Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1834-04-04
POLITICAL.
ALBANY, March IA o'clock p. NJ.
AL MESSAGE OF THE G0XERN0R

ALBANY, March ga o'clock p. NJ.
SPECIAL MESSAGE OF THE GOVERNOR.
Feo,c- Citizens Of che Senate, and of the ASSEMBLY:
Since my communication to the Legislature the COM
mencement Of the session, the unusual desnge
ment OF the business operations Of the community has
been such as in my judgment to render the duty Of
the Executive to call your attention the subject
not then perceived that the order of the Treasu
ry Department. directing the accrung receipts Of the
public monies TO be deposited in the local banks instead
the Bank of the United States, could essentially inter
ruPt the business transactions OF the community il
supposed that any necessary connection exists be.
tween that act and the present state of commercial
barrassment.
Although it was known that the Bank of the United
States had commenced rapid curai,ment Of deb,
erI 10 the aaOn Of ss s d.pSe.
lars during the sixty days previous the first OF October
when the order OF the Secretary took effect yet. the
government had directed the change be made 10
best calculated to avoid any upon the bank
injury to the community, it reasonable sup
pose that tie occasion would @ave been seized for the
purpose OF giving unnecessary shock 10 business much
less OF exciting causeess panic Ceraa is however
that since the change referred such has been
tudo assumed by that institution in regard the leci
banks, that the latter unableto afford to the
ty those OF future accommodations which
SO essentially necessary inspire confidence among bust.
men in entering into new engagements.
The parisans OF that institution and certain presses de.
voted TO its charter, by systematic and persevee ef
forts In disseminating dsrust OF the credit of moied
institutions particularly those of this State Of the credit
OF individuals OF the resources OF the country, aud its
ability TO meet the crisis and by endeavorng to fastsn
public opinion upon this act of the Government the
OF all the depression which has been
well that which is daily predicted and held up to the
public view in distorted and exaggerated form; have also
produced excitement among The business community
calculated essentially to aggraVate the pressure and pro-
long its existence.
counyPresentng externally indicated by the
OF exchange, an appearance OF prosperity unknown for
many years. and internally, until within short period,
the favorable appearance, indicated by abundant
crops, fair prices, active mercantile and manufacturing
operations it appears to be impossible that the exis,ia
state OF things should have sprung from nade
quate the substitution of place for another
the depository OF the accrung receipts by the goyern
ment.
Although the removal of The deposites effected as wac
and operating upon the funds in hand,
by Withdrawing the whole suddenly, bu, gradually the
sufficient for the results which point OF time have
followed III yet II is said that Its operation has been de-
range the currency to destroy confidence aud thus TO
produce the present embarrassment
II Is undoubtedly true that much OF the pressure upon
the money market has been occasoned by the destruction
of confidence but is not easy perceive how that is
be charged the necessary OF the action
OF the government II is the consequence OF the attitude
assumed by the Bank Of The United States towards other
bankssn attitude not necessary although its advocates
attempt TO justify it, either Of retaliation up.
the government for the purpose Of compelling those
institutions 10 surrender or to refuse to accept the public
deposes.
Nor easy perceive how the action OF the govern.
meDt should Of necessity deraDge the The
mecis operations OF the country, through the medium OF
dome site exchanges. The ability of the bank conduct
all ordinary business has not been essentially impaired,
and it's amount Of discounted bills Of exchange at this
moment as large about as large 1t ever has BEEN
Whatever nconyeDiences may have resulted from its
fussl lsey furnish drafts at sight between lie differ
offices at the usual rates, land these
undoubtedly have been greatJ would seem, therefore,
be OF its creation, the result OF that position re.
gard 10 the other banks which IL has chosen assume.
II Is believed that the principal Of the present
embarrassment have essential connection with the re-
Inovs OF the Deposites.
In December, $780, the Bank OF tho United States
commenced rapid increase OF its loans and circulation
and continued augmentDg them until MAY, 1882, having
within that period added about twenty eight millions of
dollars to lis accommodations TO the public and over four
millions its notes in circulation The necessary eonse
quence Of such large and sudden increase Of facilities
to business men, was encourage corresponding lber-
aly the part Of the local banks, overscton in trade
ard stimulate to excess the industry and enterprise
the country. Al all events since that PERIOD foreign
commercial operations domestic trade and ures
speculsoDs in Stocks lands AID produce have been car
ed extent and upon scale before entirely un.
known.
The policy Of contraction on The part of the Bank,
which Immediately foowe this unexampled expansion
had scarcely been commenced when the tariff law of Ju.
Iy 1882 went into effect, the operation Of which, with
its subsequent modification, well calculated 10 deye.
lope the injurious consequences OF the overadpg which
had preceded.
Under the former law, duties 10 the Of about
IS millions annually accrued upon imports at the port OF
payable at different periods, long eighteen
months AS tho merchandise generally cold by the
importer, after the execution Of bis bond for the du-
ties, Is obvious that the credit afforded by the govern.
men', was TO him equivalents to 90 much capital until the