Western Sun & General Advertiser, Volume 11, Number 19, Vincennes, Knox County, 6 May 1820 — Page 2

thc ole tender law. it is said, justifies

the refusal ot them except by wcigiit. Our banks lnvc boa ever insisted upo paying them as formerly, and thus tne nutter stands at present. Wc 1 a-n that a large amount has lately been drawn from the Boston Hanks on this new principle. i'jfrcof. Bulks $ National Currency. H F. r O H T OF Tr. sr.CTlETAUY OF THE Tlir V5URY. TrEASI'HY nKPVUTMtNT, 2th Ftbrudry, 1320. Sir In obedience to a resolution of the house of representatives, passcd on the 1st of March, 1819, direct:.;g k the secretary of the treasury to transmit to congress, at an early period in the next session, a general statement of the condition of the bank ofth: United States, and itsotric.es, similar to the return made by the bmk; and a statemen cxlubitin as neatly as may be pn'ticahie, the a-m-mnl of rapital invested in the dit ferent chartered banks in the several states itud the district of Columbia, the amount of notes is-ucd by those banks and in circulation, the public and private deposits in them, the amouut of loans and discounts made bv them and remaining imp ml and ts.e total umantity of specie tmy pnssr;s ; and, also, to report such measures as, in his opinior. may be expedient to procure ?nd retain a sullifient quantity of gold and silver coin in the United States, or to supply a circulating medium, in place of specie adapted to the cxigcnci:s of the country, and within the power of Use rovermncnt I hive the honor to Mib nit the subjoined report and statements. Statement A exhibits the condition of th bank of the United States and its o Ticca, oi the 3Jth of September, 18 .l. Statement B exhibits th; amount of bvik capit il. authorised by law, du rin ; the years 1311, IS 15, 13 6 and. 1317. As thii statement i founded upon the applications made to the treasury under the acts imposing sta up du'ies it is believed to be snbsta u dlv conoct. The average dividends up m w.dch the stamp duty wis paid, during timse yers, amountel to ab ut 7$ per cent upon the ti mi'rul am vint of capital ; it is, hov-c-e a natter of general notoriety, t!a the dividends uvj on bank capital, aetudi o ud, exceeds I that rate. If it is assu ued, that the divi lends declt'ed. aid upon which the dut was p ii i amounted during those years I ) 1) n.r cent, then the canital n!Uv.i 1 in the year Srt 17, msieni o? i mm - ntoie than 2 5 mi lion-, as u S is e vivnte t m statement it. win oe fan id t he ahv.it 91 millions ; but, vrncn it "s recollected that, alter the h pavment required by toe ch.irt, of th : different banks, they have imeral'y gone into operation, it is pr )ah,e, that a considerable proporti of toe remaining payments luive a 1 led nothing to their active capital. Tais fact being assumed, and a dednetion b-'mg mil of the amount of t v.emt acejvnmo la'vinn enjvjved b the stnckho'.djt s, in their respective bank-; the active bank canital of the. United States may be fair I estimUed at a sum nt exceeding 75. 0))00) Thu these deduetians o i.:',t tube made, in a attempt to a-.r ;rt iin the rel moun of U ink ca)ital. cannot, it is presu n d, ha contested If stockholder, to the a lin ;nt of 10,0 i ), has a permanent arc ) ntu nlation, in e b . Ol S tVA . he ms in fict but 2,00 of capital in the bmk I'nis is equally Muc wnen i nriion of his subscription 1: is ;e,m o' uth his own note, however we'd eo la sed : so lonir a th.c m'.c renins e.npjid, it adds notliing to the vral capital ..f the ban!;. Such it is be'ieved, his been the process bv wYcl the capital of most ol' 'e n iks h s been f rme I whieu b.ive been incorporated sinev the e n n:ne!icement of the late war. Sinrc tha oei i )d ba.k s have been ine u -) r Ued. ne bee iue tliere wat capil l serkin ; inves'tnent ; not because the pi ices vr. nethev were establishe 1 had c nm nee and manufactmes ieh 1 1 I their fostering aM ; bu because men, without active cap-j it ik wanted the means of obtaining loans, vbieh their standing in the c n uunitv uamid no' command from Innks or in lividuals having real cap ital m i es- vbhsbed credit. Hence ,.,'. ;,i;..:t. nr i.,,.,! v,-,t.c the mu'tinli itx of local banks, scat - Ured over the fice of t!ie eouutrvJ in u uticnlar parts of tli Mmion ; which bv tbr denTciatt n of tlieir naoer ??- ' t-iV.'.r '.:r h arnmu , wi'diin th , i!e fth or inflm nee. e a . St trme-.it U p nts the condition of t!ie state banks f-om which returns have been ree ivmI, or havr been transmuted bv the sT'-ctiries of state of difleicnt states, in conform -

ity with th? rcqucit of the treasury

department. Uy comparing tint statement with statement B, it will he perceived that it is very imper fect. Independently of the banks which have been created since the year I3i7. it will be discovered, that nank capital to the amount of more than 13 millions, comprehended in statement B, ia not embraced in it. s the amount of bank capital exlibitcd in statement C is S"2 millions, and its specie 89,323.00') the whole ipecie possessed by the st?.te banks r.ay be estimated at S1225O,O0O ; it to this sum be added the specie in the possession of the bank of the United States, and its offices, the specie capital of all the banks in the United States may be estimated at 15,500,030. There arc no means of isccrtaining, with any degree of precision, the amount of specie in circulation ; it is probable, however, that it docs not exceed S500 000. Assuming tliis amount to be ncudy cornet, the whole metallic currency of he union may be estimated at 20 millions. pplying the same rule for ascertaining the circulation of the hanks, not embraced by statement C. which has been employed to determine the specie, the whole amount of bmk notes, in circulation, may be 'sMmated at S46 milieus. U is probable, however, tnat this estimate is too high ; as, according to the general practice of banks, rdl notes issued are considered in circulation, which are not in the possession of t he bank In which they were issue ! A reasonable deduction being made from the notes supposed to be in circulation, but which are, in fact, in the possession o' other banks, it is probable that the actual circulation, both of paper and specie, is less, at this time, than S-15 million-. By the same mode of calculation, the whole annun of discounts may bs estimated at 356 millions The destruction or loss of the returns made to the treasury, before the war IS 16, by the banks in which the pv.blic money was deposited, prevents anr satisf tctory comparison being drawn between their condition before and since that period. Comparative statements, however, have been received from sixteen banks in different part of the union, shewing then situation on the 30th du- of eptni bei,in tiie years 1813, 18 15 and l S tQ Bv statement !) it appears that tho-e banks, at the first period, with a capital of 03,262, and with 3,059 149 ol specie m their vaults, circulated S6. 345, 344 of their notes, an discounted to the amount of 12,990, t 95 : at thr; second period, their cap ital was 3.852.37' ; spccK 1.693, 913; circuUtion, 9,941.757 , and ! discounts 1 5 7 27,2 1 8 ; and at the third period, their capital was 9.7 1 1, 960; specie, 1 726,065 ; circulation, 4,259 234 : and discounts, i2.959, 560. By statement B, already referred to, it has been shewn that, in the year IS I i the nominal bank capital in the United States exceeded '10 millions. It is understood that a large addi'ion was made to it in that year, in several of the states. If it be admitted that surh addition amounted to 15 millions, the bank capital in operation, in the vear 1313, mav be stated at 5 millions. A'lowing to this capital the same amount of specie, circulation and discounts, as was comparatively possessed by the banks comprehended in statement D, the 'stinnte will be, specie 23 millions, circulation f"0 mil ions, and discounts i'7 millions. In S5 the bank capital had increased to tf3 millions; whilst, upon the same principle of calculation, the specie would -ave been estimated at !6 500000, ctrcn'a'ion t 99 millions, and discounts at I5 millions. Applying his trnncipal to the 125 millions of bank, capital in operation during the vear I 8 1 9, the specie possessed bv all the banks would amount to C.2 1,500, uOO, circulation 53 millions, and discounts 157 millions. T 'ese last results, with the exception of the discounts, very materially diffe from those which have been ob tained by the mode of calculation previously adopted I'hev. nevertheless. j furnish materials which mav be use- ! 1UI n me progress 01 Tins enquiry. 1' . i'ni mem tnc louowmg oecuctions - . 4 1-11 - i mav be di awn 1 st That, in the vear I S 1 3, the cir j r b nk notes was nearly I i t'l to the bank canital; e- ! n : u l" l u ans capital -' hat, m the vear 18 15. it exI needed the capital by one eighth; 1 "d. ' hat in the vear 1819, it was 'oss l''aM t,,5C capital nearly in the proportion ot 1 to 2.5: 4th. I hat, whilst the amount of bank capital has inc-eased since 18 13, from 65 to 125 millions, the metdoc basis, upon which the circu I a; ion of notes is founded, has de creased in the proportion of 15 5 to j 28 ; being equal to 41.5 percent.

5th. That the circulation of notes i

in the year 18 19, in proportion to the specie in the possession ol the banks, exceeded that of 1313, 25.9 per cent. 6th. That in the year 1813, the discounts, in proportion to the bank capital employed, exceeded those of 18 15, in the ratio of 13 to 17, and those of 18 19, in the ratio of IS to 12. 7th That the increase of bank notes in circulation, between the yca-s 13 13 and 18 15, exceeded the increase cf discounts during the same period by S millions, whiLt the specie in the vaults ol the banks, was diminished 11 million. i 3th. That whilst, between the years 13 15 and 1819, an addition cf 37 mill ions dols. has been made to the nominal bank capital, but 6 million have been added to the aggregate amount of dis ounts. It is probable, that, between the year t3l I and the year 1813, a considerable addition w as made lo the paper cii dilation of the country. From a return of the former bank of the United States, made to the treasury in I S 3, it appears teat, with l5,3i0, 000 of specie, it circulated only 737,000 of notes. Another return made in I S 10, shews its condition was! not materially cdtanired. Shortly aftee the expiration of its charter, bank capital to a great amount, was incorporated in sowic of tiie states. The expenditures produced by the war, which was declared in 18 12, without doubt, contributed, in some degree, to produce ihs difference between the condition of the sixteen banks already referred to, and that of the former bank of the United States. If it be admitted, however, that the circulation in IS 13 was not redundant, it must have become excessive in 18 J5 An increase of the currency in the space of two years, in the proportion of 99 to 62, even if it had been wholly metallic, could not have failed lo have produced a very great depreciation, but, when it is considered that, not only the increase, but the whole circulation consb ted of paper, not convertible into specie, some idea of its depreciation may be formed The depreciation, however, was not uniform in every part of the union The variation in the degree of depreciation depended not only upon the greater issues of banks in one section of the nation, than in others ;but also, upon the local advantages which they en joyed as to commerce. It is impossible to determine, with precision, where the most excessive issue of bank notes occurred. Statement E, rhich exhibits the rate of exchange between the principal cities to the east of this place and ! .ondon, and the price of bills at Xcw York upon Bos ton, Philadelphia and Baltimore, do ing the year 18 13, 14, 1 5, and 16, nay be considered presumptive evi dence of that fact. So far as it can be relied ,.pon for that purpose, Balti more was the point of greatest depre ciation among the above mentioned places. Thi is probably true ; as it is known that the banks in that place made greater advances to the government in the loans which it obtained during the late war, in proportion to their capital, than those cf Philadelphia, New York and Boston. But the greatest depreciation of the currency existed in the interior states, where the issues were not only excessive, but where their relation to the commercial ciliei greatly aggravated the effects of that excess. This statement may also assist in explaining the c.uise of the necessity which existed in tS M, for the suspension of specie payments by the banks. From the commencement of the war until that event, a large amount of specie was taken out of the United States by the sale of English government bills, at a discount, frequently offiom !j to .0 per cent. Immediately after tiie suspension, they commanded a premium in those places where the banks had suspended payment, which gradually rose to 20 rcr cent, whilst at Boston they remained at a discount of about 14 percent, until February 18 '5 Whatever may have been the degree of depieciation of the currency, in 1315, it continued to augment throughout the liist si.y months of the ear I S I 6, if the rate of exchange w ith London is considered conclusive evidence of that fart. The excessive importations of F.ri ish merchandize during that -period, and in the preceding year, might indeed account for the increase of premium paid upon sterling bills, and w as, probably, one of the principal causes of it.' The great fluctuations w hich occurred in ihc latter part of that period, furnish some reason, however, for ascribing them, in some degree, to changes in the value of the currency, in which their price was calculated, lather than o the ordinary principles of exchange It is more than probable that the currency in those places where it was

not convertible into specie, fluctuated

in value according to the efforts which were made, in particular places, to prepare for the lesumption oT .specie payments, than that the balance oi payment between the two countries should have varied to such an extent as i indicated by the sudden variations which occurred liming that period in the rate of exchange So fai as these fluctuations are ascribablc to the currency in which the rate of cxchange was determined, a considerable appreciation of that currency tuok place in the tast months of the yeai i31C. From that period until the present time, the circulation has rap i idly diminished ; and all the evils in cident to a decreasing currency have been felt in every part of the union, except in some of the eastern states It, as pteviously stated, the circulation of IS 13 be, admitted to be the amount required to effect the exchan ge nf the community with facility and advantage, and that, in the year 13 15, that circula'ion was extended to 99 millions, which was, in some degue, augmented in IS 16. the cxtci.t oi the diminution of the currency, in the space of Ihtee years, may be received. But it is probable that the cuiner.cy in 1815 exceeded 99 millions. The banks, upon whose situation that estimate is founded, were etabiiahed at a period w hen the practice of dis-jivu-iij. , i-" l"v ii yi 1 ,; ' - j - portions cf their capital falling due after they went into operation, had not been generally infoductd. Some of them did not suspend their specie payments during the general suspension. The rest were among the first to resume them, and have continued them to the present time. It cannot be expected that banks which w ent into operation during the war, and after the general suspension bad occurred, were conducted with an equal degiee of prudence and circumspection A reasonable allowance bci. g made for bank notes supposed to be in circulation at that period, but which were in fact, in the possession of other banks, and for the excess of issues beyond the estimate, the circulation may, it is believed, be safely calculated at not less than 1 lo millions. The paper circulation in 1813 has been estimaten at 62 millions. At that period, however, gold and silver lormed a substantial part of the currency. The condition of the old baid; of the United States, in 1810, and of the sixteen banks, in 1813, proves that the demand for specie from the vaults of the banks was ineonsidciable. It is, therefore, probable that the whole circulation of IS !3 amounted to 70 millions In 1815, :t is estimated to have risen to 1 10 millions ; and this amount was probably augmented in 13 1 G. At the close of 1819, it has been estimated, upon data believed to be substantially correct, at 45 millions. According to these

estimates, the currency of the United Ujt unanimous suffrage, as CiovStatcs has, m the space of thrrc years, clllor fJf new .,ulc ol- at been reduced horn S 1 10 millions to t!iC fllst .;icc,ion of State Oiliceri 45 millions, lms reducaon ex-:ust hcM iu thc new luuolic. ceeds titty nine per cent, of the whole 1 . r.

cncu.'ation ot 13 15. I he lact that the currency in 1815 and IS !G was depreciated, h.as not sensibly diminished the effect upon the community of this great and sudden reduction. What ever was the degree of its deprcci a- 1 tion, it was still the measure of value It determined the price of labor, and

of a.i ehe property ot tut community. i( amcuril-ln r lo 400 ) colJrllicl in A change so violent could net h.il, un- PhiSailcIpia peidtemiarv, and a desr.er the most favorable auspices in pei ate attempt to eccanc. took nLeo

other respects, to produce much dis t tress, to check the ardor of enter prise, an ! seriously to affect the vroductive energies ol the nation. The redurtbn was, in lact, commenced under favorable auspices. During the year 1817, and in the greater pait of 13 18, all the surplus produce of the country commanded, in forei Higher prices than or dinary. 1 he rate ot tortign exchange affurded no inducement for the exportation of specie for tiie purpose of discharging debts prexiously conti acted. The o ly drain, to which the metallic currency was subject, was the demand for it. for the prosecution of trade to the East Indies and to China. Iu thi trade, specie being the principal commodity, and indispensable to its prosecution, the amount exported du ring those years was very great, and seriously affected the amount of circulation, by compelling the banks Ut diminish their discounts. ( to be continurd.J From thr F.rfrja. rfiviile Spectator WasMn'on. March 31, 1820. lh-.iu Siu The bill further to extend the tune of paying up for our lands for one year, passed both houses ol congress yesterday ; but it passed with a provision in favor only of those who own 640ucies cr less. I consider this an important provision, however, ever with lhat limitation,

since there are but few farmers whojthcr the light nor power to interfere hue been disposed to purchase a with the existing Constitution cf :h latgercjuantity. j German states.

The bill to put down t.c credit system in future, I hac i.o doubt will pass; and believe it will eiiou-ly retard the settlement of cur wcuntty, I shall be compelled to .cte against it. The members from Ohio and Kentucky will be ulmost unanimous m favor of it, a:.d most of the iiitmners from the old states. The bi!', ou will have sen, u:;c.i ;l.c price it 1,25 per acre. Yours rcs.peuifuliy, DAN'L. POPi: C OOK. UrEST5:KN SUN.

V1CI-NN(.3 MAV 1S20. i lie jl: yivhI ot me J ..... o tt Ac: ff onr lale l.ejV.atm e. s 1 verv h t'a'i? xcurrence at the jncser.t tone, when so mtic.n anx.ety i v. these who represe: .covcre 1 1 acnne ei aei our si. lira yes tm T. v.. . t..li.i our duty to u.ior.n oerseh'es rlire gui:knnea ; cd i v car L:len sti, and :t we fn.d thev have d v notice, by struhig to proir.- tc cer perity, and ina'e.tuin enr resntct;::;i. W11I be i.rone r lor us to . lec t:.v ;n IV. :t hhoedd wc flr.J ihw h. ve i.e. nificavorii-g to 1.1c:: a few ; if tl e - owiv uassieg long v;ii. v.! rese:':t;r.s, T-C... n v.nthr ut Cuuse, 0 . 1 tr.en. v, 1 s than the;-i: ! . c 1 1 r 11: 5 :r .stale :ira:r.sl if.. ei. si v - '1. .'i'r.i e .ti' ; i ti ieri o'lelh -v. ::g the 1 v r.-., - 1 Ji .ietiCi : .e ea( . 1. iiA Ii.i'.aIu L.i eve rv ireeeu'U i nr to their :;pid carter, b to I'lre, en where str.e; eioles !: e:.n ie!. Ai t ry V 1 e i 1 1 u e 1 ; y , 1" :: e . v perli:qs iii4d i.u thcra n ef condiit.1. 4 4s '-U: .r.piv.ip . 1 . euvi, t.v fil !!'.. ti-. c. n - o dit!ere:.l ccuim It will he onset-veil. bv onr rca'leV'?, that v.ehave conniii need the tiobi'catln.-r of the report of Mr. Craw lev, Secretary (i the Treasury or the Uiiiftl rkatev, on banks and the cm rene'. . n e rr;-.v h ,1.: . dccun.ei.t loo krth, for 1 ' f-vr r.'1 i t.-. ' preduetieai, end as it dif closes tl.e critin ot the create: t evil v. hicli rev. t:::Ms'ii; our land, and points to a rtrr.cd;:, v e hope it will be carefully reed vy rdl. It must be important to each d eery in- " t I-ULIV I, IV.lfc ll i. .... CI VuUuI - a It riU b ob-er ed lrit tr-e standard by v.hiui ?4r. CraVvfirJ ro..kcs his calculation, cn the h.ki:.:: syitcni,is sixteen cf the state b..r.l;s, wk'.ch are, u:.questiort.hiy, i:: the lt?t s'.tu-ticn c! a:.y in rur country, :.:-.d r f cvaise his !ij tt must be iiiore favorsbie to tht pevn -cious practice than ought in j notice to be And, ncr.vitht-.r.dh.g it pl .ceL it in more favorable light thi.n it i;.ci;t.s ; it is a dark pie fare of a d.-.ncrca.j ar.tl e'estiuctive system, w'nen carried en upon iu present uvrverted principle. General Vivks, the Knvcy Extraordinary f:cm Stain, yesttrdav arrived at the i'ranklin Holt! in this city. STATK OF MAINS. Cien. Y 1 li. l am King, the Re publican candidate, has received tn The Charge d' Affairs of the King of the Netherlands the Vfrouut de Qisaljeck, lias left this city, being r.hout to cmbaskc at New Yoik,on his retr.rn to Europe. ib. An ir:s:irrccii;i 01 tb.e prisoners pei ate attempt to cccapo. too:-; pi on the 28th tilt. The firmness of the keepers, aided bv the activity of the citizens, an.i the volunteer corps, succeeded iinany in qucliing them. One ot the comkt s va, killed and several seriously wounded. e. An interesting piece of information, connected with the taking ofih" mail robbers and mu det ers, I lull and lhittcn. is that of the appjebensian, it is stronglv susp thvI, f if ar -other murderer, for whose d-trctio.. the Governor of New Yoik had offered a reward. lie was taken up under ciicutnstances of -tro!.,- suspicion as cue of the mail robbers, ?n 1 is said to bear a striking re: emblancei stature, complexion aiv.l Latuitn to the person advertised. lb. The : ';rr, I'lurrr-at!, haagain made bis escape fioni the Pittsburg jail. From the manner cf escape there is no doubt, it is said, but that he had accomplices outside ?s well as inside the jail. The sheriff, has offored loo dollars reward for his apprehension. b. An iwfiortant facr, as it rc!ae tr the political state of Europe, is icund among the recent news fiom that country. It is this; that the Con. gress of Vienna has declaied, that 1 ine- v jermanic 1 onif titration lias net. !. ft .' .