continuing to fall till it becomes so low as to be likely to afford a profit on the purchase and exportation of these commodities, an actual exportation, nearly proportionate to the amount of bills drawn, can scarcely fail to take place. It follows that there cannot be, for any long period, either a highly favourable or unfavourable balance of trade; for the balance no sooner affects the price of bills, than the price of bills, by its reaction on the state of trade, promotes an equalisation of commercial exports and imports. Your committee have here considered cash and bullion as forming a part of the general mass of exported or imported articles, and as transferred according to the state both of the supply and the demand; forming, however, under certain circumstances, and especially in the case of great fluctuations in the general commerce, a peculiarly commodious remittance. Upon these principles your committee de sired Mr. Greffulhe to make certain calcula tions, which appear in his answers to the following questions, viz. "Supposing you had a pound weight troy of gold of the English standard at Paris, and that you wished by means of that to procure a bill of exchange upon London, what would be the amount of the bill of exchange which you would procare in the present circumstances?-I find that a pound of gold of the British standard at the present market price of 105 francs, and the exchange at 20 livres, would purchase a bill of exchange of £59 8. "At the present market price of gold in London, how much standard gold can you purchase for £59 8?-At the price of £4 12, I find it will purchase 13 ounces of gold, within a very small fraction. "Then what is the difference per cent. in the quantity of standard gold which is equivalent to £59 8 of our currency as at Paris Your committee have enlarged on the documents supplied by Mr. Irving, for the sake of throwing further light on the general ques-and in London ?-About 8 per cent. tion of the balance of trade and the exchanges, and of dissipating some very prevalent errors which have a great practical influence on the subject now under consideration. "Suppose you had a pound weight troy of our standard gold at Hamburgh, and that you wished to part with it for a bill of exchange upon London, what would be the amount of the bill of exchange, which, in the present circumstances, you would procure?—At the Hamburgh price of 101, and the exchange at 29, the amount of the bill purchased on London would be £58 4. "What quantity of our standard gold, at the present price of £4 12 do you purchase for £58 4-About 12 ounces and 3 dwts. "Then what is the difference per cent. between the quantity of standard gold at Hamburgh and in London, which is equivalent to £58 4 sterling?-About 5 per cent. That the real exchange against this country with the continent cannot at any time have materially exceeded the limit fixed by the cost at that time of transporting specie, your committee are convinced upon the principles which have already been stated. That, in point of fact, those exchanges have not exceeded that limit, seems to receive a very satisfactory illustration from one part of the evidence of Mr. Greffulhe, who, of all the merchants examined, seemed most wedded to the opinion that the state of the balance of payments alone was sufficient to account for "Suppose you had a pound weight troy of any depression of the exchanges, however our standard gold at Amsterdam, and wished great. From what the committee have alto part with it for a bill of exchange upon ready stated with respect to the par of ex- London, what would be the amount sterling change, it is manifest that the exchange of the bill of exchange which you would probetween two countries is at its real par when cure?—At the Amsterdam price of 143, exa given quantity of gold or silver in the one change 31 6, and bank agio 1 per cent., the country is convertible at the market price into amount of the bill on London would be £58 such an amount of the currency of that coun- 18s. try, as will purchase a bill of exchange on the other country for such an amount of the currency of that other country as will there be convertible at the market price into an equal quantity of gold or silver of the same fineness. In the same manner the real exchange is in favour of a country having money transactions Similar calculations, but made upon differwith another, when a given quantity of gold or ent assumed data, will be found in the evisilver in the former is convertible for such an dence of Mr. Abraham Goldsmid. From amount in the currency of that latter country these answers of Mr. Greffulhe, it appears as will there be convertible into a greater that when the computed exchange with Hamquantity of gold or silver of the same fineness. burgh was 29, that is, from 16 to 17 per "At the present price of £4 12, what quantity of our standard gold do you purchase in London for £58 18 sterling?-12 oz. 16 dwts. "How much is that per cent. ?-7 per cent." cent. below par, the real difference of exchange, resulting from the state of trade and balance of payments, was no more than 5 per cent. against this country; that when the computed exchange with Amsterdam was 31 6, that is about 15 per cent. below par, the real exchange was no more than 7 per cent. against this country; that when the computed exchange with Paris was 20, that is, 20 per cent. below par, the real exchange was no more than 8 per cent. against this country. After making these allowances, therefore, for the effect of the balance of trade and payments upon our exchanges with those places, there will still remain a fall of 11 per cent. in the exchange with Hamburgh, of above 8 per cent. in the exchange with Holland, and of 11 per cent. in the exchange with Paris, to be explained in some other manner. If the same mode of calculation be applied to the more recent statements of the exchange with the continent, it will perhaps appear, that though the computed exchange is at present against this country, the real exchange is in its favour. From the foregoing reasonings relative to the state of the exchanges, if they are considered apart, your committee find it difficult to resist an inference that a portion at least of the great fall which the exchanges lately suffered must have resulted not from the state of trade, but from a change in the relative value of our domestic currency. But when this deduction is joined with that which your committee have stated, respecting the change in the market price of gold, that inference appears to be demonstrated. (To be continued at page 17.) SUMMARY STATEMENT of the Condition of all the Banks in the United States, at the dates annexed, 1835-36. SUMMARY STATEMENT of the Condition of all the Banks in the United States, at the dates annexed, 1835-36. Continued. Michigan, 200,710 Bank U. S., 172,071 1,184,498 2,114,943 52,922 29,795,267 4,800,076 32,369,005 124,856,474 110,042,216 47,370,582 25,999,234 216,875,292 Aggregate, $32,115,138 $4,800,076 $40,019,594 $140,301,038 $115,104,440 $50,402,369 $25,999,234 251,875,292 35,000,000 THE SPECIE CIRCULAR. public lands nothing except what is directed To Receivers of Public Money, and to the by the existing laws, namely, gold and silver, Deposite Banks. and, in the proper cases, Virginia land scrip; provided, that till the 15th of December next, TREASURY DEPARTMENT, July 11, 1836. the same indulgences heretofore extended as In consequence of complaints which have to the kind of money received, may be conbeen made of frauds, speculations, and mono- tinued for any quantity of land not exceeding polies, in the purchase of the public lands, and three hundred and twenty acres to each purthe aid which is said to be given to effect these chaser who is an actual settler, or bona fide objects by excessive bank credits, and dan-resident in the state where the sales are made. gerous, if not partial, facilities through bank drafts and bank deposites, and the general evil influence likely to result to the public interests, and especially the safety of the great amount of money in the Treasury, and the sound condition of the currency of the country from the further exchange of the national domain in this manner, and chiefly for bank credits and paper money, the President of the United States has given directions, and you are hereby instructed, after the 15th day of August next, to receive in payment of the In order to ensure the faithful execution of these instructions, all receivers are strictly prohibited from accepting for land sold, any draft, certificate or other evidence of money, or deposite, though for specie, unless signed by the treasurer of the United States, in conformity to the act of April 24, 1820. And each of those officers is required to annex to his monthly returns to this department, the amount of gold and silver respectively, as well as the bills received under the foregoing exception; and such deposite bank is required to annex to every certificate given upon a which is one of the most clear and lucid deposite of money, the proportions of it ac- expositions of the doctrine of currency that tually paid in gold, in silver, and in bank has ever been written, and which is penotes. All former instructions on these subjects, except as now modified, will be considered as remaining in full force. culiarly adapted to the present pecuniary condition of the United States. Indeed, it is a document with which every American statesThe principal objects of the President in man, legislator, and bank director should be adopting this measure being to repress alleged familiar, and without an acquaintance with frauds, and to withhold any countenance or which he can hardly be master of complifacilities in the power of the government from cated questions of finance. In succeeding the monopoly of the public lands in the hands numbers the Report will be continued, and of speculators and capitalists, to the injury of after its completion, it will be followed by the the actual settlers in the new states, and of two pamphlets referred to in the April No. emigrants in search of new homes, as well as of the Edinburgh Review, recently published to discourage the ruinous extension of bank in London by Mr. Jones Lloyd, in opposition issues and bank credits, by which those re- to the course lately pursued by the Bank of sults are generally supposed to be promoted, England, and by Mr. Horsley Palmer, in its your utmost vigilance is required, and relied defence, which will place the American reader on, to carry this order into complete execu-in full possession of the merits of the controLEVI WOODBUry, versy now carried on in England upon the Secretary of the Treasury. subject of currency and banking. tion. SUPPLEMENTARY CIRCULAR. TREASURY OF THE UNITED STATES, pur This number of the Register also contains a copy of the Specie Circular, and a "Summary Statement of the Condition of all the Banks in the United States, at the dates an The second section of the act of congress nexed, 1835-36," being the document AA, entitled “An act making further provision for contained in the report of the secretary of the sale of the public lands," approved 24th the treasury made to congress on the 4th of April, 1820, having provided "that the January, 1837, the latest official statement that chaser at private sale shall produce to the has been published. By means of this latter register of the land office a receipt from the document, which gives the number of banks, treasurer of the United States, or from the the amount of their loans and discounts, real receiver of public moneys of the district, for estate, debts to and from other banks, specie the amount of the purchase money on any on hand, circulation, deposites, capital, and tract, before he shall enter the same at the other liabilities and investments, in each state land office," and the President of the United respectively, the reader may be able to form States, in his decision relative to the exclu- a judgment of the prudence or indiscretion sive receipt of gold and silver by the receivers with which loans have been made in different of public moneys in payment for the public sections of the Union, and consequently of the lands, having directed that "in case of payrelative ability of those sections to resume ments made for lands to the treasurer of the specie payments. By comparing this stateUnited States under the act of 24th April, ment, too, with those partial ones that may 1820, his receipt shall also express the from time to time hereafter appear, he may amount received in gold, and the amount in be able to ascertain whether any, and if any, silver"-notice is hereby given that the rewhat steps have been taken by the banks of ceipts of the treasurer of the United States each state to contract their issues, and thereto be issued in pursuance of the above act, by to place themselves in a situation for reand to be applied in payment for public lands suming. He will thus have within his reach purchased at private sale, will be granted only a barometer, if we may be allowed the exupon payments in the treasury of gold or silver. pression, of the money concerns of the counP. G. WASHINGTON, Ac'g Treas'r U. S. try, which will be to the intelligent merchant a guide for his mercantile transactions with the interior, and to the public man an indicator of the melioration or deterioration of the currency. A reference to the Prospectus annexed, will enable the public to see the proposed contents of this work, which will be found to be such as to entitle it to the attention of all who desire to study the subjects of banking, currency, and finance. WEDNESDAY, JUNE, 1837. We present to the public the first number of "The Financial Register," a few days in anticipation of the 5th of July, the period designated in the Prospectus for its first appearance. It contains the first part of the celebrated Bullion Report of the year 1810, OF THE FINANCIAL REGISTER OF THE UNITED STATES. 1 The recent suspension of specie payments by the banks of New York, Philadelphia, Boston, and Baltimore, which can. not fail to become general throughout the United States, presents a state of things which may, if public opinion be not led in a proper direction, involve the most fatal and disastrous results. The country will shortly be divided into three great parties-one advocating the destruction of all banks, and the scheme of a currency solely metallic; a second supporting the doctrine of a permanent inconvertible paper system; and a third urging the restoration of specie payments by the banks at the earliest possible period at which it can be effected, with the least injury to the public. Of these plans the first is impracticable, and the second would be ruinous to the industry, capital, and morals of the country. The third is the only one that is both practicable and expedient, and the one which calls for the united energies of all the advocates of conservative principles, and of all who respect the rights of industry, the rights of property, and the laws of moral obligation. Entertaining these sentiments, the advertiser proposes to publish a semi-monthly journal, to be mainly devoted, for the present, to the accomplishment of this great end; and he confidently relies upon the patronage of a large body of his fellow citizens to sustain him in the effort. All who unite with him in sentiment must be aware of the importance of prompt and energetic action, and of the immediate and wide diffusion of knowledge upon the principles of currency. Ignorance on this subject has brought us to our present bankrupt condition, and nothing can save us from deeper and more lasting dis tress but the dissemination of the important truths which reason and experience have taught, in reference to banking, currency, and finance. The vast annual increase of the monied institutions of the United States, and the intimate connection which subsists between their financial operations and those of Europe, are becoming every day more and more objects of interest, on both sides of the Atlantic. There were on the 1st of January, 1837, in the different states and terries of the Union, six hundred and seventy-seven incorporated banks, having one hundred and forty-six branches, independent of one another, each of which issues notes, and consequently contributes towards the mass of the paper currency, which will soon exclusively fill the entire channels of circulation; and it is evident that a knowledge of much of the statistical information which is connected with their expansions and contractions would be highly beneficial to every section of our country, as well as to merchants and capitalists abroad. A knowledge, also, of the state of pecuniary affairs in Great Britain, and on the continent of Europe, from which we have obtained so many loans, and to which we may again, after a resumption of specie payments, look for additional aid in the various enterprises requiring capital, in which our different states have embarked, would seem to be essential to all our monied institutions, and to a large body of our citizens and public men. Indeed, without a broad view of the condition of the currency in both quarters of the world, all great financial enterprises must be conducted in the dark; and when this is the case, it is easy to perceive what disasters may follow in their train. In undertaking this work, the advertiser has no political party ends to answer. Matters which concern the happiness and well being of the whole community are of too high importance to be made the sport of party warfare. Banking, currency, and finance belong to science, and not to party politics; but, nevertheless, where governments and legislatures so far forget what is due to science, and commit the imprudence of forcing her into the political arena, it comports with the plan of this work to condemn their conduct and expose their ignorance whenever betrayed, let the offenders belong to whatever party they may. The editorial department of the publication will be placed in competent hands, and original communications may be expected from several gentlemen, who have studied financial subjects. As to the selected matter, the publisher trusts there will be presented to the intelligent enquirer after truth a collection of statistical documents, historical records, and scientific arguments, which will be worth his perusal, as may be seen from the following table of proposed CONTENTS.`. 1. The Financial Register will contain the annual report of the Secretary of the Treasury on the finances, and of the 3. Abstracts from the reports annually made to the different State Legislatures on the condition of the state banks, sufficient to show their actual condition. 4. An account of the debts of the different States, and of their investments in Railroads, Canals, &c., as information may be acquired. 5. Weekly quotations of the sales at New York and Philadelphia-of the principal stocks, local and distant, sold in those markets; as also bills of exchange, foreign and domestic, as well as of the rate of interest of money in the market. 6. The latest and most authentic news of the state of the money markets in England and France, together with all such correlative matters as are connected with capital and its employment, the prices of British stocks, American securities, cotton, and other great staples of the United States. 7. Statements of the condition of the banks of England and France as they may appear. 8. Such other statistical information connected with finance, banking, currency, exchange, &c., as may render the work valuable for present and future reference, to statesmen, legislators, bankers, capitalists, merchants, agriculturists, manufacturers, and private citizens. In addition to these practical and statistical subjects, the Register will contain A copy of the celebrated Report of the Bullion Committee, made to the British parliament in 1810, in which the question of a restoration to specie payments by the Bank of England is amply and most ably discussed. A history of the South Sea bubble, of the Mississippi scheme, and of other convulsions in the pecuniary concerns of Europe. A lustory of the currency and effects of the suspension of specie payments by the banks of the United States in 1814, and of the various panics and ruinous pressures for money which have occurred since. Treatises and essays on banking, currency, exchange, the relative value of gold and silver, the impolicy of usury laws, and other subjects of a kindred nature, original and selected. All the essays of “An Examiner," including two published in December last, and which have not appeared in pamphlet form, and those which may hereafter appear. A complete history of the late money crisis and its consequences, as they may hereafter be developed, to serve for future use. TERMS. 1. The Financial Register will be published every alternate Wednesday, on a super-royal sheet of 16 octavo pages, commencing on the 5th of July, 1837, and will comprise one volume of 416 pages in a year. 2. The price of subscription will be three dollars for one copy, or five dollars for two copies, per annum, payable in advance. 3. No subscription will be received for a less term than one year; and in all cases prior to the first of October next, where money is remitted from a distance, it will be considered, unless otherwise expressed, in payment of the current volume, and the back numbers will accordingly be forwarded. 4. All postages must be paid, but the risk of miscarriage by the mail is assumed by the publisher. 5. Any postmaster, or other individual, who shall remit ter dollars at one time, shall be entitled to five copies. 6. The notes of banks of five dollars' denomination and upwards, which pass current at the capital or in the principal town or city of the state in which the person who remits them resides, will be received in payment, as will also the notes of the banks in all the Atlantic cities, if transmitted any time before the first of October next, after which the publisher may find it necessary to alter this stipulation. 7. All letters are to be addressed "The Publisher of the Financial Register, Philadelphia." Subscriptions from persons in this city will be received by Adam Waldie, Carpenter street, in the rear of the Marshall House, in Chesnut, near Seventh street. Philadelphia, May 16, 1837. |