Herald of the times. [volume] (Newport, R.I.) 1830-1846, 1840-02-13
with lie own products.

those two great measures OF rehef, Inrlff
for the protection Of our domestic industry,
and q National Bank for the protection Of our
domestic currency. Tor io other words amount
ing to the same thing, for the regulation of
commcrcs,) rendering both independent Of
foreign power. Two measures, under the
operation Of which, for twenty years, no in
dustrious citizen blessed with health, could
Justly call himself poor. Two measures
which were rapidly elevntng, and if perse-
vered in, and properly guarded and regulated
by wise legislation, would raise this country
TO q pinnacle Of greatness, beyond what was
ever yet conceived Of in the pages Of ro-
nance. Not ,hot false greatness which
centres in the person Of despo,, at the sacri-
fce Of millions Of his fellow beings, but that
true greatness which promotes the good Of
all, and like the gentle dews Of Heaven dstils
lis quiet blessings alike on rich and poor
At this time, there was less 'lan fifteen mil.
lions Of coin in the United States, without
means to increase it. The Bank issues
amounted to over One Hundred Million Of
Dollars, and the expe riment was now to be
tried, whether under these circumstances
specie payments, could be resumed. The
United States Bank commenced operations
in 1917. A simultaneous effort was made by
oil the Banks to resume, aided by about three
millions Of specie furnished by the National
institution, which in turn was aided by the
public funds, and encouraged and coun-
tonanced by the representatives, and govern
ment Of the people. The effort eventually
event seemed doubtful. Through tempo
rary Encouragement Of the National Bank
in its infancy, much injury was occasoned-
In some sections of the country, particularly
the West, nearly every state institution was
prosirated. The sufferings of individuals
were great, and in many districts there was
Utmost an entire change in the holders OF
property. After five or six years, things as
sumed q healthy aspect The notes Of the
United States Bank being received in pay
mcnt Of Government dues, gave them UNI
form value over the whole Union-while the
notes Of the Slate Banks, being received in
deposit not only at the mother Bank, but also
at each of its twenty-five branches, and fire.
quent settlements being required. and the
balances paid in coin, operated as an efitctn-
sl check to over issues. Those branches
reaching over every part Of the country, and
being more particularly located at the great
commercial points, where the foreign sx
changes concentrated, which thoy were al
lowed by their charter TO deal init being
the interest as well as the duty of the Bank
TO furnish a uniform currency,) put it in their
power effectually to check the spirit ofspecu-
la,ion or overtrading at The outset, and there
by prevent excessive imports Of foreign goods
over our experts, thus creating balance to
be rcmitted in specie, sure to fall with great
est weight on themselves. Was the curren.
cy deficient at one point, TO supply the ne
cossary wants Of healthy trade, orders were
gwen from the mother Bank to the branch in
that quarter, to extend to 3 certain extent its
discounts, sure to be followed to a like extent
by the adjacent state institutions. BY the
time the expansion had supplied tn" wants Of
the community in that quarter, indications
would perhaps appear in an opposite drec-
ton Of too much expansion, and disposition
TO over,rade begin to manifest itself. Orders
would be issued TO contract the circulation
By Withholding discounts to certain extent,
necessarily followed by tho state institutions,
and thus the lever being elevated at one end
and at the same time pressed downward at
the opposite, an equilibrium was soon obtain
ej.-So exact was the working ofthis system,
that exchanges from the extreme points OF
the Union seldom varied more than one half
per cent. To shew the facilities the United
States Bank possessed 10 enable them to de-
tect an excess Of paper issues,in any parllcu-
lar section, it will be enough to state Tint the
payment and disbursements at the mother
bank and branches on account Of government
and individuals, did not probably amount an
nually TO less thnn twice the sum of the
whole currency Of every description in the
States-and as the notes Of all the solvent
state institutions were received in deposit,
and OF course in payment of debts at her
counter, q speedy detection and consequent
check Of any under issues Of particular in
stitutions, were sure to follow. Owing to the
shipment abroad, and transfers at home, OF
mnny Of our staple crops, occurring at paricu-
lar seasons of the year, it was necessary there
should be corresponding facilities afforded
by the Banks while the process Of exchange
Of products was going on, which frequently
caused sudden expansions Of the currency
sure to be followed by corresponding con.
traciions-in time to check excessive i'm.
ports, and to induce partial return Of the
price of our cxpors in sPecie-to Strengthen
the basis of our currency which required con
stant addition as the labor of the people ros,
in valuc,os our productive territory extended
and the products of the soil, the mine, ant
manufactory, increased these periodi
cal rcvulsions, were so tempered by the time
ly forewarnngs Of their approach, througl
the contraction Of the currency, as to b,
4.