The pilot and transcript. [volume] (Baltimore, Md.) 1840-1841, 1840-12-30
To TIE rn1roR. OF rnE PIVOT.


Smith. Few men are better acquainted with
the principles Of banking and currency than
that gentleman. His long experience, and the
close attention he has given to these great mat
ters entite his opinions to the highest respect
But whether we are content to take him as
! safe guide at the present moment, as well we
might, much has been accomplished, by awaken
ing the attention of this community to the saiu-
tary counsels with which he has favored US.
The prospects of Baltimore are more anspici-
ous now, than they have been since 1918. The
rich products Of the immense regions by which
she is backed, will, ere long, be pouring their
wealth in ceaseless Streams into her lap. The
most sanguine imagination can scarcely grasp
| the vast amount Of trade, with which she IS to
be favored, and nothing seems wanting to rea-
lie these bright anticipations, but continuance
of her eau Gus policy, and an enlargement of
her active capital. Her caution has placed her
in the enviable state of unindebtedness, IN which
| she now stands, towards the rest OF the world
Thus happily placed, she is ready for the pro
missed harvest, if the proper implements can be
| obtained, wherewith to secuIe it.
VIII the resumption of specie payments by
her banks, add to, or diminish her strength
Will that measure snatch from her the golden
fruit, and throw it INTO other hands, VIII 1t
not at once, largely reduce her active capitalF-
And is it not more prudent, and safer for her to
wait until some general system has been adopted!
These are important questions, and are we'll worth
all the cool investigation that we can bestow on
them. 1t should be borne in mind, that there is
a tide in the fortunes of commercial towns, as
in those Of men, and that row is the tide IN our
fortunes which IS to bear us on to the highest
prosperity, or to sink US into hopeless decline.
This decline may be produced by diminution
of our active capital, at this critical moment,
when there exists SO pressing demand for it to
meet the large and sew trade with Pennsylva-
MIA, that we are already enjoying. And if this
shall increase in the next year, in ratio equal
to that of the present, it is clear that we shall
need heavy addition to our active means. =
is equally clear, that if we have not the capital
wherewitht to secure this trade, it will seek other
and richer marts Nor should it be forgotten,
that when any given trade has once been estab-
lished in a regular channel, it is difficult, if not
| impossible to divert it.
| We have expended enormous sums IN opening
our way to the West, and to the heart OF Penn
| sylvania, by means of our rail ways and canals.
These are already giving sure promise OF results,
that must crown our hopes with the fullest sue
cess, if we be true to ourselves. But, If we
falter now, or permit ourselves to be dragooned,
into rash and unnecessary step by rival cities,
we may lose forever the rich fruit of our enter
prise, and foolishly suffer it to be pluclxed, by
those who have borne no part of the expense.
Suppose Philadelphia does resume specie pay
ments, and Baltimore continue in her course o
suspension, what will be the consequence No
thing more, nor less, than that our active capita
will be aaoat as it now is-that our trade will
s.fer no decrease--that our people will not be
pinched by curtailments-and that our banks
will continue to retain the strength they now
possess, and be in a condition to resume with 4
certainty of continuance, when the Federal Gov
eminent shall have adopted some general sys
TEN, for the whole union. L. there any disgrace
course? None whatever, when so good rea
son for it Is offered. There might be shane anC
disgrace, if there were no expectation OF son
general measure being speedily adopted BY tht
Federal Government. But, as this is now Ger
tain, it would be a rash waste Of means, to anti
cIpate that event. There can be no doubt tha
! ! national bank, o. some other measure, for tn,
regulation of the currency will be adopted a
Washington. Upon this great point the late e
lections have mainly turned, and it IS not to b.
presumed, that the new administration will disc
hey the popular will. Indeed, we have alread,
evidence, by motions in both houses of Congress
for repeal cf the Sub-Treasury law, that n
lime will be lost in applying remedy to the de
ranged condition of the currency. 1t would seer
too, that the Congress will be called, to meet il
, an extra session, at an early day, to take thes
high matters into consideration.
Let US then suppose that National Ban
shall 60 into operation within the next twelv
months It is obvious that it is of vital impor
ance to the State banks to possess their fu
strength to meet the new state of things, and
cooperate with !. II tney ara hoWeFeI3 q
feebled by waste OF their specie, and the ru.
of many of their customers, they will not onl
= be unable to participate in the work OF who'll
: some reform, but will retard it greatly, and ma
: many OF them, be driven into liquidation
D.. this happened when the late oank OF the Unite
y States was incorporated. The State institution
> were then in a deplorable condition, SO wea
indeed, as to require the uninterrupted fostern
Il care of the National Bank, to save hem fro
y utter ruin. The National Bank was thus j
s. capacitatcd from rendering that prompt and ef
sr isn't relief, which, under ether circumstance
it Juld have afforded. So it was then, and
ii will be now, if we DO not pause ere we tai
i, tie rash step, so particularly urged by Ne
=, York. Our Banks are now strong, and in {
"a L.