Blount_Letter_032_47898

copy B-1-6

Bank of the State of Tennessee Jul 26" 1815 Dear Sir Upon being informed that the Banks in most if not all the principal cities and towns in the United States had suspended the payment of specie, the directors of this institution took into consideration the effects which such a measure would probably have upon them, and endeav = = oured to satisfy thenselves what course it was their duty to pursue - owing to the circumstance of this Bank being then in its infancy- its notes not having an extensive circulation, and the sum they had on loan not being very large connected with its local situation, they believed it most correct to support a charactive [?] for punctuality by promptley paying all demands against them in specie when required at the same time confidently expecting that in consequence of a termination of the War in which the United States were then engaged would be the resuming of payments in Specie by all the Banks they accordingly determined to continue speciepayments- they soon found that to enable them to act up to this determination, they must call in some of the monies they had on loan- this they did do, and in every instance paid with [?] all demands upon them- In the early part of the present year [?]

B-1-6 the welcome news of Peace with Great Britain was received, and not very long afterwards reading an account of what was passing in the British par= =liment they found it stated that in the year 1816 the Banks in that country might be compelled to redeem their tokens with Specie as the call for which that government had for the article on the Continent of Europe had ceased with the European Warthey then flattered themselves that as peace was restored to their own Country and as there was no such demand for Specie in Great Britain, as would induce the transportation of it from the United States with a hope of receiving a premium that the time had nearly arrived when the Vaults of the different Banks would be unlocked, and the pressure which they had indured would bve removed- not long after= wards in Common with others they were astonished with the intellgience that Napolean was again in Paris and Emperor of the French- all Calculations were to begin anew- a combination was formed to Crush him, and probably before this time a War the durtation of which no one can pretend to measure has actually commenced in Europe- late information induces the belief that the demands for Specie in Great Britain are such that it commands a premium of at least thirty

B-1-6 thirty per cent- that large sums of it are now actually Shipping from the United States with a hope of receiving this advance premium- In this State of things it may well be doubted whether the Banks will resume payments in Specie at a period which furnishes such Strong inducements to drain it from them, and transport it to our late Enemynow (legally Speaking ) our friend-

[Latterly?] people of other states and in our own, having found this the only Bank accessible to them, have procured of our notes, and we have reason to believe are in search of more with a view to drain the amounts in Specie & carry it to places from which we can expect no return.

The Situation of the instituion is now [promising?], it is more than equal to all demands upon it- but the present State of things is Such that no person can doubt, if payments in Specie are continued we must [oppress?] those who owe us by calling in money sufficient to Satisfy the extraordinary demands that have been and are now about to be made-

Under the circumstances the Directors have felt it their duty for the present to suspend payments in

B-1-6 in Specie- determing at the same time to resume such payments, the moment other Banks shall have done so or at an earlier period should such a State of things be produced as will justify them in such a measure

As the State has a considerable interest in the Bank I have been instructed to explain to your Excellency not only how this business has been conducted but likewise the reasons and information by which the Directors have been governed-

Whether the order of this day suspending Specie payments shall be approved or not, we will always feel conscious of having done that which we believed to be our duty under exisitng circumstancesand we cannot Suppose that the people of Tennessee and especially those interestd in the Bank will ever wish it so conducted, as to harrass, perhaps ruin our own Citizens by compellig them to pay in money for the purpose of enabling others to have it transported to Countries, from which we can draw no Specie whatever

I have the honor to be with great respect your Excellencys most obedient Servant

Governor Blount HU L White Pres of the Bank