TOR THE G.IZETTE OF THE UNITED STATES. [The following was sent to the press prio r to the ac counts which have been receive J of the recent fall of Smpt—but it is judged expedient to pursue the publication, as it may furni/h better data jor ju ture calculation than have hitherto governed.^ THE extraordinary and still increasing rife of public {tock, including that of the bank of the United States, is such as can Hot fail to im press on lober minds an apprehension for the consequences. There is room to fear that it will be so wrought up, as to prove a bubble, ruinous to tlie fortunes of many individuals, and, (or a time, hurtful to public credit. Tocheck, if pos sible, this rage, and indicate the point at which the value of the different kinds of public ftovk is likely to become ftaiionary, is an attempt, re commended both by teivdernefs to individuals and regard to public good. It is ti be feared in deed that already the matter has proceeded so far, that the propagation of morejult ideas, may tend to the injury of not a few ; but it is better to<iiazard this consequence, than to forbear a difculiion which may contribute to prevent the further progress of a spirit which may be pro ductive of general calamity. Nothing can be more erroneous than the foun dation upon which are built the hopes of those who coniider the present prices of llock, as itill lliort of what they will attain at a period not far dillant, and who make vast speculations on that idea. It is common to hear it said that British four per cents are above par—Why then ftiould not American fix per cents be worth thirty fliil lings in the pound ? They cannot be To, for the most obvious rea sons.—The market rate of interest of money in England is four per cent —in the United States it is not less than fix, excluding the operation of those causes, which at present raise it beyoncl that point. A citizen of Great-Britain will not purchase flocks in this country which yield liini only four per cent, when he can purchase those of his own at the fame rate. Distance will be an objection to it—He cannot turn his property here as quickly as if it were in his own country, ei ther to apply it to any beneficial undertaking, or to secure himfelf, on the profpetft of any disas trous event in public affair 9— Ke cannot receive the dividends as expeditioufly in one cafe as in the other —He inufl pay a co;mniflion to agents, who receive and remit, and is fubjeft tolois from the slate of exchange. All these differences can not bin be efliinated as equivalenr to I per cent. Hence American 6 percents. considered as a per petuity, could not be worth more than 24/. in the pound. Considered as a fund redeemable in certain proportions, they are worth <*t>nliderably lels. Turn to Holland—The tifual rate of imereft given there by foreign powers, and hitherto by the United States, computing the charges, is not ]ess than 5! per cent. Snppofe, as is not impro bable, the United States fliould be able to borrow there in time to come at 4! per cent, including charges—suppose even four, which is remote and improbable—as allowance must be made for the fame circumstances which have been mentioned in refpeft to England, the conclnfion must be the fame in relation to Dutch as to Englifli piitchaf ers. It is not probable that the Dutch capitalist will be disposed to speculate in the funds here, when they yield less than 5 per cent. It ought to be remembered that the United States have still considerable loans to make in Holland to pay the arrears to France ; and that they vv:ll continue to have from year to year, for several years to come, loans to make to r eim bin fe the inllallmenr.s of the foreign debt, which will be yearly falling due. This employment for Dutch capi r al in new loans to the government of the United States, will necefl'arily impede Specu lations in the exilting debt, when they no lon ger affurd a considerable profit. Let it also be recollected, that both Englifia and Dutch capitaliils are di(covering, that lands, ca nals, and a variety of other objects, nfford scope for Speculation more profitable shan the funds— and that when 110 longer allured by considerable profit, they will divert their Speculations from the latter to the former. This has in faiTt al ready begun. I hat foreign {peculations in our funds have of late abated, may be inferred from the present fcarciry of bills on Europe, and the sudden life in the rate of exchange. How then are ihefe high prices which some people dream of to be fupuorted ? Is our own ca pital equal to it ?—When the funds (hall no longer yield even five per cent, and foreign purchases are at an end, who will be found to deal in the funds, while iinmenle trads of waste land, as well as commerce and .manufactures, invite to a far more profitable employment of money ? of so many being now embarked, is Prices from foreign purvljPcs j but when it is discovered that this expectation lias been too sanguine, it may be counted upon that a large part of the domestic capital now engaged in the game will be with drawn. With regard to bank flock, it is more difljcult to reason with precilion. The imagination has here too much scope. Dividends from twelve to fifteen per cent, are talked of; but it is not/ difficult to shew that these are impoffiblc; and on cool examination it will appearthateven eight per cenr. which seems to he the loweit supposi tion, is a point not too much to be calculated upon. Stating j of the whole capital as drawing an intercft from the government of 6 percent. — this will only be 45 upon the entire capital. Suppose the rate of dif'rount to be 5 per cenr. as it is the general opinion it ought to be; and suppose em ployment found for the whole capital, inasmuch as the bailk cannot lend beyond its capital, it cannot make more by its discounts and loans than y per cent. Hence the whole income of the in llitution, on the molt favorable supposition, can never exceed 9- per cent, from which is to be deducted the expence of management. The current calculations ori this fubjetf include the deposits as a source of additional profit; but they will be no otherwise so than as they will enable the bank to operate beyond its specie ca pital. They cannot enable it to have a greater Aim at imereft at any one time than 10,000,000 dollars; for though the debts of the bank may exceed its capital, to the extent of the drpofits, yet as the credits given for the depufits will car ry no intered*, the sum of 10,000,000 will always remain thf* utmost limit of the loans and discounts of the bank, and will alone produce interelh But the above producft of 9J per cent, includ ing charges of management, ought not to be counted upon. It ought to be remembered, that it is in the difcretiou of the Directors to have branches or not ; and the propriety of having them, is a queltion at least of delicacy. If there are none, it is far from certain that employment will be found for the entire capital of the bank, in the sense in which it is expeited. I fay in the sense in which it is expected—for that part, which consists of stock, is, by its very conltitu tion, in employment—but the calculation is upon a double employment. It ought also to be kept in view, that a part of the (lock drawing interelt from the public, will be redeemable at pleasure—and that the residue is redeemable in certain proportions. What ever part from time to time may be paid ofF, can not be replaced in loans to the government, at -he fame rate of intereft—lince it is evident in every view,'that the government will not be dif pnfed to give more than J percent. These con siderations go in diminution of the expected pro fits of the bank. Upon the whole, if bank stock fiiall yield a nett profit of 7J per cent, ic ought to fatisfy eve ry reasonable expectation. It is to be hoped that while the directors are guided by a liberal tem per, they will nor be disposed to run ralhly into forced and critical operations. It were not an extravagant supposition that the stock of the bank o1 the United States may fettle down at fifty per cent, above par, and fix per cents at about 10 per cent, above par, ancj other stock in the like proportion. — But this is already ihort of the standard which governs the present corn fe of speculations, and far short of that to which they feeni to be prog; efSng. let prudent men beware ! It ought not to be overlooked that our govern ment is yet in its infancy, and that though from its ftructute, it merits all poflible confidence, there may nevertheless be accidents which for a time would give a shock to public opinion very pernicious to those who outrun the limit of pru dence. A general Indian war, of which it must be confeiled, there is no present appearance, but which tliTe are canfes enough to produce ; a war with any foreign power, which though not like ly, is in the ordinary conrfe of human events ; a strong appearance of oppofirion in any quarter to any of the laws of revenue ; the death of the President, and a variety of other cafnalties, the poflibility-of which otight not to be 1 oft fight of. would very sensibly affect the state of the funds in this country — whet e long habit and experience have not yet served to confirm the ltamina of public confidence. These remarks are designed as cautions against theexcefsofa spirit which has hitherto done good, but which carried to a certain extreme will do much harm. It is probable however they will be little attended to. For tl)e history of the public funds in every country affords examples of the fame malady which appear to have seized many among us, and for which the only cure has been found to be—the difcipl'tne of the fufferings which have attended it. Advice, it solid, may however prevent the disease becoming altogether epidemic. A real Frievd to Public Credit. 122 PETERSBURG, May 6 = HHHIS day our court has publidied a particulJ X . of expedition of L i e '/ nam General Prince Galhtzin againltthe k'j " Turks that was polled in the fort of Maczin { the fortifications of Ibrailow. His one ' which met with such complete success were ned on from the 4 th to the t2th of Apiil j colt the enemy 4 doo men and 25 pieces of cannon an immenie quatiSty of amuniiion, and fcveril vefl'els, either funk or deltroyed. The en( j f the expedition having been attained, and tl e body of troops commanded by Prince Gallitzi too finall to stand without support beyond the Danube, was employed during the night of t | )e I2th of April, in levelling the fortifications and then retired without accident to Galacz. ' , WARSAW, May 18 The king has named the ministers who are t| compote his council, all agreeably to the re-»ul a tions ertablifhed by the new conltitntion. 3 In the fittings of the Diet of the 1 jth and 16th of this month, the examination of the project presented by the committee of the Constitution for the organization of future Diets,was finilhed. This plan though very voluminous, and com peted of 24 articles, was adopted unaniinouflv and without a woi\d of debate. Every thing pro mises that the conltitution will be compleared in the month July next, and thenthe states may be difiniil'ed. We every day receive from all parts of the kingdom, tlie oaths by which citizens, tribunals, civil and military officers of the Palatinats aild the different bodies of croups bear testimony of their acqoiefcenee in the new order of things. In the fiiting of the 17th, a very interelling scene rook place on the ledture of a note which the Compre de Goltz delivered relative to the new conftiiution. In it the King of PrufTia re news the assurances of his friendship for the King and the Republic. After the lecture of this note M. Kurkololki spoke again ft the new constitution, and concluded with faying, " that it was not surprizing that the king of Pruifia, Jhould ap prove a conflitution the plan of which he had afiftti in framing." This bold assertion struck the As sembly with nftonifliment. A general expreflioq of indignation was ready to burst on the of it ; when, the king, to fliew the falfity of itj Paid that M. Dried nzycki Secretary of the com mittee of foreign affairs, held in his hand a note of the Compte de Goltz, written the evening of the day on which the revolution took place, in; which he unequivocally exprefies his surprise that the court of Poland had kept the plan a secret from his mailer, their ally.—After these .few words were uttered M. Kurkololki, was covered/ with confufion. ./ COPENHAGEN, May 21 Three hundred veflels of different nations have palled the Sound since the 17th inft. Some En {rlifh vell'els among the reft, bound for Peterf buifr The city of Dangberg, in the Bifhoprick of tVybourg, has been alinoft totally tleftroyed by fire. Government has jufl laid an additional tax up on Brown Sugars, imported into Denmark and Norway for confuiliption there. Sugars import ed to supply foreign countries, are not fubjeiftto this new duty. VIENNA, May 25. The Emperor has given orders that arms should neither be given nor fold to French refugees in any part of his dominions. The EleAor of Saxony has not yet been able to give a positive answer concerning the Crowri of Poland, which is offered him by the New Con (Htutiou of that kingdom, lie is to call a meet ing of the States of Saxony, and consult their o pinion. Hitherto the crown of Poland has pro* - ed a fatal present to the Electorate ; but times are changed ; and Saxony having had time to repair the effects of its former misfortunes, is now able to defend its new good fortune. Fortunately, Prnffia at this time is desirous from motivos of felf interest, to fee this political marriage take place between Poland and the Electorate. June f. It is now too evident, any longer to doubt, that the efforts of Aultria are all tli 1 eccec to lay aiide the declarations of Reichenbach in the present negociations. Those former a rations were merely calculated to conceal close alliance with Russia ; which alliance > a s been kept in full energy, by the adlivity an good faith of the two parties. All our poits m the Adriatic sea are open to Russia : I heie t ey fit out their fleets, they there fi*ek rciuge v, ieu prefied, and there they repair their velle 3. this very moment their flotilla under the con mand of Col. Lajnbro Cazzoni, is in oui P O, l s ' The Count Elgin, Envoy Extraordinary tro he Court of London, met his Imperial » at Mantua, had a long conference there, an
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