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

turn to their vaulis. II probably amounted
TO much more some months before.
II The United States National Bank had q
capital OF 35 100000 of dollars only IN all
much less than one half the aggregate capital
of the Deposi'e Banks. Its specie seldom
exceeded 100000 OF dollars, probably less
than one third the amount in the vaults Of the
deposlte banks at the time Of the payment oi
the first instsment OF the Surplus to the
slstes.-Wnh this data, ] will just Gull the
attention of the reader to an extract from
General Jackson's message to Congress, Dec.
1879. II will be remembered that prevlouH
TO this message there had been no political
interference by the federal Executive with
either the Currency or Banks. Speaking Of
the public debt, he says
"1hs payment on account Of the public debt
made the first Of July last, was Ss,7l6, ,l62
II 81 cents. Ii was appTehended that the sudden
withdrawal OF 50 large sum from the Banks in
which it was deposited - at time OF UNUSUtL
PRESSURE in the money market-might cause
much injury 10 the interest. dependent on bank
accommodations But this evil was WHOLLY
avertod by an early anticipation Of il al the
| Treasury, aided by the JUDiClOuS arrange
ments Of the OFFICERS Of TIE BANK OF
TIE UNITED STATES"
II II will be observed that the sum thus paid
| by the United States Bank, in addition to the
ordinary disbursements Oh account of Gov
crnn,ent, was Of itself nearly equal to a quar-
tery instalment Of the Surplus revenue re-
| qulred of the deposite banks, and to more
than double the amount of the specie in the
vaults Of the United States Bank, at the time
II the payments were made.
Al.
/ foreign debt of the country was materially
essened by shipments of produce 10 be applied
to its payment. aud IN the succeeding spring
of 1888, the principal Banks Of New York
having hired abroad and imported large
amount Of specie. dec clared their readiness 10
resume cash payments.
At the expiration Of the Charter Of the U.
States Bank its stockholders had obtained II
charter from the State of Pennsylvania, for
Bank TO be called The United States Bank of
Pennsylvania, with capital of % coo, 900
Dollars--belng the same amount Of capital
as that of the United States Bank, with the
exception of 7.0O0OO0 dollurs of stock owned
! by the Federal Government which the State
| institution has since cancelled by arrange
ment with the Secretary of tho Treasury.
! The charter of this bank gives it no pryi-
leges over other State Institutions, aud its
\ only resemblance, to the National United
II States Bank Is IN its name. The assctts Of
II the National Bank were transferred TO the
4 State Bank, which also became liable and
!, responsible for its debts. A very large pro-
II portion OF those assets as has been shown,
we're debts due To the u. States Bank from
II incorporated institutions, and individuals in
|, the South Western Statcs.-A section Of the
II country where large proportion of the eX-
/ ports Tor foreign markets were produced.
consisting mostly Of cotton. and there being
but little capital In that quarter after the
Il National Bank had closed its branches. the
facilities afforded by the local institutions
were insufficient to supply the medium re-
qnred to make the shipments necessary to
expedite the exchange Of products. The u.
States Bank of Pennsylvania, in its own de.
fence, was necesstated to step forward and
lend its aid, in order to be enabled 10 collect
It's debts To the amount of many millions in
that section. They made large cash advan-
ces on cotton. which they shipped TO Europe
to bc sold with the understanding and gree
ment that the balance of the sales after de-
Quoting the expenses Of freight and charges
should be applied to the cxtnguishment Of
the old debts. These advances were gene
rally made TO State Banks indebted to the
| United States Bank Of Pennsylvans, on ac-
coun, OF the purchase of the Branches of the
i United States Bank, us before stated.-These
banks were again in turn enabled, BY these
i advances. to make their collections from in.
II dlvldnal debtors by ths same process.
Il AT the time the New York Banks an
nonnced themselves ready to resume, large
amounts OF this cotton remained unsold in
Il Enrope.-The President and directors of The
Pennsylvania Banks saw the danger of
II premature resumption, and advised il should
be delayed, until one crop more could 90
forward and thereby cancel the balance still
due to Europe. The New York Banks
urged on by the state government, and the
threats and cnjolery Of the Executive and
IT'S aihereDts. particularly Mr.. Benton.) de-
termined upon resumption-which the Banks |
of Pennsylvania reluctantly ncceded To-
hoping to sustain their new position from q
favorable turn Of circumstances-Thc de- 4
pendence Of the U. States Bank of Pennsyl- /
vania was mostly on the sales Of cotton in |
Europe. Her resources from collections at |
home to any extent being rendered hopeless,
from the circumstance of so largo a part Of
her funds being loaned in sectors where they
could not be collected without causing ruin .
to whole communities. and moreover owing
to the camor raised against the Bank and the
abuse heaped upon it by the Federal Eyecu-
tive and lts organs, IN many parts Of the
country It began to be viewed as an out.
lnwed institution, and fair subject for plum
der. Under these circumstances an attempt
to coerce, by legal meaps, the payment of
debts to large amount, would probably have
ended in the loss of all.
The new impulse given to trade by the
premature resumption of specie payments by
the Banks, based on hired amount Of coin
for limited period only, quickly to return TO
Europe from whence it came, without a cen.
tral power to regulate its action-added to
the decrease of duties on imports under the
operations Of falling tariff, now almost en-
tirely couDreractcd by the expansion Of the
currency, again swelled our imports for the
year ending the Both of September, 1s;}0 TO
l57, COS $50 dollars. exceeding in amount the .
preceding year 43,e92, l56 dollars, and ex.
ceeding the exports Of the same year 1889, 1
by the immense SUN Of 80, $50 $50 dollars
thereby creating another heavy drain for
specie to adjust the balance due in Europe.
The corn crops Of England for the year
1888, came in about 100000 pounds sterling |
(ncarly 25O0OO0O dollnrs,) short of on ordi- \
nary averngc-consequently that amount was
required to be- purchased abroad.