Vermont phÅ“nix. [volume] (Brattleboro, Vt.) 1834-1955, 1837-08-04
From the New York Journal Of Commerce.
THE GOVERNMENT AND THE
CURRENCY.

Inc OtneT gay we were dSkeu ny tue
Washington Globe TO state "what was the
agency which the government had in bring
ing about the present disastrous state of
things"
When General Jackson came into power,
the financial condition of the country was
extremely prosperous There was neither
an excess or deficiency of credit Exchang-
es between different parts of the country
were carried on with great facility, and the
rewards of industry were sure. Commerce
and manufactures, agriculture and the arts,
were all proceeding on safe and substantial
basis. There was neither rag for specu-
laton, nor paralysis. When General
Jackson retired from Office, the whole face
of things was changed. The finances of
the country were in state Of utter confu-
sion. Exchanges could scarcely be nego.
ciated at any price. All the necessaries, and
even the Injuries of life, were held at exor
bitant rates, when at the same time money
was commanding two and three per cent a
month. The paradox was exhibited Of mon
ey being extremely valuable, and almost
valueless, at the same moment. That is, it
could be obtained only at extravagent rates,
and when Obtained would buy comparative
ly nothing. The whole nation, in short
was on the eve Of tremendous convulsion
HE--~ il we had been involved in a ruinous
war, or if any other great and general ca
lamity had overspead the country, there
would be some pausbility in ascrbing the
CONFUSION to that But no such calamity
had existed. We had enjoyed long period
Of peace. The farmer had not been called |
from his plough, nor the mechanic from his
workbench, to defend the country from n-
vasioD. Our commerce had not been swept
from the ocean by privateers, nor our indus.
try IN any respect paralyzed. We had in
deed suffered some local msfortunes, such |
as the great fire in this city,--and there had
been partial failure Of the crops. But
these causes are altogether inadequate to the
effect: and it is worthy of remark that the
farmers, who would naturally suffer most
from failure of the crops. have in fact suf
fered least
Had the currency been letalone By The goo-
eminent, they might then say with reason
and truth, that whoever else was the cause
of the arrangement, they were not. But at
present they can putin no such plea 7heyl
found the currency in a healthy condition
and they left ii in the Mroes of dissolution
IL must be oery strong Evidence indeed, c
s0hich in the face of such facts, can con.
Dince the public that The government uere /
not the cause Of the arrangement Han e
empyric engineer should take charge of i
complicated machine, which had always +
worked well, and under pretence of improv- /
ing It, should knock out a wheel here and O
lever there, and cut band there, and after n
expanding upon it,all his skill, and subject |,
ing 1t to all his whms, should leave it inca h
pablo OF further action, or moving irregulary a
and htfully, would any one hesitate 10 charge n
nm with being the cause of the mischief $
Just so It is with the government in refer v
ence with the currency; only the case is e
stronger. For we not only know that Gen c
eral Jackson was for several years attempt ii
ing to remodel the machine but know what u
wheels he knocked out, and what levers he #
displaced and what bands he cut We I,l
know, In the first place, that he knocked out G.
the balance wheel, the United States Bank. II
This was the great regulator of the curren- n
cy, and the medium of affecting exchanges 5,
between one part of the country and anoth- o
err. Both objects it accomplished well and II
entirely to the satisfaction of the parties con- f.
cerned. The merchants throughout the o.
land with few exceptions, were always in "
iavor OF this Institution. They could see ii
indeed that it was not perfect in all its parts, :,
and would have gladly had its imperleclions 81
corrected; but they never dreamed of dis.
pensing with it. They knew, in fact, that W
i could not be dispensed with, without de- m
'anging the whole system. They knew w
hat its checks were essential to regular ac- N
ion.-And what they then knew from the m
Try, they have since learned from the result III
FOR no sooner aoaS u understood that The u y,
States Bank acouid be ertiaguished, than al ve
most all the States at The South and WesL-j dc
'ome OF them in anticipation and Others in N
consequence of its ertinction,-chartered in. r.
t,tuiaons Of their o,on, aoith immense capt.. "a
us, to supply the vaegum thus created, or to Il,
'e created, and the same thing was done, to a;
ome extent, all over the country The sum f,
II the matter is, that from January 1884, l.,
when the fate of the Bank was sealed TO y
December 1886, The banking capitai of The Ia,
MATED States increased from S2O5. l23. 1888 -,
S378,42l 1863; BEING NEARLY DOUBLED IF
n 30 MONTHS And what is more, the ~,
light hundred and twenty-three Banks and w.
branches comprising this immense capital, de- de-
'ere feft aosthout any adequate restraint up. hu
y their issues, and thus the country soas a. ~
Coded Nth money. The abundance of mon s ao
Josfered all kinds of speculation and ~
rertradsng; and thus the community were s-s
ntIced into engagements which could onlv ~
met by continuance of the artificial state ~.
things then existing. sa'
General Jackson perceived the mischief ne,
,hlch was going on, though he probably CIV.
"a not understand that he himself was the est