Daily Richmond Whig. [volume] (Richmond, Va.) 1840-1842, 1841-05-31

L.
tished as models OF punctuay and honorable deal
ing their notes have obtained circulation on the
gfoend that the promise to furnish the coin on de.
| nand was OF the most sacred character. They have
become the repositories Of the money Of the eonmu.
nity under the most solemn pledge that should be
| forthcoming on demand. The directors of banks
are selected IRON those Of the highest standing in the
mefcanue COMMUNICATED obligation to carry out
| the provisions Of the charter and TO fulfil the con
tracts made under IL, would seem TO he ofihe highest
| and most binding character. They are i'm fact the
trustees OF the stockholders and depostors, selected
tor this very purpose. II difficult to perceive how
honorable men, holding the Office Of bank directors
can reconcile continued suspension TO their sense
| vi nor al obligation.
| The effect Of a suspension Of the banks is imme.
dately apparent IN its effect upon the moral sense
OF the community, regards the obligation Of con
tracts The breach OF contract by the banks is MI.
legged as sufficient apology for the breach Of con-
tract by individuals, and is generally received as a
sumcient Justification. The broken promise Of
oank Is offered and received the only tive
on oil contracts falling due. The grossest injustice
IS thus inflicted, which has paiation but its uni
versatility. A. submits TO receive deprecated cur
rency, because he can practise the same injustice
upon u The rights oil creditors sacrificed to the
COW enencc of debtors.
continued suspension commits double inius-
tee. The true value Of non convertible paper
currency, - accurately measured by its specie value
IN the market. Prices soon conform themselves to
TINS uncrring standard A contract therefore, found
ed upon a scale of prices under deprecated cur.
rency, and executed IN purcr currency, operates
WIN equal injustice upon the debtor. IL is proba-
bly, Tor this reason, that currency greatly depre-
GATED is rarely restored, put generally goes from
/ bad TO worse.
An admirable illustration ofthis is afforded in the
currency OF Buenos Ayres, where bank was estab.
ished issuing notes the representative Of Spanish
dollars. About the year 1929, this currency dcprc.
ciated very rapidly, and settled down at about IA
cents the dollar. At the last dates the exchange
on London was at PAD. sterling, equal to Al cents
to the dollar. u was considerably lower during the
o'oekade. Can any one suppose that such n cur
reney will ever lie restored Even this, however,
mas been outdone by some of the banks of Missis-
sppl, where what was considered good currency
one day, ans, like JonahS gourd wilhered entirely in
course Of the night.
There is no greater error than the suppositon that
ueprecl ieu currency will, in time, cure itself A
redundant currency first shows itself in the rates of
exchange with other places. These rise so high as
10 make coin the cheapest and mos, dc sirahle re-
mttance. The banks are called on to furnish this
CON- IL Is then common To attribute the difficulty
TO an uniavorable balance Of trade Suspension on
sues. The rate ofeIchange with places possessing
specie currency, Is certain Indication of the rate
OF depreciation. But there those who will attr-
eu,e all TO an untavorabe Balance oftrads.
hs Is the state OF public opinion in Philadelphi,
at the present time. They find the balance of trade
continues unaccountably against them with New
OK and Boston, and consider it impossible for the
oahhS 10 resume until change takes place in their
NN' OilICulby lies IN Inc excess OF their
currency. a contraction .oi their currency is the
only remedy; let them reduce their currency 10 the
specie siandard-they will find the exchange with
Now oTk come 10 par at once. Ii may in fact, 10.
necessary Tor them reduce so far as To turn the
exchange IN their favor, so TO bring specie from
New YORK. This Is their only alternative i'm case
inc quantity IN the city is inadequate to sustain re-
sumption. There can be no doubt that Philadel.
phia Is installing her true interest 10y posiponing
tins process. There can be no wholesome sound
trade under deprecated currency The restoro
Ton can as easily be made in two months as in two
years Contraction must he made and the sooner
the better.
Its not to be disguised that Ph;Iadelpbia has
been under the influence of false opinions on the
subject OF currency since the suspension OF 1857
ihese may probably be attributed to the influence
acquired 10y MIR Bidde on this subject His elabo.
ra'e letter TO John Quincy Adams OF April s. 1898
Paeed the matter OF suspension on IA new ground
and one wholly unJustifable. Instead of being put
on the ground OF inevitable and temporary necessi.
~, u was defended as measure oil expediency and
10 DC continued indefinitely, until the happening of
IIohtnseneies over which the banks had no control
iNanhounced distinctly that the banks should not
resume until a change took place in the administra-
uon OF the general government. II also announced
IN language not TO be misunderstood that no re-
sum Puoh should take place until the United States
meni. s
1t announced principles as false in political econ
omy as It's whole character Objectionable on the
score OF mercantile morality. Such was the infu-
enc6 winch Mr.. Bddle had unfortunately acquired
IN PhiadelphIa, that his views, so speciouslv put
iorth, were adopted in that city without hesitation
ana have continued control their operations to the
present lime.
Fortunately, Mr.. Bdd!e was unsuccessful in the
OBJ CT OF MS letter, that Of preventing the
New ork Banks from resumins A small but
determined party IN New York, wiki Mr. GaIlatin
al thelr head, viewed the suspension in its true
lsht-a state OF disgrace and reproach, in which
ihere could he no wholesome revival of trade. and
not 10 he tolerated beyond the year granted bv IN.
Legislature. New York resumed triumpbanilv in
May, 1888. Boston followed her example. MIR
biudle was driven by the force of public opinion
IRON the ground he had taken. With very bad
grace ne changed his position in July, and the Phi
.r eiphla banks resumed their proper functions
The banks Of the south and west with a Cw
ceptlohs, resumed their payments soon after and
Tue Iaie OF the country revived 10 an extent and
degree which left nothing TO regret hut an appre.
hehsion that we were going too fast. This was
100 true. The efforts OF the United States Bank
- bolster up artificial credit in order To cover rs
own weakness produced an expansion of the cur.
rency which, IN It's reaction, caused a considerable
pressure on the money market. This soon showed
the weakness Of that institution, which ao,in sus
pended IN October 1889. The o,her b,nks or
PHILADELPHIA follow without hesitation. B,lu-
more and the west as matter Of course New
YORK and Boston stand firm and TINS preserve ,
sound currency to one half the Union, whist the
'''' H''t ny " Llie sun pluslcfs and uepTc.
citation.
Al length the Tsi,ed States Bank changes its
ground. Mr.. BIddIe's prophecy that continued
suspension would not Inlure the credit OF the coun
Ty ABROAD, - not realized; Mr. Jludon the London
agent, hnus that the bank cannot sell It's American
Stocks, or sorrow money upon them much longer
"Nhou' restoration Of the currency. tIe makes a
voyage 10 AmeTlcaior the purpose Of bringing about
resumption. After etiecting a new loan OF FIVE
millions OF dollars on this side the water and oTCour
millions IN Europe, the bank attempts TO nav lie
debts on the 18th January last. But such had b,en
the lEcOncelvaOIe Encouragement Of that ,oaiifu.
non, That alter twenty days trial IL broke down IN
inevitable and hopeless bankruptcy. Again m,
Philadelphia banks follow suit, without giving the
attempt to stand alone a fair trial. Baltimore mad
become 30 lmbued with the Phlsdelphia doct,ios oC
the advantages Of non payment, that for few dnvs
after the resumption IN January she hcsitaes bont
| iu.hing her pledge OF resuming with Phiadeiobin
/ She Of course went back into a state sugp.nsi,n
| With Perfect delight She likss Mr.. BIddie's ere,
pose"
The question now arises, What is 70 bs done7
how is this currency TO be restored1 The answer
y simple and easy. Abnnbon your filse tbeories
| Philadelphia and New York have stood in opposi-
ton, as the representatives Of antagonist opinions
| New York and the North have gone for immediate
Resumption, wih present sacrifice and a bank cur.
rency convertible into coin on demand. This nor.
Son oithe country finds difficulty IN its present
position. u enjoys a sound currency and no saar-
city oft There Is no want of eonhdenre where IL
ought 70 exist Its internal trade is in a healthy
and Eatural stale. All s well.
Do the other hand, with Philadelphia, tho South