Columbia telescope. (Columbia, S.C.) 1828-1839, April 21, 1838, Image 2
TfrTlfe HOV.'JOH* QUINCY ADAMS.
% WASHINGTON.
- Mv dear Sir,
I propose to say a few words on the ques
ion whether tbe Banks should resume spe
lie payment? in May next. I do this be
cause my position seems to justify, if not
require it. For niueteen years I have been
connected witn the institution which caused
the last resumption, and during all that pe
riod mv efforts have been directed to secure
to the country the benefits of a sound cur
rency, and to banish from circulation every
thing but the precious metals and notes al
ways convertible into them. I think that no
other currency is safe or tolerable ; and that
we should now return to it at the first mo
ment it can be dene permanently. F or this
purpose the institution to which I belong has
made great efforts. Since the suspension in
May last it has bought and added to its vaults
nearly three millions of dollars in gold and
silver ; and now, with a capital of thirty-five
millions, its notes in circulation are six mil
lions, while its specie, after paying more than
haif a million to the Government of the
United States, amonnts to nearly four mil
lions, and it has eight or ten millions of funds
in Europe. Our principles therefore in
cline us to an early resumption ; our prepa
rations would justify it ? and if ..we were at all
influenced by the poor ambition of doing whaf
others cannot do so readily, or the still poorer
desire of profiting by the disasters of others,
the occasion would certainly be tempting. ? ?
But the Bank of the United States makes
common cause with the other Banks, and
the character and prosperity of the country
are identified with its banking system. ~
They must stand or fell together ? and it is
of vital importance that the banks should act
wisely and act harmoniously, and above all
they should not suffer themselves to be driven,
by the dread of being thought weak, into
rash and hazardous enterprizes. The great
prerogative of strength is not to be afraid
of doing right; and it belongs to those who
have no fear that prudent counsels will be
mistaken for timidity, to examine calmly
whether the general interests of the country
recommend the voluntary resumption of spe
cie payments in May next. I say the volun
tary resumption, because there is not now,
nor has there ever been, any legal suspension
of specie payments as there was for more
than twenty years in England. The suspen
sion is wholly conventional between the
banks and the community, arising from their
mutual conviction that it is for their mutual
* benefit. In truth the banks are but the mere
agents of that community. They have no
funds not already lent out to the people, of
whose property and industry they are the
representatives. They are only other names
for the farms, the commerce, the factories,
and the internal improvements of the country
-?and the enquiry whether the banks are rea
dy to resume is only another form of asking
whether the people are ready to pay their
debts to the banks.
Tbe true question then, after all, is, wheth
er tht time has arrived when the hanks should
announce that the causes of the suspension,
which then satisfied the community, have
ceased to exist, and that the suspension itself,
with all its necessary attendants of restriction,
need no longer be continued. To that en
quiry I now proceed. And ?
, L What were the causes of the suspen
sion? They were the Specie Circular,
which forbade the receipt of any thing but
gold or silver at the Land Offices ? the mis
management of the deposites, which scat
tered them to the frontiers ? the clamor
raised by the Executive against bank* notes,
which alarmed the people for their safety,
and caused a run upon the banks for specie.
Now has any one of, these causes ceased ? ?
Oft the contrary, have they not acquired ten
iold force 1 - The Specie Circular is not re
pealed. Ob the contrary, it has been exten
ded, for bank notes are proscribed, not mere
ly from the land offices, but from all pay
ments of every description to the govern
ment. The distribution of the surplus is
over, because there is no longer any surplus
to distribute; but the great disbursements
on the Southern and Western frontiers ope
rate as injuriously by requiring the transfer
of so much revenue from the points where
it is collected. Lastly and mainly, the alarm
about bank notes propagated by the govern
ment, has been deeply spread throughout the
country, till what was at first a passing out
cry, hi settled into an implacable hostility.
So man, I think, can doubt for a moment
that the Executive of the United States seeks
to maintain his power by exciting popular
passions against the credit system ? and that
the whole influence of the government is
employed to infuse into the minds of the
people, distrust and hatred of all banks. ?
For this purpose, the most insane ravings are
addressed to the cupidity of the ignorant,
who are taught that gold and silver are the
only true riches, and above all, that these
shrewd metals would enable us to outwit the
paper dulness of England. "Sk^T said lately
one of these politicians in the 0? S. Senate,
"Sir, a man loses all by any circumstance
that bat for that circumstance he would
hare made. ? Although England is a paper
country, yet if toe were exclusively a metallic
country toe should make more out of our in
tercourse with her. And why should we, be
cause she chooses to maim herself by her
paper system, follow her example!" The
government, it may be said, is comparatively
harmless, because its expenditures exceed
its income. It* regular incomew no doubt
but while it can pledge the public credit for
treasury notes at a high rate of interest, by
which every man's property is mortgaged,
and buy specie with them, there can never
be wanting the means of oppressing the
banks. There, is therefore no one circum
stance which occasioned the suspension
sufficiently removed to justify a change, and
t he-most prominent cause remains with in
creased intensity. Accordingly ?
If. We credit system of the United States
and the exclusively metallic system are now
fairly in the field, face to face with each other.
One or other must fall. There can be no
other issue. It is not a question of correct
ing errors or reforming abuses, but of abso
lute destruction; not which shall conquer, but
which shall survive. The present struggle
too must be final. If the banks resume aud
are able by sacrificing the community to con
tinue for a few months, it will be conclusively
employed at the next elections to show that
he schemes of the Executive are not as de
tructive as they will prove hereafter. But
,{ they resume and again are compelled to
suspend, the Executive will rejoice at this
new triumph, and they will fall in the midst
of a. universal outcry against tlieir weakness.
This m perfectly understood, and according
ly ail the influence of the Executive is di
rected te drive the Banks, by popular out
rage and clamor, into a premature resump
tion? not a business resumption general and
jasruianeat, but a political and forced re
sumption, which may place them at the
merry of those in power. They who have
special charge of these interests must then
beware of being decoyed from their present
position. Thev are now safe and strong,
and they should not venture beyond their
entrenchments while the enemy is in the
plain before them. It they resume, one of
two things vviil happen their notes will not
be received by the Government or they will
be received ' If they are not received, the
Government, to the extent of the revenue,
will force the hoiders of the notes to draw
specie from the Banks to be deposited with
the collector of the revenue. For the differ
ence between the revenue and the expenses,
the Government will issue treasury notes to
be sold for Bank notes, and converted into spe
j cie, and as the disbursements are made at
points on the frontiers, remote fro u the i
^ places of collection, it will not return to the
; Banks issuing it except circuitously. But if
the notes are received, they will not as for
merly be deposited in Banks and drawn out
again, s? as to enter into the circulation,
leaving the public creditor his. choice of spe
cie or notes, but they will be left iD special
deposite with the receivers. When warrants
3 re drawa on these receivers they will call on
the Banks for specie to pay the favored pub
lic creditor, selecting of course the Bank on
whom they will draw according to its servility
or opposition to the Executive, and -thus
placing tfcem all under his control. Now
under such circumstances, is it wise for the
Banks to disarm themselves in the presence
of their enemy 1
* III. The disorders of the currency lie too
deep for superficial Tenaedies, and these pallia
tives irritate "withon^curiHg. Congreae, and
Congress alene*can apply adequte relief.
What Mr. MadisojfcMid" to Congress in 1816, ;
is even more true in 1838- "F or the interests
of the community at large," said he, "as well
as for the purposes of the Treasury, it is es
sential that the nation should possess a curren
cy of equal value, credit and use wherever it
may circulate. The Constitution has en
trusted Congress exclusively with the powei
af creating and regulating a currency of that
description." The only reform in the cur
rency which that body has yet made is the
issue of ten millions of irredeemable paper
money, and a proposal for ten millions more.
Is it worth while, then, so loug as Congress
fails to exercise its legitimate powers, to
waste the strength of the country in efforts
i to accomplish what we all know to be im
practicable. To resume now without some
clear understanding with the Government,
seems to be throwing away the benefits of
experience, and the lessons of misfortune.
We have gone through all the mortification
and all the in<!t)nvenience of suspension.
Let us endeavor to profit by them, to fix the
future on some solid basis? have some guar
antee of the stability of the currency, and not
set every thing afloat again, without knowiug
where we may be drifted. For
IV. Compare the situation of the Banks
at the last resumption and now. After a sus
pension of nearly three years, Congress ap
plied all its power to induce, to persuade,
and to assist the Banks in their efforts to re
sume. They passed the Resolution of 1816,
authorising the receipt of the notes of Specie
paying Banks. But this alone was insuffi
cient; and at the same time they established
the Bank of the United States, with a capi
tal of thirty -five millions. That Bank called
a convention of State Banks, and agreed
that if they would resume specie payments,
it would
1. Assume all their debts to the Govern
ment of the United States.
2. Discount to those who had payments
to make to the Government, the whole a
mount of their Bonds ; .and in addition,
3. Discount to those not indebted to the
Government two millions in New York, two
millions in Philadelphia, one and a half mil
lion in Baltimore, and a half million in Rich
mond? and ^
4. Would sustain the resuming Banks
in case the resumption should bring them
into difficulty. *;*
The Bank at the same time imported, at
an expense of more than half a million, the
sum of seven millions of specie;. and two
months after the resumption its discounts
reached twenty millions. Compare with this
statement our condition now.
Then the Government agreed to receive
for all dues the notes of the Bank of the
United States ? now all Bank notes are re
fused and discredited. Then the government,
endeavored to sustain the Banks? now it is
striving to destroy them. Then it established
:^>pg and vigorous Bank Capital ? now it
refuses to create a new Bank, and seeks to
cripple those in existence. Then we had two
hundred aDd sixty Banks ; now we have near
ly nine hundred.
In short, what reliance have the Banks
qow with the Executive hostile to them ?
What protection like that of the late Bank
of the United States have they to sustain
them? None whatever.
The only circumstance not wholly unfa
vorable in the comparison, is the low rate of
exchange with England. But nothing gen
eral or permanent can be inferred from this
circumstance, which frequently occurs, and
on the present occasion is wholly accidental
in New York, from the unnatural condition
into which her measures of extreme rigor
have driven every thing. If, under ordinary
circumstances, while other things underwent
no depression, exchange on England should
decline, it might be inferred that England
owes to the United States more than we have
yet drawn from her. But it is not exchange
alone that has fallen. Exchange on England
has not fallen in New \ ork as much as the
internal exchanges, or stocks, or real estate,
or house-rent have fallen. This fact seems
decisive as to the cause. But can this de
pression continue? Certainly not. These
rigorous measures are understood to be only
preliminary ? only preparations for an expan
sion by the banks of New York, which is to
restore ease and confidence. Well, the mo
ment this ease and confidence return, all
things will rise, and exchange of course
among the number. Besides, this unnatural
condition will work its own remedy, as all ir
regularities are cured by their own excesses.
To sell every thing and to buy nothing is im
practicable ; and when the English have
bought all the pioduce we have to spare, we
must of course buy from them what manu
factures they have to spare. As soon as the
proceeds of our industry are realized in Eng
land?while we have gradually exhausted our
supply of English goods ? our own merchants
will convert their produce into a fresh sup
ply to be brought over ; or, if this process be
too slow, the English manufacturers them
selves will send their own goods for sale. In
either case the exchange will recover its equi
librium, and of course will rise here ; for be
tween two such countries as America and
. England, a permanent inequality of exchange,
as a basis of the metallic currency of either,
is impossible.
V. Perceiving nothing iu the conduct of
the Governtaent to justify an early resump
tion, let us see if there be any thing in the
state of the country which recommends it.
Now what is the condition of our affairs?
The suspension found us with a heavy debt
to the banks ? not less probably than five hun
dred millions ? with large balances from the
Southern and Western States to the Atlantic
cities, and with a very considerable debt to
Europe. All parties were willing to pay ;
almost all were able to pay ; but great for
bearance and great indulgence were necessa
ry from the creditor, and above all, after such
a convulsion, the great restorer was time ;
I time to settle; time to adjust accounts; time
to send the debtor's crops to market; time to
dispose of his property with the least sacri
fice; time to briug out his resources to pay
his debts. In all the large movements of
human affairs, as in the operations of nature,
the great law is gentleness ? violence is the
| last resource of weakness. The disease of
the country was an overstrained and distem
pered energy. The remedy was repose. ?
The question of the currency, though impor
tant, was only secondary. The first concern
was to pay our debts, and especially not to
depreciate the value of our means ot paying
them. Accordingly it seemed to me that,
after the suspension, the true course of this
country was to begin a gentle and gradual
diminution of loans sufficient to prevent the
hazards of expansion while the restraint of
specie payments was removed, and to prepare
for the resumption, but with no rash compe
tition as to the amount which the several
banks could curtail ? to make no violent
changes in the standard of value, and give
time for a settlement with foreigners, and
among ourselves, on t^e same or nearly the
same.rbasis upon which these mutual e^gage
ments were contracted ? letting the crops go
to their destined markets without depreciat
ing their price. Alter this, the resumption,
I with the aid of Congress, would have been
easy and spontaneous. It was in this spirit
that the Bank of the United- States has not
diminished ten per cent, of its loans, while it
added about three millions to its specie, and
will have given the necessary facilities for
shipping the crops of the South and West to
the amount probably of fifteen or twenty niil
lions of dollars, placing its own confidential
agent in England to protect the great com
mercial and pecuniary interests of the coun
try. This seemed to" be its proper function.
! It was thus that it hoped to discharge its du
ty to the whole Union. It was thus too it
could show its fidelity to Pennsylvania, by
aiding its public improvements, by keeping
its business and its people in comparative
ease, and by not suffering the prosperity of
its commercial capital to be prostrated; ob
jects these, far more important than whether
specie payments be resumed a few months
sooner or later.
The injurious effects of a contrary course
are seen in all the relations of business.
Take, for instance, the debts to banks and to
individuals. The debts were mainly con
tracted when the currency was abundant.
They must now be paid in a very altered
state of the currency ? and it is necessary to
proceed with extreme caution when the re
lation of the debtor to his creditor is changed
by events which neither could control ; be
cause, if this change be not made very gra
dually, so as to bring at the same time all the
other relations of life to the same standard,
you inflict injustice, or perhaps ruin, on the
debtor. It was thus that Englaud continued
her suspension for twenty-five years, and by
an Act of Parliament gave several years' no
tice of the progressive resumption, in order
that all the business of the country should
adjust itself to the approaching change. Of
the effect of any sudden movement, we have
before us a striking instance. It appears by
the published statements of the banks of the
city of New York, that since the suspension
to March 1, 1838, they have reduced their
loans aod discounts from forty -six millions to
thirty millions, and their circulation from
nine millions to two millions? -an aggregate
diminution from fifty-five millions to thirty -
three millions. If this or any thing near this
be the reduction, what is the consequence .
A man who contracted a debt to the banks in
New York, before the suspension, finds his
ability to provide means for the payment of
that debt reduced one third, or nearly one
half? that is to say, the dollar he now pays
is equivalent to one and a half or almost two
dollars when he borrowed it, besides the in
terest. Such a process of reduction would
have been wholly intolerable, it the citizens
had not escaped from it and sought allevia
tion by loans elsewhere. But if the other
cities had followed the example of New
York, and made similar reductions, the whole
country would have sunk under it or revolt
ed against it.
These inequalities between members of the
same community became more striking when
applied to engagements between distant parts
of the Union. The Atlantic cities for in
stance were creditors of#the Southern and
Western States for goods sold to them, to be
paid for either in those States, or in the At
lantic cities? their currencies being so nearly
the same that the exchange would not cost
as much as the transportation of the specie.
When the day of payment arrives, the credi
tor city suddenly makes an artificial scarcity
of its currency? renders the only money it
will receive in payment almost inaccessible to
its debtor? reducing at the same time the
rates of exchange, and the prices of every
thine. This rigor instantly recoils on the
creditor. Ifpay ment is made in the Southern
and Western States, the Atlantic merchant
loses the whole depreciationvin the exchange.
If payment is to be made in the Atlantic,!
cities, and the debtor sends produce to pay
his debt, the scarcity of money obliges him
to sacrifice it? if he sends the Bank notes of
his country they sink'to seventy five percent,
in value? and he loses the difference. If he
brings the stocks of his State, the scarcity of
money renders the negotiation impossible.
Once disappointed in this way, he sends no
more produce? no more Bank notes?and the
creditors in turn suffer more than the ditler- :
ence by the delay.
So in respect to foreigners. We owe a
lar^e debt to France and England. Why
should we destroy the value of our only means
of paying ? We can pay it only m ca^ or
, produce, or stocks . As to co^-this debt
Cas contracted in an abundant currency. By
t\ws artificial scarcity of money we are
obliged to pay it in a currency more valuab e
by one half or one third. Even at that rate
we can neither borrow the money nor raise it
by sales except by ruinous sacnfice. We
then may pay it in produce or m s^"s'b".t
the same scarcity sinks the value of (b^.
debt contracted when cotton was a twenty
cents wehave to pay when cotton is ten cents
a pound. If we propose to pay in stocks,
these too have sunk perhaps twenty five per
cent, on their price last year. Our resources
then are diminished in value while our debt
? ? hv interest The conscquence
is increasing by interest, a" m
is that the foreign debt is postponed. This
operates injuriously to both parUes-to the
domestic debtor by reduoing hie meaoe of
payment- -to the foreign creditor by the delay
and the hazard of his debt. It is true, if he
1 could now receive this money he would remit,
it home at a low rate. But then the same
scarcity which lowers the rate of remittance,
prevents his receiving any thing to remit? and
so far from being interested in the early re
sumption, it injures him essentially, because
I the forced preparation for it, by crushing the
resources of his debtors, renders them alike
unable and unwilling to pay. What the for
eign creditor wants is payment? payment of
the debt, not in a better currency, but in an
equal currency, or if necessary, in an inferior
currency, because he can better support a
high rate of remittance than a reduced or
postponed payment.
There prevails a notion that the credit of
the country abroad will be injured by not re
suming. Not in the least. Every body con
nected with America knew the reasons of sus
pending, and entirely approved of it as the
only measure that could have saved the coun
try. What Europeans want now is that we
should pay our debt. That is our first duty,
and if they see, as they cannot fail to see, that
these premature efforts to resume specie pay
ments prevent the collection of what is due
to them, they will perceive, that in endeavor
ing to secure an object wholly domestic, they
have been sacrificed. In respect to the di
vidends and the stock, payable abroad, many
of them are payable in pounds sterling, or
guilders, or francs, so that we place the money,
there at our own cost? and as to dividends
payable here, they have almost universally
been remitted in the equivalents to specie. ?
What the general merchants of France or En
gland desire, is that we should take their
merchandise? that we should trade with them.
The state of our currency is a very subordi
nate concern. You deal with them and pay
them in their own currency. They know
little and care less about the sort of currency
in which you deal with the South and West.
Besides, who are to reproach us with the de
preciation of our notes. The English ? But
the Bank of England suspended specie pay
ments for twenty-five years ? during nearly all
which time every American Bank paid spe
cie and men in England were forced byHaw
to take the notes of the Bank of England
when they were at thirty per cent, discount
? whereas no man is obliged here to take any
note of any Bank? and at this moment a pa
per dollar in Philadelphia or New York, will
buy a silver dollar delivered in London. The
question then of the resumption is one exclu
sively domestic ? one which, however impor
tant at home, does not affect the credit of the
country abroad.
VI. We come now to the question wheth
er if an early resumption be practicable, the
month of May is a fit time. My impression
is that the month of May is a very unfit time.
The resumption, to be useful, must be gen
eral ; and no arrangement can be satisfactory
which does not include the Southern and
South-western States. These I do not think
are yet ready to resume. They are straining
every nerve to pay their debts. Their crops
are going forward to provide funds in Europe
and at the North ? the Banks are laboring to
meet their notes at the North? the Legisla
tures are pledging their credit to raise funds
in order that their people may pay their debts.
Why should we repulse them 1 All they
want is time. They have not yet had the
benefit of a single crop, and they may require
another; and instead of discrediting them, or
diminishing the value of their produce, or
curtailing their facilities in sending their crops
to market, it is better to help them and wait
till they are more advanced in their prepara
tions. The employment of credit, either of
Banks or of individuals, most useful to the
country at this moment, is to forward its pro
duce to Europe. Instead of this the Banks
are reducing these facilities, and calling upon
their debtors for payment. This seems very
unreasonable. It is stopping the locomotives
as they are carrying the crop to market. The
month of May too is not the right time of the
year. For example, it requires on an average
about fifty days to take cotton from New Or
leans to Liverpool. Supposing it immediate
ly sold, the usage is at the end of ten days to
give a banker's acceptance, payable in two
months, so that by the month of May there
would not be actually realized more than the
cotton which left New Orleans before Janua
ry, when not more than one fourth or one
fifth of the whole crop had been shipped.?
Much, of ctrtirse, is drawn for when shipped,
but I speak now of the actual obtaining pos
session of the proceeds of the crop; and at
all events not one half of the crop will have
reached Europe by the month of May. The
Spriug is, moreover, the season when the
credits given for the shipments of Southern
and Western produce, are maturing at the
North ; and the crop from which reimburse
ments are to come, remains unsold in Europe.
The spring too, is the time when the Western
business has brought from the interior the
notes of the Atlantic Banks, when the circula
tion presses more upon them than at any other
period, and when specie is wanted for the
trade to China and India, making that time
particularly unpropitious for the resumption.
VII. It remains now to inquire how far
these general views of the expediency of a
resumption in May should be changed by the
determination of the Banks of the city of New
York to resume at that period.
I For the gentlemen of New-York who an
nounced that decision, I have great personal
respect, and under ordinary circumstances
would willingly yield my own convictions to
their better opportunities and understanding
But the natural influence of their judgement
I is weakened by the knowledge of the fact,
that the Banks of New York would not have
had the least idea of a resumption in May?
but because the immunity allowed by the
Legislature will then expire, and they fear
that it will not be renewed. This was dis
tinctly avowed at the Bank Convention, and
the Deputation who visited Philadelphia re
peated it again and again. Now this may be
a very good reason for the Banks of New York
to resume-? but certainly no reason whatever
for the Banks of Pennsylvania to do the
same. The States of Pennsylvania, of Vir
ginia, of Kentucky, have Legislatures as well
as New York has, and they have refused to
direct their Banks to resume in May next.
Why should they obey the Legislature of
New York and not their own Legislature?
The position of New York is on all hands
regretted. But how is it to be remedied ? A
single Legislature out of twenty six Legisla
tures had passed a law forfeiting the charters
of Banks, if they were unable to redeem their
notes in specie. A public calamity overtakes
the country, and the declining to pay specie,
so far from being criminal, became an act of
public safety? so adopted by all the Banks,
and so confirmed by this very Legislature.
The provision originally designed to guard
against fraud, may thus become the punish
ment of honesty. The Legislative body
which protected the Banks for a vear is now
in session, and in twenty-four hours can ex
tend the indemnity till a more appropriate
?ea?on for resuming. I presume no difficul
ty will occur in this. Why should there be ?
Is it possible that such a body can see with
indifference the distress which a perseverance
in this course must inevitably create, or per
mit the pride of opinion or any mere political
or party consideration to prevent them from
interposing to protect their noble but suffer
ing city? If they decline how can we of
Pennsylvania interfere? Why should we
voluntarily place ourselves in the same situa
tion into which New \ ork has been forced ?
By doing so we share only a common disas
I ter? instead of husbanding our resources
! against the period when our interposition may
be really useful. In the mean while, the
most effectual service which we can render,
is to speak in a tone of frank sincerity. She
may perhaps bear it from one, than whom
she has never had a more true and constant
friend ? who, although an entire stranger, has
for a long, series of years, done every thing in
his power to advance her prosperity; and
j never saw her in any misfortune which he
| did not anxiously strive to mitigate. But I
wish to serve her, not to flatter her. I believe
then that at this moment New York is in an
entirely false position. She is obliged by the
existing law to do what she feels to be wrong.
Her natural course is to appeal to her repre
sentatives to rectify their mistake, and not to
thrust out their own State Banks to be.
crushed by the Executive. Instead of doing
j this, she perseveres from a mistaken though
honorable pride in not asking reliefwhere re
lief is attainable, but in preparing for the event
by sacn^ing her own interests and inflicting
distress. .1 the community. The apparent su
periorit in the exchanges which this produc
es, is wholly fallacious as well as injurious.
The state of the exchanges in New York pro
i ves nothing whatever, except the scarcity of
money in New York. The exchanges are even
less depreciated than many otherthings. The
bank notes of the Southern States are at a
great depreciation. But store rent and real
estate in the very spot where these notes are
sacrificed, are much more depreciated than
the notes themselves. So too in New- York,
the notes of Philadelphia are at a discount,
yet at this moment New York has to pay to
Philadelphia little less than ten millions of
dollars, for actual debts to Philadelphia, and
to foreigners represented by Philadelphia. It
is not therefore the abundance but the want
of means ? it is not strength but weakness
which causes this difference. By the same
process bread and meat may be reduced in
price for the want of purchasers. You make
an artificial scarcity of money, and then boast
how much the little which remains will buy
? but your superiority is punished by the
debtor, who does not settle with a creditor so
much above him. And what is the benefit
of all this ? The other States are not obliged
to submit to this local legislation, and the
suffering of "N. Y. is certainly not fitted to
make them adopt it voluntarily. It is bet
ter, therefore, for them to state with perlect
frankness that they do not mean to unite with ,
her in this forced resumption ? to say this
decidedly and finally, so that she may apply
the only remedy ? an extension of her law.
The whole subject would then be open for
future adjustment upon principles of safety,
alike to the Banks and to the community.
On the whole, the course which, in my
judgement, the Banks ought to pursue, is
simply this :
The Banks should remain exactly as they
are ? preparing to resume, but not yet resum
ing.
They should begin, as the Bank of England
did, under similar circumstances, by paying
the small notes, so as to restore coin to all the
minor channels of circulation?but not make
;iny general resumption until they ascertain
what course the government will pursue, em
ploying in the meantime their whole power
to forWard the crops to market. The Amer
ican Banks should do, in short, what the
American Army did at New Orleans, stand
fast behind their cotton bales until the ene
mv has left the country.
These are my opinions, very deliberately
formed, and very frankly expressed. They
are thus set forth, not to influence the course
of others, but to explain my own.
With great respect and esteem, yours,
5 N. B1DDLE.
Philadelphia, April 5, 1838.
General Orders, No. 7.
HEAD QUARTERS OF THE ARMY.
Adjutant General's Office, ?
Washington, April 10, 1838. S
I . Major General Jesup having reported
that the operations in Florida will have ter
minated by the 1st of May, and that a por
tion of the troops will be disposable, the fol
lowing arrangements will be carried into
effect as soon thereafter as practicable.
II . The 1st and Gth regiments of In
fantry, the six companies of the 2d Infantry,
and four Companies of the 2d Dragoons,
will constitute the regular force to remain in
Florida, with as many companies of the
volunteers or militia of the Territory as the
officer remaining in command may deem ne
cessary. The three companies of the 6th
Infantry, now in Louisiana, will forthwith
join the Head Quarters of the regiment at
Tampa Bay.
HI. ? The four regiments of Artillery, the
4th regiment of Infantry, six. companies of
the 2d Dragoons, and the detachment of
Marines, will repair to the Cherokee country
by the most convenient and expeditious
routes from the several points at which they
may be found on the receipt of this order.
The troops, as far xas practicable, will move
by regiments, and be accompanied by all the
officers belonging to each. Should any of
the companies ordered to the Cherokee
country occupy stations in Florida from
which they should be immediately with
drawn, they will continue in position until
they can be relieved by the troops designated
to remain in the Territory ; after which they
will follow their regiments without delay, it
being important to concentrate the compa
nies of each regiment.
IV . Two Surgeons and as many Assist
ants as the service may require, will be re
tained in Florida, to be selected from those
who have served the shortest period in the
Territory. All other officers of the Medical
Staff will proceed with the troops ordered to
the Cherokee country.
V . Major General Jksup will take all the
necessary measures for the prompt execution
of this order, and will then turn over the
command of the troops in Florida to Brevet
Brigadier General Z.Taylor, Colonel of the
1st Infantry ; and on being relieved, he will
repair to the seat of Government, and re
sume the duties of Quartermaster-General.
VI . The officers at the heads of the seve
ral branches of the Staff will make the ne
cessary arrangements for moving and supply
ing the troops on their routes to their desti
nation, and for the service in which they are
to be employed.
VII.? Major General Scott is assigned to
the immediate command of the troops
1 ordered to the Cherokee country, and the
direction of affairs in that quarter. The
commanders of detachments will report to
his Head Quarters, at Athens, in Tennessee,
or wherever else they may be established at
the time.
By order of Alexander Macomb,
Major-General Commanding-in-Chief ;
R. JONES, Adj. Gen.
From the National Intelligencer.
The highly respectable character and stand
ing of the writer of the following Letter, on
the subject of the next Census of the popula
tion of the United States, entitles its sugges
tions to respectful consideration : '
LETTER ON THE CENSUS OF 1840,
To the Hon. Hugh S. Legare, -M. C.
Bt Francis Lieber.
Dear Sir: I take the liberty of addressing
you on a subject in which I fee] convinced
you take a deep interest as a true lover of
accurate, fruitful, and enduring knowledge ?
on the approaching Census. N
You may be aware that in 1836, while you
represented our Government abroad, I ad
dressed a memorial to the Senate of the Uni
ted States on the great importance of a com
prehensive and thorough work on the statis
tics of our country, and the necessity of its
being undertaken, digested and published by
federal authoritv. While I knpw well that a
proposition, as I then made, cannot be easily
adopted at once, but must follow the law of
progress of all comprehensive measures, if
founded upon truth and general utility, that
of fighting slowly but steadily its own way, I
was, nevertheless, satisfied that the publica
tion of my plan, of which the Senate ordered -
a large number to.be printed,* could not re -t?
main without some beneficial effects. I have
had the pleasure of seeing attention drawn to
it in various quarters. Several periodicals
have strongly recommended it, and the editor
of the American Almanac? a justly popular
work ? says iu (he preface to the last number:
" All intelligent and judicious legislation must
be founded, in a great measure, on statistical
knowledge. If the statistics of all the United
States, collected and digested on a judicious
and uniform plan, embracing among other
matters, &c. [the editor here gives a very
brief abstract of the heads in my memorial,]
were, at regular periods, laid before the Pub
lic, a mass of information would be presented
which would be of immense advantage to the
National Government and to the Governments
of the several States ; and the wide diffusion
of such information among the citizens at
large would be attended with the most salu
tary consequences." The editor agrees with
me that " the statistics of the whole country
can never be collected by one individual, nor
by a society formed for the purpose." The
vastness of our country, the peculiar organi
zation of its Governments, and the expenses
attending so extensive a collection of facts as
would be requisite ? far too heavy for private
means, but trivial indeed for Congress ? must
necessarily ever prevent any private individual,
however industrious or wealthy, from execut
ing the desirable work. You will agree that
it is absolutely impossible. In various Euro
pean countries there exist, as you are well
aware, regularly organized bodies ? statistical
boards ? for the collection and digesting of all
those many facts, from which, with cautious
nse, we are enabled to derive the most valua
ble knowledge respecting the physical, and,
as has lately been shown, likewise the moral
state of society. If, at first glance, these
truths may sometimes appear startling ; if they
almost possess the power of Medusa's head,
to petrify the beholder ? for instance, when
we find the surprising regularity of crime, not
only as to the general number of offences, but
also as to each specific crime, committed with
such or such instrument or means, in each
respective period of life, and by each sex, so
that the State has actually to pay a regular
" budget of crime," as it nas been appropri
ately called ? yet they are truths, and truths
lead to truth. We are not called upon to
hunt for facts in order to prove one or the
other preconceived or accustomed notion, but
our bounden duty is manfully to seek truth,
and sternly to look her in the face. These
remarks were lately brought again to ray mind
with peculiar force by the perusal of a work,
with the author of which you are probably
personally acquainted, as he is the distinguish
ed royal astronomer to the Court near which
you resided. Mr. Cuetelet, who has distin
guished himself by several productions of a
statistic-philosophic character, shows, in, his
work entitled, 44 On Man and the Develop
ment of his Faculties," more successfully
than any writer before him, what important
results respecting the physical, moral land
social state of man, a mind deeply imbued
with a manly love of truth and endowed with
combinatory powers, scientific steadiness!, and
cautious sagacity, may .derive from well-au
thenticated statistics, collected on a large
scale. < J
Although I am well aware that it is impos
sible to obtain all the facts which are requisite
for an accurate and detailed picture of the
United States by the aid of a census alone,
yet I believe that much might be obtained,
and that the result might lead to the adoption
of a more comprehensive and thoroughly or
ganized plan. I believe I do not deceive my
self, regardine the utility of the facts which
may be obtained in this manner. I know that
statistics should always be used with great
caution, because it requires a circumspect
and well-trained mind to view statistical facts
at once, with all their concomitant circum
stances, to combine them correctly, and not
rashly to conclude that, because one fact has
so far always been found along with another*
the one is necessarily the cause of the other*
I know, too, the great difficulty in the way of
collecting statistics, so that we may confident
ly rely upon them, even in countries where a
dense population and many police regulations*
uncongenial to our civic institutions, facilitate
the collection. This difficulty is greatly en
hanced with us by jhe sparse population bat
tered over an immense territory, the indepen
dence of the State Governments, and the al
most total absence of a registering police au
thority. Still I believe that much informa
tion, valuable even for those who do not at
once confide in any round and convenient
number given under the auspices of some
authority, without inquiring into the means
or process by which it was obtained, might be
collected through the next census. , The
editor of the American Almanac is, I see, of
the same opinion.
If I state how I believe it to be possible to
arrive at some satisfactory result, I do it fully
conscious that I merely throw out ideas which
may or may not engage your farther consid
eration. False modesty, on the other hand,
shall not prevent me from stating my views on
a subject on which I have loqg reflected-^
There may be some grain worth preserving
in the chaff.
It appears to me desirable that a commit
tee of Congress be appointed forthwith, to
take into consideration the next census, and
what measures for the farther collection of
? 24th Cong, lit Sear Senate, 314.