official neglect of duty, the indictment must allege that | the party committed the neglect wilfully, and with some injurious or fraudulent intent. Accident or inadvertence was not sufficient; and as the indictments in question did not allege this "guilty knowledge," they must be quashed.

Mr. Parker rose and said, that the indictment set forth every fact found by the grand jury. There was not, he said, any evidence before the jury, that any fraud was intended by the directors, or that they knew the return they certified to was false; and therefore they had not, and did not intend, to present such an allegation.

The court then ordered the defendants to be discharged from their recognisances.

These bank indictments have certainly imposed a most Herculean task on Mr. Parker.

Josiah Dunham, Jr., did not appear, and his bonds were ordered to be estreated. A motion for a new trial still lies, if made within a year. If overruled, the right to appeal also exists.

The Boston Courier states that Dunham, the cashier, was not sentenced, as was expected. His previous character is represented as irreproachable. Nothing but incapacity to perform his duties is charged on him, although a case of technical perjury is certainly made out.

MASSACHUSSETS LEGISLATURE.-This legislature adjourned on the 25th April, after a session of one hundred and twelve days. No new bank charters were granted at this session, but the charters of the following eleven banks were repealed, several of them at the request of the directors, viz:-The American, Commercial, Kilby, Oriental, Fulton, Commonwealth, Franklin, Lafayette, Middlesex, Roxbury and the Bank of Norfolk. The aggregate capital of these banks was four millions of dollars. An act was also passed with a section prohibiting any bank director to have on loan, at any one time, from his own bank, more than eight per cent. of the capital, or the whole board of directors to have on lean more than thirty per cent. of the capital of the bank. A board of bank commissioners was established to make annual reports of the condition of the banks, with other supervisory powers.

THE BOSTON BANKS AND SPECIE PAYMENTS.-The following is the law recently enacted by the legislature of Massachusets, with the object of aiding the banks of that state in the resumption of specie payments.

Sect. I. Be it enacted, That the operation of the twenty-ninth section of the sixty-sixth chapter of the revised statutes, is hereby suspended till the first day of January, in the year one thousand eight hundred and thirty-nine: provided, that no bank in the city of Bills

Boston which shall not redeem its bills of the denomination of five dollars and under in gold or silver on de. mand; and that no bank out of the city of Boston which shall not redeem its bills of a less denomination than three dollars in gold or silver on demand; and no bank whatever which shall have in circulation an amount of bills greater than seventy-five per cent. of its capital stock; or which shall have due to it a sum greater than one and three fourths of its capital stock, (except balances due from other banks) or whose capital stock has not been all paid in according to law, shall have the benefit of this act.

Sect. 2. This act shall take effect from and after its passage.

CAUTION.-There are $50 notes of the Vicksburg Bank in circulation, which it will be found, by closely examining the margin, are payable after 16th Feb. 1839, signed R. B. Miliken, cashier, and F. Markham, president.

44

Holland,

66

46

Hamburgh,

66

Bremen

66

Boston,

46

Philadelphia,

"

Baltimore,

4 a 41

do.

the Albany Bank, two banks at Brooklyn, and several of the banks of Providence, Salem, Newburyport, and other places at the eastward, have resumed in whole or in part, and without naming any particular day, it is probable that all the sound banks east of New Jersey, will at an early day, one by one, slide into a resumption. No symptoms of resuming have yet appeared in Jersey, or Pennsylvania, or any state south or west of her, if we except the arrangement made by the Philadelphia banks, on the evening of the 7th inst. of paying out in specie the fractions of one dollar, and the law of Michigan, which requires resumption on the 16th June. At New York, Boston, and Providence, the notes of some of the banks are received at the post-office, and, at the first named city, at the custom house.

At New Orleans, the Commercial Bulletin informs us, "the banks are resolved to tread in the footsteps of Nick Biddle, and make him their illustrious predecessor!"

The following dividends have just been declared by some of the New York banks of their profits for the last year.

Bank of the State, 6 per cent.

Merchant's Exchange, Leather Manufacturer, Chemical, City, Tradesmen's, Seventh Ward, Greenwich, National, Merchants', Butchers', and Drovers,' each 8 per cent.

Bank of America, Fulton, Union, and Manhattan, each 10 per cent.

In reply to a correspondent in Virginia, we have to say, that we have not been able to meet with Mr. Ricardo's plan for a national bank, published in 1834.

The Bank Statistics, at page 363, are copied from the Treasurer's Report of 8th January, 1838.

TERMS.

1. The Financial Register is published every alternate Wednesday, on a super-royal sheet of 16 octavo pages, com mencing on the 5th of July, 1837, and will comprise one volume

of 416 pages in a year.

2. The price of subscription is three dollars for one copy, or five dollars for two copies, per annum, payable in

RESUMPTION OF SPECIE PAYMENTS.-In our last paper we stated, upon the authority of a New York paper, that the banks of that city had, on that day, resumed payment in specie of notes, deposites and all. This resumption has probably not been in full, although it, has extended to all small payments, as may be judged from the following notice, published a few days after-money is remitted from a distance, it will be considered in payment of the current volume, and the back numbers will wards. accordingly be forwarded.

"At a meeting of the officers of the city banks, on the 21st April, it was unanimously

Resolved, “That the 9th day of May next be the day fixed for the resumption of specie payments by the banks of the city of New York.

Resolved, "That after the 16th day of may next, no notes or bills of the banks of this state will be received by the city banks, except such as shall be redeemed daily in this city.

"By order of the Standing Committee." Contemporaneously with the movement in New York, several of the banks in Boston began to pay their small bills, and three of them, viz., the Merchants', Columbian, and North banks were announced on the 27th April to have resumed in full. Since then,

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5. Any postmaster, or other individual, who shall remit ten 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
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find it necessary to alter this stipulation.
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OF THE

UNITED STATES.

DEVOTED CHIEFLY TO FINANCE AND CURRENCY, AND TO BANKING AND COMMERCIAL STATISTICS.

"It is the interest of every country that the standard of its money, once settled, should be inviolably and immutably kept
to perpetuity. For whenever that is altered, upon whatever pretence soever, the public will lose by it.
"Men in their bargains contract, not for denominations or sounds, but for the intrinsic value."—Locke on Money.

FROM THE SECRETARY OF THE TREASURY ON THE
FINANCES.

(Continued from page 360.)

Another subject that appears to require the carly action of congress is, the further indulgence which it may be proper to extend to such of the former dcposite banks as are still indebted to the United States.

No. 24.

but were at both periods nearly 1 to 24, or greater
than the usual ratio, in the best times, of most banks
which have a large amount of deposites in possession.

In this condition of things, the suspension of specie
payment by the deposite banks was an event not gene-
rally anticipated.

The policy since pursued by most of them has been
favourable to an early discharge of their engagements
to the treasury, and to a resumption of specie payments.
Many have gradually reduced their discounts and cir-
culation, as well as paid over much of the public depo-
sites. This may be more fully seen in the tables
annexed. Since the 1st of May, their discounts, as a
whole, have been reduced about $20,388,776, their
The facts which are supposed to be necessary to aid circulation $4,991,791, and their public deposites
congress in forming a correct decision on this subject $15,607,316; while their specie has diminished less
will be fully submitted. The perils to which those than $3,000,000. Of the number of eighty-six banks
banks were exposed had caused to the department employed at the time of the suspension, ten or eleven
much solicitude for several months before the suspen-are supposed to have paid all the public money which
sion of specie payments, which led to some precau-
tionary suggestions which it felt bound to make to
them, so far as appeared consistent with the usual
principles of banking in this country, and not calcu.
lated, by creating sudden alarm, to hasten the catas-them have continued promptly to furnish such pay.
trophe that has since happened.

was then in their possession, to the credit of the trca-
surer. In the custody of more than half the others, an
aggregate of less than $700,000 remains unadjusted.
Several of the rest still possess large sums, but many of

ments, from time to time, for meeting the public ne-
cessities, that, according to the last weekly statement,
the whole balance to his credit remaining unpaid in all
of them, was only $12,418,041.

be seen more fully in the document annexed.

Besides the general cautions with respect to the ex-
cesses of bank issues, and the dangerous consequences
likely to ensue, which were detailed in the last annual
treasury report, several instances occurred where the The course adopted in respect to the deposites of
course of the business of some of the depositories ap. disbursing officers, after the suspension of specie pay.
pearing from their returns to be injudicious, special ments, and with a view to safety, as well as to en-
letters of advice were deemed proper, and were writ-courage the early resumption of such payments, may
ten. A rigid system in requiring additional specie
was also pursued in all cases of unusual deficiency.
In regard to the effect of these steps on the banks, it
affords the undersigned pleasure to add, that from the
completion of their selection after the deposite act
passed, to the last returns before their suspension, a
great reduction in the circulation, as well as discounts
of many of them, had taken place, and, in several cases,
a much larger proportion of specie was kept on hand.
Indeed, considering the extraordinary amount of public
money paid out by them between last November and
May, amounting to near twenty millions more than
their receipts during the same period, it is a fact highly
creditable to their prudence and ability, that the specie
of all was reduced only from about fifteen to thirteen
millions, and their circulation, instead of increasing,
fell from near forty-one to thirty-seven millions.

It was considered proper to proceed, and attempt to
withdraw all the public money from the discontinued
agents, as fast as it was wanted for public purposes,
and as new and suitable depositories could be procured
to receive any thing obtainable beyond such amount.
But while the former agents appeared to be secure,
and to be making proper efforts to meet such calls, it
seemed more conducive to the eventual safety of the
money, and more consistent with the true wisdom, as
well as the convenience of the treasury, to refrain from
unnecessary prosecutions and costs, till the early ses.
sion of congress, which had been called, in part, for
the consideration of this subject. On the contrary,
when any of the banks persisted in neglecting to pur-
sue the prudent course of curtailment, and in making
no reasonable efforts to discharge the drafts on them in
As a whole, their specie, compared with their circu- an acceptable manner, the department considered it a
lation, continued to be almost as large in May as in duty, however unpleasant, to deliver their agreement
November. It averaged more than one to three, or and bonds to the solicitor of the treasury for suit. This
much more than has been customary with the banks has already been done in nine cases, in some as a mat-
in this country, and was over double the relative quan-ter of precaution, to obtain additional security beyond
tity held by all the banks in England at the same
period, and was in a proportion one fourth larger than
that in the Bank of England itself. Their immediate
means, compared with their immediate liabilities,
were somewhat stronger in November than in May,

what had been given; and in others, to take the pre-
liminary steps for an action against the sureties as
well as the principals.

Some of the additional banks, rendered necessary to
carry into effect one of the provisions of the late depo-

site act, have, on this occasion, proved the least prompt | of specie payments, at least by its former fiscal agents and efficient in meeting their obligations. But though who are still in its debt. the losses of a few may be severe, and considerable delay may arise in discharging their engagements; and though it has been proper, and has evinced a commendable state of moral feeling in many of them, to strike at the root of the present excesses in paper, by curtailing largely both their issues and discounts, and thereby to make serious sacrifices, yet the condition of them all appears to be such as will, with the collateral security taken in most cases, render the United States probably safe against any ultimate loss. Considering the wide-spread pressure of the times, which had in volved some of the banks, as well as their debtors, in extraordinary embarrassments; and that the public money, as a general rule, had previously been called from them only in moderate sums, as needed for ex-indulgence could hereafter be extended to them appropenditure and transfer, it was not to be expected that several of them would be able to pay over at once, and in specie, the whole of the large amount then in their possession.

This would put an end to such losses. It also seems proper that those deposite banks which have not generally answered the demands on them, but have continued to receive full interest on the deposites they had loaned out, should be required to pay it on the sums still retained, and from the periods when they failed to fulfil their obligations to the treasury. It is manifest that the meinbers of congress, coming from every section of the country, would be the best judges of what further lenity or severity might properly be exercised towards them; and knowing more intimately the causes and consequences of the suspension of specie payments by the banks in their respective neighbourhoods, can decide with greater accuracy whether any priately, except on the condition of an early resumption of specie payments, and an allowance of interest during any delay in meeting their fiscal engagements. With the means of information possessed by the undersignMore especially was this not to be expected, whened, he does not hesitate to express an opinion that it from the great accumulation of deposites, the specie of all of them at the time of the suspension, as well as for many months before, though larger than the proportion held by most other banks, did not equal, and could not, without making a sudden and great change in the practice under our whole banking system, equal From the mode of doing business in the southwest, one half of their indebtedness to the government alone. by making much of their circulation not redeemable at It is presumed that a considerable portion of the mo-home, but at distant points, and providing for it there ney since, as well as formerly, paid by the banks on transfers and drafts, has not been demanded nor paid in specie.

should not be done without a compliance with such conditions. As further evidence of the ability of most of them on this subject, it will be necessary only to advert to the abstract of their last returns, which has been previously aunexed.

by bills of exchange, (so many of which, during the past season, have failed to be paid,) the situation of several of the banks there is least eligible, not only for But no persons have been required to accept any an early resumption of specie payments, but for a thing else, nor, according to the views of the under-speedy and satisfactory adjustment of their debts to signed, could they be, without a violation of law and sound policy.

The drafts of the treasurer for debts, when drawn on the banks and not discharged on presentment, have, under instructions from this department, been often taken up in its behalf by the collectors and receivers, in order as much as possible to relieve the public creditor from delay and loss. New drafts, when the first ones were not paid in an acceptable manner, have also in some cases been given on other depositories, and have helped to promote satisfactory adjustments.

the government. But in the western, and probably in the eastern and middle states, if not elsewhere, the ability to sustain such payments appears, by their returns, much greater than has been customary in this country. Their specie, compared with their circulation," is as one to two, and one to three; and their immediate means, compared with their immediate liabilities, are over one to three. Hence it has been hoped that the efforts which the banks were bound to make would lead, in most places, to the desirable event above mentioned, without very long delay. The objection usually urged against an early resumption, that the unfavourable balance of trade against this country would, in that event, cause some of the specie in the banks to be drawn out and shipped, will, however true in point of fact, possess much less force when it is considered that the delay hitherto has not prevented the export of specie. On the contrary, considerable sums, which were in ordinary circulation, have, since the suspension, been withdrawn, and a portion of them sent abroad; while their place is badly

Since the discontinuance of most of the banks as depositories, this department has also found the use of drafts made directly on receivers and collectors very acceptable to the public creditors; and by specie fortunately then on hand, and since collected by the receivers, with a part of what was before in the mint, and some occasionally supplied by a few of the banks and collectors, a large amount of claims has been paid, and the treasury is ready to pay others, so far as practicable, at points and in a manner convenient to many. But, till the indebted banks resume specie payments, or in-supplied with depreciated paper. So happily adjusted, creased collections can be made in specie of what is due from them and from the merchants, it must be obvious that the department, however anxious to pay all the public creditors and officers in specie, when demanded, is unable to accomplish so desirable an object.

This is one of the evils incident to the existing state of the moneyed concerns of the country, and which cannot be remedied, unless congress furnish additional means, until specie payments are generally resumed. Some intermediate losses, by a depreciation of bank notes, must, therefore, fall on those, whether creditors or officers of the government, who consent to take them rather than submit to delays in payment.

Hence it seems highly reasonable that the government should hasten, as fast as possible, the restoration

however, are the laws of trade, even in their influence on the precious metals, that while our custom house hooks show an export since the 15th of May last, chiefly to England and France, of $3,708,320 of specie, they show, during the same time, imports, chiefly from other quarters, of $3,140,020. Though the actual imports and exports have both doubtless exceeded those amounts since that period, and the ratio of difference has been somewhat greater, yet the total drain has been much less than many have imagined, and produced less effect on the gencral ability of the coun try and the banks to have specie payments resumed and successfully sustained. Congress having power to pass a bankrupt law, it would be worthy of consideration, if the power be ever exercised, whether all banks, and in any event, as recommended by Mr. Dallas and

Mr. Crawford, all employed by the treasury, should | whole United States do not, in a sound state of businot be subjected to its provisions, and, on any import-ness and prices, need over one hundred and ten mil. ant and deliberate failure in their pecuniary duties, be lions of an active circulating medium for all their curcompelled at once to close their concerns.

In respect to the banks in the District of Columbia, as well as others connected with the general government, it seems desirable that the measures adopted in relation to them by congress, should have a strong tendency to encourage the earliest resumption of specie payments which is practicable and safe. For this pur. pose, little doubt can exist that while those measures will be the most salutary which shall evince a due liberality and forbearance to the extent really required by the crisis, they should, beyond that, be rigorous in exacting the adoption of such steps as are sanctioned by the sound principles of currency and the public faith. They will then help, at an early day, to relieve the community, as well as the treasury, from a condition of the circulating medium, which, so far as it consists of bank paper irredeemable in specie, is one of the worst scourges which can be inflicted on society. It is no less hostile to the best maxims of political economy, than usually subversive of every just sense of both moral and legal obligation.

rency. This would be a larger proportion of currency to our present population than the average has been from the adoption of the constitution; and, if an exclusive metallic currency could be deemed desirable, would require only about thirty millions more than the specie which is supposed now to exist in the country. But the present quantity of specie being divided pretty equally between the banks and individuals, not half of it is in active circulation; and, unless it becomes in. creased, and much more equally diffused, some paper is, of course, necessary to prevent a sudden revulsion in prices and values, and to supply a sufficient circulating medium for the legitimate purposes of the states and the people. Some paper will, probably, always be found convenient for commercial operations. It would, therefore, be invidious, if not unauthorised, for the general government to deprive the states of any supposed advantage in the use of it, so far and so long as they may deem proper, or otherwise to interfere with their course, in relation to it, except to enforce the present constitutional prohibition against issuing any BILLS OF CREDIT, or making any thing a tender except GOLD AND SILVER. Care, however, must be employed, The kind of money or curreney receivable for pub-incidentally, to avert, as far as possible, any evil inlic dues, is another embarrassment, concerning which fluences which might otherwise be exercised over legislation has been deemed proper by many. A our fiscal operations by the different local policies purchange in the existing practice has been requested by sued on a subject of so much delicacy, hazard and others, without legislation. But, since the suspension difficulty. of specie payments by the banks, no change which The power which congress may possess to legislate, would sanction the receipt of bank paper not redeem- with the view of furnishing a paper currency of any able in specie, has been thought either prudent or per-kind for the ordinary uses of the community, or of remissible by this department. Nor will such a one be adopted without the express direction of congress.

VII. ON THE MONEY RECEIVABLE FOR PUBLIC DUES.

Such a power is not expressly conferred in the constitution, nor does it seem to be implied, unless in the execution of some plain grants, it may become proper to be exerted on any emergency, and without using means otherwise forbidden, unwarrantable or inexpedient.

gulating, in any way, domestic exchanges, is not entirely clear, nor well defined. Whatever may be its Believing that specie is the best standard, and the just extent, it seems seldom, if ever, necessary to be only one contemplated by the constitution, for the pub-used, while the states retain such a wide and undislic revenue and expenditures, as well as for the value puted authority over banking, and while the local inof contracts and property, every departure from it for stitutions, as well as private bankers, here no less than those purposes is deemed by the undersigned, perni-abroad, are generally so competent to effect exchanges. cious if not unconstitutional. The question as to the expediency of using any other medium for a currency, is of a different character, and more complicated. But the ruinous consequences of a resort to continental money, bills of credit, or any species of paper not redeemable in specie, and which had been developed in In regard to exchanges, it is believed that seldom if our own experience, as well as in the soundest theories ever has any government, however unlimited its au of political economy, were undoubtedly a principal thority, considered it wise to prescribe special regalacause for those rigid provisions in the constitutiontions affecting them. Such a government might well connected with the currency. They restrict any state feel empowered "to regulate commerce with foreign from issuing mere "bills of credit," from making any nations," or between its own states, if it had any; but thing a tender, except gold and silver, or passing any to regula'e exchanges between individuals, would, in law "impairing the obligation of contracts," as well as most cases, be justly deemed arbitrary. On the conconfine to congress alone the power "to coin money trary, the sound principles of trade seem to require as and regulate the value thereof." The exercise of this little interference as possible with fixing the price of last power, manifestly relating only to metallic money, commodities, or the mode and medium through which appears to require merely the coinage of a sufficient they shall be interchanged. Those principles would supply at the mint, and in convenient denominations only yield adequate protection or security, furnish for all necessary purposes, and in such an intrinsic facilities appropriate and authorised, and establish a value, as, while preventing it from being depreciated good standard of value. Indeed, the balances of inon the one hand, should, on the other, not be so un-debtedness between the different sections of the counderrated as to cause it to be too readily exported, or melted down for use in manufactures.

The whole amount necessary for public payments has been much misapprehended. Without a surplus in the treasury, it would seldom exceed eight or ten millions of dollars, even if no evidences of debt, or any kind of paper money, were receivable. Like a running stream, the coin which flows in as constantly flows out, without much accumulation; one dollar helping to perform in a single year, the service of payment and re-payment numerous times. Indeed the people of the

try, if left to work out their natural consequences on the rate of exchanges, will usually, as they are now doing, correct excesses in business in any quarter, and be self regulators, far superior to any officious and minute legislation. The rate merely for exchanges can seldom exceed the expense of transporting specio between any two places; and, if surpassing that, the excess must arise from what government has little power to cure-that is, from the difficulty in obtaining money when indebtedness is great, interest high, and credit impaired.