Daily Richmond Whig. [volume] (Richmond, Va.) 1840-1842, 1842-02-17

eass. that the country 10 not prepared Ger Il. The
dculty 10 twofo,d: lst the debt due from the a ,e
nj large abroad; snd 20, the embarrassed condition
OF the country, excluding the rapid collection o.
good debts.
I. Whist is the amount Of the Indebtedness TO the
north, u Is no; easy 20 ascertain; but - clear IRON
he rate OF exchange that the exports OF tho state
have been and are less than the imports. So long
as that shall continue specie will be sought after &c
quidatc the balance, and none lie returned through
the ordinary channels OF commerce. IL the banks
resume there would be an instant demand for coin
not for domestic use, but for export which wou'c
continue until exchange was brought down TO ih'
cost Of transporting specie.
There are no banks, OF which we have an,
knowledge, which would be able to continue specie
payments in the face OF a protracted adverse ex
change. The Bank OF England, a. is known, va,
compelled not long since, by an unexpected reverse
in the balance Of trade, TO make loan in Paris, iC
prevent the threatened exhaustion OF its COIN The
security OF the New York and eastern banks results
from the fact that sterling exchange IS at par, OF
| below. Whenever the immediate liabilities OF .
bank for circulation and deposits, exceed its cash
| means, its general assets, however finally ample
and secure, furnish but nm inadequate provision
against public exscney. resulting from an excess
ofimports.
| The question, therefore, when the banks will be
prepared for specie payments, resolves itself into the
question when may the debt due from the state
abroad be expected to be paid. Hence tho i'm
portancc Of realizing the full proceeds OF another
crop, as bearing on resumption, Is app,rcm. And
II, during the intermediate period, the banks SET
themselves steadily to the reduction Of discounts SO
as TO diminish the means OF purchasing abroad. our
next crop may sensibly relieve the community from
the foreign debt.
2. The embarrassed condition OF the country pre-
sents another obstacle TO speedy resumption. IL is
generally found TO co-exist with al unavorabe state
of tho exchanges. That there is much pecuniary
pressure 10 apparent, from the low and declining
price Of every species Of property aud investment.
To some extent the evil may &c traced 10 the ds,rust
and suspicion which prevail, rendering capitalists
tmid in the employment OF their means; and so
much the more is any accession 10 the grounds OF
dlsrus;. such citcmp, a, resumption IN advance
OF pubic confidence in ITS success, TO DC dcpreca-
ted as tending TO esgravaic the public cmbarrass.
melt. The depreciation OF prices, the vast amount
and variety OF stocks in market, the general inteLt
cdness, and the sacrifices il would involve put out
of the power OF the banks to collect rapidly, and
the extent necessary TO provive for early resumption.
The TO he pursued Is obvious, but the state
OF the times renders for the present scarcely rrse
ticable. Town and country are already smartins
under pecuniary pressure. What would be its So
verify If the banks were inexorahly bent on heavy
colleciions1 What losses wolld they no; incur by
insolvences, which a more indulsent course would
PREVENT
The extent Of reduction upon their discounts, so
as TO render the banks secure ogainsi the demands
10 which resumption will expose them, cannot be
determined with certainty. The experience OF for
ner years does not enable US TO decide upon Il.
The proportion ofspecie to circulation is row higher
than it was during long intervals, when specie was
paid to all demands; and the circulation is below
what il has been during specie periods Il may be
that the time is past when large circulation be
kept out. II very certain If our banks resume, in
the language of the iniero ,aiory, "whout respect
TO the Of banks other States" their crcuA-
ton must in that event. return upon them, and they
will be under the necessity OF ccasing TO ISSUE The
result would be, that the notes OF our banks wou
constitute an Uncomfortable part Of The general cur
rency Of the state; and that deprecated plper OF
every type, 10 despite of every effort the contrary
would force Itself into circulation. Without going
into speculations, the sum TO be called in by the
banks, as preparatory to resumption may be stated
in round numbers at three millions.
As may be inferred from the foregoing views,
am at q loss 10 name the elres, day at which spe.
Gle payments can be effectually resumed The
course OF the banks in the adjoining states will ma.
terribly affect our own; ard influences, which the
banks canno; control, may reiard or approximate
the period.
The 9th question concerns the curiailment which
will be necessary to continue specie payments after
an actual resumption.
IL may be answered that the banks will be COM
PEELED TO reduce their discounts But to what extent,
ana how they ought 10 proceed, will depend on CO.
'emporaneous influences, and | am unable now 10
make any specific suggestion.
lSigned) VIM. Ii MCFARLAND, Pr,sY
MIR Blair, Cashier, is now Dissent on important,
business Of the bank.