of interest on money by the issue of bank-notes to represent it. Now the system, which we have described, tempted the foreign banks to force their notes into circulation, beyond the amount of their capital or their ability to redeem. Many of them, of course, became bankrupt, with a large quantity of their paper in circulation, to the heavy loss of the public. Examples of the fact occur in the cases of the Northampton, Hallowell and Augusta, Penobscot, and Berkshire banks. Now the remedy for all these evils, and others which might be enumerated, was apparent. It was to raise the foreign bills to par. And the mode of effecting this important end was perfectly simple. It was for the Boston banks to accept the country notes in payment of debts or in deposite, which would at once annihilate the distinction between foreign money and city money. All would then be alike, and all equal to specie. Eight of the Boston banks associated to adopt this course. We copy their arrangements from the pamphlet before us. They simply agreed each to receive at par in all payments from their customers, the bills of all the banks in good credit in the New England states; thus making country money equal in value to Boston money, and saving to their customers the tax heretofore levied in the shape of a premium for Boston money. It would not of course be expected that the bills so received would be held on hand for a long time, or that they would be paid out again to supply the circulation of the town. Nor was it necessary that each bank should employ its messengers in carrying the bills home. An agreement was therefore made, that the Suffolk bank should take the sole charge of carrying the bills home, or procuring them to be redeemed in such manner as they should see fit. The country bills received by the other allied banks, in pursuance of this agreement, are daily paid over to the Suffolk bank, and received by them at par, as so much Boston money. The money so received by the Suffolk bank, must necessarily absorb a considerable amount of its capital. To indemnify it for this investment of capital, and for the expenses of procuring the country bills to be redeemed, the allied banks each lend to the Suffolk bank, without interest, a sum of money agreed upon, as an equivalent for the sacrifice. This we understand to be the nature of the Holy Alliance of banks, against which so many attempts have been made to excite the prejudices of the community. It is an arrangement of perhaps doubtful advantage to the parties, so far as direct pecuniary emolument is concerned, but of vast benefit to the public, in facilitating the transactions of business, in protecting a portion of the community from a constant and most unreasonable tax, and the whole community against occasional enormous losses. The country bills received by the allied banks, are only received from their customers, in the regular course of business; and for the most part, when, under the old system, they would have been under the necessity of paying a premium, to procure the exchange of them into Boston money. They are received as equivalent to specie, and as soon as received, the bank becomes bound to pay the amount in specie, if demanded. For this advance of funds, it can only be indemnified, by procuring the redemption of the bills received as expeditiously as possible, either in specie, or in other funds equivalent thereto. The only mode of legally enforcing this redemption, is by presenting them at the banks which issue them, and demanding specie. Such a demand every holder of a bill, whether an individual or a bank, has not only a legal, but the most equitable right to make, and every imputation of harshness or oppression in such a procedure is entirely unfounded, because the bank issuing the bill has received a full equivalent for it, and promised to repay it whenever demanded, and the bank making the demand has paid a full equivalent, perhaps some days or weeks in advance. But it is unnecessary in most cases, where the parties are disposed to accommodate on equal terms, that one should be put to the trouble and expense of demanding the specie, or that the other should be put to the inconvenience of having it withdrawn. It is, however, necessary that the terms of the accommodation should be such that the bank which receives the bills here, and permits them to be redeemed without the actual payment of specie, shall be secured against any abuse of the credit thus given to the other bank, so as in fact to trade upon the capital of the bank here. An arrangement has in fact been made between the Suffolk bank and a large proportion of the country banks, which is believed to be mutually advantageous. The purport of the arrangement is this; the bank in the country, as a condition of not being called on to redeem in specie the bills received by the Suffolk bank, agrees to deposite a small sum, without interest, varying, according to the amount of bills of the particular bank in circulation here, from two thousand to five thousand dollars, and in consideration of this deposite, is permitted to redeem its bills at the Suffolk bank, at stated periods, by the remittance of any species of current bills whatever, either of Boston or country banks. The general tendency of this arrangement, is to give to each bank the benefit of the principal circulation of its own neighbourhood, and to direct them on their way homeward, when they fall within the natural sphere of the circulation of some other bank. Our author calculates, from satisfactory data, that the amount. annually saved already in premiums in Boston by this system, is not less than $120,000. Another instance of its beneficial operation occurred in the total failure of the Eagle Bank of New Haven. The allied banks sent home $132,000 of Eagle notes a short time before that bank failed, all which, but for this, would have remained in circulation, and been a dead loss to the community. The debased currency is now driven from the market, and the notes of Boston banks have acquired much more extended circulation. The currency of every considerable town now consists either of Boston money, or its own bills, or those of some neighbouring bank; whilst only a year since, nothing was to be seen in the common business of life but foreign bills, forced into circulation by foreign banks, of whose credit, capital, or management we had little certain knowledge, and what little we did have was of a nature to create distrust rather than inspire confidence. It is natural enough for these banks to raise a clamour against a system, which curtails their issues, and compels them to confine their banking within the limits of their capital and a just credit. But the public gains by all this; and the public ought to be firm in the support and countenance of the associated banks, who, at the charge of so much obloquy to themselves, have effected this happy revolution in our currency. We feel assured this system will be approved the more, the better it is understood. In truth all the sound country banks, who have been accustomed to trade safely, are benefited by the change. We can speak from our own knowledge of several Essex banks. The very intelligent editor of the Portsmouth Journal has borne evidence to the utility of the system in that place; and the following extract from the New Hampshire Patriot (Concord, N. H.) shows that the advantage has been felt and appreciated at a still greater distance from Boston. Interested as we are in one of the country banks, we will take the liberty to remark, that whatever may have been the motives of the Boston folks in requiring the country banks to redeem their bills with specie in Boston, the effect of the measure is a decided benefit to the public interest. It is true, the banks at a distance cannot now circulate their hundred thousands with little or no specie capital to redeem them; it is true, those banks can no longer command and wield a fictitious capital for their own benefit,—a capital to which they have no more right than any and every poor man in the community. The Boston arrangement is calculated to introduce a sound currency; and if persevered in, it will compel every bank, country and city, to keep its business within the bounds of its capital. It is likewise calculated to throw out of circulation in every local vicinity that mass of bills on banks at a distance, which their directors have been industrious to circulate. Eight months ago our circulation consisted almost exclusively of bills of the New Haven, Hartford, Burlington, Hallowell, and other Eastern bills; now these bills are almost entirely thrown out of circulation, and we have in their place either Boston, or Essex, or our own bills. Instead of the bills of banks at places where we did no business, we have the bills of those banks where we do our business, and where we have confidence. We cannot believe it to be either for the public interest or for that of the sound, specie-paying banks, to change the present system. A very idle objection to this plan has been most loudly urged by the enemies of the associated banks, namely, that it will diminish the trade of Boston. This, we confess, passes our comprehension. If the inhabitants of New Haven or Burlington, whose bills have been displaced from the market by Boston money, did their business in Boston, there might be a shadow of plausibility in the allegation. But even in that case, it would have been utterly fallacious. Why should a country trader in Burlington complain, that the note of his bank is worth as much in Boston as it is in Burlington? Wherein is the trader injured? Is it not, on the contrary, for his benefit? Formerly the note of the country bank was degraded. The trader found the bills of his bank at a discount when he carried them to Boston; but now they are what they ought to be, the faithful representative of so much specie. How this should operate to the injury of the country trader, or induce him to transfer his business from Boston to New York or elsewhere, is, if true, a thing to us completely inscrutable. The History of New England, from 1630 to 1649. By JOHN We think that every intelligent and patriotic citizen, that every one who has any of the blood of the first settlers of New England flowing in his veins, or who rejoices in our wise and free institutions, the fruit of their principles, of their love of truth, and of their fidelity to conscience, must approve of all attempts to elucidate our early history, and to preserve even the names and deeds of each individual. And this, not so much to gratify any feelings of personal vanity, on account of our descent from those heroic and virtuous men, as from a desire to know all the events, even the most minute, which were connected with the first permanent settlement of civilized Englishmen on the soil of New England. Nor is it, that we of the present generation, in this section of the country, would take to ourselves any peculiar merit, or claim any special rights, because of our relation to such eminent men; or, of our residence on the spot celebrated as the place of their early abode. For our privileges, however great, the praise belongs not to us; but to our fathers. But if we do not appreciate their principles and their institutions, nor honour their memories, the charge of criminal neglect and indifference may justly be brought against us; and many events be buried in oblivion which we might preserve on the faithful page of history for posterity. The knowledge of events of this kind are sometimes soon lost, beyond the possibility of recovery. The inhabitants of Portsmouth, in New Hampshire, are in doubt when the first permanent settlement was effected at that place and vicinity. Thompson, they know, was there in 1623; but the month is uncertain, though probably it was May or June. Nor is it certain, how long he continued there. In 1624, he was found on an island in Boston Bay; where, it appears, he remained for some time. The settlement of the Hiltons at the head of the tide waters of the Piscataqua, at a place since called Dover, a short time after, is, indeed, well ascertained. But there is still matter of unsatisfied curiosity with the best informed people in that part of the country, as to some dates and characters, which they wish more fully to learn. Little is known of Purchase, who was early at Pejepscot, on the Androscoggin,—probably at Brunswick Falls, or a little higher up the river. He sold his possession to Massachusetts, in 1636. We know that the coast, from Cape Cod to Penobscot, was visited by the English as well as the French for several seasons successively, before 1620, for the purpose of fishing; and that they erected temporary stages or hovels on the land. This was done by the English at Damiscove, near the mouth of Sheepscott river, in latitude 44°; at the mouth of Piscataqua river; at Cape Ann; and some other places. Blaxton, or Blackston, who had fixed his residence on the northwestern part of the peninsula of Boston (afterwards so called), when Governor Winthrop and company came over in 1630, and who had been resident on the spot probably about eight years, was left, no doubt, by one of the vessels, which occasionally visited this coast, for the purpose of fishing or discovery. According to Prince, an English vessel |