Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1841-05-04

Mason.-Well, here is evidence from one who was
Tree rom the bias which you imagine To have operated
upon alr Clay in lS24 Mr.. John White, the Cashier
81 me u . branch Bank at Baltimore, makes the fol
i'".ng candid statement in letter 10 the Secretary Of
the Treasury, under date of February 1880:
"Lo"kng back 10 the peace, a short period fresh in
TIE memory oil every man, the wretched state of the
currency '"r me two succeeding years be
looked tue disasters of 1919, which seriously affected
the circumstances property and Industry Of every dis
'rcl IN The u 3, It will he long remembered sud.
den and pressing scarcity of money prevailed in the
spring OF io2 numerous and very extensive failures
took place at New York, Savannah, Charleston and
New orleans IN 1895; there great CONFUSION
among BANKS and other moneyed institutions in
The State oi New York in lo36 the scarcity of mo-
ney among traders i'll that State and Eastward in
the winter of 1897 and 1923 was distressing and
alarming; failures of banks in Rhode Island and
North Carolina, and amongst the manufacturers Of
New England and this State charnctcrze Tho lac,
QS2; and intelligence is just received of the refusal
Of some Of the principal Banks of Georgia TO redeem
their notes with specie-e lamentable and ranid suc
cession OF evil and nntoward events, preudical TO the
progress OF productive industry, and causing bneful
extension OF embarrassment, insolvency, litigation and
dishonesty, alike subversive of social happiness and
morals. Every intelligent mind must express regret
and astonIshnent at the recurrence OF these disas-
tiers i'll tranquil times and bountlu seasons amongst
an enlightened, industrious and cnterprising people
comparatively free from taxation unrestrained in our
luabe minerals with capital and capacity 10 improve
and ardent disposition to avail ourselves of these
| great bounties."
| .Nannins.-You have now read to the views OF
Messrs Cheves and Bidde, both of whom acted Pre-
sden of the last National Bank you have also exhibited
the opinions of Mr. Miles, Mr.. Clay, and lastly, Mr.
White. The testimony is such, that am now convinced
of my error IN supposing that there was no complaint
about the scarcity of money, or the hardness OF the
times, from the period when the Bank OF the u. 5.
was incorporated, TO the commencement OF General
Jackson Administration But you WILL At least, admit
that the Bank gave the best currency in the world
that it entirely reformed and regulated the State Bank
| currency, and thus prevented the heavy losses 10
which merchants and others have always been subject
ed when there no National Bank. During the
whole period Of the existence of the late Bank mer-
chant in Kentucky Alabama could take the notes
OF the Banks incorporated by either Of those States,
and go on 10 New York and buy his goods without
any discount on his Kentucky or Alabama notes. ]
never did thus, but have heard Of its being done.
Mason. have heard OF error before to-day. All
the evidence which have read TO you will be found IN
Gouges History ofPaper Money and Banking in the
u s., with the exception Of Mr.. Clays remarks, which
you can see by referring 10 his speech the Tariff in
lS24. few words now about the reform in the cur
| rency issued by the State banks, which ! think was
not quite so great you suppose. "In lo2l," says
Mr.. Gouge, "the notes of the local banks being dis
credited, way found Of paying public expenses
in Alabama but by issuing comptrollers warrants
These would not circulate, some thought, because
they were on bad paper, and not handsomely print
ed; whereupon it was proposed 10 send to Philadelphia
for blank warrants, handsomely engraved and printed
on silk paper.
ain 1924, Huntsville (Aabama) notes" says the
author, "were a, Mrty per cent discount at Phi
ladelph
The prices current of Philadelpa prove that The pa
per money of Kentucky at discount of from 81
TO is and from that 10 per cent during the year lco6
The same year, Alabama notes were at discount Of
from 10 to Is per cent; Mississippi notes from 10 10
10 per cent and Tennessee notes from 10 to 20 per
cent discount. In September of the preceding year,
ISIS, the notes Of the New Orleans banks quo
ted in the Philadelphia papers at fity-six per cent
below par" In August, 1872 North Carolina money
at discount OF from % 10 20 per cent at Baltl
more; Kentucky currency from ID 10 %; Ohio banks 10
30; indiana Illinois and Missouri 10 to co. In lo20,
the following banks Of Pennsylvania had their notes
subjected to the annexed discountnot estimated in
specie, but as estimated in Philadelphia paper. (See