The Bank of the United States, under the direction of
Nicholas Biddle, has issued an immense amount of promissory notes, payable at different towns in the American Union, but not in specie. Biddle is using great exertions to prevent the resumption of cash payments by the Bunks in Nev York, having succeeded in prevailing upon the principal Bank in Boston to join hitn. The Times says that the ope- rations in London of his agent Mr. Jaudon, are "beyond all ordi- nary conception of them "- " Every packet brings large amounts of bills, not as special remittances Neese mercantile transactions, but to be sold and circulated here, at a rate of interest double that paid on the best private security, and which cousequently go off with facility. When it it is considered, therefore, what vast engagements this bank has formed, and continues to form, from one day to another-when there is further considered the immense amount of bad and doubtful debts owing by other banks of the Union who have all stopped payment, and if driven to specie payments by any general measure of the sort are likely to suspend altogether-the unsettled account with the Government at Washington-the quantity of old notes out and unliquiduted, created under the Govelnillent shiner, and for which this bank is liable-the sale of bills in London-and the sew issues of paper, when every other bank is drawing in its circulation at New York, sod unite with these the suspicious fact that Mr. Biddle not only resists the return to cash payments, but resorts to every artful expedient that can be devised to prevent the resumption by other banks,-the suspicion is forced upou as, that something is wrong at bottom and that the institution is in a state which should induce all prudent men so look into the subject, and not take ab. silutitY AK granted that Biddla's bank is dowsing of oslituited credit, became it has, or proti-s- to thaw., a capital of 85.0tat,000 &Hasa. The wain pOult of inquiry ia, how much of that capital is free, unincumbered, and disposable!' nut eau that :}ommut to any large sum, whet, such proceedings are going on as those of Mr. Jainhit, hi Lowlou ? Great capitalists are lenders, not borrowers of money ; yet here Inc see Itildle's agent taking all that he can lay his hand,: upon. kint as to lending. that is clearly out of the question ; for the markt, rate being not ,,,,, re than :4 per cent., while Mr. Jaudon pays 5 per cent., h. would in that case lose 50 per cent. by all the money so employed. Another proper question is. would a bank really having 130 large a capital, if it did be- come a WI-lower of money, be justified in pm Mg twice the rate that any pri- vate London merchant, of tolerable credit, is required to pity at the present moment ? But it is needless to dwell further on grounds of suspicion. that passes brie is calculated to inspire great doubts as to the soundness of t United States Bank. It is for our capitalists to look into the matter, and t4 fortu their oa conclusions."
On the 3001 ultimo, a resolution was carried in the Legislature of the State of New York, by a considetable majority, for instructing the Select Committee which had recently concluded an investigation_ into certain charges of usury and extortion against the Pbcanix Bank, to " prepare and report a bill to repeal the charter" of that Bank. The announcement of this event had thrown the banking interests of New York into a state of the greatest consternation ; for it was pretty well understood that the whole of the banks had, to a greater or less extent, participated in the same practices as those which had become public of the Phoeuix. It is not improbable, indeed, that similar proceedings may be taken against such other banks as, with greet means at corn- mind, had been most notorious for pursuing the same courses as the concern alluded to. The preliminary steps bad been actually taken with reference to one standing in the very first rank of such institu- tions. A petition had been in circulation " demanding an inquiry" into the affairs of the Manhattan Batik ; which, however, through some numagement, had been suspended for the moment. Otte of the New York papers in the interest of those institutions confesses, with evident alarm, that" thousands of names can be had to take away any charter of a bank." Such a fact need excite no surprise, when it is remembered how the mercantile and trading classes have been fleeced mid ruined by the banks before and during the suspension of specie payments. From the evidence in the case of the Phcenix, it is suffi- ciently clear thit the gro.,sest extortion was practised towards all houses whose necessities brought them within the grasp of the Banks. It was in vain to struggle to maintain their credit when the " screw " was applied to their securities presented for discount, and discounted only at the rate of 30, 40, and 50 per cent, per annum. The traders failed of course ; whilst the Banks, equally insolvent at the time, became equally incapable of paying their paper promises, and defied their creditors by a general combination, unjustly legalized afterwards, to suspend pay.. meat of their notes, the enormous loss resulting from the depreciation of which was therefore thrown upon trade mid the public. Some of the Banks, moreover, have since been realizing most scandalous profits out of their own misdeeds ; selling their specie at excessive premiums, and buying up gradually their own depreciated paper at a disgraceful dig. count, and so preparing for what is termed a resumption of cash pay. merits.- Times.
The Bavarian Government has given notice to the editors of news- papers, that not only will objectionable articles be in future struck out by the censor, but the publishers will be called to account for them as though they had been made public.
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