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No. I. Conceiving that I could do nothing better for the community, at this thai', than to throw before them my views upon the present state of the limes, and the rentarly essential to their change; and that the discussion of these topics, even it Wrong myself, might lead to beneficial results, induces me to take up these important questions. The first thing that strikes every one, is the extreme scarcity of money You go to the met. chant, he is confounded. The post brings nothing but protests; the brinks, nothing but rejected offers. His stocks nothing but ruinous depressions; his goods nothing but credit; his debts nothing but delays: his tenants no rent. You go to the mechanic, the trader, the accountant, the doctor, Tire lawyer, the laboring man, all present the same gloomy aspects!arid even the great State itself has neither money nor credit! Every body en quires what has become of the money! Where are all the millions of gold brought into the country by President Jackson! Where are all the millions of specie that our cotton brought! and where the immense sums that foreign capitalists send here for investment! The answer isall is goiae!--all is gone!! Wise men of all parties look all around the monetary business for a speck of hope, but none is to be found. Let us, then, find out the leak that threatens to sink the ship, and see what we can do to restrain it. I contend that its cause is of foreign and domestic origin. First, as to the foreign cause. The great foreign cause is the irnmene importation of foreign merchandise and produce, that has come to our shores nearly free of duty. This has turned the balance of account against us, and made foreign exchange so high, that those who had to pay for it have been industviously at work shipping specie abroad, instead of buying bills of exchange; whilst the sums paid the Government for duties have not been adequate to discharge the Government oxpertses! Again--a vast deal of foreign grain has been brought here that had to be paid for in specie. A new era, it is true, in this country, but admonitory of disastrous results for the nation, if we do not profit by it, to change our course. Our country then, notwithstanding all its great power of producing, presents the lamentable spectacle of being so much in debt to foreign nations, that we are nine and a ira/f per cent. below them in exchanges, with an accumulating debt that threatens to strip us of every dollar of our specie; and which, to accomplish, needs but the return upon our hands of our stocks sold abroad. Let these be sent home upon us, and our Banks will be forced to suspend specie payments. Look at the state of things with the Banks. Throughout New York and all the Eastern States, the drain of specie for foreign account has been so great, that those states have all the small channels of circulation filled with one dollar notes, of every hue and character, so that not one man in ten can discriminate between the genuine and spurious!--Yet, with this decided banking advantage in their favor, the line of discounts by those banks has been drawing tighter and tighter, to the imminent peril of the mercantile and manufacturing interests--and their almost certain destruction. Now look around us, here, where the spirit of speculation has been kept somewhat in check by the moral tone of public opinion, what is our condition? Are we any better off than our neighbors! I have too often in the last fortnight, heard the complaints, and witnessed the throes of our community not to be fully aware we are no better off than they!-The interests that have mainly suffered in the last two years has been the commercial and mariut'ac. turing. The agricultural, although a sufferer from the failure of the crops, did not sustain the same set of reverses as did the others. Their recuperative energies were blasted but for a season. The others for an age. The Agricultural sufferings are now about to coinwenceand unless they come to the rescue the country will be plunged into irretrievable difficulties. The crops of the country are vastly abuadant, the seillers however must find bayes, and these must be payers alsoor the harvest is reaped for nought. Upon this theme I will at another time enlarge. Having stated the foreign cause 1 come now, to the domesticAnd this may be fairly stated to arisefirst, from the failure of the crops comprising the bread stuffsand secondly from the enormous multiplication of corporate companies for banking, railroad and other purpo see. These have rolled like a tide of evil over the countrycreating a thirst for speculating, trading and improvement far beyond tire abilities of the nation or its essential want. Whilst like so many sponges they have sucked up the real capital of the country, thus putting it in a state ofdistension, incapable of beii.g aroused to available purposes hence the tendency of the stock market is down ward to the lowest point of depression. The foreign demand increases with every ship that arrives in our portswhilst inability to satisfy it increases in the some ratio! Here let us pauseAbroad our statesmen speak of the closeness of those ties which make the prosperity of America depend. ent upon those of England! At home we hear the same remark, from all classes of men. Humiliating, despicable tiesThat bind the energies of of a free and great people to the fortune and destiny of a Foreign Notion.The farewell warnings of the good and great Washington have fat len upon marble ears "EavTAN ;LING ALLIANCES WITH wows." Now every wind that blows, tills us with fear that on entangling alliance, will involve us in ruin! where let roe ask is the Independence of the Nation! C. J. J
AMERICAN SENTINEL
AND
J7&NTI1L ADVERTISER.
PHILADELPHIA:
Monday, September 30, 1539.
TON THE AMERICAN SENTINEL.
IMERHJAN SENTINEL
Sattirdaw, October 11
, L39.
FDATSI ANISICASa*fllEI.
No. V. Having diepose4 of the several questions appertaining to the Banks, I am desired to give my views in relsiioh to the subject of a legislative in qulry into their condition. It is Cot to be denied, that there is a large party in the nation entirely Opposed to the institution of Banks.-'.'l'hat this party have been miskd and mistaken in their course upon this subject, is of no consequence, In considering their influence upon the public 4nind. This is th.ir position, and they avail theinselves of every occasion to advance their favorite tenet.. Unfortunately, for the public safety and public_ "o d;- the condition of the times has been a pow. erful engrire in their favor, and now they point with exultation to the 1fulfilment of all their evil I prophecies against (he banks. This class of men clipped their bands with delight when they saw the man of the people, 1s1 popular giant, Andrew Jackson, issue his veto. It was the consummation of their hopes. They saw in it that glow of mischief towards the Banks that has since so amply . manifested itself in all that syetaina to th!,coyfl '.. 1r aid thO cerrency. This party is the real Rad. .ical party. It is not deirrocraric, although at present incorporated with it. it is not whig. It 1 is not national. It is not American. It is strictly an English party, deriving its principles, its views, and iss concealed hosriljy to the prosperity of this country, itOi* that foretn source. I nom ask it, the better to. understand its operation.. Alt this party are now loud in their clamors for an investigation. What is to be gained by it to the people. Would they po-fit by it! 1 answer emphatically--no! What we all want to make us prosperous and happy as a people, is stability and Jernailency in the principles that guide th :msnuIaclu , trade, and currency, and the exchanges of fit.- nation.'The national policy, like the national laws, should be clear, simple and comprehensive to every mind! It cannot be 'lierued, nor doubted, that the uncertainty which has existed upon these cardinal points, boo mainly conduced to that confusion, distress and over trading, which is now the subject of our corn plaints. Hence ha@ arisen that unsteadiness of public and private action in all the departments of life. The first thing, therefore to, accomplish, is the restoration of the proper axis for these oe,alions to revolve on. Now, all ins, atigatiori by the legislatures of the diflererut statss into the curidi. lion of the banks, instead of bringing public corufi. deuce to their aid, would deprive them of it alto geher! Not that their condition would tend piopeily to such a result, because this is not the true state of the case; but simply, because of all people in the wo lii, the capitalists. I tiiean, the inert of real wealth, are the roost timid, and would then instantly withdraw their investments from their,, and thus throw them ubolly open to the mercy of speculating! Again, such an inquiry wouli lead the Banks into a gresier circumscription of their circulation; and thus the circtulsliiig medium of the nation would be lessened to annihilation. The people would, therelre, be more pressed for manes, and the distress frightfully magnified. Ihe people have nothing, therefore, to gain by such all un - deriaking. but this Radical prty have much.-upluse, for fliere argument sake. that a legislative iriqitry would totally desttoythe Baruits, what power is to make a curtency--paper row? *h say the rsi.itcals, we *aiu a real metallic cuttreac,e We want no paper. Indeed, this is easily - but what would be our contlition at this time ii there were no banks, and no paper currency!'Why, we should be utterly desii ute of any! We should have neither gold nor silver, because the state of our foreign exchange would sweep sway every dollar, as it has already done ever e.ugle!-r. 'The, f.-deed, shuld we be at the mercy of ireigtd nations, and gsurit poverty and worse disease" be the characteristics of a great, magnanimous, arid free people. Heaven save nay country. and countrymen from such theorists and such calamities, But, says another class of liberal radicals, let the states coin this paper money. and give it crrcula. lotion. To irate a thing, or state a priiciple, it easily done, but show us, from any quarter of the Union, any practical scheme, except bankir g, that could Ierforni sun h a duty. Has arty one cccli ill Has any one heard it? Has any roan ex1lained it! Now, then, we clime hark to the question. Is it better for the state, to turn bank. rug institutions, subject to all the fluctuations of patties, than for them to delegate their power. as is is now done for these purposes, to the Bsruk!-Few rational, intelligent, or pairitic minds would embrace the stfirnrative of ibis question. Banks are as necessary ti the happiness, prosperity and perpetuity of our republican ins itutionrs, as the at moelbete is to the dietetics of the people.Neither can live separate and apart But it is said there are abuea in the administration of the Banks, arid these demand legislative inquiries.-To this! reply. Tbee abuses, it they exist, are all now as much within the control of the people as they would be if there was a legislative ii.qulry. 1 be stockholders can meetthey ciii appoint corn. mittees - they can examinethey change the Direction, Presidents, (ashier,, or any officers who may be in default upon this head. It is fur-her urged, that some principle of legislation should be adopted to regulate these abuse,. I reply - this can be done, if necessary, its well without such an inquiry as with it. It will be my pleasure, hereafter, to suggest when the remedy should be applied, upon every view of the goes. him. It is apparent that neither the people, the I stockholder,, nor the public, would derive any advantage, but po-irive injury, from yielding it to the wishes' of the radical,. What then should be doris! - rlooi around ne in amazement. I bO men of capital Irking on with gleirig eyes upon the fields of ripe and proper speculation for them, without an eliort to stretch Out their hands ti gather in the rich harvest. I here they stand, full I of doubt, hesitation and dismay! What do they - want! Goin for their irivestzr,ents, interest for their loans; rnt for their house,; security for them. ,elves and their property. Let them discard their fa )fish fears, and by prompt action crime forward and sustain these irsstituttoa, upon whose cxi.- truce all these things aa.ureiJly depend Let them not wait to hear the whispering of the sea breezes, that bear foreign news upon, their- wings; but let them, as /. merrcsna and philanthropists show their sense and their patriotism, by aiding by their purchases in thy stocks, the public distress! They learn this folly in their pride. In is their duty and their interest, and every just con. ,ideratio,r impels then, to rt. Let not the an, of foreign iac;iuriiste, nor the vaiut fear of Imsees, nor the yet greater crime of foreign detendence, reStrain. tboin at this crisis. Come f rw.urd. I say. and help yourselves and your counutrmen. and the name 01 the rich man shelf no longer be ouhious to the people. n-r a rallying cry for the enernuies of the repblic. Public confidence will be secured - under such operations, and the money of the I country fl.mw like the blest principle of our government, equally to the poor stud to the rich c - J.J.
for the Awerican Sentth& strained. They are only required to have a The Tinies and the Remedy. reserve fund of two millions of specie, over No. VIII. I and above the amount of their liabilities. In discussing the great question of na- Thus if the assets on hand exceed by this tional currency, it is due, not only to the sum, all is right and legal. The list of dis subject itself, but to the community, that counts, as furnished, show what are the the institutions used in foreign countries as nature of these assets. Let us not, thereaids to the supplies of gold and silver, should fore, be deluded by such shadows of prosbe carefully and candidly examined. The perity as these. In another number I shall writer of this has no prejudice whatever clearly show the national causes of French against any project. His only object is to prosperity. C. J. J. serve the country and secure its indepen- p S. i cannot pass over the attempt at dence. He is happy to observe, in all parts imposition so manifest in the French Directof the nation, a strong and growing un- ors' Report. Do they assert that at this pression, that this independence cannot be time the Bank of France has not more than maintained until a strong check is given to forty-eight millions of paper money in cirthe unlimited introduction of foreign manu- culatioul Not much more than one dollar facturesand he is fully persuaded that by for every individual in France And yet the time congress is in session, the show that their discounts exceeds three voice of,, the nation will imperatively demand hundred and twenty, nearly twenty-one the establishment of a high tariff. But, to millions! This is too much to believe in a the examination of the great banking in- christian country, as a deceased General Stitutions of France and England, this of this state used to remark. If we take article will be devoted. I have already ad- their discount we shall come nearer the verted to the many false theories, which mark. the times will bring into being. They are fast rising into notice, and their turns are as apparent as their numbers. From this source, the impression has been almost universally produced, that the riches of France in specie, was derived from her bank; and that the bank was one merely , of deposit, and not of discount. This is a capital error. The fact is, that the bank of France is a bank of larger discount powers than any other bank in the world! an enumeration of these powers will fully sustain this assertion. The operation the bank consist in discounting bills of exchange, or to order, at dates which cannot exceed three months, stamped and guarantied by at least three signatures of persons of undoubted credit; in
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advancing money on government bills at fixed I dates,in advancing money on bullion orforeign gold and silver coin ; in keeping an account
for voluntary deposits of every kind, government securities, national and foreign . shares, contracts, bonds of every kind, bills of I exchange, other bills, and all engagements to
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order or to bearer, gold and silver bars, national and foreign coin, and diamonds, with a charge for keeping according to the value
of the deposite, which cannot exceed an eignth of one per cent. for every period of! six months and under; in undertaking to
recover the payment of bills on account of individuals, and public establishments having accounts current with the bank; to receive in a current account sums from individuals and public establishments, and to pay the engagements it thereby contracts to the amount of the sums entrusted.
All those italicised powers are properly discount powers, upon which the bank receives an advance or profit, and for which it makes advances, and becomes liable! Now the party lending have ~ondavorod, with great succes to produce the impression to which I have adverted but, aware that their arts might be detected, they have mainly arguein favor of the Bank of France, upon the ground of its immense specie basisan argument as unsound as the other was untrue. There is no country in the world that has received from the other nations of the earth as much Specie as the Celestiaf, or Chinese Empire. But how has that enriched her people! It is a fact as equally well established as the other, that there is more real suffering and poverty in China than in any other civilised nation of the world. The people, as a mass, are more needy, ignorant, and enslaved, than any other. Here, then, the argument tried by the faithful test of a parallel case, falls to the ground. What then else do we discover in that, and other nations of similar receipt of coin.Spain, taking the last century as the criterion, has, in like manner, received more specie than any other nationyet, the people are almost in a semi-barbarian state.They have no manufmtures, agriculture, nor commerce, comparatively speaking. Thus, we find,
in the Nations that have had the greatest quantity of specie its circulation amongst them fbr the last century, that the condition of the people has not been improved! The argument would, therefore, be Just as sound to say that specie has been the cause of this oppression of the people, as it is the other way. There is no sound argument to be drawn in this way. Let us examine, however, the state of the specie accounts of the two great Banks of France and England. Reported condition of the Bank of France. Specie, $50,900,000 Obligations, 48,000,000 Balance in favor of Bank, two millions nine hundred thousand dollars. Apparently this is all very well; but what are these 'obligations' Are these the circulation of the Bank? If not so, the institution is not one single dollar more sound than our Banks, at this identical moment! By the law of France, the Bank is compelled to have in hand a reserve fund, answering to our contingent funds, of ten millions of francs. So that taking their "round numbers" as furnished, upon the authority of the Directors of that Bank, they have not a single sons beyond the sum required by law!! Nor, is this all. From the same source we gather the important fact, that the discounts of that Institution, in the year 1838, amounted, at twenty cents to the franc, to the enormous sum of upwards of
three hundred and twenty millions, six hundred and three thousand dollars!! a sum equal
to one half of the whole foreign debt of this country! to meet which amount, the Bank of France had just one-fifth of specie! or in "round numbers, they had $50,900,000 to pay $320,603,000. Now let us contrast this boastful situation, with that of the Banks in the United States, in the year 1837, taken from the Report of the Secretary of the Treasury, viz: STATE or THE BANKS IN THE UNITE)) STATES IN 1837. Circulation, $149,185,890 Specie Funds, $5,366,500 Specie, ' $37,915,340 which in "round numbers"Ieaves the Fcei tage of a little better than three and one-eighth of specie for their obligations! thus showing a difference in favor of the American Banks against that of France, of one and threequarters per cent! So that the comparative situation of the Banks, is decidedly in favor of this country. One other view of this Bank in contrast with our own, will also help us to dispel the mist of party and I prejudice, from the minds of the people. The shares of the Bank of France are 1000 francs each, or in our money, two hundred dollars; by this same report, we are informed, that the dividend per share, in the year