Morning herald. [volume] (New York [N.Y.]) 1837-1840, 1840-10-13

year that England compelled 10 export SIN Inil
lions ofspec,e TO buy bread for her people, they hsc
little money to buy clothing Tbs stomach Is ella
morons, and must De served first hence the dimin
shed demand for the manufacture article. aud the
consequent fall in price of raw cotton. WHY dc
buyers watch with such anxiety the arrival Of the
packets, but TO ascertain Il prices in Europe TO
gniate the prices herel The enlightened planter
knows what his cotton is srth in sps Gle her by its
value In Europe and il he is paid ia depreciate ed
bank paper, he knows enough Of arithmetic 10 cal
eulate the discount. | have thus refuted the un
founded charge that the low price Of flour and all
eXpOrtable commodities is csargeabie uyon the adj
minisratiOn, and proceed To show that the pro-
ject. National Bank, any other means Of rssing
paper into the currency, cannot have any effect on
our foreign exchanges. All merchant. must az rec
that balances # trade dae TO foreign countries m;
be lquidated in specie. What then is a bill Of ex-
caange? Ii is simply an order BY which party
who has funds abroad ap2ropriates them to the or
der or use Of one who, having his means here, de-
sres to exchange; and the terms which the trans.
fer is made, Constitutes the rate OF exchange
When the balance of trade 10 equal, this amour. IS to
the expense OF transmitting the money. But all ex-
changes are calculated 10 be paid in coin. W hat
would an English merchant, having bill Of ex-
change on this country, say 10 proposal TO pay il
IN deprecated bank paper. or any paper which could
not at a word be converted into money! When ba-
lances due 10 England, she is not paid in bills of
the Bank Of France; and when England wishes to
buy corn the continent, the bills of the Bank of
England were not used; she exported her gold.
Let us then see whether, as regards domestic ex-
changes, the same thing is not true. Mr.. Webster
illustrates his doctrine thus
How is commerce and the exchanges nowl De-
void of all regulation II you are in New York. and
happened to have some Philadelphia money with
you, you only get S5 cents on the dollar for IT,
Why il is thing before unheard Of that the rate Of
exchange should be D per cent b tween two cities
not 100 miles apart, and only six hours travel dis
tant.
"What should you think of it if we were TO hear
the rate Of exchange between Liverpool and Man
chester, or London, was D per cent?
Would il not have been ingenious TO have added
that the administration and its supporters denounce
the true cause.-the fact that the Penns banks
refuse to perform their solemn promises by red en
ing their carrency. Let the Philadelphia banks re-
sumo, and stay so; aud exchange will fall to the
mere expense of transporting the specie.
The exchange with Charleston and New York is
now as low rs it can be under any system. II the
balance OF trade Ia equal the transportation of spe
Gle 10 the exchange, simply because bank paper and
specie are of equal value, aud convertible. Let
all banks pay specie, and the exchanges will be soon
regulated by the intelligence and sagacty Of the peo
PIE. Let MS now see how these things worked IN
times past. Exchange strictly implies that the par
tics have funds in diferent places, which they
willing to exchange on terms of perfect equalty.
But it may we'll be said, seed created man, bat he
changes man in New York, wanting to raise mo-
ney. Of which he had none, draws bill on his friend
in New Orleans, whs is in just the same predica-
Ment He sells his bill and is thus put in funds. The
honor and when pay day comes. he, too, draws bill
his friend in New York, gets that d.c ed and
with The proceeds takes up tie first bill and this is
called the credit system, Raising money out of no
thing! Ii beats making "cucumbers out of moon
shi ne" Does not every fair merchant know that
just such dealings gave to BIO impostors the Of
those means which regular business men needed, led
tn the most monstrous usury, and finally ended in
explosion and ruin TO innocent Thousands But what
is called suspending lie payne nj is much neater
device, Let as analyze bank Reduce it to its
simplest elements, and hat the currency Of Mr.
Webster, which he insists tho government is bound
to furnish is in truth, and what Is called sus
specie payment number OF men get act Of in
corporation, and subscribe, say, for example, one
hundred Thousand dollars, watch is bona id. paid
in in specie. Their frs, operation is TO print
grave Promissory notes, payable on demand, TO the
amsvnt Of three times their capital. They then
ready for business, and open their books for dis
amount Of three hundred thousand dol ars and give
them that amount Of their own promissory notes
less per cent, say for sixty days Thus the bank
gets six per cent in advance ON three hundred thou
sand and only lays out Of the interest the specie
r one hundred thousand making clear gain Of the
interest OF two hundred thousand, for nothing bat
swapping one promisc-to-pay for another. Let us
now bring on the catastrophe at once. At the end
Of sixty days. the merchants are unable TO pay their
notes; consequently, the bank although doing good
business, begins 10 be uneasy the holders Of their
premises call for payment; the teller, with heavy
heart counts out TO the last dollar of the capital
and can do more Still the bill holders come in
consultation is held in the bank parlor, and they
coolly resolve to get over the whole difficulty by
just saying to the bill holder. We have suspended
specie pay ment-ihat's all ~ as IL any other pay
me Mt could be suspended or made. The bank goes
on, makes more bills discounts more paper, and the
public are deluded. The lsborer has been paid in
their bills; the poor widow has laid few by in her
drawer against rainy day; they are spread abroad
among those who have exchanged for them the sweat
Of their faces until at asst the secret is longer
worth keeping; the bank 10 broke up. the president
Il. d. kx.. .kANl h.. IL
lage box OF real money, he carries II of he stock
holders are not liable. Not SO Yen orI Ifysur note
for hundred dollars is not paid, your creditor will
not be satisfied by being told you have suspended
specie payment; he sues youj sells your house,
your furniture, and all you have, for coin-god and
silver
Ihavs supposed the bank honest, and to have is
sncd only three times the amount Of prom thew
were sure OF redeeming, but who is o. know but
what their circulation IS ten times as large. See
what done by the United States Bank short
time since. She sent on swarms post hotes, thick
as the locusts Of Egvpt, and sucked up the specie
in Boston and New York by millions. hen the Di-
rectors must have known that they had certain
resources TO meet thcss engagements; and when
they come dse, this bank, " calm as a summers
day., reposng in its marble palace, very gently re-
plies, Il have suspended specie payments" She
continues her business discounts notes, and actual
Iy loaned the State five millions Of its promises
q ere, then. we what n bank must be. Its sccu-
rity based the ability Of Debtors and not on
eapits and hat ri hit ha. the United States 60 ha
zard the money Of the people, by receiving the re
venue 10 these precisus promisesl IL appears,
then. that promise, although made by bank, - e.
be redeemed by its customers. Mr.. Wooster says
"The people cant make a currency-it's the go
vcrnmeut's business to DO that-and II won't do any
thing Of the kind for the peepls. How very demo
cratic that ISL
4 challenge this great constitutional LAWYER to
point out that clause Of the constitution which
thorises the government TO create any other cur
renew than gold and silver. IL rs not IN the power
k~lr fha fafa "A
uould be an ultra federal notion for sach disciple
of Jefferson democracy 10 imply power 90 make
money from that clause. ! put it 10 him 10 say fhc
means to create National Bank, and make its paper
A tender in payment OF dess1 II not, il cannot be
currency. None but despot can make any curren-
cx hui gold and silver. compel q man 10 RECEIVE