Weekly North Carolina standard. [volume] (Raleigh, N.C.) 1850-1858, 1855-01-03
From our Washington Correspondent.

WASHINGTON, Dec. %, 1854
Failure Of Selden, Withers & Co.-Modsl Finan-
ciering-SnaU notes in The District Of Columbia
-Ecis Of Banking Systena-In1Fated Currency
Senate-Bsnton and Kansas-Aaripal Of Gen.
WhiUeld-Know Nothingisn- Bigg' sSpeech.
The failure of Selden, Withers & Co., better
known abroad perhaps as the ssuers of notes of the
Exchange Bank of this City, has created much feel
ing here, and is capital specimen of the manage.
ment OF modern fnanciering What the capital of
this concern was originally no body seems to know
indeed there is great doubt whether it had any ex
cept the privileges it enjoyed in connection with the
Treasury Of the United States under the Wing ad-
minsIaton, and the deposites of its customers and
friends. The assignment states the assets of the
concern to be something over a million of dollars,
but examination discoses the fact that nearly six
hundred thousand dollars of these assets consist in
deprecated stocks and the debts of the copartners
- the Bank tothe'nselyes, leaving about four hun
dred and fifty thousand dollars Of fasshmed assets to
pay admitted liabilities to the amount of eight hun
dred thousand dollars. A considerable portion of
these assets cannot be realized it is said so that the
prospect of note holders and depositors becomes
dull indeed. Besides it is known that mistakes
have been made, perhaps Intentionally, in the state
ment of assets individual having been put down
indebted to the amount of $32, 900 who owed
only 81 400 which has recently been paid Anoth-
or owing $l5,25 was put down for $l525. The indi-
vidual owners of the Bank say that they possess
d
wealthy of Alexandra, has put all his proper
y out of his hands, and Selden retired from the firm
year ago. although the public knew nothing of it,
as his name still appeared as one of the firm. 1t is
wonder, therefore, that the exposure of the
diton and management of this Bank" has excited
much feeling and indignation.
The House of Representatives has devoted three
days of the present week exclusively to the business
of the District of Columbia. One of the most i'm
portant measures under consideration that pro-
= "a r l. Il. :
under the denomination of five dollars. An effort
made to prohibit expressly the circulation of all
bank notes. but radical change like this could not
command majority of that body. There are no
chartered Banks in the District, the few Banks of
good standing here being managed by trustees and
not by directors. Their issues OF notes regard
unauthorized. Congress has laid down the principle
that it has authority to incorporate banking in
stitutons with the privilege of issuing notes as it
might be construed into the establishment of cur
rency and legal tender different from the only one
recognized by the Constitution. This bill to pro-
hibt the circulation Of mallnotes is therefore wrong
for it gives sort of sanction to the circulation Of
notes of larger denominations. There is no posSi-
BILE necessity for the issue of any paper currency in
this District rests upon the operations of the general
government and all its disbursements are made in
specie. Congress ought to set good example to
the country and adopt efficient measures to secure
a strictly constitutional currency in the Territory
which it exercises exclusive control
The evils attending our present system of bank
ing grow principally out of the privilege of the banks
to issue small notes. These rs, 2s 3s &C., go into
the hands of laborers, mechanics, and persons of
small means generally, who have means of ascer
tanning their value, and who compelled to re-
receive Them nothing. Small notes form the great
part of the circulation of those banks having the
privilege to issue them they drive out the specie,
become generally difused among the people, and if
the bank stops the loss falls on the poor and igno
rant-on those unable to bear it. In the debate in
the House on this subject, with exception there
was universal concurrence among the members
from Pennsylvania, Maryland and Virginia on this
subject, each of these States having prohibited by
heavy penalties the circulation of small notes. They
all agreed that the law had worked like CHARM
that gold and silver had Immediately appeared and
! taken the place of the banished notes. If the
States to extend this prohibition and authotZe
none under twenty five dollars, the currency would
become still more safe and stable In France, where
the Government lives on credit, the people are Sc
cured from the evils of paper circulating medium
by prohibiting the issue of bank notes under 250
| francs-something $50-and in England, l
| think, notes are issued under e5 There is an
| abundance of specie in this country to make the
same rule practicable here. There are about $780,
000 600 of specie in the banks Of the United States
and it is estimated that there is 1S0, 900 600 in
| tual circulation. Business is now rapidly going
down to specie business, and the occasion ought
to be improved to prevent future nHations and Sc
| cure stable and safe currency.
| One of the principal evils of an inflated currency
seems to have received little attention in this
country. The Whig party attribute the expectation
of specie to overtradng, over Importation and low
tariffs. more rational explanation presents itself
The issue of large amounts of bank notes increases
the quantity of money in circulation, makes money
| plenty and prices 60 up. This becomes Immediate
ly the best market in the world for foreign manu-
facturers of all sorts. They sent here and sold
at current prices. Our exports do not increase in
quantity and sold abroad at the rates established
by specie currency. balance against us appears,
which be settled not by the transmission of our
credit currency, but by sending off the basis of the
initiation To aggravate the matter as prices kgo up
at home under the operation of this imitation, the
| amount of duties paid to own government in
creases and more specie is Withdrawn from the banks
or circulation and passes into the government de-
positories. The evils complained of by the Wings
in connection with tariff and treasury system
grow out of condition of things they uphold and
sustain. Let specie become only currency, and
they will have occasion to complain of overtrad
ing, over-importatons, or of accumuations OF coin
in the Sub-Treasury The currency and trade ques-
tions hang together and are mutually dependent If
paper currency is forbidden by law trade will reg
uate itself but as long paper money is sanction.
ed trade will continue to suffer from expansions and
contractions and Congress will be continually temp
ted to legislate upon and regulate what should be
| left free and untrammeed.
The principal business under consideration in the
Senate during the past week has been the bill to es-
tablish Board of Claims, and that to establish
department of law, or in other words to recognize
the Attorney Generals Office of the United States.
The former has passed that body and provides for
the appointment of a commission in the Court OF
Justice to examine all claims against the govern
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