The family and friends of the deceased.
The members of the house of representatives and Mr. Whittlesey defended his proposition at some
senators from Maryland, as mourners. length, upon the ground that the arrangement would
The sergeant-at-arins of the house of representa-conduce to the expedition of business." He thought

Mr. Thomas, of Maryland, moved that the speaker Mr. Mills, the architect employed on the treasury the bill now only wants the signature of the president

FIFTH SERIES.

No. 7.-VOL. IV.]

WASHINGTON CITY, APRIL 14, 1838.

[VOL. LIV. WHOLE NO. 1,385.

THE PAST-THE PRESENT-FOR THE FUTURE.

PRINTED AND PUBLISHED, EVERY SATURDAY, BY WILLIAM OGDEN NILES, EDITOR AND PROPRIETOR, AT $5 PER ANNUM, PAYABLE IN ADVANCE.

specie payments. But the "Albany Argus" inti-
From the Tallahassee "Floridian," March 31.
mates that the governor will not take the lead in During the week our town has been filled with
this measure, though willing to sanction it, if brought troops, col. Snodgrass' command of Alabamians
forward by the party in the majority in the legislature. passed through, on their way home, having been
On Tuesday last Mr. Birdseye offered the follow-discharged. We learn that out of 1200 men, the
ing to the consideration of the assembly of N. York. whole command have lost during four months but
Whereas the banks of the state of New York, as three by sickness. Part of the force has been chiefly
the fiscal agents of the United States, have hereto- stationed at posts and garrisons, and the residue near
fore received in deposite large amounts of the fede- the main army in the lower part of the peninsula.
ral revenues, all which they have paid over on de-
inand, without loss or defalcation-

And whereas those institutions are now preparCONNECTICUT. Mr. Ellsworth, the whig candi-ing to resume specie payments at an early day, dste for governor, has been elected by a majority, and have evinced a commendable desire to place estimated at nearly 6000 votes. The senate will be the currency of this state in a sound conditioncomprised of 20 whigs and one friend of the ad- And whereas it is just and proper, that these ministration. The whig majority in the legislature banks should be adequately sustained in these their is very large. praiseworthy efforts, by the confidence of the states and general governments

MAINE. Edward Robinson (W) has been elected a member of congress from the Lincoln district, to supply the vacancy occasioned by the death of Mr. Cilley. Mr McCrate was the opposing candidate. We have not yet seen an official account of the election, but Mr. Robinson's majority is said to be

166 over all the candidates.

NEW YORK CITY. The election for mayor, aldermen, council, &c. took place on Tuesday last and terminated on Thursday evening The contest was ardent and rallied the entire strength of both parties. We have no returns, but we learn that on the first day 19,209 votes were taken, on the second 11,780, making for the two days 30,989 votes. In the great contest of 1834, the votes given on the corresponding two days amounted to 29,289.

BANKS, CURRENCY, &c. The bank convention assembled in New York on Wednesday last, pursuant to adjournment. The following notices from the New York papers of that day, contain all the information we have yet seen on the subject of its

deliberations :

This important convention met to-day at 12 o'clock at the City Hall, according to adjournment. They sit with closed doors, consequently we can glean but little concerning their proceedings. We can state, however, that a very considerable number of delegates are in attendance, say from 130 to 150. The hon. Samuel Hubbard of Boston, the same gentleman who occupied the chair at the former meeting, presiding on the present occasion. None but preliminary business has as yet been transacted.

The annexed paragraph is from the New York Express, of same date:

The bank convention assembled this morning, according to agreement. It did not take long to ascertain that a decided majority of the convention is opposed to the present resumption of specie payments, because successful resumption, in the present condition of things, is deemed impossible.

The news from Washington and Albany, together with the uncertain position our own banks are about to take, has thrown a gloom over the mercantile community. Stocks have felt the shock very sensibly. The future is all dark and doubtful, and what sort of a plunge our currency is about to take nobody seems to know.

On Thursday last about 1000 of gen. Nelson's brigade passed through on their route to Columbus, where they are to be discharged. We have the highest respect for those troops. Hardy woodsmen, inured to danger and commanded by brave and intelligent officers, to whom they are attached and have full confidence in, we have seen no soldiers during the war on whose services we should place higher value. The duty assigned them in the protection of the frontier has been faithfully Therefore resolved, That all the revenues of this performed. They have been actively engaged in state be continued, as heretofore, to be collected in scouring the country from Suwannee to Tampa the notes of the solvent, specie-paying banks of this Bay. No lives have been lost, though on the difstate, and deposited with those banks for safe keeping. ferent skirmishes several have been badly woundResolved, That our senators and representatives ed. The brave col. Foster was severely shot in congress be requested to urge the immediate through the breast while charging upon an Indian, passage of a law, or the adoption of a resolution, but we are glad to learn will probably soon recover directing all the officers of the general government from its effects. within this state to receive the notes of the speciepaying banks thereof, in payment of all debts due and to become due to the United States, and to disburse the same in payments to be made by the federal government within this state.

We find the following in the "New York American" of Tuesday last, which has been before the banks of New York for more than a month.

WASHINGTON, 18th March, 1838. DEAR SIR-In reply to yours of the 16th instant. 1 hasten to remove any erroneous inferences from the rumor mentioned. The settled policy of the department, and one which it makes known to all inquiries is, to promote the resumption of specie payments by the banks, so far as its limited power may permit.

Consequently it has not, and will not hereafter purchase specie beyond what may be needed for mediate disbursement, and in that way will neither hoard it nor compete with others for its possession. All we receive in any way, will immediately be paid out again to defray the appropriations.

I make these statements explicitly and promptly, and have forwarded similar ones to Boston, in order that no injurious apprehension need be entertained as to the financial operations of the government. Respectfully, yours,

LEVI WOODBURY.

GENERAL ORDERS-No. 7.
HEAD-QUARTERS OF THE ARMY,
ADJUTANT GENERAL'S OFFICE,
Washington, April 10, 1838.

I. Major-general Jesup having reported that the operations in Florida will have terminated by the 1st of May, and that a portion of the troops will be disposable, the following arrangements will be carried into effect as soon thereafter as practicable.

II. The 1st and 6th regiments of infantry, the six companies of the second infantry and four companies of the second dragoons, will constitute the regular force to remain in Florida, with as many companies of the volunteers or militia of the territory as the officer remaining in command may deem necessary. The three companies of the 6th infantry, now in Louisiana, will forthwith join the head quarters of the regiment at Tampa Bay.

III. The four regiments of artillery, the 4th regi. ment of infantry, six companies of the 2d dragoons, and the detachinent of marines, will repair to the Cherokee country by the most convenient and expeditious routes from the several points at which they may be found on the receipt of this order. The troops, as far as practicable, will move by regiinents, and be accompanied by all the officers belonging to each. Should any of the companies ordered to the Cherokee country, occupy stations in Florida from which they should not be immediately withdrawn, they will continue in position until they can be relieved by the troops designated to remain in the territory; after which they will follow their regiments without delay, it being important to concentrate the companies of each regiment.

IV. Two surgeons, and as many assistants as the service may require, will be retained in Florida, to be selected from those whose who have served the shortest period in the territory. All other officers of the medical staff will proceed with the troops or. dered to the Cherokee country.

FROM THE ARMY. St. Augustine, April 6.– V. Major general Jesup will take all the necesReferring to the convention, the New York Recent arrivals from Jupiter river, inform us that sary measures for the prompt execution of this orCommercial Advertiser of Monday saysthe 500 Indians encamped there, "awaiting the de-der, and will then turn over the command of the We have no means of knowing the present views cision of the president," have been captured, by troops in Florida to brevet brigadier general Z. of the convention or to what results its deliberations order of gen. Jesup. A part of them have been sent Taylor, colonel of the 1st infantry; and on being rewill come. Be the votes of the convention what to Key Biscayne, (Cape Florida)-the remainder lieved, he will repair to the seat of government, and they may however, the banks of this city and state have gone over land to Tampa Bay. They are in resume the duties of quartermaster general. must resume. There is no alternative. But for a all, 520 in number, men, women, and children; VI. The officers at the heads of the several course on their part the wisdom of which we have among them 150 to 200 warriors. branches of the staff will make the necessary arnever been able to perceive, they might readily have A more recent arrival brings information that rangements for moving and supplying the troops received farther indulgence at the hands of the colonel Bankhead, with his command, after travers-on their routes to their destination, and for the serlegislature, in the event of such indulgence being ing some "terrible" swamps came up with a body vice in which they are to be employed. necessary. But they have themselves closed the of Indians, number not known, but suppposed to doors against an extension of the suspension law, be Sam Jones' gang, to whom a flag was sent; but however necessary it may be to save what remains the Indians fired upon the flag. An attempt was of this noble and suffering city. Come what will, then made to surround the Indians but without sucour banks must resume. cess-they escaped.

It was stated in the "New York American" a few days ago, that governor Marcy would recommend to the legislature, the expediency of loaning ten millions of state stocks to the banks to enable them to sustain themselves in their resumption of VOL. LIV.-SIG. 7.

An express arrived here a few days since from Micanopy, by which we learn that two men have been killed and scalped in that vicinity. The name of one, we understand was Hogans-we have not learned the name of the other.

It is reported that Nelson's brigade have gone home

VII. Major-general Scott is assigned to the immediate command of the troops ordered to the Cherokee country, and the direction of affairs in that quarter. The commanders of regiments and detachments will report to his head quarters, at Athens, in Tennessee, or wherever else they may be established at the time.

By order of ALEXANDER MACOMB,
Major-general commanding-in-chief,

R. JONES, Adjutant general.

MR. BIDDLE'S LETTER.

3 Discount to those not indebted to the governmenf two millions in New York, two millions in Philadelphia, one and a half million in Baltimore, and a half million in Richmond-and

and above all, that these shrewd metals would enable IV. Compare the situation of the banks at the TO THE HON. JOHN QUINCY ADAMS, WASHINGTON. said lately one of these politicians in the senate of nearly three years, congress applied all its power to us to outwit the paper dulness of England. "Sir," last resumption and now. After a suspenson for MY DEAR SIR: I propose to say a few words on the United States, "sir, a man loses all by any cir- induce, to persuade, and to assist the banks in their the question whether the banks should resume cumstance that but for that circumstance he would eforts to resume. They passed the resolution of specie payments in May next. I do this because have made. Although England is a paper country, 1816, authorizing the receipt of the notes of specie my position seems to justify, if not require it. For yet if we were exclusively a metallic country we should paying banks. But this alone was insufficient; and nineteen years I have been connected with the in- make more out of our intercourse with her. And why at the same time, they established the Bank of the stitution which caused the last resumption, and du- should we, because she chooses to maim herself by United States, with a capital of thirty-five millions. ring all that period my efforts have been directed to her paper system, follow her example." The go- That bank called a convention of state banks, and secure to the country the benefits of a sound cur-vernment, may be said, is comparatively harmless, agreed that if they would resume specie payments, rency, and to banish from circulation every thing because its expenditures exceed its income. Its it would but the precious metals and notes always convertible regular income, no doubt-but while it can pledge 1. Assume all their debts to the government of into them. I think no other currency is safe or the public credit for treasury notes at a high rate of the United States. tolerable; and that we should now return to it at the interest by which every man's property is mortgaged, 2. Discount to those who had payments to make first moment it can be done permanently. For this and buy specie with them, there can never be to the government, the whole amount of their bonds; purpose the institution to which I belong has made wanting the means of oppressing the banks. There and in addition great efforts. Since the suspension in May last it is therefore no one circumstance which occasioned has bought and added to its vaults nearly three mil- the suspension, sufficiently removed to justify a lions of dollars in gold and silver; and now with a change, and the most prominent cause remains with capital of thirty-five millions, its notes in circulation increased intensity. Accordingly are six millions, while its specie, after paying more than half a million to the government of the United States, amounts to nearly four millions, and it has eight or ten mililons of funds in Europe. Our principles, therefore, incline us to an early resumption; our preparations would justify it-and if we were at all influenced by the poor ambition of doing what others cannot do so readily, or the still poorer desire of profiting by the disasters of others, the occasion would certainly be tempting. But the Bank of the United States makes common cause with the other banks, and the character and prosperity of the country are identified with its banking system. They must stand or fall together; and it is of vital importance that the banks should act wisely and act harmoniously, and above all, that they should not suffer themselves to be driven, by the dread of being thought weak, into rash and hazardous enterprises.

II. The credit system of the United States and the exclusively metallic system are now fairly in the field, face to face with each other. One or the other must fall. There can be no other issue. It is not a question of correcting errors or reforming abuses, but of absolute destruction; not which shall conquer but which shall survive. The present struggle too must be final. If the banks resume and are able, by sacrificing the community, to continue for a few months, it will be exclusively employed at the next elections to show that the schemes of the executive are not as destructive as they will prove hereafter. But if they resume and again are compelled to suspend, the executive will rejoice at this new triumph, and they will fall in the midst of a universal outcry againt their weakness. This is perfectly understood, and accordingly all the influence of the executive is directed to drive the banks, by popular outrage and clamor, into a premature resumption-not a The great prerogative of strength is not to be business resumption, general and permanent, but a afraid of doing right; and it belongs to those who political and forced resumption, which may place have no fear that prudent counsels will be mistaken them at the mercy of those in power. They who for timidity, to examine calmly whether the general have special charge of these interests must then beinterest of the country recommend the voluntaryware of being decoyed from their present position. resumption of specie payments in May next. I say They are now safe and strong, and they should the voluntary resumption, because there is not now, not venture beyond their entrenchments while the nor has there ever been, any legal suspension of enemy is in the plain before them. If they resume, specie payments as there was for more than twenty one of two things will happen-their notes will not years in England. The suspension is wholly con- be received by the government or they will be reventional between the banks and the community, ceived. If they are not received, the government, arising from their mutual conviction that it is for to the extent of the revenue, will force the holders their mutual benefit. In truth, the banks are but of the notes to draw specie from the banks to be the mere agents of that community. They have no deposited with collectors of the revenue. For the funds not already lent out to the people, of whose difference between the revenue and the expenses, property and industry they are the representatives. the government will issue treasury notes to be sold They are only other names for the farms, the com- for bank notes, and converted into specie, and as merce, the factories, and the internal improvements the disbursements are made at points on the fronof the country-and the inquiry whether the banks are ready to resume is only another form of asking whether the people are ready to pay their debts to

the banks.

The true question then, after all, is, whether the time has arrived when the banks should announce that the causes of the suspension, which then satisfied the community, have ceased to exist, and that the suspension itself, with all its necessary attendants of restriction, need no longer be continued. To that inquiry I now proceed. And

5. Would sustain the resuming banks in case the resumption brought them into difficulty.

The bank, at the same time, imported, at an expense of more than half a million, the sum of seven millions of specie, and two months after the resumption its discounts reached twenty millions. Compare with this statement our condition now.

Then the government agreed to receive for all dues the notes of the Bank of the United Statesnow all bank notes are refused and discredited. Then the government endeavored to sustain the banks-now it is striving to destroy them. Then it established a new and vigorous bank capital-now it refuses to create a new bank, and seeks to cripple those in existence. Then we had two hundred and sixty banks-now we have nearly nine hundred.

In short, what reliance have the banks now with the executive hostile to them? What protection like that of the late Bank of the United States have they to sustain them? None whatever.

The only circumstance not wholly unfavorable in the comparison, is the low rate of exchange with England. But nothing general or permanent can be inferred from this circumstance, which frequently occurs, and on the present occasion is wholly accidental in New York, from the unnatural condition into which her measures of extreme rigor have driven every thing. If under ordinary circumstan ces, while other things underwent no depression, exchange on England should decline, it might be inferred that England owes to the United States more than we have yet drawn from her. But it is not exchange alone that has fallen. Exchange on England has not fallen in New York as much as the internal exchanges or stocks or real estate, or house rent have fallen. This fact seems decisive as to the cause. But can this depression continue? Certainly not. These rigorous measures are understood to be only preliminary-only preparations for an expansion by the banks of New York, which is to restore ease and confidence. Well, the moment this ease and confidence return, all things will rise, and exchange of course among the number. Besides, this unnatural condition will work its own remedy, as all irregularities are cured by their own excesses. To sell every thing and to buy nothing is impracticable, and when the English have bought all the produce we have to spare, we must of course buy from them what manufactures they have to spare. As soon as the proceeds of our industry are realized in England-while we have gradually exhausted our supply of English goods-our own merchants will convert their produce into a fresh supply to be brought over; or if this process be too slow, the English manufacturers themselves will send their own goods for sale. In either case the exchange will recover its equilibrium, and of course will rise here, for between two such countries as America and England, a permanent inequality of exchange, as a basis of the metallic currency of either, is impossible.

tiers, remote from the places of collection, it will not return to the banks issuing it except circuitously. But if the notes are received, they will not, as formerly, be deposited in banks and drawn out again so as to enter into the circulation, leaving the public creditor his choice of specie or notes, but they will be left in special deposite with the receivers. When warrants are drawn on these receivers they will call on the banks for specie to pay the favored public creditor, selecting, of course, the bank on whom they will draw according to its serI. What were the causes of the suspension? They vility or opposition to the executive, and thus plawere the specie circular, which forbade the receipt cing them all under his control. Now under such of any thing but gold or silver at the land offices-circumstances, is it wise for the banks to disarm the mismanagement of the deposites, which scat- themselves in the presence of the enemy? tered them to the frontiers-the clamor raised by III. The disorders of the currency lie too deep the executive against banks notes, which alarmed for superficial remedies, and these palliatives irrithe people for their safety, and caused a run upon tate without curing. Congress, and congress alone, the banks for specie. Now has any one of these can apply adequate relief. What Mr. Madison said causes ceased? On the contrary, have they not ac- to congress in 1816, is even more true in 1838. quired ten fold force? The specie circular is not For the interest of the community at large," said repealed. On the contrary, it has been extended, he, "as well as for the purposes of the treasury, it for bank notes are prescribed, not merely from the is essential that the nation should possess a currency land offices, but from all payments of every descrip- of equal value, credit and use wherever it may cirtion to the government. The distribution of the culate. The constitution has entrusted congress V. Perceiving nothing in the conduct of the gorsurplus is over, because there is no longer any sur- exclusively with the power of creating and regula-ernment to justify an early resumption, let us see plus to distribute; but the great disbursements on ting the currency of that description." The only if there be any thing in the state of the country the southern and western frontiers operate as injuri- reform in the currency which that body has yet which recommends it. Now what is the condition ously by requiring the transfer of so much revenue made, is the issue of ten millions of irredeema- of our affairs? The suspension found us with a from the points were it is collected. Lastly, and mainly, the alarm about bank notes propagated by the government, has been deeply spread throughout the country, till what was at first a passing outcry, has settled into an implacable hos ility. No man, I think, can doubt for a moment that the executive of the United States seeks to maintain his power by exciting popular passions against the credit system; and that the whole influence of the government is employed to infuse into the minds of the people

ble paper money, and a proposal for ten millions heavy debt to the banks-not less probably than five more. Is it worth while then, so long as congress hundred millions-with large balances from the fails to exercise its legitimate powers, to waste the southern and western states to the Atlantic cities, strength of the country in efforts to accomplish and with a very considerable debt to Europe. All what we all know to be impracticable? To resume parties were willing to pay; almost all were able now without some clear understanding with the to pay; but great forbearance and great indulgence government, seems to be throwing away the benefits were necessary from the creditor, and above all, of experience, and the lessons of misfortune. We after such a convulsion, the great restorer was have gone through all the mortification and all the time; time to settle; time to adjust accounts; time inconvenience of suspension. Let us endeavor to to send the debtors' crops to market; time to disprofit by them; to fix the future on some solid basis pose of his property with the least sacrifice; time For this purpose, the most insane ravings are ad--have some guarantee of the stability of the cur- to bring out his resources to pay his debts. In all dressed to the cupidity of the ignorant, who are rency, and not set every thing afloat again without the large movements of human affairs, as in the taught that gold and silver are the only true riches, knowing where we may be drifted. For- operations of nature, the great law is gentleness——

distrust and hatred of all banks.

Violence is the last resource of weakness. The dis-ney obliges him to sacrifice it-if he sends the bank sending their crops to market, it is better to help ease of the country was an overstrained and dis-notes of his country they sink to seventy-five per them and wait till they are more advanced in their tempered energy. The remedy was repose. The cent. in value-and he loses the difference. If he preparations. The employment of credit, either of question of the currency, though important, was brings the stocks of his state, the scarcity of money banks or of individuals, most useful to the country only secondary. The first concern was to pay our renders their negotiation impossible. Once dis- at this moment, is to forward its produce to Europe. debts, and especially not to depreciate the value of appointed in this way, he sends no more produce- Instead of this the banks are reducing these faciliour means of paying them. no more bank notes-and the creditors in turn suf- ties and calling upon their debtors for payment. Accordingly it seemed to me that after the sus- fer more than the difference by the delay. This seems very unseasonable. It is stopping the pension, the true course of this country was to be So in respect to foreigners. We owe a large debt locomotives as they are carrying the crop to margin a gentle and gradual diminution of loans, suffi- to France and England. Why should we destroy ket. cient to prevent the hazards of expansion while the the value of our only means of paying it? We can restraint of specie payments was removed, and to pay it only in cash, or produce, or stocks. As to prepare for the resumption, but with no rash com- cash-this debt was contracted in an abundant curpetition as to the amount which the several banks rency. By this artificial scarcity of money we are could curtail to make no violent changes in the obliged to pay it in a currency more valuable by standard of value, and give time for a settlement one half or one third. Even at that rate we can with foreigners, and among ourselves, on the saine neither borrow the money nor raise it by sales ex. or nearly the same basis upon which these mutual cept by ruinous sacrifice. We then may pay it in engagements were contracted-letting the crops go produce or in stocks, but the same scarcity sinks the to their destined markets without depreciating their value of both. A debt contracted when cotton was price. After this, the resumption with the aid of at twenty cents, we have to pay when cotton is ten congress, would have been easy and spontaneous. cents a pound. If we propose to pay in stocks, It was in this spirit that the Bank of the United these too have sunk perhaps twenty-five per cent. States has not diminished ten per cent. of its loans on their price last year. Our resources then are -while it added about three millions to its specie diminished in value while our debt is increasing by and will have given the necessary facilities for ship-interest. The consequence is the foreign debt is ping the crops of the south and west to the amount postponed. This operates injuriously to both parof probably fifteen or twenty millions of dollars; ties-to the domestic debtor by reducing his means placing its own confidential agent in England to of payment-to the foreign creditor by the delay protect the great commercial and pecuniary inter- and the hazard of his debt. It is true if he could ests of the country. This seemed to be its proper now receive his money he would remit it home at a function.

low rate.

It was thus that it hoped to discharge its duty to But then the same scarcity which lowers the rate the whole union. It was thus, too, it could show of remittance, prevents his receiving any thing to its fidelity to Pennsylvania, by aiding its public im- remit-and so far from being interested in the early provements-by keeping its business and its people|resumption, it injures him essentially, because the in comparative ease, and by not suffering the pros forced preparation for it by crushing the resources perity of its commercial capital to be prostrated- of his debtors renders them alike unable and un. objects these, far more important than whether willing to pay. What the foreign creditor wants is specie payments be resumed a few months sooner payment-payment of the debt, not in a better currency, but in an equal currency, or if necessary, in an inferior currency, because he can better support a high rate of remittance than a reduced or post. poned payment.

or later.

The injurious effects of a contrary course are seen in all the relations of business. Take for instance the debts to banks and to individuals. The debts were mainly contracted when the currency There prevails a notion that the credit of the was abundant. They must now be paid in a very country abroad will be injured by not resuming. altered state of the currency-and it is necessary to Not in the least. Every body connected with proceed with extreme caution when the relation of America knew the reasons of suspending, and enthe debtor to his creditor is changed by events tirely approved of it as the only measure that could which neither could control, because if this change bave saved the country. What Europeans want be not made very gradually so as to bring at the now is that we should pay our debt. That is our same time all the other relations of life to the same first duty, and if they see, as they cannot fail to see, standard, you inflict injustice or perhaps ruin on that these preinature efforts to resume specie paythe debtor. It was thus that England continued ments prevent the collection of what is due to them, her suspension for twenty-five years, and by act of they will perceive, that in endeavoring to secure an parliament gave several years notice of the progres-object wholly domestic, they have been sacrificed. sive resumption, in order that all the business of the country should adjust itself to the approaching change. Of the effect of any sudden movement, we have before us a striking instance.

It appears by the published statements of the banks of the city of New York, that since the sus pension to March 1, 1838, they have reduced their foans and discounts from forty-six millions to thirty millions, and their circulation froin nine millions to two millions-an aggregate diminution from fortyfive millions to thirty-three millions. If this, or any thing near this, be the reduction, what is the consequence? A man who contracted a debt to the banks in New York, before the suspension, finds his ability to provide means for the payment of that debt reduced one third or nearly one half-that is to say, the dollar he now pays is equivalent to one and a half or almost two dollars when he borrowed it, besides the interest. Such a process of reduction would have been wholly intolerable, if the citizens had not escaped from it and sought alleviation by loans elsewhere. But if the other cities had followed the example of New York and inade similar reductions, the whole country would have sunk under it or revolted against it.

In respect to the dividends and the stock, payable abroad, many of them are payable in pounds sterling, or guilders, or francs, so that we place the money there at our own cost-and as to dividends payable here, they have almost universally been remitted in the equivalents to specie. What the general merchants of France or England desire, is that we should take their merchandize that we should trade with them. The state of our currency is a very subordinate concern. You deal with them and pay them in their own currency. They know little and care less about the sort of currency in which you deal with the south and west. Besides, who are to reproach us with the depreciation of our notes. The English? But the Bank of England suspended specie payments for twenty-five yearsnearly all which time every American bank paid specie-and men in England were forced by law to take the notes of the Bank of England when they were at thirty per cent. discount-whereas no man is obliged here to take any note of any bank-and at this moment a paper dollar in Philadelphia or New York, will buy a silver dollar delivered in London. The question then of the resumption is one exclusively domestic-one which, however important at home, does not effect the credit of the country abroad.

These inequalities between members of the same community become more striking when applied to engagements between distant parts of the union. VI. We come now to the question whether if an The Atlantic cities for instance, were creditors of early resumption be practicable, the month of May the southern and western states for goods sold to is a fit time. My impression is that the month of them, to be paid for either in those states, or in the May is a very unfit time. The resumption, to be Atlantic cities-their currencies being so nearly the useful, must be general, and no arrangement ean be same that the exchange would not cost as much as satisfactory which does not include the southern the mere transportation of the specie. When the and southwestern states. These I do not think are day of payment arrives, the creditor city suddenly yet ready to resume. They are straining every makes an artificial scarcity of its own currency-nerve to pay their debts. Their crops are going renders the only money it will receive in payment forward to provide funds in Europe and at the north almost inaccesible to its debtor-reducing at the the banks are laboring to meet their notes at the same time the rates of exchange, and the prices of north the legislatures are pledging their credit to every thing. This rigor instantly recoils on the raise funds in order that their people may pay their creditor. If payinent is made in the southern and debts. Why should we repulse them? All they western states, the Atlantic merchant loses the want is time. They have not yet had the benefit of whole depreciation in the exchange. If payment is a to be made in the Atlantic cities, and the debtor sends produce to pay his debt, the scarcity of mo

single crop, and they may require another; and instead of discrediting them, or diminishing the value of their produce, or curtailing their facilities in

The month of May too is not the right time of the year. For example, it requires on an average about fifty days to take cotton from New Orleans to Liverpool. Supposing it immediately sold, the usage is at the end of ten days to give a banker's acceptance, payable in two months, so that by the month of May there would not be actually realised more than the cotton which left New Orleans before January; when not more than one fourth or one fifth of the whole crop had been shipped. Much, of course, is drawn for when shipped, but I speak now of the actual obtaining possession of the proceeds of the crop; and at all events not one half of the crop will have reached Europe by the month of May. The spring is, moreover, the season when the credits given for the shipments of southern and western produce, are maturing at the north; and the crop from which reimbursements are to come, remains unsold in Europe. The spring too, is the time when the western business has brought from the interior the notes of the Atlantic banks, when the circulation presses more upon them than at any other period, and when specie is wanted for the trade to China and India, making that time particularly unpropitious for the resumption.

VII. It remains now to inquire how far these general views of the expediency of a resumption in May should be changed by the determination of the banks of the city of New York to resume at that period.

For the gentlemen of New York who announced that decision, I have great personal respect, and under ordinary circumstances would willingly yield my own convictions to their better opportunities and understanding. But the natural influence of their judgment is weakened by the knowledge of the fact, that the banks of New York would not have had the least idea of a resumption in Maybut because the immunity allowed by the legisla ture will then expire and they fear that it will not be renewed.

This was distinctly avowed at the bank convention, and the deputation who visited Philadelphia repeated it again and again. Now this may be a very good reason for the banks of New York to resume-but certainly no reason whatever for the banks of Pennsylvania to do the same. The states of Pennsylvania, of Virginia, of Kentucky, have legislatures as well as New York has, and they have refused to direct their banks to resume in May next. Why should they obey the legislature of New York and not their own legislatures? The position of New York is on all hands regretted. But how is it to be remedied? A single legislature out of twentysix legislatures had passed a law forfeiting the charters of banks, if they were unable to redeem their notes in specie.

A public calamity overtakes the country and the declining to pay specie, so far from being criminal, became an act of public safety-so adopted by all the barks, and so confirmed by this very legislature. The provision originally designed to guard against fraud, may thus become the punishment of honesty and ability. The legislative body which protected banks for years is now in session, and in twentyfour hours can extend the indemnity till a more appropriate season for resuming. I presume no dithculty will occur in this. Why should there be? Is it possible that such a body can see with indifference the distress which a perseverance in this course must inevitably create, or permit the pride of opinion or any mere political or party consideration to prevent them interposing to protect their noble but suffering city? If they decline how can we of Pennsylvania interfere?

Why should we voluntarily place ourselves in the same situation into which New York has been forced? By doing so we share only a common disaster-instead of husbanding our resources against the period when our interposition may be really useful. In the mean while, the most effectual service which we can render is to speak in a tone of frank sincerity. She may perhaps bear it from one than whom she has never had a more true and constant friend-who, although an entire stranger, has for a long series of years, done every thing in his power to advance her prosperity, and never saw her in any misfortune which he did not anxiously strive to mitigate. But I wish to serve her, not to flatter her. I believe then that at this moment New York is in an entirely false position. She is obliged by

the existing law to do what she feels to be wrong. branches of the public revenue. In this shape the he could accumulate its bills, if it continued to do Her natural course is to appeal to her representa- bill passed the senate. business, and suddenly present them for specie tives to rectify their mistake, and not to thrust out Now, as to its practical operation: By its provi- The same remark is also applicable to Mr. Calhoun's their own state banks to be crushed by the execu-sions the government is thrown back upon the joint proposition, (whilst bank notes are received,) by tive. resolution of 1816, under which the executive claims which one-sixth was to be received in specie the Instead of doing this, she perseveres from a mis- the right to prescribe the kind of funds to be receiv- first year, two-sixths the second year, and so on till taken, though honorable pride, in not asking relief ed, whether specie or the notes of specie paying the whole receipts of the public revenue should be where relief is attainable, but is preparing for the banks. Under his construction of this joint resolu- in gold and silver. Who can fail to see that, under event by sacrificing her own interests and inflicting tion, the late president issued the specie circular, by such a system, every bank throughout the country distress on the community. The apparent superi- which he required specie in the payment of pub- may be destroyed, and all those evils, which have ority in the exchanges which this produces, is lic lands, whilst the notes of specie-paying banks, been so fully depicted during the discussion of this wholly fallacious as well as injurious. The state under certain restrictions, were received for customs. question, inflicted on the community. It is in fact of the exchanges in New York proves nothing wha- Mr. Webster's amendment takes away this right of establishing a gold and silver currency for officers ever, except the scarcity of money in New York. discrimination. The president must, therefore, either and contractors of government, and leaving the peoThe exchanges are even less depreciated than ma- require specie or the notes of specie paying banks, in ple at the mercy of the executive or the secretary of ¦ ny other things. The bank notes of the southern all the different branches of the public revenue, and the treasury. The banks cannot resume specie states are at a great depreciation. But store rent cannot receive one kind of funds in one branch, and payments, if they continue to do business under and real estate in the very spot where these notes a diderent kind in another. We must, of course, re-such a system. Nay, they cannot live but by exeare sacrificed, are much more depreciated than the scind the specie circular which relates to the public cutive clemency. notes themselves. So too in New York, the notes lands, or he must extend it to the customs. of Philadelphia are at a discount, yet at this moment Which will he do? Some have supposed he would New York has to pay to Philadelphia, little less authorize the receipt of the notes of specie paying than ten millions of dollars, for actual debts to Phil-banks, and disburse them in the public service; this, adelphia and to foreigners represented by Philadel- under certain, restrictions, might be done, and might, phia. perhaps, be made to operate beneficially upon the It is not, therefore, the abundance, but the want different interests to be affected by it. Probably this of means-it is not strength but weakness which was the expectation of some of those who voted to causes this difference. By the same process bread strike out Mr. Calhoun's specie clause, for although and meat may be reduced in price for the want of Mr. Tipton's amendinent was rejected, still it was purchasers. You make an artificial scarcity of avowed in debate that it was opposed on the ground money, and then boast how much the little that re- that it implied a distrust in the president as to the mains will buy-but your superiority is punished proper performance of his duty. by the debtor, who does not settle with a creditor so much above him. And what is the benefit of all this? The other states are not obliged to submit to this local legislation, and the suffering of New York is not certainly fitted to make them adopt it voluntarily. It is better, therefore, for then to state with perfect frankness that they do not mean to unite with her in this forced resumption -to say this decidedly and finally, so that she may apply the only remedy-an extension of her law. The whole subject would then be open for future adjustment upon principles of safety, alike to the banks and to the community.

The great evil consists in the adoption of the subtreasury system in any form. That done, all others must follow. There is no way in which the objec tions to its adoption can be overcome. It is not capable of being made by any amendments either useful or harmless. I hope the country will not be deceived by the present form of the bill. It was right to strike out the specie clause, if we could, because that was giving a blow which destroyed that little congruity it had, and left it in a shape in which it was hoped none would seriously think of passing it.

It contains powers which led directly to an unThe ques ion then recurs, which of the two de- mitigated despotism of opinion. You have not failscriptions of fuuds will he direct to be received? Ied to see, in reference to the progress of this meashould think he would hardly direct the public dues sure, the dangerous extent of executive influence. to be paid in specie, after the expression of the sen- You can scarcely imagine the evils which may fol ate against it by striking out the specie clause; he low the exercise of the additional powers proposed ust, then, direct the receipt of notes of specie pay. to be conferred by this bill on that department of ing banks, under such regulations and restrictions as the government. Away, then, with the whole sys may be prescribed. As to what those will be, we tem-away with these vaults and safes, these tars are left to infer from the facts before us. The pre- and bolts. Let the government deposite its funds sident, in his message at the extra session said: "If in sound institutions, and let there be received the at short and fixed periods, they (bank notes) were converted into specie, to be kept by the officers of the treasury, some of the most serious obstacles to their reception would, perhaps, be removed. To retain the notes in the treasury would be to renew, under are-another form, the loans of public money to the banks, and the evils consequent thereon."

On the whole, the course which in my judgment the banks ought to pursue, is simply this:

The banks should remain exactly as they prepared to resume, but not yet resuming.

These are my opinions very deliberately formed, and very frankly expressed. They are thus set forth, not to influence the course of others, but to explain my own.

With great respect and esteem, yours,
Philadelphia, April 5, 1838.

N. BIDDLE.

notes of such banks as the deposite banks will agree to credit to the government as cash. Let the gov ernment then make its drafts on those depositories, and let the holders draw such currency as they de sire.

I am utterly astonished at the manner in which this measure is attempted to be forced upon congress and the people. If the collection of the reve nue in gold and silver be so essential for the general government, why is it not equally so for every state government? The same argument would ap ply in the one case as in the other. What would be said to such a proposition in the state of New York? I believe it was entertained at Tammany Hall. But what would the people of the state say? What would the legislature say? It could scarcely com and a voice or a vote with the one or the other. Who is there that would require our canal tolls, cur auction and salt duties, and our taxes, to be collect ed in specie? Such a law, if it were passed, could not be enforced. The same remark is applicable to every state in the union. And, I say, what is good enough for the states, and the people of the states, is good enough for the general government. I hope, then, the community will not be deceived as to the character of this bill. It does not contain a single mitigating feature. I trust it will be resisted, or any thing like it, in all the stages of its progress, until the executive be compelled to abandon his scheming, and return to a system based on sound principles and sanctioned by experience.

They should begin, as the Bank of England did, I took the ground, at the extra session, that if the under similar circumstances, by paying the small bank notes were to be converted into specie, as notes, so as to restore coin to all the minor chan-above suggested by the president, it was immaterial nels of circulation-but not make any general re- to me whether specie or the notes of specie paying sumption until they ascertain what course the gov-bunks were to be received: the practical effect ernment will pursue, employing, in the meantime, would be the same in both cases. their whole power to forward the crops to market. Mr. Wright, in his speech at the extra session, The American banks should do in short what the said: "For biluseif, he agreed with the view of this American army did at New Orleans, stand fast be- matter which he understood his honorable colleague hind their cotton bales until the enemy has left the to take, that in case ti e deposites were confined to country. the safe keeping of the officers of the government, it was a question of much less interest to the banks than seemed to be generally supposed. If the banks were not made the depositories, it could not be supposed their notes, it made receivable, would be retained for any length of time in safe-keeping. It would be a necessary result of this mode of keeping the public funds, that all bank notes received must be presented at short intervals for payment; and he could not see that it would be any very valuable favor to the banks, as a permanent system, to receive their notes merely for the purpose of immediWe take great pleasure in placing before our read-ute presentment and payment." At the present session, ers, in a conspicuous manner, the very interesting Mr. Wright said: If the notes of the banks con and able letter from the hon. N. P. Tallmadge to re-tinue to be received in payment of the public dues, corder Riker. Mr. Riker applied to Mr. Tallmadge, and the depositaries are directed, as in that case when the bearing of the sub-treasury bill, as passed they unquestionably would be, to call frequently by the senate, was a matter of conjecture in this and at short intervals for the balances against the community, for information on this subject, so preg-banks, and to demand specie for those balances, this nant with momentous consequences to this commer- must operate as a powerful check upon all the banks dangerous projects. cial city. The letter has been hastily drawn up by in the vicinity of those depositaries where the colMr. Tallmadge in reply; and the s :bject to which it relates being one of immense public interest, and upon which the views of every patriotic citizen and faithful republican ought to be freely expressed, Mr. Riker has consented to its publication.

From the New York Times.
MR. TALLMADGE'S LETTER.

WASHINGTON, March 23, 1838. Hon. RICHARD RIKER Dear Sir: You ask my opinion of the sub-treasury bill as it passed the senate. I will give it as briefly as possible.

lections are large."

From the above quotations, and from the sources from which they coine, I trust there can no longer be any doubt on the public mind as to the manner in which the sub-treasury bill, if it shall become a law in its present shape, will be carried into effect; say whether the receipt of the notes of specie payand I leave it to the judgment of every rational man to ing banks, under such regulations, and under the Before the bill was engrossed, the 23d section, not far worse than the positive and absolute receipt discretionary power claimed by the executive, is originally introduced by Mr. Calhoun, and common- of gold and silver only? In the latter case, the banks ly called the specie clause, was stricken out. Mr. would only suffer in consequence of their specie Tipton then moved to insert a section in its place, being drawn from them, and deposited in these subrequiring the notes of specie paying banks to be re-treasury vaults, by which they would be disabled ceived in payment of the public revenues, under to extend those accommodations to which the mersuch restrictions and regulations as congress should cantile community is entitled. In the former, it provide, which was rejected. A section was then would subject thera to the same inconvenience by adopted, on motion of Mr. Webster, taking from the the presentment of their notes for specie, and put it secretary of the treasury the power of discriminating in the power of the executive to pull down or build as to the kind of funds to be received in the different up any bank be pleased, from the manner in which

There is no occasion to despond. The spirit here is good. We are in earnest, and our resolution is fixed and firm. Let but the people have an oppor tunity to see this matter in its true light, and an end will be put, ere long, to these pernicious and Very respectfully, yours,

N. P. TALLMADGE.

STATE OF THE TREASURY.

LETTER FROM THE SECRETARY OF THE TREA

SURY,

Transmilling the information required by a resolution of the house of representatives of the 24th instant, in relation to the amount of treasury notes issued; the amount of the same which has been received in payment of the public dues up to this time; also the amount of moneys received on account of the customs, &c.

TREASURY DEPARTMENT, March 28, 1838. the following resolution, passed by the house of SIR: This report is submitted in compliance with representatives on the 24th instant:

to this house, at as early a day as may be found pract "Resolved, That the secretary of the treasury report cable, the amount of treasury notes issued under the authority of the act of the last session of congress, and