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Subject Area: Economics
Subject Area: Political Theory

GALLATIN TO WM. L. MARCY. - 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 WM. L. MARCY.

New York, 27th March, 1838.

Dear Sir,—

Your letter of 25th instant was received yesterday. Whilst pursuing steadily and with singleness of purpose the great object of the resumption of specie payments, we felt sensibly the difficulties likely to arise from a want of co-operation on the part of the banks of Philadelphia and other places, and the injurious effects it might have on the business of this great city. We could see no other efficient remedy than the interposition of the credit of the State in the manner suggested in our letter to you. Such is at the same time the peculiar situation of the banks and the prejudices entertained against them, that we were apprehensive that a direct application from them for the purpose aforesaid would not only betray a sense of weakness unfavorable to the prospect of maintaining specie payments, but might be liable to misconstruction and engender opposition. Under that impression measures have been taken by some of that sounder portion of the commercial community which feels the necessity of an early resumption and will sustain it, to have a memorial signed by merchants, asking from the Legislature the aid of the State for the purposes and in the manner stated in our letter. We hope that that memorial will in a few days be carried to Albany by a committee of merchants.

It was certainly our intention in making our late communication to you not only to lay before you a correct statement of our situation, prospects, and apprehensions, but also that the knowledge of all the facts bearing on the question and of our own view of the subject might be used for the purpose of promoting the object if it met with your approbation. With respect to the manner of doing it we trusted entirely to your judgment and discretion. You will, however, perceive from what I have now stated that we think it best that the application for aid should not come from the banks. The publication of our letter at this moment might be considered as an application from them; but I think that its contents may be advantageously used and communicated to such persons and in such manner as in your opinion may best promote the measure proposed. In its progress it may indeed become proper and necessary that it should be known that the banks which anxiously desire a resumption of specie payments consider the aid and support of the State as eminently calculated to insure the success of the attempt.

I consider, indeed, the passage of a law to that effect before the 11th of April to be of first-rate importance. The determination of the State, such State as New York, not to permit a further protraction of the suspension, and to lend its powerful aid in sustaining a resumption of specie payments, cannot fail to have a most beneficial influence over our own commercial community as well as on the banks of other States. It is at this moment the last hope we have that those of Philadelphia may be induced to withdraw their opposition.

Permit me to add, that whatever may be the merit of the propositions in reference to banking and currency which have been agitated during the present session of the Legislature, they cannot have the slightest favorable effect on the resumption of specie payments, which in our present prostrated situation should seem to be the first and primary object of government.

I have the honor to be, with great respect, dear sir, your most obedient servant.

The second report may be freely communicated, but on the whole need not be published; the object in transmitting it was to show that we had taken every measure in our power to be prepared for the resumption.