCHANTS were bleeding at every pore
Trade and co,nmrrce were literally stopped.
To aid, as far a. possible, the banks, (or soDo
of th.ml gave their credit to The merchants
under the form Of postnotes, payable Tour, or
s,S. or eight months ohcad,hopng by the time
,hey arrived at maturity that the s'rcssuro
m,Gh, become relaxed. But this did not at
ford tho relief. The merchants, manufac-
,urcrs and mechanics, were ye, sohcring.-
This suffering was not confined to this city.
New York felt il under oil its forms of Sc
verify, rs indeed did oil our cities, and Tho
whole country.
I What, under such circumstances' was 70
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