The merchants and bankers of the United States were naturally
eager to create the impression that a speedy resumption of specie payments would take place. In a published letter to JOHN Quirsey ADAMS, Mr. BIDDLE, President of the United States Bank, labours to throw all the blame of the crisis on the policy of the late and present Administrations ; and then proceeds to state the course proper to be pursued for restoring the credit of the country. After premising that the United States Bank will cordially cooperate with the Government and other Banks in measures for resuming specie payments, he says- ' " In the mean time, two great duties devolve on the banks and the country. The first regards foreign nations, the second our own. We owe a debt to foreigners, by no means large for our resources, but disproportioned to our present means of payment. We must take care that this late measure shall not seem to be an effort to avoid the payment of our honest debts to them. We have worn, eaten, and drunk the produce of their industry—too much of all, perhaps, but that is our fault, not theirs. We may take less hereafter, but the countrv is dishonoured unless we discharge that debt to the uttermost farthing. " The second duty is to ourselves. We should bear constantly in mind, that the step which has In. n taken is excusable only on the ground of an overruling necessity. We must not make the remedy itself a disease. It must not be the pretext of extravagant loans or issues. These are already sufficiently inflated ; and if we have voluntarily removed the most familiar and established check upon all issues—their immediate convertibility into coin—it is our duty to sub- stitute some effectual restraints, which may enable us to restore the currency without delay or difficulty ton safe and wholesome condition. The result of the whole is that a great disaster has befallen to the country. Its existence thus far is only a misfortune ; its continuance will be a reproach, from which all true awn must rally to save her. We must try to render it as short as possible, waiting patiently and calmly for the action of the Government, and in the mean time diminishing its dangers by great prudence and forbearance. For myself, you know how zealously I have laboured to avert this misfortune. With not less anxiety I shall now strive to repair it."
It was expected that committees of the different banking esta- blishments would be formed to act upon the suggestions of Mr. BIDDLE. The Secretary of the Treasury had suspended all ope- rations with the Deposit Banks, except that of withdrawing the Government funds from their charge, which he promised should be done cautiously and in reasonable sums. He was engaged also in an attempt to procure new " depositories ;" but where h'm is to find any more secure than those he now has, it would be difficult to say.
The Governor of Pennsylvania has refused to call an extra session of the Legislature of that State, on the ground that at present the interference of the Government would only be pro- ductive of evil. The Governor probably is aware that the Legis- lature would be one of debtors, and therefore unlikely, for their own sakes, as well as on account of the unpopularity of such pro- ceedings, to take measures for putting the currency into a sound state.
And this remark loads us to observe, that the first grand con- sequence of the universal bankruptcy in the United States is the depreciation of the currency. The best bank-notes are 10 per cent. below par ; so that every debtor will be enabled at once to pay his creditors 10 per cont, less than their dues. This depre- ciation is almost sure to be progressive, and we expect that it will be of long continuancee. The difficulty of getting back to a currency convertible into gold will every day increase, and the process became constantly more unpopular. It cannot be even commenced without causing great distress. A curtailment of loans by the banks would be the first step; and then many would have to pay at the rate of 100 cents in the dollar debts con- tracted in paper with 70 or 80 cents or less. Ruin to multitudes would follow. Of course commerce would be languid ; orders for England slack ; protested bills plentiful ; distress in our manu- facturing districts such as they never dream of in the Transat- lantic country of cheap corn. Such, however, must be the result. How soon the retracing process will be commenced, is the only question. The prospect of a constantly depreciating currency is not endurable even in America. There must be some stopping- place; and then the policy of the currency gentlemen will be apparent in all its folly and hideousness. It seems to be generally expected that an effect of the suspension of specie payments in America will be to send gold to England. We question whether it will have that effect immediately. The different State Legislatures are passing laws to prohibit the pay- ment of specie; and the General Government, which is mortified and baffled by the turn affairs have taken, is still excessively averse to the exportation of that gold which it has taken so much puns to obtain. Eventually, however, gold will find its way to the best market: which, with a depreciated raper currency, cannot be in the United States.
This subject affords endless matter for reflection and conjec- ture. At present we shall only add, that the demolition of the JACKSON policy and the recent occurrences in die United States prove how very dangerous it is for a government to interfere with the natural operations of commerce and banking, and to attempt to alter the regular course of mercantile exchanges ; that the cur- rency question requires fresh consideration, with some new disco- very perhaps to be made ; and firally, that the turn affairs are taking in America must be productive of consequences in this country of great moment. not merely as regards commerce and the monetary system, but also in a political point of view.
It may be added as a postscript to this American intelligence, that all the banks of Lower and Upper Canada have suspended payment; though it is said that Governor HEAD endeavoured to prop up the Toronto banks by loans from the military chest. This we should think a somewhat irregular proceeding ; but MAO does not stick at trifles. It appears that the Americans bought up all the Montreal notes they could lay hold of, and sent them to that city for gold; but the news of the stoppage of their own banks had arrived in time to prevent the expected harvest from being reaped.
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