they could be universally compelled to conduct their business with security to the public.

CHAPTER XXVII.

Opinions of Mr. Easthope with reference to the existence of one bank of issue in London, and to publicity of ac

counts.

I. ONE BANK OF ISSUE IN LONDON.

that, if its exclusive privileges were withheld from the Bank of England, a number of institutions would be speedily established in London, with capitals sufficient to render them perfectly solvent, and with a certainty that their affairs would be carried on in a manner conducive to the public benefit.

But it must be admitted, that the opinion here expressed, with reference to the establishment of numerous banks of issue in London, is entirely speculative. [5,694.] It [Easthope, 5,844] A free trade in banking, cannot be denied that much would depend though not without its evils, would, upon the upon the prudence of the parties conducting whole, afford greater securities for a sound them. [5,872.] When there is a rise of currency than the continuance of the bank prices, and consequently a tendency to enterupon the present plan of its exclusive privi- prise, great temptations are thrown in the leges. The free system, especially if it were way of a banker to augment his circulation. attended with publicity, would afford a safe- It is unquestionably his interest to increase guard against excessive issues and consequent his issues as much as he can, upon good securevulsion, by one checking the other. [5,850.] rity, in order to make profit consistently with The return of their paper upon banks dealing his own safety. [5,873.] A discreet banker under competition would, in this way, effec- would look to his means, and render his actually protect the public from a redundant commodation strictly commensurate with his circulation. [5,851.] Periods of great dis- ability. [5,877.] That should be the guide tress and convulsion would not occur under a of his transactions. He should not, as the free trade in banking, so often as they have bank directors do, mix up the character of a arisen under the monopoly; for this obvious legislator (as to the currency) with that of a reason, that, assuming the trade to be com- banker. [5,881.] There is, unquestionably, pletely controlled by public observation, it a certain class of bankers who would look to would not be subject to the same kind of the principle of their own safety as paramount jealousy and distrust that must always attend to all other considerations, [5,889 ;] but anany system which is involved in mystery and other class may be imagined, who would be concealment. governed rather by more direct views of what A difficulty would undoubtedly exist upon they would conceive to be their immediate one point. [5,856.] It would be part of the interest. Much, in truth, may be advanced duty of those who issue bank paper in Lon- upon both sides of the question. "I am under don to manage the foreign exchanges; and an impression," says Mr. Easthope," [5,894,] the accomplishment of that purpose would be" arising from one view of the case, that ten more perplexing if it were to be confided to banks checking each other by the over issues ten companies than if it were left to a single acting to expedite returns, would tend to precorporation. There would, however, be pro- vent repetitions of excess. Then I can imabably less necessity to refer to the exchanges, gine also a state of things by which there if other checks were interposed. The bankers may not be that union and that concord, and might agree amongst themselves to take mea- in which different rival issues may for a time sures for the effectuation of a common object, be thereby increased, as well as from a variety by interchanging their opinions freely, in the of other causes, such as every person accussame manner as is now done by the London tomed to banking must remember in the course bankers, amongst whom a strict community of his life. Prudence may be lost sight of by of interest is understood to prevail. [5,866.] some part of the ten banks, and this of itself An intercourse of that description would not may lead to redundancy. Then, again, as it necessarily lead to combination; it might respects a single bank, though it be subject produce a sort of concord of the banking con- to publicity, yet I can imagine that the percerns, but it would not prevent their rivalry. sons who are in the management may over[5,867.] It would comprise the advantages of look the rules of discretion, and their responcommunication, without the evils of monopoly. sibility to public opinion for a time; so that [5,869.] There is no reason why the princi- I have great difficulty about it; it is quite, in ple of private interest should not have the my view, a speculative question." "I am insame influence in banking, when free, as it clined, on the whole," he states in another has in every other trade that is relieved from part of his evidence, [5,884,]" to think that restrictions. [5,848.] Nor can it be doubted more security would be obtained by the

who retired, and after some time reported the following, which were adopted :

Whereas, under the peculiar circumstances in which this community finds itself placed by the suspension of specie payments by our sister city of New York, and whereas, in the existing state of the balances between the cities which would cause a certain abstraction of the chief part of our specie basis, much of which

could never be reclaimed; and whereas, the measure has been recommended by a large meeting of citizens, to the proceeding of which publicity will be given in the morning. Therefore,

Resolved, That this meeting recommend a temporary suspension of specie payments as a measure which, however painful, will be less disastrous to the community and institutions of this city and county, than a vain attempt to continue its payment for all the obligations of the banks in the present state of things. Resolved, That in the meantime, the notes of all the banks will be received at the different banks as usual in payment of debts and in deposite.

SUSPENSION OF SPECIE PAYMENTS.-The important step taken by our banks yesterday, has been regarded by intelligent citizens generally as the only measure left to them by the unhappy necessity of the case. But for this resolution, our city would have been drained of its specie within forty-eight hours, to answer the demands, and accommodate the brokers of New York and Baltimore. A large portion of the benefit of the measure would have been lost if any bank had declined to join with the rest. Great credit is due to the United States Bank for her accord, by which step Mr. Biddle has surrendered his reluctant consent, in obedience to the obvious interests of the community, without impairing, in general opinion, the stability or fame of his institution.

[Easthope, 5,862] If the Bank of England were, however, compelled to publish its accounts, it would not be desirable, at least until after the effects of that improvement should have been fairly tried, that there should be any interference with its monopoly of the circulation of the metropolis. [5,863.] If the present system of issue were combined with all the advantages of publicity, it would, as being the least change in a case in which considerable doubt and great anxiety must prevail, be candidly pronounced to be the most expedient course. [5,864.] No danger could accrue to the bank from the periodical publication of the amount of bullion in its cof. fers; the great danger arises, in fact, from secrecy. There is at present just enough of concealment for the purpose of mischief, but not enough for the purpose of good. [5,911.] There is no reason why the public should not have positive information, from time to time, as to the amount of the currency. The issues of the bank should be always open to scrutiny, because they form the basis of the credit of the country. [5,931.] First there should be an avowal of the principles upon which tion are absolutely requisite. The holders of bank the bank was to be conducted, and then a paper will find that it is available, and will be deemed plain statement of its issues and assets, in- current by men of business generally, and the small cluding the bullion. [5,934.] The form and be answered. Let every citizen feel, that in the preoccasions for specie for domestic purposes can readily frequency of the publication is a matter of sent juncture, the interests of the banks are closely inmere detail; but the object should be to re-terwoven with his own; and forbear to seek revenge on move completely the concealment which now exists. In order to make a trial on those grounds, the charter might be renewed for a short period, the shortest in which the result of the experiment could be fairly proved.

(Continued at page 209.)

REMINISCENCES OF THE LATE STOPPAGE
OF SPECIE PAYMENTS.

From the United States Gazette of May 12, 1837.

Proceedings of a Meeting of the Officers and Directors

of the City and County Banks.

In this calamitous crisis, forbearance and modera

them for an act of self-defence and unavoidable neces sity. The provisions of the act of assembly of 1814, the kindness, co-operation and clemency of the comexhibit the plain result that every thing depends upon munity generally.

The change from gloom to cheerfulness was never more strikingly manifest than in the aspect of affairs between yesterday and the day before. The decision of the banks, to refuse to suffer their vaults to be drained of their specie, had a remarkable effect upon the community, which was evinced in the congratula tions every where exchanged, and in the feeling of safety and confidence which seemed to prevail through. out the day as if an impending evil had been suddenly removed, and the public mind had been relieved from some undefined weight of apprehension. This feeling was particularly manifested in the conversation of our men of business generally, who talked of the brightening prospect, with a look of confidence and satisfaction, such as had not been witnessed in this community for a length of time. All seemed to look upon the temporary suspension of specie payments, under existing The proceedings of the meeting of the merchants circumstances, as a step of wise precaution, and as and citizens, held at the Exchange, in relation to the furnishing the surest evidence that the crisis had suspension of specie payments, having been presented passed. So many persist in considering the proceedand read, a committee of one officer from each bankings of yesterday as the harbinger of better things, was appointed to prepare a preamble and resolutions, that we cheerfully acquiesce in the gratifying belief

At a meeting of the officers and directors of the several banks of the city and county of Philadelphia, held at the Exchange on Wednesday evening, May 10, 1837, THOMAS SPARKS, Esq. was called to the chair, and JACOB FRICK appointed secretary.

From the New York Courier and Enquirer of May 11. BROOKLYN BANKS.-For the two last days a heavy run has been made on the Brooklyn Bank, also the Long Island Bank, both of the city of Brooklyn, which caused considerable excitement. Yesterday at twelve o'clock, a meeting of the citizens was held in the Mechanics' Exchange in Front street, and Jeremiah Johnson, Esq. was called to the chair, and Joshua March and Nicholas Luquier were appointed secretaries. The chairman having briefly stated to the meeting its object, which was to recommend the citizens to sign a petition, to be presented to all the bank officers of the different banks in the city, to suspend paying tem.out specie, it was approved by the meeting. The peti tion was unanimously signed, and the banks have come to the conclusion to suspend specie payments.

Money matters having at last reached a crisis by the suspension of specie payments, it will be seen by the sales of stock yesterday, that all descriptions have advanced in prices from five and a half to twenty-two per cent. United States Bank since the transaction of Resolved, That a committee of nine be appointed to yesterday has gone up five and a half, Delaware and confer with any committee which may be raised by Hudson seventeen, Farmers' Trust ten, Ohio Life and the banks, by the Board of Trade, and other associa Trust twenty-two, Harlem Railroad fifteen, New Jer.tions, in order to take such measures here, at Albany sey Railroad eleven, and Boston and Providence fifteen

From the Delaware State Gazette--Extra. WILMINGTON BANKS STOPPED SPECIE PAYMENT.-At a meeting of the presidents and directors of the banks in the city of Wilmington, held at the Bank of Dela10th May, 1837. ware, May 11th, 1837, JAMES A. BAYARD was called to BOARD OT TRADE.-At a meeting of the board held the chair, and JOHN H. PRICE appointed secretary. this day, the following resolutions were unanimously Whereas information having been received by ex-adopted, and ordered to be published:press last night of the suspension of specie payments

ment of certain paper discounted by the Suffolk Bank for the Bank of Norfolk.*

Total,

2,204 17 871 90

we deeply feel and regret the embarrassments and derangement in which the exchanges, the currency, and the whole business system are at present involved, To meet the liabilities of the bank, as before stated, which have resulted in the suspension of specie pay-the immediate resources of the bank are very limited, ments in this city-and that we are confirmed in our consisting of specie, opinion that the establishment of a NATIONAL and bills of other banks and good checks for BANK is the only permanent and effectual remedy. Resolved, That we will do all in our power by mu. tual aid and forbearance, to restore public confidence and credit in this city and throughout the country. Resolved, That in the opinion of this board, the banks in this city will be abundantly able to meet all their liabilities, and that so long as they continue to receive each other's bills, they will be a safe and convenient circulating medium, and we will take them in payment for goods and for debts duc to us, and recommend others to do the same.

NATHANEL WEED, President.

From the Boston Daily Advertiser of April 25.
THE NORFOLK BANK.

$3,076 07 The other principal assets of the bank are, the bank5,600 00 ing house, said to have cost

and notes discounted, amounting to the

sum of

Total,

310,441 48

$316,041 48

Of the value of a large portion of the notes discounted, the committee are wholly unable to make any accurate statement; many of them are past due, and others are on demand and of long standing, and a principal part of the stocks and other property pledged to the bank, cannot readily be converted into cash.

The committee deem it proper to state, that most of the debts now due to the bank were incurred before

the present president and some of the directors of the bank came into office, and that their efforts have been constant, and to a considerable extent effectual, in reducing the liabilities of the bank, and securing its best interests, so far as was in their power.

It is the opinion of the committee, that by judicious management, the bills of the bank in circulation, amounting to $40,619, may be redeemed in the course of a few months, and that the other liabilities to the afterwards remain to be distributed amongst the public can be ultimately paid; but how much will stockholders, the committee can form no correct esti

Here is all we get from the committee of the legislature on the abuses of this bank, against which the legislature were warned long ago, but to which a deaf ear was turned, until the thing fell to pieces with its own corruptions, leaving $3,000 in immediate funds to pay direct liabilities of $120,000, and with $2,000 in specie to redeem $40,000 in bills in circulation. To account for the meagreness of this report, compared to that of the Commonwealth and Franklin banks, and the careful concealment of the names of the individuals who have borrowed $316,000 of a bank with a capital of $200,000, it is only necessary to say, that the managers of this concern are active, leading whig politicians. The whig committee admit that excessive loans Although the present unfortunate condition of the to a few individuals have been the ruin of the bank, bank has chiefly arisen in consequence of excessive and yet no individual is named, while in the Common-loans having been made to a few individuals on accomwealth bank report every individual debt was specified. modation paper, yet the committee do not find, that, in Mark another fact. Here is a bank which has sunk its management, there have been any violations of law; $200,000 of stock, and defrauded the public of at least and as neither the public or individual good, would, in $40,000 in its worthless bills, and yet, say the commit- the opinion of the committee, be promoted by a longer tce, there has been no violation of law! What a com- continuance of its charter, they recommend that the ment on the banking system! same be repealed, agreeably to the provisions of the accompanying bill.

REPORT:

The committee visited the Bank of Norfolk on the 14th of April, and were presented by the cashier of said bank with a statement of the condition of the same, at the close of business on that day, which statement was certified as being correct by the oaths of the cashier and book-keeper.

From this statement, the committee find that the liabilities to be provided for by the bank, before any portion of the capital stock can be refunded to the stockholders, are as follows, viz.

mate.

Respectfully submitted. For the committee,
ISAAC LIVERMORE.

Mr. Livermore, who makes this report, so carefully covering up the pecadilloes of his political friends, is the same gentleman who was so very officious in following up the Middlesex Bank. What gross political partiality is shown by some people, in their bank investigations.

$40,619 00 Office of the Merchants' Transcript, New Orleans, Sept. 5.
196 00
On Monday last the presidents of our different
4,155 66 banks met to discuss again the all-absorbing question
20,500 00 of a resumption of specie payments; it is understood
5.391 04 that they continued in their determination to resume
23,600 00 on the first of January next, provided, "the United
States Bank of Pennsylvania would furnish a circula-
ting medium," but as yet Mr. Biddle (though it is
- 26,026 87 | now nearly three months since their application to
him) has not given them any hopes of acccding to their
request.

34,026 87 Less special deposite in said bank, 8,000 00

Making the total liabilities to others than

stockholders,

$120,488 57 It also appeared, that the Suffolk Bank held, on the *From this fact it appears that the Suffolk is a ge14th instant, bills of the Bank of Norfolk, amounting neral endorser for some of the country banks, and lends to the sum of $56,300, as collateral security for the its credit to enable them to expand operations. How balance due the Suffolk Bank, and to secure the pay-long is this row of bricks?

In the mean time the all powerful voice of an indulgent community is heard crying aloud for long expected justice our citizens are becoming restive under the inequality of the exchanges between this and the north, and are demanding relief.

Besides all this, petitions are being got up praying the legislature, which is to assemble the first week in January, to compel, if necessary, a resumption.

There is a great difference of opinion between the | in a single day. We see immense operations in canal directions of certain of the banks and that of those re- and rail road stocks, appertaining to companies charter. cently created, not only as to the expediency of the ed as well by their own legislature as by distant measure, but also as to the ability of the institutions States in the south and west. But these transactions to resume; the former seem anxious to redeem their on so grand a scale are known only in New York, promises to the public, if they could do so without which is owing as well to the immense amount of the being compelled, for their own security, to assume a commercial wealth of that city, as to the existence of large amount of the paper of the corporations whose an organised society of brokers, who deal exclusively issues (especially the skeleton banks) are excessive; in stocks and exchanges. These men have rules and and the latter fearful of unpleasant consequences in by-laws which govern their transactions with one case the specie banks do not assist them, are de- another and with the public-their business is consirous of continuing the paper currency. Thus mat- ducted on a regulated system, from which no one can ters stand. easily or safely depart. Hence may be inferred the extent of power which they can at any time exercise over the price of stocks, the rates of exchange, and all other monied transactions. Under this system sham sales are frequently made, in order to give a deceitful and fictitious value to stock. Sometimes we see under the appropriate head, in such a paper as the Express, an annunciation like the following:-" On Saturday last, fifteen hundred shares of the Spider's web bank were sold at an advance of two and a half per cent. over our last quotation." Perhaps the sale actually took place, and in the most public manner; the raw ones are taken in, and are induced perhaps to make purchases of the same stock at the same or a greater advance. But these gulls soon find they were humbugged-the sale of the fifteen hundred shares is found to have been a sham, executed by owners of the stock with a view to take in the ignorant. Thus we have seen stockholders in faro banks (for these banks have their stockholders) secretly take money from the dealer and then sit down and dash on in the most extravagant hap hazard style, and after playing for two or three hours, or until a sufficient number of the bystanders had fallen into the pigeon trap, they would then, in the same secret manner, restore the amount of cash remaining in their hands to the dealer. The trick of the broker in the sale of bank stock is equally

Office of the Bee, New Orleans, September 11th.

CONDITION OF THE BANKS OF NEW ORLEANS.-Comparative statement from the month of August to the 3d September. From the comparative statement of these institutions, published by Mr. Charles Briggs, it appears that the circulation of the banks on the 3d of September, was as follows:

August 6th. $7,500,713

CIRCULATION.

3d September.
$7,011,148

From this statement it will be perceived that within the space of twenty-five days, these institutions have contracted their circulation $490,565, or to speak more clearly, their debtors have paid up that amount. Comparative statement of the Specie in the Vaults, from 6th August to 3d September.

August 6th. $3,418,337

SPECIE.

September 3d. $3,653,631 It will therefore be perceived that, according to the above statement, the banks have increased their specie by $235,294.

It is hence a well ascertained fact, that within twenty-five days, the banks have been enabled to diminish their circulation by $490,565, and to augment their specie by $235,294. Their present circulation is $7,011,148, and the amount of their specie $3,653,631, which would place them in a condition to pay about fifty-three per cent. on their actual circulation. The condition of our banks has never been more ad. vantageous than at present.

From the New Orleans Bee.

NEW YORK STOCK MARKET.-We have often been surprised at the vast amount of bank shares and other kinds of stock, that are sold in twenty-four hours in New York-these sales are always paraded in news papers, in the same column with those of provisions, cotton, sugar and other merchandise, foreign and do. mestic, and seemingly they form data on which to base opinions relative to the credit and standing of inonied institutions, insurance and rail road companies, and other corporations. More of this business is carried on in New York than in any other city of the Union, and it is beyond all proportion to the greater amount of her population. We see nothing like it in Boston, Philadelphia, Charleston, or New Orleans. In New York, thousands of bank shares are bought and sold

a trick with that of the dealer in faro bank stock, and equally unfair and culpable, inasmuch as the one and the other are intended and calculated to deceive the spectators by sham transactions. Under the system of stock brokers, an individual sometimes purchases thousands of shares with no greater amount of capital than the probable difference between the price of stock to-day and what it may be a week or a month hence. If the individual be in tolerable credit, a promissory note, covering the supposed amount of the difference, will be sufficient. This is sheer gambling-and by this game vast fortunes are lost and won in the stock markets of New York and Europe. But the mischief is not confined to the theatre of operations and the immediate actors. The sale is published in the newspapers. The news of the rise in the particular species of stock reaches distant parts of the country and Europe. Innocent persons invest their money in the same kind of stock, and perhaps they purchase for cash at an advanced rate, part of the same parcel which the stock gambler bought on credit, who thus perhaps realises fifty or a hundred per cent. on the amount which he only promises to pay.

We have no mode of gambling like this in New Orleans. Even the more reputable and honourable occupation of roulette and faro is carried on in secret and dark places, remote from public view and from the resort of respectable men. The individual who should presume to make a pretended sale of stock at the exchange before the public, and should be found out, would hardly be rash enough to show his face again in the same place till the affair were forgotten. Heaven only knows what changes may be wrought on the manners and feelings of our fellow-citizens by time