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THE REPUBLICAN.
iayahmii, tcuoat a»*3tso,ric.8, 1818.
-GEORGIA LErHSLATUUE.
■Extract of a 1-tter fom JWMprwfcf'tfuWrf JBri
cember 2, 1818. '
“A bill calling, a conventioo-'-to amend;
-consolidate ur tiew model the ronstitolinn
• nf toe state of Georgia lias just been're-
- ported in tUc seli-tle. This bill ' I “think
* has gone in ton late to be acted upon thj*
itstton. Toe bill to dispose of the newly
‘■•acquired territory-obtained from the Creek
.ami Cherokee nations of Indians is now
“ before the bouse >d representatives as sent
’’from senate. The following !* an out
line of the bill;—The land to be surveyed
* and laid nil - in seven counties, to be called
Early, flail, Appling, OwintuU.Wclton?
Jrtcin, and Habersham. “The land is to be
>• distributed by Int in llie manner following,
to wits JMWr the surveying is completed,
the governor-will cause tickets to be made
*oul, whereby all the numbers of surveys in
* the different distinct*shall be represented,
■which tickets shall be.^iut -into a box to
constitute prizes, with others to he deno:
-minted Manks; of which blanks theorem ‘
--her or amount shall toe determined by sub
'tr.-rctiiigrtb© number of .prizes- from the
-.wholenumber nf draw* to whieh-the said
lottery shall* be subject, -upon the -follow-’
ingji; incipVe4i that i»-«U say; etery'free
tnal/vwhiterperwn ‘ol eighteen years of
■-agewnd upwards, being a citizen of ihe
United Slates, and an inhabitant of thi*
m utate ’three years immediately preceding
the passagu of the act, including such a>
may OR absent on lawful business, shall b*
entklwiysHine'druwi every free mrfle per-:
non of liktulescrqrtion, having a wife or le-
ngitimate child or children under the age of
twenty-one. years, shbll be entitled to twit.
•’diaw*$ all widows With tike residence,
■ shall be entitled to one draw; all families!
-oforphans esofotesaid, under the-age of
twenty-one years, excepMnch-»» may be
-entitled in tlieir own . right loa draw or;
draws, whose lather-ij> dead,-shall be- en-
w titled to one draw; awl all families of or'
phans, consisting of more than' two, ■ wlirt
••'have neither father or raotherltving; shall-
^have two draws; but if nnt erceediugtwoe
then such orphan or osphans, shall be en J
titled to one ilraw, which shall-begiven in;
; tn the cuuifty and. district - where--the eld-;
est of said orphans, orphan or guardian fe»
- sides; provided nevertheless, that tire per-
ton or persons who drew aprize-or prizes
•in tire late land lotteries, shall-be excluded
-•from an-ytpsrticipation in the present lot
tery: Provided also, That the citizens of-
this slate, who-come under'the jpro.visiontf
-of this act, as above,contemplated,* am/
..who were drafted in the late war against!
Great Britain, and the Indian^ and refits'
■red to serve n tour of duty, either infer-'-
son or try substitute, shall -not be entitled
■ io the provisions of this act, as above conA
stempiueJ, nor any of those persons- who
*evaded a draft by leaving thestaterfor that
t purpose. And ifany'minors should draw
.land, that the grit fits thereof shall remain;
4n the-surveyors general’s offlce-until ’thtj
-.-said minors shall attain' the age-of twenty;
-one years, lit which time they are ■authors
sized to make application to the executive
-of the state for their respective .grants,^,
■•who is authorized to direct'tho delivery of,
Sthe same, upon ttreir paying the fees of.
r'grants. The list of persons entitled to
-draw, shall -be taken and made out, within',
■sthree months from the passing of thelaw,-
tbv fit. and properperson orpersons, as the-,
•.inferior court of each c’ountj in tliis .state,
-shall or may appoint for that purpose.—
The pereon or persons appointed bf -the-
•inferior court, to-receive and-enter the;
names of applicants, entitled to draws-in
sthe present'lottery. Shali receive for each
-draw so filtered, £5 cents. That as -soon'
-as the lists of persons entitled to draws -in
■•the lottury,-shall have b^en received by the
governor, he shall cause tickets wtoe made-
••oat for‘carrying the lottery into effect in ' 1
•the following manner, that into say; blank
•■pieces of paper, equal -in number to the :
'■whole number of draws,»to which tjielut-.
■tery maybe subject, and.as equal -in size;
<as possible, shall tie-prepared, anti on them;
vhillbe written, separately, the names of
•the several persons entitled'to draws, and.
\the designatory remarkswhich may appear .
against each name, and the pieces of pay
-.par so wnttrei on, shall be deposited in one*,
■wheel, and the-blanks and prizes oo piece*-;
-of paper also as equil io -size us possible,
tshall.be deposited in another whe»l, which
prizes tone drawn lor, shall be composed
-of each whole square or tract-of-land, and.
-<al>o all fractions containing. according to
■the return iff the surveyor or surveyors,
•two hundred acres or upwards, and t'rnm ;
•each wheel, as nearly affhe same time as:
•can be, one ticket shall be taken and de--
‘livered trUidmianffgers appointed to «B-“‘
periutend the . drawing -of said lottery,
whose duty it-is to have the name, if a
prize sHuiild be drawn against it, entered
•io a book to be provided for that purpose.
AJi persons who may drew lands shall be;
entitled to receive grants for the same,
•vesting so them fee simple tides on paying
Unto the treasury •J'thisetate, the sum mf
-eighteen dollars for each tract so drawn
.ami granted. -Lots No dO and 100 arc re-
-Served and set apart in each district for
the -duo non of poor children, and -the
a-lvanceinetit of literature in this sUte—
T-i r prode-ds-also arising from the Bales
ol'.tihe tractions, if there may be any after
defraying tlie'necessary expenses, are set;
sport »s a permanent land fur the educa
tion of this pour, and encouragement ol li
ters tone-in Georgia. These are*the lead-
in* features nr the bill as agreed t* by se-
-.-anie. The house of -representatives -wiU
make sonic amendments; but I do notthink
will alter materially the ahape-of the toil!
above delineated.”
The Augusta Chronicle, Of the 5th it
«3n Thursday ereouig Ust, within a few mile* of
tllut place, t!>e hones in the Savannah stage took
tfright,rim fora fewpsces and stnfckd against a
itaee; there were ten passengers-in the stage at the
timr, tlirte tf whom trrr«everely and -danger
ously injured—af reral of tlie others were-slighuy
injured. Ho blame, we understand,.is attached
to the driver.
— : -
Cotton, at Augusta, on die 5lh in*J. was quoted
at 2H cts; Tobacco g3 a 12; Kloilr, new.13 a IS.
Corn, busl»:l SO; Stesll 75 a 2.
COUNTRY PRODUCE.
-SATannaa—aaaa rajcai van oar.
S cts- S Cts
Rice. peflCOlbj. 6 75 a 6 87j
Com, per bushel, 1 15
Cotton, sea-island, prlb 55 a- 58
Ditto, up-Iandi- do. 27 * 28
Tobacco, leaf, per lb. • 12 a 15
Flour, per barrel , - M a 10 50
'GRAND EODGE OF GEORGIA
■At' a Gaaau'QcABTaaur Coaimnca-riox held
yestefday, tlie following brethern were unnanim-
,.u»ly elected for the ensuing Masonic year:—
T-.U P. CMUiof. Gmad mater.
A Nichols fhpuif Grand muter.
J. (.crass Senior.G'tntd tPardtn.
T S. Fell, Junior Grand tf arden.
Kev Waetob CaAHSTOv. Grand Chaplain.
P. P. Tbowaeeov, Gr..nd Treatuner'.
T.N. Mobil. Grand terretarg.
The Grand Ma*terand Senior G VV. appointed
Jans ISELaaaoia. Senior Grand Heacw, L H.
Keortk, Jnn-o- Grand Oraeon-. Grand Jttuardt, Bre
thren J.B GiooHi and Ieaa« DyLio*
The following resolutions were proponed and
agreed to: That the anniversary of St Inlio. will
be celebrated on Monday the 28th of December;
and'thaishe corair.ittee of ariangement and gmnu
atuards do engj*e-a,dinner for the occasion.
1 hat the Grand Lodge will meet at S o'clock of
the forenoon of that oat for the transaction of bu
shims, and receive the different Lodges at 11
o'clock-a ?i where a iftocessio - w.li be formed
for the purpose of attending divine service.
Extract, from the niduiee.
-T. N. Morel, grand xtc'ry.
■'FOB THE SAVAXSAH BEPCBLICAH.
THOUGHTS O.VOUIt B^WKl.YG SYSTEM
AND EAST-INDIA TBADE. ?
At a season when the bank* throughout the
nmon are curtailing their discounts and gradual
ly preparing, by every prudential amngemeiv,
,o rneet c criei), which it is acknowledged on all
sides is rapidly approaching, it will do no injury,
d it produce no good, to investigate the causes
which licve led to it. The conflict of opinion
may provoke a-discussionfrom which good can
not fait to result -The attention of the existing
congress-may be called to a matter of such vital
importance to the present and future prosperity
ofjdte country; and thereby some edequate remedy
be prepared to meet and-correct the evil.
The desire of producing a discussion, from
which so much benefit may eventuate, it is hoped
may serve as ah apology fur the present humble
attempt, and for chasing positions which, in the
present state of the public feeling, wear some
thing of the appearance of Paradoxes.
The first position assumed then, is, that thr
present embarrassed situation of commerce andot
the banks, proceeds from an actual deficiency of,
specie capital—without adulating that the issues
of notes by the banks have, in any great degree,
exceeded what was actually required for publit
benefit and convenience.
.The issues of a bank ate nothing more nor less
than the exchange of its own note* on demand',
for those on time of individuals, who are willing
to pay the required discount, .as a boon for the
wider extended t ange of credit of the bank;—and
the specie required to be deposited in it* vaults
by its charter -was originally intended only for
the security of the public, as a-pledge to make
good the losses which may occur,—in the inter
change of its notes with individuals. . . ;r. .
If every note that -was issued by the bank wa-
represented by it* exact amount in specie -why
have any bank at all'/ But the case is diflWent as
it should be; the charters granted to banka restrict
their issues or exchange of notes to three <>r four
times the amount of specie actually dcposited'ln
their vaults; underthe presumption that no crisis ii>
commerce or conjuncture of political affairs, is a-
suddenly to arise as to call at once for the specit
pledge in deposit. In a season of prosperity,
when produce is high, almost every other species
of property becomes proportionately enhanced in
value.—certainly a larger amount of circulating
medium is required for commerce and conveni
ence, than When the state of -the country is less
prosperous Mil produce of less value. It would
then-be no crime-in any bank to issue its notes
in compliance with its own interest and the pub
lic wants and conveniencies;—and if that public
is bard pressed in making the exchange of notes
In order to preserve the credit of the hank, no;
blame is -certainly imputable to the bank if its
necessities xrise from causes proved to be beyond
its controul. Such a necessiiy.might occur to
an individual 'bank, at a season of the greatest,
prosperity, by the combination of any set of men
to rnske a tun upon it, to take away its specie;—
and d! the inconveniencies we are now suffering
under, proceed from a general run upon ail the
banks to withdraw their specie;—as it is become,
the only medium for psyiog for Asiatic luxuries,
which we must soonJeam to dispense with, un
less we-can find tome oilier mode of procuring'
them- ’What difference would it have made if.
every bank note in the union had been converted.
into Sts correspondent-Value .'in specie—if one'
■enth-part of the whole amount was annually sent'
out ofthe country .and none was coming in? How :
long woul<f the capital have lasted? And would,
not its .gradual - dimunition -be as sensibly felt as 1
it is-it present;? The evil then with which we.
are to charge the banka, are for bavingfumishttT
tbe<eredit by which their foundations weae sap-'
ped,—and <u bring instrumental in concealing so :
long,(from observation, the mine, which, without;
c m.vieraction, is so soon to explode in so terrific
s -manner.
Our banking system has been lixenedto that of
.tnenls—untilHiiey are m a s.tusflimi to afford some
remuneration. At thv first settlement or these
states, our forefathvs mnst probably toot upon
credit the axes w- • whidttliey levelled the forest,
and the ploughs with winch they turned their
first furrows- This ctjdit was derived Tram the
rapitxl of the parent country; but after the first dif
ficulties Were overcome, and our agriculture and
commerce' had created a spare capita! of our
own.- the banks took the place of the English
capitalists;—and, by ihe facilities whit* they for-
nished, enabled the cultivator of tlie land to con
tribute Us surplus produdt 3* an article of export,
sad tbtf builder of the.ship to earn her coat by
tier freight. It ws* the credit, thus given, which
nerved the arm uf enterprise, which called inerbon
into action; and by {he facilities it afforded, baa
occasioned our country to grow in a manlier it
never could have done had it awaitecl Ihe slow
and gradual process of actual increased capital
The farm then is cleared, and yields its snperabui.
dance: the ship is built and ready for any voyage
is it the fault of the bank that no consumption
can be found for-the former—nor employment
for the latter? No:-wk have got to look to an
other cause. But before we quit this subject, let
us advert to the charge against bank paper of the
artificial or fictitious value, which its superabun
dance gives to property in a country where it pre-
domins'es It is almost sufficient' to say
•hat a Miperabuu<laOi-.e of (he precious metal:
would bare precisely the same effect But
at -«ll events, in an agricultural country, the
evil bears no proportion to what It does, in a ma-
nufacturing olie; because tha products of the earth
cannot, be competed with in the sam manner as
the produce of labor. It the superabundance of
the former in any Aurntry is riot waiting to sup.
ply s deficiency in ai.oliur it is immaterial whether
its value at home be 5 or iO ■ If it be wanted, it
will find its way at somewhat near tlie value; and
The bniy difference wiU he, as it lus been ir. these
states for1| or S . ear, back: that the merehaw
or exporter wil* have nothing for his trouble but a
little loss—while the act-ml value notwithstanding
concentrates in thecon ary Vhi. orinciple might
almost, by analogy,-be extended to the manufac
• uring country if we can-judge by the examplt-
of Britain when its bank paper was at-its greatest
depreciations as, at that time, the foreigner who
purchased her idanufacture*—-ought his profi.
not so murh in their re-sale—a, on the.diicount at
which h- purchased her money: and thus, as id
liquids, the level was at once found.
The difficulties under which we labor at pre
sent proceed from' actual deficiency of specie—
because the required proportion of it to represent
the bank notes in circulation is nat ta be bad —
t he time was. When this wks not tlie case—more
has gone out of the cwvtry than has come into it.
It is not gone to England because our exchange
hak not lately been at a higher premium than 2 to
3 per cent—while the premium on dollars has nut
been less than doable. It cannot have been to
France since we are daily drawing from her five
franc pieces. There are no other nations with
which our relations are sufficiently important to
have any effect upon u- in the present regard-
hot the East-Indies and China —Here is the Mai
slrome which is gradually drawing into its bane
ful vortex the prosperity of our country. It is a
notorious circumstance, that the export of specie
o the east is far outstripping its imports in other
countries besides our own The supply was
drawn from its colonies, by Spain, in the shape
of butte or remittances; blit of late we have heard
of no Arrivals of rich convoys in that court'ry.—
Not even from VeraCrue, the principal outlet of
this specie, have we had any notice of recent ex
ports. It is immaterial tc us from what the cause
of this proceeds. In tlie island of Jamaica last
year specie abounded so much in return for Bri
tish manufactures, sold to traders to the Tterra
Firms, that bills of exchange on England were
paid for in doliars at a premium of from 12 to 15
per cent Now their scarcity is so great that
these bills of exchange are at par or even below.
Much of this specie thus exchanged for bills found
its way in remittance to the southern states in
lavruepts for cotton, and to the Bank of the Unit
d'Statea under its European contract for the ar
ticle, The commissariat.at Kingston was to have
been supply ed by contract from Vera Crux with
-peciefortile payment and expenses of the troops,
Ac. in Jamaica, and many of the other colonies:—
but a default took (place—imd it w»s Substituted
by government bills at 30 days, which have
brought no ip° r e than par. The deficiency ol
llie supply of specie has been made mani'est: —
it might reasonably have been ho,,ed that the de
mand f<u' its exportation should not have been
enhanced, but. is this the case? Has the trade t(
India ever been so extensively known as it is at
this 3eason,and is it not even daily augmenting?
Look at the articles of Canton crapes and China
silks alone: —As one item, they are swallowing up
mire specie in their purchase than is coming into
the country altogether. As if they, among man
other .articles, were not sufficient, a large porti-n
-if the sugar and coffee, which we were wont to
pay for with our own commodities must be draw n
thence by the payment of specie—and, as if all
cause which operated on the banking system
England -was precisely what- is operating on our
own. a drain of its apscie. But its drain was to
pay fdr the first article of necessity. Bread, at-
a time when the iron hand of a tyrant had closed
to then stiqn every granny .which specie could not
open, ta-hopea, by that means to undermine the
resources of the country which opposed to him'
a barrier<o-general dominion;'and besides this,
large armies had tube paid and maintained in the
(insula, almost entirely with specie. It was then
tnd that naak paper depreciated, and the evil
was turther aggravated by the fears of those who
hoarded up ah the specie they could lay their
hand on. Events, however, stopt the drai-i. The i
bank of Fngtand-ba* not diminished its issues.—
Since *hen, however, it is known that these iden
tical bank notes lave been preferred, even at a ;
trifling premium, to the gold they represented,;
and Ibat bullion, (which is nothing more nor leas
tbsa our specie) baa been sold for this very same
, depreciated papered drscoHw of 4 and 5, and even i
' more per cent. Jt was at this period our. mer
chants found their account.in drawing thence the-
supplies of specie for their India voyages, instead
of draining the vanlts bf our banks at home. The
re-appreciation of these bank notes, certainly de
monstrate that tbeir lose of value originated from
some other cause thin an inordinate issue. Let
the evilibc corrected wuh us, and why should'
not a. sisaiiUr consequence resub? But at all
events, the situation of our country calls for c
banking capital; inasmuch as its daily increasing
growth and population necessarily require the
meant of affording credit to enable the first cul
tivators of the xml to carry on their improve-
Lhese were not enough, rice and cotton must corny
in for no small share of the drain. There was a time
when these last mentioned articles, by their ex
portation to European continental markets, serv
ed to refurnish the specie for new adventures, but
what is to be the return, when no more specie is
to be had? The India trade from England is now
laid open to private and individual competition.
It has called for tlie specie we could once com
mand;—because, iu the same articles, they are our
competitors even upon belter terms. But, for
one article, look at the importation of cotton in
to Great Britain, from India—which has become
so enormous a drain for specie—unknown in for
mer times. Tske for example 200,000 biles for
the-present year's importation, say that 50,000
were paid for in European manufactures, tlie re
maining 150,000, averaged at 300 lb. each, only at
8 cents per lb* wou d cost $$5,800,000*—jj ut
is a trade, however apparently advantageous at
K resent it may be for England, which must ere
ing correct itself, aa (bat of France with us will
have to dp;—Tor, however much this bitter coun
try may abound with five franc pieces, they ’will
not always afford to farriisb its mannfactures with
raw materials—especially when no adequate sup
ply, of silver hi coming in from other quarters.
It is now that we have to seek the remedy for
the evils of which we have been endeavoring to
investigate the cause.—To do this, we must go
-beck to .the principles of .colonization, and we
—— - Jf the. most Important objects
" our country, was to find con-
»*»• U Th? : lumersfor the manufacture, of the ,«rent coun-
sumption of the product of their labor, could not
have been subsisted or maintained.—Of coursri a
country so densely populated, could not be sup
plied from its own agriculture entirely with Its
food and raw materials.—The wants of each coun
try were reciprocal—and the exchange of commo-
ditiesconstituted a trade between them mutually
advantageous andbeaeficial.—This trade of course
grew in proportion to the accession of popula
tion in each country. Of the mutual relation qith
and dependence on each other, no stronger proof
could he adduced in illustration than the adop
tion of the ingenious derice of starving our ag
gressor into compliance with our demands—by
suffering the superabundance of our products to'
perish and -waste on oor hands,—and afterwards
endeavoring to bring about the same result by re
fusing to receive-the product of fib labor. The
sources of our prosperity from the effect, produc
ed by these two remedies or the whole of our
population, are distinctly shown. It b evident our
agriculturalists must hare consumers for their sur
plus produce, erthey will find it, hard to live.—If
the consumption theneofwere-to be foundath
in Consolidating the requisite population for ___
ufactoring, it wotfid evidently bedoaeat the ex
pense of the narigatioq, which will he required
for its twuuportation abroad -—Let us then, turn
our attention to "airope. It b manifest to every
reflecting saind, that she is-becomtng too small for
America;—the Utter b raising from -hire agricul
ture more than the former can consume, qnleas
in. times of warfare when contending armies' are
trampling down her fertile fields, or waiting or
destroying their produce.—If we can eredte*fre*h
consumption,- our agriculture bec- mes re-irtvigr..
rated.—Why may we not, ina-rouch as we were
planted here with tlie object of consuming the
product of European labor, by a apecies- of inver
sion, multiply Europeut population to take off
our hands our surplus "commodities? Should we
net find more call for our flour, cotton, tobacco
and our other staples, if the myriads of people
who are now manufacturing for ua in China and
on the Banks of the Ganges, were transferred to
the Banks of the Rhone, or Rhine-vr Thames? If
the island of Cuba contains 300.G00. inhabitants,
and tkkes from us yeatlr in payment of' the pro
duce we draw from it, aeertain quantity of flour,
beef, pork and endless etceteras; and we encour
age her agriculture and thereby double her popu
lation, do we not improve our own in a propor
tionate degree, and at .the same time benefit our
navigation? Every article then that we drew from
Asia, cuts us short of aconsumer for our produce
in Europe or the West-Indies; and tike* from our
navigation, the profits of transporting'-our bulky
flrticles and ifaw materials — And jrtt this perni
cious unequal trade b to- be tolerated to leave our
bank notes—no more than the re-jx they are! It
is a fact that cannot be controverted, that the
country whose evaporations return nolran refresh
ing moisture must soon become a barren one.
The remedy would not lay in the prohibition of
the export of specie; because in the first place it
could so ea-ily be evaded, and because if it could
not be sent cut it would tlie less readily come, in
Prohibit, then, in the strongest manner, the in>.
portation into our country from India, of such ar
ticles as can be drawn from Europe and the West-
Indirs.—Require as aboon from Trance in return
for the new incitement and spur given tqjier silk
manufactures, that our vessels shall be put on an
equal fooling V'i’h her own in transporting out
bulky articles—one of which may, in a short time,
became the product ofourawn silk worms. Thu
Will compensate for any toss • f navigation to-In
dia; and if at firs' we should have to pay it little
more for our silk goods, or other articles now
drawn from India, it would be with the produce
of our own agriculture; without dmbarrassirg the
affairs of commerce;—and, after all, as the trade
between India and other countries may be le'.t
open, employment will be found for the enter-
pnse'of those vhSo could anticipate from il amp!
remuneration. MERCATOR.
From the Charletton Southern Patriot, ith inti
',/ THE TIMES.
The distress of the mercantile part of
tliis community is, we believe, without a
parallel in times of peace “and prosperity.
The scarcity of money is the loud and
general cry, aqd the grand theme of com
plaint, the banks, which have contracted
their issues, owing to the extraordinary
demand for specie, and caused, in conse
quence,' a stagnation of trade which is
almost unexampled. The particular
causes which have led to tins state of
things, though of rare and unexpected
occurrence admit, we suspect, of easy
explanation, and the elucidation is nRces-
-ary to dissipate prejudice, should it even
fail to suggest a remedy or relief We
are indebted for the statements which fol
low to a gentlemen whose situation has
enabled him to throw on this subject some
important lights.
The very nigh prices given for'produce
last winter'and spring, had given an in
creased, nay disproportioned relative va
lue to every species of stock, which ex
tended its influence over most of tins At
lantic states. The pressure felt trom the
East-India merchants and traders in specie
in the Middle and Northern cities, obliged
the banks in those parts of fhe United
States, to relluce their discounts during
the summer, anil tilt consequent want of
money depressed stock to a degree, that
many thought unreasonably low. Stock
became iu consequence an object of spe
culation with all who had friends or could
obtain credit in the banks.
The discounts of all the banks here,
during the summei and fall, were there-
fore very extensive, because made on the
pledge of stock at phr, and on the pledge
of the best personal credit in the country,
stock continueil to depreciate contrary to
the expectations of ail. The want ol
money at the North extended itself to
Charleston. Bills of exchange and other
Acceptances on thisqilace could not be
readily paid for the want of funds, or even
negoticated, because the discounts of all
the banks were full. The pressure for
money became greater as the winter ap
proached, for the planter roust lay in his
supplies for the season,and the merchant
negociate paper for his. usual operations,
the banks were unable to increase their
discounts, and those who had speculated
in stock could not by reducing their ac
counts enable them to accommodate
others. - No additional foreign funds had
been sent into the country, as in former
years, to purchase our produce, for the
purchasers of last win'ter having paid too
high a price, were stHI encumbered with
their stock, and likely to lose at least 10
per cent. Some of our planters, who
had credit, have increased the evil by li
miting the price of their cotton; by draw
ing on their Factors for supplies, and dis
appointing the merchants who had relied
on them for payments as soon as the crop
conld come into market.
In this dilemma our banks were obliged
to reduce their discounts. With a com
mendable foresight they appeared desirous
to provide ageinst the drafts for specie
by which had b een so much annoyed the
proceeding wit ter; their design, to this
end, was to obtain such gold and silver
coin as was thought not to be suitable for
the East India trade. But the greater part
of them took measures that were certain
ly not the best calculated for the purpose
in view: instead bf sending a bill of -ex
change to Europe for such coin as would
have -increased the specie capital of the
country,they contracted with the agents of
northern brokers for the kind of coifi they
wanted, which by agreement was ta be de
livered here. These brokers obtained by
different means the notes of the United
States* bank, presented them at Philadel
phia, and obtained the very kind of coin
which was required. This* thry shipped
•a to Ciiacleston, and obtained from the
‘ L with which this negociation was
Red, Spanish dollars in exchange,
they sold to the merchants trading
to the East Indies at an advance of.8 or id
percent. The monejrseotfrom this place
lessened -one hundred and fifty thousand
dollars, and consequently our commercial
facilities to a much greater extent, for the
whole ot this specie was shipped out of the
United States. The idea, of accommoda-
t<n *V conducted
.prove
t Ju
lian held out by the brokers
delusion, and they'knew it wo
to lie sa; it was. however, of very
ration. The United States’ batik finding
that its specie had beenserit to Charleston,
and being under the necessity of keeping
up its supply, found iitself obliged to de
mand a part of tlie large balances, paya
ble in specie, which had been due to it by
the banka in Charleston, atleast 18 months
since, and for which it had asked neither
interest nor payment. The call, we un
derstand, was not made suddenly, for no
tice was seat to the banks of this city four
or five weeks before the specie drawn from
their vaults was required, apt! time thus
given to prepare for (hat which was una
voidable. A familiar illustration will per
haps, go to show how reasonable this con
duct mast be deemed on the part of thu
United States' bank; If one Iriend had
borrowed the sum of a thousand dollars of
another, and after having been indulged iu
(he use of it for 18 months, without inter
est, could it be regarded as an unreasona
ble demand, should the lender after the
expiration of thy above term, say to the
borrower—“As I shall have occasion in a
few weeks for 2 or 300 dollars of tlie mo
ney I lent'you, I will expect you to return
me that amount and I will credit you with
the balance until 1 shall have occasiika for
t?” The case is precisely similar m re
lation to the bank of the United States and
:h-- b’.nks of this city; anil the proportion
of debt which it has required of them not
larger. '
It may be said, that the coin received
from Philadelphia and New-Yerk did not
necessarily ctime from the bank of the
Uuited States, but it is well known that it
.done of all the northern banks, has import
ed such coin, and that ‘-the state banks
must be indebted to it nn account of du
ties and other collections. One bank in'
tliis city has, with its usual good manage
ment, followed the example of Die 'United
States’ Bank in the above respect.;
several amounts due by the state banks
must depend on their own discretion'ok in
discretion: if they issue too many notes,
or discount beyond theii reasonable means,
they must expect inconvenience and em
barrassment, which will always rccui-
whenevera similar course of overtrading
is pursued.
It may also be Said, that the state banks
ditl not foresee that the specie which went
to fill their vaults, would be drawn front
the bank of the United States. We really
believe it. They acted openly, and even
refused a premium on their dollars from
the very brokers who had dealt with them
at par. This negociation hat therefore
closed for the present, and the delusion
most probably practised next at New-Or
leans, as it had been before at Montreal
and Quebec. Every such, negociation not
only takes the amount exchanged from the
country, but imposes on the bank trbm
wltich it is originally drawn, the expense'
of providing an equal ahinunt to restore
its specie capital. The evil does not rest
here, lor in a month or two aftef,the deal
ers in speci- come back with hank notes,
and demand that very gold anil silver coin
which they had but lately given in aucom-
modatin, and exchange it again with other
banks not apprized of the manoeuvre, or
sell it ata lower premium to tlie merchants
trading to the East Indies, who npw find
that it can be readily recoined at the mint
in Calcutta.
On tlie whole, however, there is seme
reason to hope that the pressure is subsid
ing. The prices of cotton and stofck have
now fallen to about their value two years
ago. The distress of some may possibly
carry prices lower, but as cotton was' then
exported to advantage, we flatter ourselvqt
that they who have funds will come into
the market and purctiase. The conse
quent diffusion of money will, relieve most
of us, and as it is probable that there will
he no new cal) for specie for some time,
tlie banks will soon get over the ^arm
and embarrassment that the negotiation
alluded to has occasioned. ^
rnoM tsx xinoxiiamiustn
The money concerns of the ^habitants
of the United Stvtes, and of tlie govern
ment, in natural consequence, are not in
the most desirable situation. This fact
must by all be admitted, though it will nnt
be conceded, by any, to originate in a want
of means in the people or their govern
ment, who are, by all the world, allowed
to possess the most ample resources; and, .
if such, as it cannot be doubted, is the fact, .
and the evil still exists, there certainly is
a cause for it- This is by some ascribed
to a want of circulating medium, and thM-
have devised means to supply the defi
ciency. The National Intelligencer, pf
late, has had some very valuable comma-
mentions on this subject;., by otlters it has
been traced differently. The only cause,
however, is, (and ail who see, observe, and
reflect, if reflection be at all.required,
agree,) a want or deficiency-rather of tlie
precious metals, gold and silver. Indeed,
it may be said, that if there is a want of
gold and silver, v fhere isa want of circulat
ing medium. Be it so; wliile bank notes
are their representatives, and, under exist
ing laws, may be changed for them; that
it likewise should be so, seems necessary,
because desired by the mass of the popu
lation.
To have speeiepajd for bank notes; to
facilitate the collection of the public te*
vemrejto prevent the vicissitude* in mosey
transactions, that is, to avoid the ebbs and
floods of too little and too mucb money,
it seems but required to enact a (aw fur
the nation, of apparent untility in Ua oper
ation, and answering all desirable purpos
es. Men conversant in money operations,
agree as to the ntiliry and practicability
of a law, if it were enacted by congress, ta
prohibit the exportation of American coin,
and. gold ami silver uncoined, except
plate and plaved wares. The law ought '
to be made under proper penalties—«ucb
as; the forfeiture of the specie; the person
al punishment of the individuals concern
ed; their inability to obtain credit witk
the United States; their inability to vote ■