The pilot and transcript. [volume] (Baltimore, Md.) 1840-1841, 1840-05-05
BANKS AND BANKlNG.-By a ref

BANKS AND BANklNG.-oy IeIsIehc
70 Mr.. Woodbury's report to the Senate, OF Jun
7th, 1888, 1t will be seen that the reduction
the circulation in the Eastern, Middle and South
srn States, from January, 1887, until January
1898. wa, s35,721 900, while the reduction o
loans and discounts in the same States amounte
%. S4s O91 ,6S3; and that at the same time tn
circulation in the western and Southwestern
States was reduced but 81 100000, the loan
and discounts in those States were during tn
same period increased 100000
The States thus benefited are the States l.
which the public lands situated, and 1t IS thu
apparent that this result was produced by TIL
specie cireular---which forced the specie to th'
west. and compelled the banks, which were dis
credited by it, to contract their circulation ant
eurtail their discounts.
e. We find in Mr. Buchanan's late speech tn
following remarks on the effect OF contra tito.
Of the circulation:
Con Friday last, when / very Unexpected,
addressed the Senate, stated principle oil Pc
Etical economy which shall now read IRON Tn
book. It is this: that if you double the amoun
of the necessary circulating medium in any coun
trv Won thereby double the nominal price Of every
articla. IT, when the circulating medium IS nifty
millions, an article should cost one dollar,
would cost two, if, without any increase OF th'
circulating medium, the quantity should be IN
creased to one hundred Millions The same ct
feet would be produced, whether the circulating
medium were specie or convertible bank paPe
mingled with specie. 1t is the increased quantity
Of the medium, not its character, which produces
this effect. OF course leave out OF view IRE
deemable bank paper"
The report of Mr.. Woodbury. shows that ;
contraction did take place-it shows that the ct
feet was to diminish the circulation in one sec
ton while it increased it in the other; and it fol
lows, that while it depressed the value OF prop
erty in the section thus depressed, the tendency
of the specie circular was to sustain the price o.
property in the other section in which the parti'
xans and favorites of the administration hat
.necnlated in public lands Can any thing mor'
fully illustrate the truth, that these people have
used the power of the federal government t.
speculate on the rum of the country!
But there is another fact exhibited by this re
port-which is, that while the administrator
and the pensioned press were denouncing tn
Bank of the United states, and .endeavoring t
throw all the odium OF their measures on tina
bank, the pet banks, for whom they had mad
such promises and which were so freely bepraisef
yb Gen. jackson and his Secretaries and presses
in the Eastern, Middle and Southern States were
in like manner as that bank, compelled to CO...
tract their circulation and 70 curtail their loan
and discount, while the banks, in the States
which the public lands were situated, were e..
able1 to sustain their circulation and to enlarg
their discounts. This shows Ghat the Bank Q
the United States Was acted ap,n by the meas
ures Of III, administra!ion precisely as othe
banks were; and this demo istrates, by show
lag that that bank suffered in common will
the other banks in the ;1ioa in viii n it was 10
Gated, while the banks IN the other section wer
exempt, that the cause which compelled the bank
TO contract, was the measure Of the government
and not of the Bank of the United States
THAT cause was the specie circuar--a circula
which originated with the knight of "Caape
HH," and those who were elg ICED in the specu
istisn in public lands, on money borrowed from
their vaults Upon this subject we have mucl
nMN ssy. iiti ~