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Important from Ohio—The Resumption Law—Banks assigning and winding up—No Money and Gloomy Prospects—Great Whig State Convention—CORWIN nominated—His Election sure.
Correspondence of The Tribune.
COLUMBUS, O., Feb. 21, 1842.
The Resumption bill became a law a week since. The Loco-Focos finally succeeded in keeping their men up to the rack on the question of fixing the 4th of March for forcing the Banks into Resuming on all their liabilities, although two or three of them in the Senate were inclined to adopt milder measures. Don't understand me as representing the Whigs of this State as forming an anti-Resumption party. There is not one Whig in the Legislature in favor of continuing the state of things which has existed so long, one day longer than is indispensably necessary to save the Banks from certain destruction. They all voted for graduated Resumption—to begin in May and pay on every thing by August or September. Two or three of the Loco-Focos in the Senate, where their majority is two—19 to 17—proposed to vote with the entire Whig force in favor of a modification of the bill passed in the House, but the Whigs declined any arrangement that did not embrace the condition that the proposition to be substituted for the bill should receive as many Loco-Foco as Whig votes. The Loco-Focos caucused on the subject two nights into the "small hours," but the Radicals, who are bent on real Bank destruction, defeated the scheme, and the Whigs compelled them to shoulder the whole responsibility of a measure which every one foresees is to be attended with the most disastrous consequences.
In the mean time the agitation of the subject has precipitated the results anticipated in a good number of instances. The Banks are yielding to the storm all over the State. The Granville Bank shut up its doors first, after faithful efforts to meet its engagements. The Urbana Bank went by the board next. These two Banks had out a circulation of nearly half a million, which was instantly depreciated one half! Think of that, ye New-Yorkers, who used to grumble over a discount of one half of one per cent. on country paper!—About the same time the Chillicothe Bank assigned, but there is I presume no danger or apprehension of loss here. The Bank was in admirable condition until it made a loan of $400,000 or $500,000 to the State. Next, the Hamilton Bank, near Cincinnati, assigned its effects. The Lancaster Bank, a heavy concern, has also assigned, and to-day it is reported that the Bank at Marietta has taken the same course. To the number thus breaking up are to be added both the Banks at Cleveland. The consequences of all this derangement and confusion are seen in the almost total suspension of all kinds of business. There is no money in circulation, except the notes of insolvent Banks, shinplasters and the orders of Turnpike and Railroad companies. The latter have a local circulation, and in some instances are considered the best kind of money to be obtained.
Under these circumstances, a Convention of Delegates from nineteen Banks has just been held in this city. You will see the proceedings in our city papers, but the plan proposed to meet the crisis is to make the attempt to redeem their liabilities according to the provisions of the Resumption law, and to devise a system of making frequent settlements between themselves by sending their paper to this city to be exchanged and retired from circulation. There are few who have any faith in this plan, though some ten or twelve of the Banks which have kept up no circulation for some time past will be able to weather the point, with or without such arrangement. But I think you can safely calculate upon an influx of about one million of specie, to be drained from Ohio within the next ninety days.
To-morrow, you will recollect, is the day for our State Convention to nominate a Governor. The city is full of Delegates to-night, who are quartered upon our citizens generally. I have conversed with many of them, who all unite in representing the condition of the Whig party as being all that we can desire. They all concur in saying that the people are universally disgusted with the Loco-Foco Legislation of the winter, and that examples of a renunciation of the party faith are numerous. Several Counties are named to me, in which it is confidently affirmed that the Whig strength will be greater next fall than it was in 1840. Gov. CORWIN has yielded to the solicitations of his friends and will accept the nomination, although he has been anxious to retire from the canvass. This ensures us the State beyond any reasonable question. We can elect a majority of the Legislature, and thus secure a Whig Senator in place of 'Earthquake Allen.' I shall not close this letter until to-morrow.
TUESDAY, Feb. 22.
We have just got through with our State Convention. It greatly exceeded our most sanguine expectations, and has inspired our friends with the highest degree of enthusiasm. CORWIN was renominated by acclamation, and will be elected, too, by ten to twenty thousand majority. His great and deserved popularity makes him a powerful leader, and the Loco-Focos are as well satisfied of the doom that awaits them now as they know the result of the contest in 1840 Yours.
N. E. BOUNDARY.—Gov. Davis has sent a Message to the Legislature of Massachusetts with reference to the N. E. Boundary question. He thinks that England may propose a conventional boundary, and in that case he wishes Massachusetts to be prepared for its consideration, and suggests the
