ust
18 addressed a circular to the principal banks in the United States,
inviting the expression of their wishes as to the time and place for a
convention, suggesting New York as the place, and October, 1837, as the
time. They said, in addition, that the banks of New York city, in view
of the law of the State dissolving them as legal corporations in case
of suspension for one year, must resume at some time between January 1
and March 15, 1838. The circular committed the New York banks to no
definite action, but expressed the opinion that the fall in the rate of
exchanges indicated an early return of specie to par, when resumption
could be effected without danger. The banks of Philadelphia held a
meeting on August 29, and adopted resolutions declaring it inexpedient
to appoint delegates to the proposed convention. Aware of the reasons
for this action, the chief of which was the extended and perhaps
insolvent condition of the United States Bank of Pennsylvania, the New
York committee invited the banks in the several States to appoint
delegates to meet on November 27, 1837, in New York. Delegates from
banks of seventeen States and the District of Columbia appeared. On the
30th resolutions were brought in recommending a general resumption on
July 1, without precluding an earlier resumption on the part of such
banks as might find it necessary. The Pennsylvania banks opposed this
action with resolutions condemning the idea of immediate resumption as
impracticable, and also, in the absence of delegates from the banks of
Louisiana, Mississippi, Alabama, and Tennessee, as unwise. The
convention met again on December 2, when an adjournment was carried to
April 11, 1838, when delegates from the banks not represented were
invited to attend. Mr. Gallatin saw that the combination of the
Philadelphia and Boston banks, under the lead of Mr. Biddle, would
certainly force a further postponement. Exchange on London, which had
been as high as 121, the true par being about 109-1/2, nominal, had
fallen to 111-1/2, which, considering that the city bank paper was at a
discount of five per cent., was at the rate of 2-1/2 per cent. below
specie par. The exportation of specie had entirely ceased.

On December 15 Mr. Gallatin and his committee appointed at the general
convention submitted a report which he had drafted, which, though
addressed to the New York banks, covered the whole ground. Meanwhile the
highest authority in Pennsylvania had given