University of Virginia Library

TO WILSON CARY NICHOLAS.[128]

Dear Sir I have recd. yours of the 30th. ult.[129]
It will afford me pleasure to promote your wishes
in behalf of Mr. Armistead; and the pleasure will
be increased by my recollection of the period &
persons to whom you allude. It is incumbent on
me at the same time to remark that it is the usage,
to leave to the heads of Depts. the selection of their
own clks. which the law vests in their discretion
& responsibility; that they generally have their
preferences often founded on relations of friendship
and personal confidence; and there is always depending
a list of applicants for the few vacancies
which occur, some of which pretentions may have
peculiar force. My connection with such appointments
is much less therefore than might be
supposed, and I mention it that in the event of
disappointment it may not be inferred that I
have been insensible or inattentive to the object
you so justly have at heart.

Mr. Dallas has & will have explained so fully
his measures with the grounds of them, that I
need say very little on the subject. If any have
supposed him not conciliatory toward the Banks,
they have done him great injustice. As to the epoch
of enforcing specie payments the law had fixed
on the 20th. of Feby. next; with an evident obligation
on him to anticipate it if practicable. Many

of the Banks, instead of co-operating with him
for the latter purpose, have announced purposes
at variance with the positive injunctions of the law.
It can scarcely be doubted that if the Banks had
concerted a general concurrence with the views of
the Treasury, the former confidence & currency
would have been easily re-established by the time
fixed by Congress, and probably sooner. Nor can
it well be doubted that such a concert would have
taken place, if the Bank dividends had been as much
favored by the effort, as they might, at least for a
time, be reduced by it. I am far from applying
these remarks to all the Banks. There are exceptions
which we could jointly name with equal
pleasure. But it is certain that as far as the Banks
have not done their duty, they have to answer for
the injustice done by a depreciated currency to
particular states, to the public creditors, to the
Army, to the Navy, and even to private creditors
who were in a manner forced to receive their debts
in that currency. Had the Banks sold their public
stock for their own notes with which they procured
it when they could have done so with a liberal
profit, or had they agreed to pay interest on their
protested notes, whilst they received interest on
the paper pledged to them, they would have stood
on different ground. But they preferred, too many
of them, to these sacrifices, or rather to these acts
of justice, an increased issue of notes on a capital as
productive nearly as the notes issued on that basis.
Taking the whole subject as we find it, it is not easy
to say what Congress, with whom it lies, may decide
on. There is sufficient reason to believe that if
the crisis requires a relaxation they will not withhold
it. But there are indications that a resumption
of specie payments, is rapidly becoming practicable
and popular. If the demand of Spain to discharge a
foreign balance agst. the nation, should not raise
the Exchange above the Expence and difficulty
of exporting it; the Banks in general will run no
risk in uniting at once with the National Banks in
restoring health to the currency, and justice to all
transactions public & private. . . .