Bills on London, 60 days sight, 14 a 143 per cent. prem. 66 France, Savannah, แ 66 do. 5 per cent. dis. a 2 do. 66 66 New Orleans " American gold, do. Spanish dollars, Carolus do. Half dollars, Mexican dollars, Five-franc pieces, Doubloons, do. patriot, $5 10 a $5 13 each. 5 10 a 5 20 do. these nine pamphlets to any one who should order them from London, would be more than the whole amount of the annual subscription to the Register. THE BANK CONVENTION.-This body assembled at New York on the 27th November, and adjourned on the 2d instant, to meet again on the 11th of April next, without fixing any day for the resumption of specie payments. The proceedings of the convention, in detail, as far as we can obtain them, will be given in our next paper; and in the mean time we are only enabled to state the following particulars: The convention was organised on the 28th, by the appointment of the Hon. Samuel Hubbard, of Boston, as president, and Messrs. Wm. D. Lewis, of Philadel phia, and H. M. Brent, of Virginia, as secretaries. The number of delegates present was 135, representing 18 states, as follows: Maine 2, Vermont 7, New Hampshire 2, Massachusetts 15, Rhode Island 5, Connecticut 17, New York 37, New Jersey 12, Pennsylvania 10, $17 20 a $17 30 each. Maryland 6, District of Columbia 2, Virginia 7, North 16 55 a 16 65 Carolina 2, South Carolina 2, Georgia 1, Ohio 1, Kendo. tucky 3, Indiana 1. The members voted by states. 98 a 99 each. do. do. WEDNESDAY, DECEMBER 6, 1837. On the same day a committee of one from each state was appointed to report some measure for the action of the body. On the 30th this committee recommended that the first of July next be fixed for the reOn this report a dissumption of specie payment. cussion took place, which continued until the period of adjournment, and resulted in a resolution, as above stated, to designate no day. The states which were in favour of fixing the 1st of July for the resumption, were as follow: New York, District of Columbia, Virginia, North Carolina, South Carolina, Georgia, Kentucky, and Ohio. All the others, with the addition of Delaware, which was represented on the last day or two, and with the exception of Maine, which was equally divided, voted against it, being 8 votes for, and 10 against, the EXCHANGE. As the rate of exchange on foreign countries is the best index of the state of a currency, we have given, as the reader is aware, weekly quotations, commencing on the 1st of July last, as furnished by the New York Price-Current, the market of that city being the one which fixes the rate at all the other northern cities. At page 50 of the Register was given the rate of exchange on London at New York, monthly, from the year 1833, to 1836, both inclusive, and to make the chain complete for those who may wish to refer back to the period anterior to the suspension of specie payments, we have given in this day's Register, at page 187, monthly 1. The Financial Register is published every alternate quotations for the first six months of the pre-Wednesday, on a super-royal sheet of 16 octavo pages, comsent year, taken from the same authority. mencing on the 5th of July, 1837, and will comprise one volume The mode of computing the true par of exchange will be found at page 80. 2. The price of subscription is three dollars for one copy, or five dollars for two copies, per annum, payable in advance. 3. No subscription will be received for a less term than one year; and in all cases prior to the first of January nert, where mon ey is remited from a distance, it will be considered, unless otherwisetexpressed, in payment of the current volume, and the back numbers will accordingly be forwarded. Money in Philadelphia continues abundant for those who have undoubted security to offer. On collateral security of stocks, or, on post notes it can be had at bank interest; the mail is assumed by the publisher. upon mercantile paper, it can be had at 8 to 12 per cent. We give to-day Mr. Samson Ricardo's pamphlet on the late money crisis in England. This makes the fourth of the seven recent publications reviewed in the Edinburgh Review for April last, that have been republished by us. The remaining three will be given in future numbers, as will also two others that have lately reached us. The cost of 4. All postages must be paid, but the risk of miscarriage by 5. Any postmaster, or other individual, who shall remit ten dollars at one time, shall be entitled to five copies. 6. The notes of banks of five dollars' denomination and upwards, which pass current at the capital or in the principal town or city of the state in which the person who remits them resides, will be received in payment, as will also the notes of the banks in all the Atlantic cities, if transmitted any time before the first of January next, after which the publisher may find it necessary to alter this stipulation. Subscriptions received by Weeks, Jordan & Co., Boston; P. Hill, No. 11 Old Slip, New York; Adam Waldic, Carpenter Street, Philadelphia; 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, DECEMBER 20, 1837. From the National Gazette of June 3, 1837. NO. III. No. 13. war premium of insurance added to the cost of export, than a power of expansion was generated, which seemed to the issuers of paper money to have no limits. The consequence was, a great augmentation of loans, of circuThe first Bank of the United States was in-lation, and of dividends, so that the speculative corporated on the 25th of February, 1791, mania, which was at first resisted by the legiswith a capital of ten millions of dollars, of lature, finally seized upon that body, and a bill which the sum of six millions was payable in was passed early in 1813, for the creation of government stocks, and two millions in specie, twenty-five banks, with capitals amounting in to be subscribed by corporations, companies, the whole to 9,525,000 dollars. This bill did or individuals. The remaining two millions not receive the sanction of the governor (Sny. were subscribed by the government, and paid for by a loan made to it by the bank. Its charter was limited to the 3d of March, 1811, prior to which period application was made to congress and to the state of Pennsylvania, for its renewal, but without success, and the bank was consequently compelled to wind up its concerns. der), and it failed to become a law; but at the succeeding session the subject was renewed with additional zeal, and a bill for the incorporation of forty-one new banks, with capitals amounting to upwards of $17,000,000, receivcd the votes of both houses. This bill was also met by the veto of the same governor; but, two thirds of both branches concurring in its support, it became a law on the 21st of March, 1814. and thirty-seven of the banks, including four in Philadelphia, went into ope ration. The charters were for ten years, and most of them have been since renewed. Antecedent, however, to this result, but in almost certain expectation of it, there had sprung up in various parts of the Union a rage for the establishment of banks, designed to supply the vacuum about to be occasioned by the expiration of this charter. In Pennsyl- Amongst the loans made by the banks subvania, especially, where the bank was located, sequent to the declaration of war, was a very this spirit showed itself, in the years 1809 and large amount to the general government in 1810, to such an extent that the legislature, subscriptions to its funded debt, and in the on the 19th of March of the latter year, pass- purchase of treasury notes. The solidity of ed a law prohibiting unincorporated associa- the security offered as to ultimate payment, tions, for such they were, from issuing notes the favourable terms of some of the loans, and or pursuing any of the operations of banking, the appeals to the patriotism of capitalists, all but without producing the desired effect. excited the banks to make large contributions, Unlawful banking was still persevered in, and they not only subscribed largely themand as the measures of the government, selves, but they lent money to individuals to commencing with the embargo in Decem- enable them to subscribe. By the enormous ber, 1807, and ending with the declaration of issue of paper incident to these loans, the cur. war in June, 1812, and embracing the non- rency became depreciated to such a degree, importation and non-intercourse laws, had a that the specie began to find its way out of tendency to withdraw capital from foreign the country in the purchase of goods which commerce, and to give it a faulty distribution, had risen to war prices, through Canada and which created undue speculations at home, all the ports of New England, some of which were these banks seemed to find profitable employ-exempted by the enemy from a rigorous block. ment. The last named event, namely, the de-ade. At length the inevitable effects of overclaration of war, gave a new and more power-issues began to show themselves. In the latter ful stimulus to paper credits. So long as there end of May, 1814, news reached Philadelphia was an outlet for specie, there was some check that the banks of New Orleans, at that time upon the issues of banks, but no sooner was a three in number, had stopped specie pay 194 ments on the 27th of April. This measure was ascribed, by a mecting of the citizens of New Orleans, partly to a want of a good understanding amongst the banks themselves, partly to the restrictive laws of the government, which had destroyed their foreign commerce, but chiefly to the circumstance that those who brought produce down the Mississippi for sale, took specie back with them in return. The apparently local causes assigned for this suspension probably prevented the news from producing any very sensible effect at the north, and it was not until the march of the enemy upon the seat of government, that a domestic run upon the banks commenced. deceived with the notion that bank notes were not depreciated, but that specie had risen in value, were very well satisfied at the new state of affairs. The similarity of the condition of things at that period, and what will hereafter take place throughout the United States, if the banks do not act with wisdom and promptness, may be discovered from a perusal of the following extract from a report made to the senate of Pennsylvania on the 29th of January, 1820, by a "Committee appointed to enquire into the extent and causes of the general distress," at that time prevailing. Nothing but prudence and firmness on their part can save the whole country from the disasters which have desolated the cities and large towns. Without them all the sacrifices which have thus far been made, will have been so much misery absolutely inflicted for nothing. The news of the battle of Bladensburgh, and the capture of the city of Washington, both of which events took place on the 24th of August, was accompanied by a general belief, "Money lost its value. The notes of the city banks that Baltimore and Philadelphia would share became depreciated 20 per cent., and those of the the same fate. People having bank notes and country banks from 25 to 50; and specie so entirely deposites ran to secure their amount in specie; disappeared from circulation, that even the fractional and the result was, that the banks of Balti-parts of a dollar were substituted by small notes and tickets, issued by banks, corporations, and individuals. of August, The depreciation of money enhancing the prices of more stopped payment on the The false delusions of artificial wealth in those of Philadelphia on the 30th, and those every species of property and commodity, appeared of New York on the 1st of September. That like a real rise in value, and led to all the consequences this event was quite unexpected may be judged which are ever attendant upon a gradual advance of prices. from the fact, that, so late as the 25th of Au- creased the demand of the farmer for foreign produc gust, the banks of New York, at a general tions, and led him to consume in anticipation of his meeting, adopted this resolution: "Resolved, crops. The country trader, seduced by a demand for That in the opinion of this meeting there does more than his ordinary supply of merchandise, was not exist any necessity for a suspension of tempted to the extension of his credit, and filled his store at the most extravagant prices, with goods vastly specie payments." beyond what the actual resources of his customers At the period of these suspensions of spe- could pay for, whilst the importing merchant, having cie payment, which were sustained in the no guide to ascertain the real wants of the community but the eagerness of retailers to purchase his com principal cities by public meetings of mermodities, sent orders abroad for a supply of manufac chants and traders, it was generally undertures wholly disproportioned to the effective demand stood, if not positively stipulated, that the of the country. Individuals of every profession were measure was only to continue during the war. tempted to embark in speculation, and the whole com. The banks, accordingly, with the honest de-munity was literally plunged into debt. The plenty sign of carrying out that intention, immediate-of money, as it was called, was so profuse, that the managers of the banks were fearful they could not ly began to contract their discounts, as the find a demand for all they could fabricate, and it was only means of accomplishing the desirable re- no unfrequent occurrence to hear solicitations used to sult. Unfortunately, however, no demand for individuals to become borrowers under promises, as to the fulfilment of the pledge was any where indulgence, the most tempting." made by the public immediately after the news of peace was received in the month of February, 1815; and the banks finding it a profitable trade to continue to exchange their notes for those of individuals and for government stocks, upon which they received whilst they paid no interest, gave themselves no concern about a resumption of specie payments, whilst the mass of the people who had been The precise date of the stoppage of the Baltimore banks is not stated in Niles's Register, or the Philadelphia papers of that period. The newspapers were sus pended on the 27th of August, and it is probable that the banks preceded them. During the continuance of this suspension of specie payments, the government, like all other dealers, paid its debts and collected its revenue in bank notes, not redeemable in coin. Nay, its wants were so great, owing to the expenses of the war, that it was even obliged to borrow large sums of money in the same currency, at a sacrifice of twenty per cent., thereby giving to the lenders in some cases, for eighty dollars in bank notes, worth perhaps sixty-five dollars in specie, a certificate of stock for one hundred dollars, bearing six per cent. interest, payable at a future day, and actually since paid in coin. Its poverty and embarrassments deprived it of all power "It is impossible that such a state of things should Under this state of things it was natural feated by the veto of the president, Mr. Madi- Previous, however, to this event, Mr. Dal- the obstructed state of the circulating medium ure "The suspension of payments in specie by many of the most considerable banks in the United States, and of those most important in the money operations of the treasury, has produced and will continue to cause difficulties and embarrassments in those opera tions. The circulating medium of the country, which has consisted principally of bank notes, is placed upon a new and uncertain footing, and those difficulties and embarrassments will extend in a greater or less de- On the 13th of February the news of peace gree into the pecuniary operations of the citizens in was received, which happy event requiring an general. The powers of congress, so far as they extend, will be required to be exerted in providing a remedy for important change in the fiscal arrangements these evils, and in placing, if practicable, the currency of the government, the secretary was called of the country on a more uniform, certain, and stable upon for a report of his views, which he prefooting." sented on the 20th of that month. After giv Shortly after making this report, Mr. Camp-ing his estimates respecting the future probell retired from the treasury department, and was succeeded by Mr. Dallas, who, on the 17th of October following, in a letter addressed to Mr. Eppes, chairman of the committee of Ways and Means, adverted to the currency, and the general derangement of pecuniary affairs, and expressed himself in the following confident terms: The proclamation issued by Mr. Van Buren in May last was a copy of this. ↑ The banks of New England did not stop. All those south of Connecticut did. Those of Ohio and Kentucky held out until the latter end of the year. The bank of Nashville continued paying until August, 1815.-See Gouge on Banking. spects of the receipts and expenditures, he "The alternative, or concurrent resources of trea- true ground, which was, that the creditor of a bank which did not pay its notes agreeably to contract should be entitled to receive in. terest, if demanded, as in the case of any other debtor. The proposition, however, did not meet with much favour. It was probably not attended to by many of those to whom it was addressed, and as the government had no power to enforce its adoption, it fell through. The failure of this attempt was communicated to congress by the secretary, in his annual report of the 6th of December, 1815, in the following terms: government. In the operation of a bank, the facilities The plan was certainly very judicious, as of bank credits supply the place, in a very important far as it went, and placed the subject upon its degree, of the issue of notes, so that a bank loan of thirty millions of dollars, for instance, would probably require no greater issue than six millions of dollars in notes. On the contrary, the whole amount of what ever sum is to be raised by an issue of treasury notes, must be actually sent in the form of treasury notes throughout the various channels of credit or demand." Notwithstanding, however, all the efforts of Mr. Dallas, congress adjourned, after a session of near six months, on the 3d of March, without adopting any provisions for a restoration of specie payments, and the secretary was left to resort to the expedients which he might himself invent. By this time the treasury notes were falling into discredit, owing to the refusal of some of the banks to receive and pay them, and the secretary accordingly issued a public notice on the 15th of June, 1815, declaring that, from and after the 1st of August following, no collector or receiver of public money should receive, in payment of debts due to the government, the notes of any bank that did not redeem its notes in gold or silver, which should refuse "to receive on deposite, credit, re-issue, and circulate treasury notes, the same as cash or its own bank notes." This penalty produced the desired effect with most of the banks. Some few resisted, and, by an order issued on the 15th of August, their notes were proscribed, from and after the 1st of October following. Having effected this arrangement as a means of upholding the public credit, the secretary, on the 12th of October, addressed a circular to all the banks, containing a plan, the design of which was "to restrain the excessive issue of bank notes: to render bank notes a more adequate substitute for gold and silver, as a circulating medium; in a useful degree to equalise the exchange between the different states; and probably to accelerate the much desired return of specie payments." The chief outlines of the plan were, "It is a fact, however inconsistently proved, that these institutions cannot, at this time, be successfully employed to furnish an uniform national currency. The failure of one attempt to associate them with that that agency, in circulating treasury notes to overcome view, has already been stated. Another attempt by the irregularities of exchange, has only been partially successful, and a plan recently proposed, with the design to contract the issue of bank notes, to fix the public confidence in the administration of the affairs of the banks, and to give each bank a legitimate share in the circulation, is not likely to receive the sanction of the banks. The truth is, that the charter restric tions of some of the banks, the mutual relation and dependence of the banks of the same state, and of the directors of each bank conceive they owe to their im banks of different states, and the duties which the mediate constituents upon points of security or emolument, interpose an insurmountable obstacle to any voluntary arrangement upon national considerations alone, for the establishment of a national medium through the agency of the state banks." "It is nevertheless with the state banks that the mea He then goes on to say-"The establishment of a national bank is regarded as the best, and perhaps the only adequate resource to relieve the country and the government from the present embarrassment." 1. That the banks which had suspended specie payments should agree to pay six per cent. interest per annum, in specie, to the holders of their notes, or the owners of depo- In consequence of this recommendation, a site money, giving to the creditor, in lieu of the note or his check for the deposite money, a bill in writing, not negotiable or transferable, so as to convert an immediate demand for specie into a postponed demand, as in the case of a post note, and, 2. That the banks should pay interest to one another for balances, in specie. 3. Those banks that should refuse to come into the arrangement should be refused all credit by the other banks, as well as by the government. bill for a national bank was reported to the house of representatives, on the 8th of January 1816, and whilst it was pending, the committee on the national currency, of which Mr. Calhoun was chairman, addressed a letter to the secretary, proposing to him the following enquiries: 1st. "Is it practicable or expedient, at present, to collect the dues of government in gold, silver, and copper coins, treasury notes, and the notes of such banks as pay specie for their bills ?" 2d. "If this be not practicable or expedient, at present, when ought an act directing the dues of govern |