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Editorial
September 16, 1818
The Rhode Island Republican
Newport, Newport County, Rhode Island
What is this article about?
An editorial from the Democratic Press criticizes the Bank of the United States for refusing to accept notes from its own branches, undermining their role as a national currency and prompting state banks to reject them, dated August 28, 1818.
Merged-components note: These components provide commentary and the actual circular on the Bank of the United States' policy regarding notes from its branches, forming a cohesive editorial piece.
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OCR Quality
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Full Text
From the Democratic Press.
BANK OF THE UNITED STATES.
The principal reason urged in favor of establishing the Bank of the U. S. was to give to the union a generally circulating medium. This was the ground upon which the advocates of the Bank took their stand; this was the reason which carried their charter through Congress. It appears from the following Circular just now (11 o'clock) put into our hands, that this reason is null, void and of no effect. The notes of the Bank of U. S. are no longer to be a medium which will freely circulate throughout the U. S. The Bank itself refuses to take, even in payment of debts due to the Bank, the notes which are issued from the officers of Discount and deposit which the Bank itself has established!!!
The Branches refuse to receive the notes issued by the U. S. Bank, and thus the circulation of the notes of the Bank, and of the Branches, are narrowed down, and limited to the immediate districts in which they are established. Remittance can no longer be made in U. S. Bank Notes. Shaving and Brokering are again to be the order of the day, and the interests and happiness of the community are to be prostrated at the feet of a powerful Moneyed Institution. We have not time to enter more at large upon this deeply interesting subject. It would be wrong, however, to close this hasty note, without stating that all the State Banks refuse any longer to take the Branch Notes of the Bank of the United States. Why should they give a credit to officers of a Bank, when the Bank which established them refuses to take their notes. If this be not discrediting their own notes, and rendering themselves odious and unpopular, we know not what measures will, or can produce these effects.
Copy of a Circular.
Bank of the United States, Aug. 28, 1818.
Sir, I am directed to inform you that the Notes of this Bank, which are made payable at its several offices of Discount and Deposit, will not be received at this Bank, after this day; except in payment of debts due to the United States. Such notes however, of the offices, as your Bank may have received, during this day, will be received in exchange, to-morrow morning.
(Signed) JONA. SMITH, Cashier.
Esq. A Cashier Bank.
BANK OF THE UNITED STATES.
The principal reason urged in favor of establishing the Bank of the U. S. was to give to the union a generally circulating medium. This was the ground upon which the advocates of the Bank took their stand; this was the reason which carried their charter through Congress. It appears from the following Circular just now (11 o'clock) put into our hands, that this reason is null, void and of no effect. The notes of the Bank of U. S. are no longer to be a medium which will freely circulate throughout the U. S. The Bank itself refuses to take, even in payment of debts due to the Bank, the notes which are issued from the officers of Discount and deposit which the Bank itself has established!!!
The Branches refuse to receive the notes issued by the U. S. Bank, and thus the circulation of the notes of the Bank, and of the Branches, are narrowed down, and limited to the immediate districts in which they are established. Remittance can no longer be made in U. S. Bank Notes. Shaving and Brokering are again to be the order of the day, and the interests and happiness of the community are to be prostrated at the feet of a powerful Moneyed Institution. We have not time to enter more at large upon this deeply interesting subject. It would be wrong, however, to close this hasty note, without stating that all the State Banks refuse any longer to take the Branch Notes of the Bank of the United States. Why should they give a credit to officers of a Bank, when the Bank which established them refuses to take their notes. If this be not discrediting their own notes, and rendering themselves odious and unpopular, we know not what measures will, or can produce these effects.
Copy of a Circular.
Bank of the United States, Aug. 28, 1818.
Sir, I am directed to inform you that the Notes of this Bank, which are made payable at its several offices of Discount and Deposit, will not be received at this Bank, after this day; except in payment of debts due to the United States. Such notes however, of the offices, as your Bank may have received, during this day, will be received in exchange, to-morrow morning.
(Signed) JONA. SMITH, Cashier.
Esq. A Cashier Bank.
What sub-type of article is it?
Economic Policy
What keywords are associated?
Bank Of The United States
Branch Notes
Currency Circulation
State Banks Refusal
Economic Harm
What entities or persons were involved?
Bank Of The United States
Branches Of The Bank
State Banks
Congress
Editorial Details
Primary Topic
Criticism Of Bank Of The United States Policy On Branch Notes
Stance / Tone
Strongly Anti Bank Of The United States
Key Figures
Bank Of The United States
Branches Of The Bank
State Banks
Congress
Key Arguments
The Bank's Notes Were Promoted As A National Circulating Medium But Now Fail To Circulate Freely
The Bank Refuses To Accept Its Own Branch Notes Except For Debts Due To The United States
This Limits Note Circulation To Local Districts And Hinders Remittances
State Banks Refuse Branch Notes In Response
This Policy Discredits The Bank's Notes And Harms Community Interests