Herald of the times. [volume] (Newport, R.I.) 1830-1846, 1840-02-20
[For the Herald Of the Times.
CONTINUED FROM OUR LAST.

Referring to former remarks, will nov
slightly rehcarse the causes which have tended
to aggravatc this third era in our financial
history, and make it more disastrous. if posi-
Bile, than either of the preceding. When the
Charter of the late United States Bank was
granted by Congress, in 1916. it was agreed
(as before stated. 'ha! they should be allow
ed the use OF the public money, lying idle
in their vaults) as basis for discounts, upon
the Banks agreeing to make the public die.
bursements at points when and where they
were needed, withou, charge to Government
and upon the farther payment Of l,5C0,CO0
dollars into the national treasury, rs bonus
for its prviieges-all of which slipulu,lons
were performed To the letter on the part OF
the Dlnk-and have never been denied by
friends or foes. During the whole time the
public money remained in its care, not one
dollar was lost-neither were the people sub
jecled to one dollar Of expense for it's DIS
bursement.- But Oh the contrary, besides the
bonus they received a. before stated, the bu'
siness Of the country was greatly beneiittcd
by the whole amount Of the surplus revenue
being difused, by the bank and It's branches,
throughout the union by discounts, and thus
answering the same purpose as so much ex-
ira CupitaI. IN September, 1893, General
Jackson ordered the public deposits to be
discontinued in the United States Bank, and
after the lst of October placed in state insll-
tutions Congress had decided in the iinmc-
date preceding session against their reno
val, by vote of 100 against 10 40 IN favor.
The then Secretary of the Treasury, Mr.
Duane, was displaccd-h> refusing to act
contrary to the expressed will Of Congress
and Mr.. Taney was appointed in his place,
to fill the department, for the only purpose OF
removing the deposltcs, MS i. would seem
from his quick succeeding appointment by
Gen. Jackson fo- life to seat in the Supreme
| Court Of the United States. ln the following
Congress, the House Of Representatives, by
large majority, decided the removal of tho
deposites to be injud!cious and uncalled for
and by m1jority in the Senate it was de-
lncunced rs an act Of usurps,on on the part
Of the President. Upon this arbitrary as
Sumption Of power by the Executive, whose
individual popularity enabled him thus TO Sc,
at defiance the will of Congress, panic
seized the business community. which, acting
in conjunction with the cmbarrassmcn,s pro-
duced Ly the c,tailmenls Of the issues Of the
United States Bank necessary 10 meet the
de 6ciency Of basis for discounts OF lOCOO,-
coo dollars, which government wsro now
daily drawing from their vaults, causcda a uni
yersa stagnation in business followed by the
ruin Of thousands. ds.-Such was the demand for
money to meet home engagements, that ex-
change on England fell as low as 100, (the
nominal par,s) which is not far from nine per
cent below the real par value, (oddng one
per cent as customary for loss OF interest IN
making the exchange,) allowing the pound
sterling to be worth SI,S5, which is about the
real worth Of sovereigns, answering to the
pound sterlng) for coinage at our minis
This state OF things was much aggravated by
the attempt Of the President TO destroy the
credit of The Bank by the most violent and
abusive attacks-both on its solvency and
management, these being seconded aud
added to, by the organ of the Executive, the
Globe. newspaper, and responded TO by more
than an hundred presses, dllused Throughout
the United States, under It's influence aud
subsls,ing on Executive patronage run
was secretly made (by Brokcrin New York
since high in the confidence of Government,
on a branch of the Il. States Bank at Savan-
nah for 300, 900 dollars, with the (since) nvow-
ed intention of breaking the Bank but
which the President of the mother bank at
Philadelphia was fortunately opprizcd OF, in
time to Icml, Sufficient specie TO prevent the
,Thc nominal value placed the pound sterling IN
the United state, lby custom) is i,io cts 10 when
add nine per cent exchange ard We havo s4eO ns nch
AS may bo.-ro tbs sum ndd one per cent more lor t'
|days interest," tho tinc necessary To get funds non
England aud we have about is5 cts the re par value
of pound sterling or sovereign IN dollars aud ccits
The exchange between The United States aud France
the second nation IN point Of commercial interest '"
deal withN i esiibutcd IN Gancs-twcnty Of whicl
make a French Napclcon, answering in value the near
est to the British sovereign Of any French eoin.- TIL
sovereign being ol about - Gancs value but var, M
with the exchange ;-for instance, if France hs Ia
ton Is indebted to- England the dcmard Tor brtis
funds TO ray the debt the sovereign to rise Il
value in Frucc in proportion 10 Its dOnand Tor remit
tnncc-and rron the same the Napoleon dcpfoci
ate. in value IN Euglshd IL ON the contrary, Engar
bccomss indebted France, the Napoleon rises J." Vslu
ia England IN proportion tho demand Tor frcrch fnd
for remittance, aud the sovereign derrcases u vnue
srance-and this, ~ scuetal rul" holds good 'nngu
TO IA. exchanges or all commercial nations-A nane
20 .ous French cents, aud I've frame piece Of W
rrcnch corresponds nearly value ~ our dollar, whc
exchange il vt it, real par the dollar, however
worth u uiG. the most
n To enable the Iaborne IN understand the qunis
! tou, of exchange IN Frpcs - quoted N the publ
minis. a is sunci.ntt " took at the following table
4 French coins
n 9 5centnnc. make one sous. or cent
20 sou. or 100 ceutius- MAKO ono fr-nc.