Herald of the times. [volume] (Newport, R.I.) 1830-1846, 1840-02-20

Increase Of the rate Of interest-with the
two fold object of lesscning the price Of the
raw material, I'm common with other proper.
ll'y,) und thereby enable the British manutac-
/, turers 10 supply Their fabrics Ut u price suf
H iicienily jepreciat,d 10 admit Of more ex.
tended competition abroad and also to
counlcract the tendency of the flow Of specie
to the United States, induced by the high ate
~ interest paid en their Slate and Corpora
ton securities. A. trlning as the contingent
calls of specie for the payment Of the impor-
iation OF gruin and teas may seem, It was as
thus stated, sufficient 10 dersnge the whole
trade Of The British Empire. and probnbly the
II Efforts made through the Bank 10 regain the
II .pccie distracted from England by these de-.
inaDds. caused n fall in the price of American
II products IN her markets Ia the amount Of not
less than 10000 900 of dollars" while the
II necessities Of her merchants and manufactu
rcrs compelled them to make still further
II shipments of goods TO our already overloaded
markets, which were sold for the most the
market would afford, and remiied to Engan
IN specie.-These operations being much ia
icilliacd by the expansion of onr currency.
now no longer regulated Ivy a National Bank
of the u. States, or protected by cores.
Il ponding tariff, in this way. the Bank Of Eng
II grcut commercial cities Through the curren
| cyl to the most remote hamlet Of The Rocky
mountains. The cotton held in Europe by
1 the United States Bank Of PENNSYLVANIA, Of
course shared the fate of other m rchu ndise
and was not Only greatly deprecated in value
but owing Ia the pressure of the times, large
snl's could not be- effected without still
greater sacrifices.-rha, institution has been
charged with purchasing and shipping cs,ton
on lla own account, exclusively, with what
truth know not.-If by purchasing small
H parcels, which would have otherwise been
sacrificed, the directors could have seen a
| prospect Of sustaining. in any degree, the
! rrlcc on the immense quantity they already
held. the temptation would have been very
Il strong to hnve done so, and slthouyh such
\ transactions by a Banking institution could
| not be justified, they might be The more rea-
\ diy excused under such circumstances, cs-
|, peclaiiy by the Inhabitants OF the South who
have gained what the bank has lnst on such
transactions. Thus disappointed in the re-
ccipi of lhe proceeds of merchandise IN Eu-
rope To the amount Of many millions, the
Bank was not only required 10 meet constant
demands lor coin from her vaults by bill hold
Il ers, tor individual remiiiances, but was also
4 obliged t. remit large sums to its agent in
LONDON 10 meet tho payments OF I'il's at
4 Exchange, heretofore drawn; and which il
was expected would have been met at inatu-
4 rily by the sales %. cotton.
II Tins hcmmod IN on every side her re
sources cut off in every quartcr,-with con-
spiraclcs forming at home and abroad 10 de-
s'roy her crcdlt.-the United States Bank Of
Pennsylvania. after making the greatest ef.
lor's, and at Immense sacrifices to sustain
herself. yielded to her fate, and fell amidst
the jeers and scoffs of her eneInes and the
snerring tsunts of those base conspiring
spirits sho had but lately reached forth her
hand to save. The Ranks of Philadelphia. ,
generally. suspended at once-quickly fol.
lowed by nearly all in the middle, southern
and western states. Those of New York |,
were enabled to sustain themselves by the
sacrifice ct the business Of the city, ahd
great part OF the commercial conmunitv,
I(rliher IN tho way Of suspension or extension,
as did also most of thu Banks OF the eastern
states. Those Of Rhode Island. from their
peculiar positon,werc obliged temporarily 10
suspend, IN order To prevent tho sac rihce Of
the propert, of her citizens TO an immense
amount They being largely concerned in
manufacturing, caused heavy amounls 10 be-
falling due at that time, both IN New York
and Phladelp phis. At the time the suspen-
sion took place, there was due to the Rhode
Island banks more than two millions OF dol
lars in Now York. and about the same amount
IN Philadel pbia and Baltimore. Collections
could not DO made in either Of the last named
places IN specie funds short of a loss of from
~ to 10 per cent amounting in the acgre
cute to at least $50 900 dollars, which sum
must have been lost by The individual bill
Irat 1al
banks had been enforced.--On suspending,
the banks themselves assumed the loss on the I
exchange, and thereby saved the community |
not less than quarter Of a million nf dollars
IN this item alone. BY suspendlng, they were |
also enabled 20 renew New York paper to
the amount ofprooably more ,han million of
dollarS.-And while IN many instances they
thus conferred benefits on their fellow citI- |
zens Of the sta,e,-they contributed by the
same operations not l,lIc to relieve tho
merchants of New York. The Banks being
now able to grant their usual facilities, mo,
Of the Cotton Manufacturers continued to
run their milIs-which course (although per-
haps without benefit to themsclves.l affordcd
employment, through severe winter, tol
thousands of the industrious classes, many |
OF whom have bat little substance for their
fnIDI'ics bat what is derived from the earn ,
ngs OF their daily labor.
The legislature convened shortly after the |
suspension, and 10y act of Assembly, wisely |
made 1t obligatory on the banks TO receive
their own notes H. payment Of debts, whprtptr
dne-and also prohibited them from receiving
the usual legal damages Oh protested Bills Of
Exchange-or premiums on specie or specie |
tnnds-thus jndcously preventing any in. |
st'tutlon from taking advantage of its owl
act, and confcrrlng on the public generally |
fuI! lDoiety Of the advantages Of the sus.
penslon.-lna short time the balances abroad
were adjusted, and the banks again resumed,
OF their own accord without injury To their 1
credit either abroad or at home They had. |
during the suspension, paid specie for their |
bills so far as the public needed it for change. h
and throughout the whole there was a mutual
iorbearance displayed both by the bill hol. 4
ders aud the managers of the Banks, highly |
cred,able 10 bolh.-The good results which /
followed, must be apparent loevery rejecting 1
mind. By the course pursued, the State has
been snv-d, IN u great measure. from tho |
monetory vulsions ofh ncigbbors-and
including the advantages derived by the la
boring classes, is richer at this tune, to the
amount Of millions, on account of the TEN.
porary suspension--wh while not an indvidual,
in reoity, has suffered by il; excepting those