but those would be marred and destroyed, if miserable corporation could hold the government in check, influence its operations, plunge it into corruption, or cover it with vice and shame whenever it should please.

He must ask the indulgence of the house while he read some extracts from two letters of the secretary of the treasury. In a letter to the commissioners for receiving subscriptions, (dated Aug. 15, 1816,) the secretary says, "It is, indeed, of high importance to the people, as well as to the government, that the bank of the United States should be in an organized and active state before the 20th of February next, when the paper of the state banks which have not returned to metallic payments must be rejected." Again; "It is believed that the bank of the United States may be in operation before the first day of January next," (before the receipt of the second instalment.)

a policy might provide. It was the instrument by whose use we hoped to secure the resumption of specie payments-constructed, not for its own sake, but for ours. The act of the legislature and the proceedings of the treasury department would Mr. LOWNDES said, that the gentleman from show how incompatible with the objects of its inVirginia, (Mr. Pindall,) who had last addressed stitution would have been that postponement of its the committee, bad discussed the policy of the law operations, or that gradual commencement of them, which chartered the bank, the motives of congress which was recommended now, when the difficulties in passing it, and those of the executive govern- of the time were forgotten. The fourteenth conment in the measures which had been adopted for gress was aware that a narrow view of its exclusive carrying it into effect. He would not enter into interest might induce the national bank to adopt these topics. The subject was large enough, with.the policy which the committee had described. out digression, to occupy their whole attention for The act which they passed provided that, as soon the time which it would be reasonable to appro-as the amount of the first subscription ($8,400,000) priate to this debate. If the reputation of the four-should be received, the bank should thenceforth teenth congress, or of the late administration, could commence and continue its operations. The twenty be inpaired by observations or circumstances like second section reserved to congress the power, if those which had been adduced, he would say of it should not go into operation before the first Monboth, that they were not worth defending. In the day in April, (at which time the third instalment course of his remarks, indeed, it was not improbable was not due,) to declare its charter void. This that he might advert to facts which would repel was the measure of the legislature to secure the the conclusions of the gentleman from Virginia, early operation of the bank. Those of the treasury but he would not deviate from the strict line of his department were in entire consonance with its prinargument, to engage in so useless a controversy. ciple. The committee, of which he had had the honor to be a member, bad expressed an opinion, in respect to the first operation of the bank, correct enough, perhaps, in its general principle, but erroneous, as it seemed to him, in its application. They say, "that the bank could have proceeded gradually, growing with the growth, and strengthening with the strength of the nation, as it emerged from the evils of the flood of paper issued from the local institutions. The bank could have felt its way, and increased its means with the increasing demands of the country. Such a cautious proceeding would have enabled it to render invaluable service in checking the issue of state banks, and bringing them to the alternative of avowed bankruptcy, or Mr. Crawford (who, after the date of the last to the permanent resumption of specie payments." letter, had succeeded to the office of secretary of He was not disposed to deny, that, while a dis the treasury) writes, on the 29th of Nov. 1816, to credited currency was circulated through the coun. the president of the bank, that "if the state banks try, while the excessive issues of bank paper (of do not make a simultaneous effort, it is manifest that, which the war had been the cause or the apology) without their co-operation, a national currency, continued to resist the introduction of real money, equal to the indispensable demands of the comthe committee were right in supposing that it was munity, cannot be obtained by the 20th of February the interest of the national bank to commence its next." He asks whether "it is possible for the operations slowly, or to postpone them. It was its bank to supply the demand of the commercial cities interest to leave it to the government to fight the which the collection of the revenue, arising from battle against depreciation, and to come in after-imports and tonnage, will create in the interval bewards as a partaker of the victory. Even after the tween the 20th of February and the 1st of July.” 20th Feb. 1817, the bank might have pursued the He suggests that it may be necessary to employ cautious policy of withholding its accommodations "a government paper of some description" in that from the government and the people, until the interval, but adds, that "it is most ardently desired reduction of other paper had inade its issues neces-by the government, that the necessity of resorting sary and safe. It might have preferred its interest to the issue of government paper may be avoided to its duty. The state banks, unable to comply by the resumption of specie payments by the state with the requisitions of congress, which demanded banks, on or before the 20th of February." from them the resumption of specie payments, The first object which the government expected must have lost their credit with the community. to be attained by the national bank, was that of The government, indeed, might have been em- throwing into general circulation, by the 20th of barrassed, the public debtors distressed, and the February, an amount of notes sufficient to enable state institutions have been brought "to the alter the public debtors to comply with their engagenative of avowed bankruptcy," but these com- ments. When it appeared impracticable that the petitors for public favor and employment would amount or dispersion of these notes should provide have been removed, and the national bank would for the object, the next resource was to give to have entered into the full enjoyment of the mono- those of the state banks a credit which should poly which the ruin of every other institution would enable the treasury to receive them under the have prepared. This might have been its interest. resolution of congress. These banks had refused But there were other interests to be consulted-every proposal for the resumption of specie paythose of the government and the people. The ments. He would not say they were unwilling, but bank had not been established for the purpose of they were afraid to adopt them. The remonstrances giving to its stockholders the harvest which such and encouragement of the government

were

unavailing. It was then that the national bank, compact, which had been carried into effect withcertainly not in the spirit of narrow jealousy, enter-out objection by either party, was best ascertained ed into that compact with the state banks which by its execution.

had been referred to by the gentleman from Vir- Among the errors of the bank, in its first operaginia. It was impossible to do justice to the con- tions, one of the greatest, as it appeared to him, duct of the national bank, at least for the first year had not been censured by the committee. He of its operations, without attending to the new alluded to the attempt to pay the notes of the bank, obligations in which this compact involved them. and its branches, at any office at which they should Proposed by the executive government, and sanc-be presented. The committee had said, that "the tioned by it-required by the interests of the peo-relinquishment of this attempt was involuntary and ple, and necessary to the credit of the local institu- reluctant;" but the attempt itself, though directed tions, there could be no other objection to the act to the promotion of the public convenience, and than that it accorded better with the public interest urged by the public wish, had produced so much than with that of the stockholders. Under this embarrassment and injury, that any exposition of compact, the bank became bound to discount six the conduct of the bank must be very defective in millions (exclusive of revenue bonds) before the which the effects of this injudicious scheme were 20th April, and to sustain, with its unbroken credit omitted. He hoped not to be suspected of enlarg. and its whole capital, every bank which joined in ing upon this subject for the purpose of supporting the arrangement. The effect of this compact was a favorite theory. Its examination was necessary. not only to force the bank into earlier operation because it had produced much of the mischief than a selfish policy might have recommended, but which had been attributed to other causes. He to oblige it to renounce the resource which the should not have to argue that the bank was not state banks might have afforded for the supply of bound to pay its notes indiscriminately at all its specie. South of New E gland there was no specie offices. He believed that nobody now contended in circulation. The national bank had engaged to that it was. He should not enquire how far it support the credit of the state banks, and, if it could be practicable so to pay them-his proposi produced a demand of their specie, it was bound tion was, that the attempt, while the situation of to aid them by the loan of its own. He made these the country made it practicable, would even then observations very much with a view to the conduct be embarrassing and injurious. of the bank in affording facilities for the payment In every system of bank circulation, the regula of the instalments upon its stock. But he did not tion of the amount of discounts and issues is a point mean yet to engage upon that topic. A necessary of the utmost importance. In banks which redeem consequence of this compact, the committee would their paper by specie, the restraint upon excessive see to have been, that, if a large amount of specie issues consists in this, that the superfluous paper was necessary to the operations of the bank, it is thrown back upon the bank and its specie with. could be obtained only from foreign countries. Its drawn. The directors of a bank, with very little importation might have been trusted to the gradual knowledge of the principles of circulation, and contributions of trade, and he believed it would little information as to the currency of other states, have been better to have been so. But the error are in this way controlled in all their operations, of judgment, if it was one, which consisted in the by a principle which proportions the circulating bank's importing specie from abroad, had no charac-money of the country to its real business. He did ter of bad faith. Perhaps it was unnecessary. If not mean to enquire whether other or better reit were necessary, it resulted exclusively from a gulations of the amount of paper in circulation compact which interdicted all reliance upon the might be adopted. We had no other. But how specie of the state banks.

were the discounts of a branch bank restrained, If the committee, then, should determine that under the system which provided that the notes the early operation of the bank, and its importa- which it issued should be redeemed at every office tions of silver, were both of them injudicious-at throughout the United States? If the balance of least they would say, that neither was criminal. exchange were unfavorable, (and a profuse discount Perhaps the effect of both was injurious to the night at any time make it so,) it would be the stockholder-the country had no right to complain interest of every man who got possession of a of them. But the second article of the compact branch note to send it to a state where the exhad drawn down the severe animadversions of the change was high. A bank note is an order for the gentleman from Virginia, (Mr. Pindall.) He had payment of money; and if the holder has the option considered it as obliging the state banks to pay of drawing this money at different places, he will interest for public balances transferred from them draw it there where money is most valuable. If to the national bank, although the national bank the discounts of Lexington were larger than the had not undertaken to pay these balances to the business of the place required, and the notes which government in its own notes or specie. In other were issued there were redeemable no where else, words, he had supposed that the national bank the bank at that place would immediately discover received interest from the state banks on what had its error by the drafts upon its specie, and its dis been called the special deposites of the govern- counts would be accordingly contracted. But if ment. He had admitted it to be fair and right that the notes of the Lexington branch are payable at the bank should receive interest on all balances New York, however profuse may be its discounts, transferred to it, for which it gave a general credit, the directors themselves discover, within the and which might at any moment be drawn from it probable limits of their observation, no inconin coin. Now, Mr. L. said that he did not hesitate venience from their liberality. They have lent only to affirm, that these were the only balances on to those whose possessions are sufficient to secure which interest had been received or claimed.the payment of their debts, the specie in their There was, in the sentence which had been read, vaults remains untouched, and the income of the a little ambiguity, (which would have been avoid-institution is increased by the large amount of their ed by introducing the parenthesis before the five loans. In New-York, indeed, if we suppose the words which now preceded it,) but this error in exchange to be in favor of that place, the operation yle was no serious crime; and the meaning of a of the system is quite different. There, however.

Prudent may be the bank in limiting the amount quired a balance against the other banks; but this of its discounts, the increasing demands of the only induced a call from the state banks on their holders of Lexington paper exhaust its resources, debtors; the result is that, as they operate upon and force a still further reduction of its discounts. their whole system, they have a remedy. But this Wherever the state of exchange is unfavorable, branch has the mass of paper thrown out at an wherever the just principles of banking require a opposite extreme to provide for, which it cannot, reduction of discounts, there, under this system of in any case, have the wished for information. On indiscriminate payment of its notes, the bank has Monday last, the bank made no discount to be nothing to fear from a draft of specie, and is mentioned, nor had they so done for many weeks encouraged to lend to every applicant. Wherever previous. They had a balance of $93,000 against the state of exchange is favorable, and, on the sound the other banks in town, and in specie about principles of banking, an enlarged accommodation $23,000. Tuesday took from them about $30,000, might be given to the community, there the flow of notes, from every state whose exchange is unfavorable, contracts or suspends all the operations of the bank. Thus, wherever discounts should be enlarged, the tendency of this system is to reduce them, and to enlarge them wherever they should

be reduced.

and Wednesday about $50,000, and it followed, that as a great proportion of this is in southern bills, produced by the scarcity of money here, this must produce a demand which the specie of the bank, and its balance against all the other banks in the town, would not half discharge."

those in Kentucky, and those in Ohio,

$1,685,874,

3 221,450, 3,383,790,

The effect of the system of paying the notes of It may indeed be said, that the directors of a the branches every where; in reducing discounts branch bank, where the exchange is unfavorable, where the exchange is favorable, and enlarging may contract the discounts, although no specie is them where it is adverse, is exemplified by a comdrawn from them, because they well know that parison between the discounts of New-York, and they might otherwise produce a pressure upon those of Kentucky and Ohio. In Nov. 1818, the distant banks. This is to suppose that calculation discounts in New York, were of inconveniences to a distant branch will produce the same result which the sense of them, in their own bank, would produce. It may be said, that including in the two last states, the debts which the parent board, at least, will discover and correct were due from banks which paid interest for them. the error, and that when the excessive issues of Thus, the two agricultural states of Kentucky one branch have forced those of our states to re- and Ohio, have discounts from the national bank deem their notes, the controlling board will direct to the amount of more than six millions and a half, a transmission of specie from the debtor bank which or excluding stock notes from the calculation, will restore the balance. And all this the parent about one-fourth of all the discounts made by the board will attempt to do. They will endeavor to bank throughout the United States. remedy the irregularities which a better system It could not be necessary to enlarge upon the would have avoided; they will direct, as the direc- objections to this unequal distribution of the capital But a notion has prevailed, tors at Philadelphia have continually done, what of the national bank the amount of discounts for their distant branches that, in respect to the western states, the capital shall be their orders will often be injudicious, and employed there has been only that which has been oftener ineffectual. furnished by the deposites of the government. He It was no unfair account of the practical opera-regretted that the directors of the national bank, tion of the system of which he was speaking, to who had it fully in their power to remove this say, that it gave to the branches, where the ex- prejudice, had hitherto neglected to do so. change was unfavorable, the entire disposition of L. read many extracts from the report of a comthe specie of those branches where the exchange mittee, lately made to the house of representatives was favorable. Upwards of six millions of specie of the state of Ohio, in all of which, the assertion have been sent to the branch of New York, besides the amount which has been paid by the subscribers of the bank there, but, in issuing notes, which the bank of New-York has been obliged to redeem, every branch throughout the country has drawn upon a fund, with whose condition, at the time, it could not be acquainted.

Such a system might be expected to produce in convenient changes in the distribution of bank capital, an extreme facility in obtaining loans at one time, and unexpected contractions of discount at another. But it had been 18 months in opera tion, and if his views were at all correct, the experience of the bank must exemplify and prove

Mr.

was made that the national bank had carried no capital to the state, but had been supported principally, and almost entirely, by the deposites of the government. Very different was the tact. He had on his table a calculation (deduced from statements contained among the documents which had been published) by which he endeavored to infer the amount of drafts and notes from the offices of Kentucky, and Ohio, which had been paid in the Atlantic cities, beyond the amount which those offices had paid on Atlantic drafts. This amount, he was confident, exceeded five millions and a half. He would be glad if any gentleman disposed to enquire into the subject, would examine the paper. But no specie, it is said, was carried to Ohio and The embarrassing effect of the system was Kentucky. If the branches in those states had developed in Boston, as early as March 17th, and waggoned five and a half millions of dollars across in less than three months after, in New-York; but the mountains, and then lent them to individuals, he had not time to trace its history. An extract who had sent them out of the state for the purpose from the letter of the president of the Boston of merchandize, or the payment of debts, it would branch (March 19 1818,) to the president, Mr. be admitted that a capital to that amount could Jones, would confirm some of the observations have been transferred to the western country. The which he had made. "When the state banks were bank did not do this. Instead of carrying the discounting here, though not largely, this bank specie to Ohio and there lending it, the specie called in, from its debtors, but 30 per cent. re- remained in the Atlantic states, and the citizens gularly; this placed them in a better state; by reduc- of Ohio obtained, not indeed silver in the first ing their sums discounted, considerably, they ac-'instance, but drafts and notes, which were sent to

them.

the Atlantic cities, and there drew out silver. Iftry, one of the most useful operations in which a it had been proposed to the directors at Philadel- national bank can be engaged-its appropriate duty. phia, at the establishment of the bank, to employ It would do very well, the committee seem to think, this enormous capital in the western states, they if it were not for "the possible loss" in the transac would not have consented that a fourth of it should tion. And in exchange operations there is certainly be so engaged. But the unfortunate system which some risk. In the case of the bank, the sale of bills he had endeavored to explain, had led gradually, implies the purchase of them, and bills may be proand almost without observation, to a distribution tested. But the risk of the transaction was as good of capital which otherwise could not have been a reason against discounting notes as purchasing granted nor even asked. The directors of the bills. He could not think then, with the committee, western branches had not incurred the imputation "that it was unjust to oblige the American stock. of speculation or of collusion with speculators-holder to contribute to "the possible loss," while the amount of stock pledged and even owned there, he was to share in the probable gain "of paying was not large, and yet it was there that the amount dividends to those abroad." of discounts was most excessive. The discounts But were the terms unreasonable? If the bank of Kentucky and Ohio he had stated as amounting, deals in exchange, is the sale at par of its bills, in November, to more than six and a half millions; where they are payable six months after date, or those of Baltimore. at the same time, were less four months after sight, a sale for too low a price? than wine and a half millions, a much less amount Let an examination of the usual state of exchange than the other, comparing the business of the two. decide the question. An examination of exchange, These western discounts were the greatest im- since the bank had gone into operation, might be pediment to the successful administration of the objected to as furnishing no fair criterion of the bank. One of the most important duties which it prudence of the measure. Its state might have behoved the directors to fulfil was that of making been accidentally favorable. But he held in his a better distribution of their capital. But many hand two statements of the annual gain and loss years must elapse before the discounts of the two by exchange in the payment of our debt in Europe states which he had mentioned, could be reduced by the one of which, it appeared that the whole within their proper limits.

sidered as being about one per cent. above par.

gain, after deducting occasional losses in remit. He had just received a copy of the memorial of tances for the Dutch loans, from 1791 to 1809, delegates from the banks of Ohio, to the legislature inclusive, was upwards of $260,000, and by the of that state, and was glad to find that they began other, that the gain, after the same deductions, to understand the mischiefs which the indiscri- under the operations of the commissioners of the minate payment of the national bank notes was sinking fund, from 1802 to 1817, inclusive, was up. calculated to produce in the states whose exchange wards of $350,000. The average price then, which was unfavorable. [Mr. L. read a paragraph from the government had paid for its bills, in a period the memorial which explains the injury which that of twenty-six years, had been considerably below practice occasioned, as it supposes, to the state of par. If the bank then, had engaged to sell bills at Ohio.] If the bank had refused payment of the par, it would have had reason, from the experience notes of its branches, from the commencement of of twenty-six years, to think that the arrangement its operations, the memorialists insist that more of would be a prudent one, but upon a fair estimate its paper would have circulated in the country. He of the time which it gained, its price must be conhoped the committee would excuse him for having so long dwelt upon a topic hardly noticed in the But the committee suppose "that the able reareport, but he had thought it important to shew sons" assigned in the report of the committee (of how large a part of the complaints against the bank the bank) against the measure "should bave preresulted from a practice which must be considered vented its precipitate adoption." Mr. L. said that as an error, not a fault, which had been entirely there were but two sentences in the report, which abandoned, and which it was extremely improbable referred at all to this subject. He read them, and that any future board of directors would renew. asked whether the intimation that the existing Mr. L. next adverted to that part of the report of unfavorable balance of trade alone influenced the the select committee which condemns the arrange. "committee to decline the unqualified recom ments which were made for the payment of the mendation of such an agency," was considered as dividends upon bank stock in England. The committee "do not undertake to decide how far it was objectionable to afford inducements to foreigners to become interested in our stock." "But, thus to compel American stockholders, and the government, to contribute to the possible loss of paying the dividends to those abroad, appears (they say) "to be unjust." He thought that a very short en quiry would lead the committee whom he addressed

to a different conclusion.

furnishing the able reasons in condemnation of the measure? In truth, there was no reasoning in the report. But the authority of the committee was decidedly favorable to the general propriety of the measure which had been adopted.

Among the objections urged by the committee, of which he had had the honor to be a member, against the conduct of the bank, some of the most serious were those which regarded the amount and character of its discounts. He concurred with The arrangement in question involved two con- some of the views of the committee upon this subsiderations. Ought the national bank to deal in ject. He did not now mean to speak of discounts exchange, and were the terms on which it sold bills given to enable the discounter to pay his instalto "the stockholder abroad" fair and advantageous? ments upon stock. But, without reference to the It was very plain, that, to make an arrangement object for which they were employed, the discounts, with the foreign stockholder, by which it was with a pledge of stock, were many of them, as the stipulated to make the payment in England at par, committee had stated, "excessive in amount." six months after the dividend was declared, was While pledge of stock is fairly employed as a substantially to sell them at par bills payable six mere substitute for personal security, he would not months after date. Ought then the bank to deal say that even when valued at 25 per cent. advance, in exchange? It is the business for which the char-it might not be safe to the bank, as well as conter specifically provides; it is perhaps for the coun. Ivenient to the merchant. As a mere substitute for

personal security, it would imply that no discount (a pledge of stock, discounted in Philadelphia in would be made on it to an amount which would be July and August, 1817, was about six millions and refused to the same drawer with a common in-a half. The committee think it "singular," that dorser. But many of the stock loans were so large at this time "any business paper should have been that the pledge of stock lost its character of mere rejected." The whole amount rejected, was less collateral security. When a loan for a million of than one million and a half. Supposing this sum dollars was secured by a pledge of stock, it was to have been discounted, whether the parties were obvious that the stock was not considered only as insolvent or not, and the stock notes rejected, the a fund to supply any deficiency which the possible amount of discounts in Philadelphia, in two months, insolvency of the drawer might produce, but was would have been less by five millions, than it actually the principal and almost the only foundation of the was. Of these five millions, a part (he did not loan. The same loan would indeed be much more know what part,) was employed for the payment objectionable with the security only of an indorser. of subscriptions to the bank, and did not add to There were expressions in the report which might the amount of money in circulation. Suppose half be construed to imply a partiality in the distribu-to have been so employed-and a reduction of two tion of these loans, which perhaps it was not design- and a half millions in the circulation of Philadeled to convey, and which, as it seemed to him, the phia, below the amount which kept its exchange evidence would not support. It was said, that the at par, would have suspended mercantile business, loans were not made (he understood that the comand spread embarrassment and distress through mittee meant to say, that most of them were not every town in the state. He appealed to gentle. made) to the merchants and traders, but to a few per. men whose business or curiosity had led them to sons consisting of directors, brokers, and specula observe the effects which even an inconsiderable tors. It was difficult for him, (a stranger at Phila change in the quantity of money produces in a delphia,) to pronounce sentence on the character commercial community, to say whether there was of those who had borrowed money on a pledge of any thing visionary or extravagant in this view. stock. Of the whole number, he knew personally It had been alleged as an excuse for the magnitude but two or three, and neither of these were specula and permanence of the loans which were made about tors or brokers. The committee had selected the this time by the bank, that the redemption of its names of fourteen, and had obtained evidence of stock by the government had made it necessary their employments in life-seven were merchants, that it should invest the state bank paper, which five were brokers, and two could not be classed it was paid in, in some other securities. He must, in either list. Mr. M'Euen's testimony, which has however, observe, that the embarrassment of the been published by the committee, contains his bank, from the accumulation of the paper of state "opinion that a considerable proportion of discounts banks in some parts of the union, did not originate on pledged stock was for the benefit of merchants, in the measure to which it had been exclusively and not of speculators." Major Butler says, that attributed. Its own errors were a principal cause. "he has never known any good paper refused on ac- As early as March, 1817, it suffered, from a decount of the amount of stock notes offered." It is said, in the 10th page of the report, that "not an instance has occurred of a note secured by the pledge of stock being rejected." If the merchant and trader then, had not their share of the loans, it was only because they did not apply for them. The The observations of the report on the subject of partiality in their distribution, was not to indivi post notes, Mr. L. thought liable to misconstrucduals, professions, or parties-merchants, farmers, tion. After referring to several transactions in artizans, obtained those discounts whenever they wished them. The partiality was to the whole body of holders of bank and funded stock throughout the United States. He believed there was not an instance of a note secured by a pledge of funded stock being rejected.

ficiency of resources, at Boston; and three months afterwards in New-York; while a large amount of balances against the banks to the south and west of those places had accumulated, even at that early period of its operations.

which post notes were received by those who had obtained discounts, it is observed, "that not being drafts on other offices, they cannot be considered as exchange operations." Now every post note but one, to which reference was made in the report, was "a draft upon another office." The resolution While his judgment led him to the conclusion under which they were given would be found that many of the stock loans were highly objection-among the documents, (page 92) They were post able, from their amount, he thought it fair to add notes of the bank at Philadelphia. They were the view which had satisfied his mind, that a con- obtained by those who got discounts at Baltimore. siderable proportion of those loans was necessary. This appeared to him, therefore, to be a simple He should have occasion, in another part of his re- case of exchange. marks, to examine the state of exchange between The case of the post notes mentioned in the first * the United States and other countries since the part of the paragraph, was different. The post establishment of the national bank, for the purpose note was payable in the same place in which the of showing that the whole amount of its discounts discounted note was payable. There was, too, some was not excessive, although their distribution was ambiguity in the resolution for granting the disunequal. But he wished now only to apply the count, and it might possibly be inferred, if we had test which the rate of exchange, as he thought, no other evidence, that it was a condition of the furnished, in an enquiry into the propriety of the loan, that a post note, payable 60 days after date, discount operations of the bank in Philadelphia, in should be received by the discounter. But had the months of July and August, 1817, when the we no other evidence? Mr. Smith swears, (docuamount of stock loans first became considerable.ments, p. 114,) that "post notes, at 60 days date, From the statement which he held in his hand, it have frequently been issued on the application of appeared that the exchange with the principal persons who have had notes discounted, but it has countries of Europe continued, with very little never been the condition of the discount" variation, nearly at par during the time. This fact man who knows what post notes are, their conwas incompatible with the supposition of an exces.venience to mercantile men, and indeed to society Bive circulation. The whole amount of notes, with generally, can require no explanation. A post note SUP. TO VOL. XVI.

P

To every