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Subject Area: Economics
Subject Area: Political Theory

GALLATIN TO WILLIS HALL. - Albert Gallatin, The Writings of Albert Gallatin, vol. 2 [1879]

Edition used:

The Writings of Albert Gallatin, ed. Henry Adams (Philadelphia: J.B. Lippincott, 1879). 3 vols.

Part of: The Writings of Albert Gallatin, 3 vols.

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GALLATIN TO WILLIS HALL.

New York, 3d March, 1838.

Sir,—

I have the honor to enclose, 1, a copy of the first report of the committee on “the resumption of specie payments” to the general meeting of the officers of the banks of this city, which was unanimously adopted by the meeting and ordered to be published; 2, a copy of the second report of the same committee, which, as it refers to the situation and obligations of some of the banks, and as it is accompanied by an estimate, which might give rise to cavil, the meeting thought best not to publish. It is sent for the information of the committee of the Assembly of which you are chairman. The estimate is as correct as can at this time be made. The resolution recommending each bank to have an amount of specie equal at least to 20 per cent. of its capital was adopted unanimously by the meeting. This and the 30 per cent. of the seven banks which obtained State stock will give us five millions in specie on the day when we resume.

Several of us consider the 10th of May as the day on which our charters will necessarily expire if we do not resume specie payments on or before that day (see Rev. Stat., vol. i. page 605, and vol. ii. page 378, edition of 1836); others believe that according to the 1st Sec. of the Act of 16th May, 1837, the charters will continue to that day. I incline to the first opinion; and as there may, at all events, be a doubt, we have thought it safer to announce the intention of resumption for the 10th.

It seems to me that, if post-notes should be authorized, it should not be on the condition that within — days the banks shall announce their determination to resume specie payments. It would look as if the permission to issue post-notes was necessary in order to induce or enable the banks to resume. It is also important for the city banks not to fix the day positively till after the meeting of the convention in April.

I have the honor to be, &c.