Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1841-12-09

lrc' u resumption, are eh"iel 10 the serious attention
Ut uui people, combining as i.o. H.. a~.."
years aud study: ~ ~ .
Sir had The honor Ia receive 49,, 80
my opinion on the p~roprie,y and ciiecc. m'' asnang
lion Of specie payments by The banks .. w., Vsrx
Jersey.
Banks have been permitted To issue paper mt
the express condition that they should sustain lis "n
ut par with specie. Whenever the condition ceases
be performed, the privilege should likewise cease 10 ex.
list. Ii that na'uf"! principle was rigldiy adhered 10, II
The banks were expressly forbidden TO issue the notes Of
any suspended bank, Cnoiudirg Of course their own
notes when they bad themselves suspended specie pay
mcn,s,) this aisSs would, in most eases, prevent a sus-
pension, and wnen ii dd not, rTe provision must ne
cess.rily enable The suspended hank or banks, # sol.
vent, 10 resume their payments within u very Snort
time.
the banks in the case OF Il general suspension-much
greater certainty in this instance than was necessary.
But ii is not the less an Obvious moral and legal Guty
on their part L. resume a. soon as possible. On thai
subject, As well as on the intoicrahle evils and Immoral
tendency Of deprecated currency, have nothing 10
add 10 what have already published on several occa-
sions, before, during and since the suspension IN THIS
city; and ! beg leave 10 refer you 10 my last essay aud
appendix particularly pages - -, and o9O2 Of
the essay, and pages lUi.ll4 ofaPpendix)
Ii a sense VI j%ustice he not a sufficient motive, II
seems 10 me that their interest should induce the banks
10 psTlOTUl llttI un.V. Tue pdtItHtc VI HE tN'FN =
nearly exhausted. They have waited from time 70 lime,
always expecting the promised restoration OF a sound
currency. They now see that nothing has been done
in TIM, respect by the change Of Administration, thai
nothing can he expected from it. The opposition 10
banks, strengthened by tie catastrophe Of that OF the
Il. S, and by numerous other fixtures or tefalcntinns,
is daily gaining ground and the effect on the bank
inG system generally and indiscriminstely, cannot be
otherwise ayerted than by n speedy restoration OF Inc
currency. would, indeed, myself prefer a totai ex-
clusion of paper money 10 a continuance OF that system
as now Organized and administered West and South Of
New York.
In order 10 hc able 10 resume specie payments, The
Banks which have suspended rust have made the ne
cessary preparations. 1t il not a matter Of opinion, but
a mathematical truth, tia. this can be effected in no
ether maracr, than by a dlin,nutiou Of the Liabilities Of
the Banks, and a corresponding curta;ling Of their own
loans and discounts. This last measure IS always IN.
convenient TO he borrowers, who call It an injury TO the
community. The continued suspension OF specie pay.
incn,s, and circulation Of n deprecated currency, are
the general evil and the trne injury 10 the community at
large. The reduction in the nmonnt OF discounts IS q
partial evil which falls precisely on those no ought 10
bear it, since il was the excess Of loans which was the
cause of the suspension. Two years have elapsed
since this tack place for the second time. lrany of the
Banks have not, darir- a period 50 amply sufficient Tor
the purpose, gradually ltssened Their discounts ana
their liabilities, 50 az TO be prepared for an immediate
resumption, il is their own Fault; and IL Is IL. better
That some Oi them SilollC II HcCtc.iIy, WIN up lHEi
business, rather than that those which are sound and
prepared, should continue n suspend tlrI. payinents,
and that The general interest should still he sacrificed
for the benefit 1t tmr few. The interest Of those hor-
romrrs .lo oppose a csump,o may be combined
with t!.:l Ut some Of the banks, either on account Of
their own embarrassment, as was the case with The
l.. S Bank Of PENNSYLVANIA, or because they make
larger profits, 50 long as they arc not compelled 10 cur.
TAIL their discounts In either case, plausible pre-.
fences Tor further delay arc rover wanted; and 81 Tins
we had sufficient evidence prior 10 the resumption OF
srpcia payments ~ the banks Of this city.
II * notorious, Isl. That they did resume not only
without waiting for the cooperation Of the other BANKS,
but Notwithstanding the various reasons or FTetences
alleged in opposition 10 that measure, all winch were
founded on lis presumed imr.actica!tiiity, or on Inc pre-.
tended general distress which Il would cause; ~, thal
The RESUMPTION mas effected with great ease, and with
on, heinz attended with any c' The fatal consequences
which had been pred c,ed; I'd, thai, within less than
three months, Ike example was generally followed ny
all The Banks Of the United States: 4th, that the sutse-
anon, ,uspensions were caused, exclusively, IN all but
some oe The Southwestern States, BY the InconcfIvanir
and rnparul,plcd Encouragement OF the u Bank oil
As far as am able 10 Judge, The reasons
now ALLEGED for n continued suspension, which are
drawn from the supposed inconrcniences OF a partial
RESUMPTION, are as unioundsd a those winch were ad-
duced for the same purpose in l.3o. ! cannon, ior m
stance, perceive how The lact, mat inc produce Q nrst
New Jersey il mostly sold i'll Philadelphia and pad Ter
II Philadelphia currency, can, if your banks should re-
sumo before Ph.latclp li.a, prove inore injurious 10 lie
uroducer and 10 the country, Than II M" =. Tue
price obtained .or the produce, that gwen Tor NE snoas
purchased in return, or The amount OF dent payahie ID
Philadelphia, extlnguisiied win lhr P'"cecus' - :
main precisely the same.
H., ,ho nlca Of cxrcdicncy, whether well founded
~ frivolous, is utterly inadmissiblc, when Tie iucs.
,;on IS one, not RI profit and loss, but oi jnS''r''
canuo, see any substantial difference between m AZ
Tenn, 10 prove that lie deicrioratcd specie currency
;ssuaad he A conner is a public benefit, and ihe aSscF'
lion nm, the suppression Of a deprecated paper eur
~" IN nuhlic injury. Rrpudinl,ng, therefore, every
,Lioc,;on IL n resumption, founded ON presumed con-
,cJn;oncc. or cxncd.cncy, tie fact remains To be ascer-
taiucJ. whether The sound banks ci west ~; nae
generally made such preparations, as WIZ ei';''. '"'"''
at This time, 10 resume and 10 MAINTAIN sp.'' p"S
n,eria, 0:llis Won are the only competent Jucses.-
W;,l, their actual situation an nnacqnainted, anaea"'
=, MOI only ,oint out in a general way, the obstacles
.h;ch ;flhcy have not Been fcrcseen, might defeat lhe
attempt. ,r,oots &C.
There are, always, in resum'ng specie payments AZ
tor a protracled suspension, diiAcniiies 20 ue f"cou"ei
"a ,,thich varyi in different places and al different tHncs'
r. ,Lo Intercourse between two countries or Two dis.
,rc,o If the same country, that which IS possessed OF
,ha rrs,t.st circulating capital viii, generally, nc Gre
,d;t,T of In, other. The city OF New YORK. Paruy ."
IL,t account, and also from its having become Tue p''h'
c;ncI centre Of the commerce ana Ihoh'y uaiis''''o"19
- Tho II s. is generally creditor III reference 10 all
~, n,her sections Of tic country: but, for The sane rea.
snns he u. :. are GENERALLY indebted TO Europe, and
y.w York is the place where that debt is concrhl'a'ru
and must be provided for. On that account, II "ou!u
have been very difficult for the banks OF this city to
Nave resumed, 50 lrng as The foreign exchanges were
,ofa yorabIe: and they m%ustalways be prepared Tor sacn
u contingency. At this moment there is a continued
expectation Of specie from This port to EnTors amo nnat
~; ;f n four or FIVE hundred thousand dollars Il WeeH'
and which in the opinion Of men OF business, may
continue six weeks hanger. u has not as yet ahee' ,a
49,, ....: uaptoi having been supplied DIV
an ;nfrx from various parts Of The country. IL mus.
he admitted that this drain, whilst it continues rsnae,s s
Tho General resumption somewhat more difficult; ont
The noorlion which you might be called on 10 supply
would be so small, that, so far as you are concef"e''
,s;s can hardly be considered as all impeachment.
West New Jersey is, however, in Inc natural course
Of trade, generally indebted to Philadelphia; and u, as
a necessary preliminary to !. a F est p phiisd ass Ra,' Sat
n New Jersey, has not been considerably d!,n'n,sifd'
money dealers MAJ, if yG N 5 nsv 1S.. before poftia r"' ia speeie'
Th;l NAV render il necessary lor your banks 10 &c 1e..
ter provided than ban, ,H3s ID ,S 1'h snIy see BE I. d,ifeufiy l grow "
S.. &c ,,r- COMMERCIAL conney;on wlh lhs!aaei-