EXCHANGES AT NEW YORK. WEEKLY REPORT. September 16. their concurrence in the proposition which has been sanctioned by the court of directors as to the exclusive privilege of the Bank of England, and are willing to agree that the two clauses inserted in the Irish act of last year, and referred to in the paper communicated Bills on London, 60 days sight, 19 a 20 per cent, prem. by the governor and deputy-governor on the 27th instant, shall be inserted in the bill which will be necessary to give effect to the new arrangement. "The first lord of the treasury and the chancellor of the exchequer cannot conclude without adverting to that part of the paper of the bank which respects branches of the Bank of England. "In their paper of the 13th of January, the first lord of the treasury and the chancellor of the exchequer have stated the reasons why they are of opinion that under all the present circumstances the establishment of branches of the Bank of England would not of itself be sufficient to meet all the exigencies of the country, but they are so far from wishing to discourage the establishment of such branches that they are decidedly of opinion that the formation of them under proper regulations would be highly advantageous both to the bank and to the community. "Fife House, 28th of January, 1826." Resolved, That this court is of opinion, after the fullest consideration, that it is advisable to accede to the proposition contained in the papers laid before the court on the 25th and 26th instant, and this day, and now read, in case the same shall meet with the approbation of the court of proprietors. 66 France, 4 80 a 4 85 fr. per doll. cts. per guilder.. 383 a 39 cts. p. mc. ban. 87 a 87 cts. per rix doll 66 66 46 44 66 Hamburgh, Bremen, 46 66 Boston, at sight, a 14 discount. 66 Philadelphia, Richmond, N. Carolina, New Orleans, 66 American gold, do. new coinage, Sovereigns, do. patriot, 6a8 WEDNESDAY, SEPTEMBER 27, 1837. It will be seen by reference to our quota. tions of the rates of exchange on London and the price of specie, that a fall of 3 per cent. has taken place within the last week. Trea sury drafts have also fallen to 1 per cent. preinium, owing to the probability of the extension of the bonds for duties by congress. Erratum.-In the statement of the condi 95 tion of the New York banks, published at 581 1184 1181 page 92, for 1st of June, read 1st of August. 583 94 101 Printed semi-monthly by A. Waldie, 46 Carpenter street. Price $3 per annum. 16 50 do. む OF THE UNITED STATES. DEVOTED CHIEFLY TO FINANCE AND CURRENCY, AND TO BANKING AND COMMERCIAL STATISTICS. "It is the interest of every country that the standard of its money, once settled, should be inviolably and immutably kept to perpetuity. For whenever that is altered, upon whatever pretence soever, the public will lose by it. "Men in their bargains contract, not for denominations or sounds, but for the intrinsic value.”—Locke on Money. Vol. I. WEDNESDAY, OCTOBER 11, 1837. From the National Gazette of April 19, 1837. No. 8. by which the precious metals are distributed THE CONSTITUTIONAL CURRENCY. throughout the commercial world, is sufficient NO. IV. istence, will assuredly restore the level. Bankruptcies of merchants indebted to Europe, or indisposition to ship specie at a moment of great pressure, may postpone for a while the transmission. The anxiety of the Bank of England to get back a part of the gold which was forced out of her coffers by the unwise measures of General Jackson may, on the other hand, have a tendency to hasten it; but whichever power may prove the strongest for the moment, the contest must end in the transmission. to satisfy any man of ordinary intellect that neither the Bank of England nor the Bank of It is really amusing to see the expedients the United States, nor all the banks in both to which the writers in the Washington Globe countries, with the financial aid of General resort, in order to sustain the soundness of Jackson to boot, could have any effect in per"the constitutional currency" doctrines, and manently altering those laws. When a curto protect General Jackson from the odium rency is deranged by extraordinary disturbing which will inevitably attach to him, as soon causes, and the level in one country is raised as the public mind shall be disabused as to above that of another, the remedy will be his financial skill. Knowing that it is impos-applied by the operations of commerce, and sible to meet the arguments of sound thinkers, those operations are the means which are with even the show of reason, they appeal to now in progress, and which, if all the banks the vulgar prejudices of their readers, and that have been named were struck out of exendeavour to forestall their judgment by the employment of epithets, which, however available in a county election, can have little influence when the great interests of the country are at stake. Hence, instead of attempting to disprove the fact that the distasters under which tens of thousands of our citizens are now writhing have been directly produced by the "humble efforts" of General Jackson to restore "the constitutional currency," you see denunciations of opposition prints in the following strain :-"The United States (old Federal) Gazette," "The National (bank) Gazette," "The American (the apologist for the Dartmoor massacre of the American prisoners of war,)" "The Express (Hartford Convention Journal,)" and "all who are under the influence of the Baring and Biddle presses,' are anxious that specie should be sent to England," and the idea is held out, that the Bank of the United States and the Bank of England have conspired together to transfer General Jackson's forcing pumps from Europe to the United States, and thus to undo the glorious work which he had accomplished. The childish absurdity of an allegation like this scarcely merits to be noticed in a sober discussion upon an important subject, but as it is one of the strong arguments upon which the administration, if it can be judged by the language of its official organ, relics for adhering to the specie circular, it is entitled to notice. 99.66 This result the writers in the Globe seem greatly to deprecate, and hence they have lately published, by way of throwing dust into the eyes of their readers, two statistical tables, which are calculated grossly to mislead the public mind. The first table* gives a statement of the Statement of the gold and silver coin imported from and exported to England, annually, from 1st of October, 1820, to 30th of September, 1836. Year. 1821, IMPORTED. Gold. Silver. Total. $645,529 99,811 1823, 282,822 gold and silver coin imported from and ex-men of the fairness and candour and politicoported to England, annually, from 1st of Oc-economical views of the globe. Its fairness is tober, 1820, to 30th of September, 1836, perceptible in the attempt to balance the sum from which it appears, that, during that imported during the last three years, when the whole period of sixteen years, there was im- current of specie was running in an unnatural ported $10,780,724 channel, with the sum exported during the 11,236,439 first thirteen years, when it was running in its And exported - "It will be seen by the foregoing table that England has taken from us, since 1821, half a million of dollars more than we have taken from her. Of the shipments made in the years 1821 and 1822, one million and three quarters were in gold, and made by the Bank of the United States, as is shown by its own statement. No returns of the export of undutiable articles were made prior to 1821. Could we have embraced in the table the operations of 1819 and 1820, we do not doubt we should have added to the half million many additional millions of specie taken from us by England beyond what we have taken from them. It is well known, that there have been constantly large sums in gold carried out by passengers, in their trunks, which was never reported at the custom-house at all; which altogether, during the years of export, probably has amounted to some millions of dollars. This must also be added to the account. So that in place of England taking specie from us, they must send it to us, to balance the account.' ܙܪ natural channel, and when, from the peculiar position of this country, the United States was the route through which England receiv ed specie from Mexico. Its candour is shown in the assertion, "that there have been constantly large sums in gold carried out by passengers in their trunks, which was never reported at the custom-house at all," without stating the additional fact, that for every dollar in gold carried out by passengers, there were probably ten dollars brought into the country in the trunks of emigrants: and its knowledge of political economy is discernible in the sage remark, "that in place of Eng. land taking specie from us, they must send it to us, to balance the account.' It was But the main object of the publication of this account current was, evidently, to show from authentic documents, that this country had not drawn much specie from England, and that therefore the Bank of England has no right to try to get much for us. for this reason that the statement of the imports was confined to England and not extended to France or other parts of Europe, although every body who is acquainted with the specie operations of Europe knows that the indemnity money received from France, during the last year and the present, was chiefly procured in England. From a table published in the London Public Ledger of 31,903 8th March, "showing the quantity and value 5,716,253 of the precious metals exported to foreign 914,958 countries, in 1836," from England, it appears 2,322,920 that during that year the value of the gold $10,780,724 exported was as follows: These remarks present a very good speci- Year. Silver. $23,824 Total. $44,934 To France, £613,780 EXPORTED. Total. To Hamburg, 368,783 1822, 767,970 To West Indies and 1823, 365,632 Brazil, 70,904 1824, 312,112 To New York, 41,421 $297,762 To East Indies and 572,533 "The customs' accounts, for reasons too obvious to require explanation, do not exhibit the actual export of the precious metals, and only those quantities entered by merchants exporting largely." It will be seen, however, that if France spared us a part of her gold currency, she replaced it by silver from England; so that, in point of fact, nearly all the specie we received from France, was drawn from the coffers of England. In reference to this document the Globe remarks: "The following table of the import and export of specie, for the last sixteen years, will suggest the most important reflections to all persons capable of combining causes and effects. It will be seen that in the years 1821-2-3, there was a great export of specie, and every person will recollect that that was a period of bank stoppages, depreciated paper money, stop laws, property laws, relief laws, The second table* published by the Globe destruction of debtors, and harvest of usurers. shows the total import and export of silver The table below shows the reason: it was the coin and of bullion from 1821 to 1836. From excessive exportation of specie, arising from this table it appears, that during the first the Bank of the United States draining the thirteen years, when commerce flowed west and south of all their specie, and then through its natural channels, there was im- shipping it to Philadelphia. The last period, ported. And exported Leaving as the result of Gene ral Jackson's "humble efforts" to restore "the constitutional currency," $31,349,204 and not forty millions of dollars, as has been proclaimed from one end of the country to the other. From this table two important facts may be deduced, first, that when commerce is left to take care of itself, the export of specie is very nearly equal to the whole sum imported; and the second is, that the amount which we must part with, in order to restore our currency to its natural level, is not as great as has been commonly supposed. $89,428,456 that of 1833-4-5-6, shows the greatest im88,924,738 portation of specie ever known in the United States, and accordingly it is the period of Leaving a balance in the counthe greatest prosperity ever known in the try of $603,718 country." During the last three years, however, when If the former quotation proved a want of commerce was forced into unnatural channels, fairness in the Globe, the present one will there was imported $43,209,451 establish its claims to a bad memory. The And exported 11,860,247 years 1821-2 and 3, at least as far as concerns the Atlantic states, was not "a period of bank stoppages, depreciated paper money, stop laws, property laws, destruction of debtors, and harvest of usurers." The general suspension of specie payments of the banks south of Connecticut, which is no doubt alluded to, took place in August and September, 1814, and was terminated by a general resumption on the 21st of February, 1817. At the period mentioned by the Globe, the country had recovered from the shock produced by that event, and the extraordinary exportations which took place in 1821 and 22, did not arise from the Bank of the United States "draining the west and south" of all their specie, but from a very different cause. That cause was the reflux of the specie which the Bank of the United States had, in violation of the sound principles of currency, imported from Europe two or three years before, and which was precisely of the same nature as the reflux which is now about to take place. So far from the bank having been instrumental in promoting it, it could not have prevented it, any more than any measures of the present administration can prevent the present reflux. As to the prosperity of the country, so much boasted of by the Globe, during the year 1833, when the deposites were removed,-the year 1834, when the gold bill was passed,-the year 1835, when speculation in public lands, stock-jobbing, turn-outs, and Lynch law, were rife all over the land, and the year 1836, when the cur * Table of import and export of gold and silver coin and bullion, from 1821 to 1836, each year ending on the 30th of September. Imported. Exported. $10,478,059 10,810,180 6,372,987 7,014,552 8,797,055 4,704,533 Year, 1821, $8,064,890 1822, 3,369,846 1823, 5,097,896 8,014,880 8,243,476 tion. rency of Great Britain was revolutionised by more than five months the release of that the importation of the French indemnity, and amount in coin which is held on special deour own turned topsy-turvy by the specie cir-posite, it being clear, that the amount which cular, I shall say nothing. These evidences is not held on special deposite will be drained of prosperity are too fresh in the recollection away by the ordinary and necessary operaof the reader, to need a particular recapitula- tions of trade before that period arrives. Silver can be brought to Philadelphia from as great But, says the Globe, the conspirators shall a distance as Missouri in fifteen days, at an not prevail. The specie which General Jack-expense not exceeding one per cent. Gold son pumped up from the Atlantic cities into can be brought at a less expense, and those the interior by the specie circular shall re- merchants of the west and southwest, who main there. It is necessary that it should do have not become embarrassed by speculation, so, in order to prevent the banks of the west will come loaded during the ensuing summer and southwest from stopping payment. In-with coin, as the surest mode of obtaining deed! This is a new view of the matter. fresh supplies of goods upon advantageous General Jackson designed the specie circular terms. It would be wise, therefore, in the to stop the sales of public lands, and he failed merchants of the Atlantic cities, to look to in the attempt. That circular was issued in themselves and not to the government for reJuly, and the sales which took place after lief, and not to attach more importance to a that period, and up to the 1st of March, 1837, repeal of the specie circular than it deserves. amounted to upwards of seven millions of dol- Land speculation has received its death blow. lars, or one million per month. Mr. Van The sales of the present year, with the reveBuren continues it to prevent the western nue arising from duties, will not be more than and southwestern banks from stopping pay-adequate to meet the appropriations of the ment; by which the surplus revenue in their year. There can be no more government hands would be in danger of being lost, and hoarding on special deposite, and if lands are the states thereby deprived of their respective paid for in specie, the public disbursements shares, and the government of its popularity. must be paid in specie, and the public will But can such a flimsy barrier prevent the sustain no evil from a perseverance in the laws of trade from having their due course? folly. Are not the merchants of the interior indebted to the merchants of the sea-board fifty millions of dollars for merchandise, of which a large proportion is now due and payable? Must not collections be made during the pre- "President Jackson is gone, but the author sent year by agents sent out with orders, if of the letter to Sherrod Williams is in the they cannot procure undoubted bills on the presidential seat; and the specie policy is still cast, to bring with them the specie? Must the order of the day. The public will recolthere not therefore, inevitably, be a demand lect that letter, and with how much emphasis upon the banks for coin, and if they refuse to it rested upon the increase of silver and gold, pay one demand, will there not be a local run the circulation, the suppression of notes under upon them, that may drain them of their last twenty dollars, and the coinage at the three dollar? Just as certain as that the specie left branch mints. We venture to predict that the interior in 1821 and 1822, in search of its specie will go on increasing at the rate of level, so certain is it that it will leave it in several millions per annum during the whole 1837 and 1838, and if it be not with the con- of Mr. Van Buren's administration, and that sent of the administration, it will be without GOLD will be a common currency before his it. And besides this, it is difficult to imagine, time is out. The three branch mints will go how the executive can retain a dollar of the to work this summer, and congress has put amount collected in specie in 1836, after the it fully in the power of the administration to 1st of October next, the day of the last quar- keep them at work. By an act of the last terly distribution, seeing that by the law of session of congress, the sum of one million congress, the residue of the fund at that pe- of dollars may be kept at the mint to supply riod will be transferred to the states; and it with metal; and by an act of the previous surely that part of the amount which General session, an unlimited amount may be transJackson in his solicitude for the public good ferred to the mint and its branches for the directed to be collected in coin, must be paid same purposes. Thus, the supplies of metal to the states in coin. The most, therefore, will be ample, for it will be unlimited; and that can be effected by an adherence to the the public may rest assured, that the successor specie circular, will be, to postpone for a little to President Jackson, the author of the letter As to the vain boasting of the Globe of the 15th instant, in an article which seems to have alarmed some editors, it is mere empty declamation. It says: |