The pilot and transcript. [volume] (Baltimore, Md.) 1840-1841, 1840-12-31

Resumption nv THE BANKS Resumption OF
| specie payments by the Philadelphia Banks on
the 18th of January, is affirmed with mueh con-
| idenee. To enable them to do so, they nave
borrowed about S2,000,0O0 from the New l ork
| and Boston Banks. They have wiser heads IN
Philadelphia than we have-but to our simple
apprehension, this seems an odd way st accom-
! piishing their object. ssPeace always and every
! where" fron a French Premier, does not seem
more out of place than does the idea OF one Bank
borrowing money frsm another to resume specie
payments Richmond TVhig.
We are gratiied to find that, as the time nix
ed for resumption approaches, the press seems
more and more disposed to speak out. The
Wing might have added, that the manner in
which the Philadelphia Banks have made their
arrangements for resumption-tho fact that
committee were. hunting up small loans from
private individuals has destroyed confidence in
advance, and renders a second suspension inevl-
table. Who can have any confidence in the
Banks OF Philadelphia, when they borrow from
A. and B. fifty thousand dollars to enable them
to resume?
But the question for Baltimore and for Mary
land, is what is best for Maryland The value
of our Bank paper does not depend upon the
gold and silver in the vaults of our Banks. 1t
depends upon the manner in which discounts of
our Banks have been applied. We put case.
A merchant borrows from the Bank twenty
thousand dollars in Bank notes. He invests
that sum in flour, which he ships to Boston
He draws upon his agent and pays the debt
But for the discount he could not have bought
thief -four. The ewner would have taken it to
Philadelphia, New York or Boston, Baltimore
would have lost the trade, and with it the profits
Yet here the credit Of the Bank furnished the
means of making the purchase, and the flour
furnished the means of redeeming the Banks
credit.
To resume now will not benefit the business
men or Banks, and break down our merchants. II
the Banks will give facilities to commerce; and
while we retain our trade, strengthen our Banks
for the general and permanent resumption which
will take place as soon as the policy of the Fe-
deral Government is established.
One other important consideration. By re-
suming now we force the banks to make sales of
their stocks and State, securities at ruinous sa-
crifces, greatly affecting the credit of the States
the value Of their assets and dinin-
lshing their means of payment. Would it not
be much wiser to await the action of Congress, |
and to ascertain what measures may be adopted |
BY the next Congress to restore the value of our
State securities.
But it is said that the Banks in Pennsylvania
will resume and that Maryland must do so, or
se discredited. This Is not so. The value of
our bank paper viii depend on the produce
which our merchants purchase and send to mar
ket The products of the sales viii be better
han gold and silver. Protect our banks and
business keeps its regular course. If the backs
n Philadelphia resume they must limit their
Iiscoants, the business will fall into the hands
# our merchants, and our commerce will
strengthen instead Of break down our banks
We will purchase flour with the notes of our
non specie paying banks and with the -four we
will get the specie of the Philadelphia and New |
Y orlz banks, or pay for their merchandise Let
the merchants think of these things.