A REVIEW OF THE CAUSES OF THE RECENT PRESSURE ON THE MONEY MARKET. BY JAMES WILLIAM GILBART, GENERAL MANAGER OF THE LONDON AND WESTMINSTER BANK. LONDON: LONGMAN, REES, ORME, BROWN, GREEN, & LONGMAN. PREFACE. THE " History of Banking in America" was not written for Americans, nor for persons well acquainted with American Banking, but for those who know but little about it, and who have not time to read lengthy publications on the subject. To give an outline of the progress of Banking in America-to point out the principal features in which it differs from English Banking-to present a summary of the condition of the Banks in the respective States-and to notice the opinions with reference to Banking of some of the leading men in America, is all that has been attempted in this portion of the work. The inquiry how far the Banking Institutions of America are adapted to this country, will point out more forcibly to the general reader the difference between the two systems of Banking; while it will suggest some matters for consideration to those who feel an interest in the improvement of our Banking Institutions. Here this work was intended to close, but the publication of Mr. Horsley Palmer's Pamphlet upon the "Causes and Consequences of the Pressure on the Money Market," and the discussions it occasioned, induced me to write two additional Sections. My chief object in doing this has been to repel the charges brought against the Joint Stock Banks. In noticing the other causes to which the recent pressure has been assigned, I have contented myself with transcribing the sentiments of other writers. As the publication of Mr. Horsley Palmer has been "looked upon as a sort of official document, embodying the views and opinions of the directors generally," it may be proper to inform the reader, that the work now before him conveys only the individual opinions of the author. 38, THROGMORTON STREET, May 1, 1837. J. W. G. CONTENTS. THE RISE AND PROGRESS OF AMERICAN BANKING. Tobacco, corn, and Wampompeag used as money, 1.-Paper money, called continental money, issued during the war for independence, 3.- Bank of North America chartered, 4.-Constitutionality of a National Bank, 5.-The first bank of the United States, 7.-Suspension of cash Necessity of a National Bank, 12.-Provisions of the charter, 13.— Progress from 1819 to 1829, and a list of the branches, 15.-Advan- tages derived from the Bank of the United States, according to Mr. Gallatin, 16.—A bill passed Congress to renew the charter, but refused to be ratified by General Jackson, 19.-His reasons for so doing, 20.— The president removed the government deposits, 23.-Operations of the mint in 1833, 24.-Laws passed relative to gold and silver coin, 25.—Effects of these laws in preventing the exportation of gold, 26.— Condition of the bank in November 1834, 28.-The president's address to Congress, relative to the Bank of the United States, 28.- Operations of the mint in 1834, 22.-Ditto in 1835, 23.-Charter expired, but a new charter obtained from the state of Pennsylvania, 34. -Notice of the Bank in General Jackson's farewell address to Con- gress, 36.-Mr. Van Buren's sentiments as to rechartering the bank, |