The Caledonian. [volume] (St. Johnsbury, Vt.) 1837-1867, 1837-08-08


When the bank was vetoed, tho public deposits
removed, and the state banks made the objects of
Executive favor, the idea of an eLctusiDe metdtic
currency was suggested by one. 1t seemed to
form no part of the experiment. The monster had
been put down-the public monies were in the state
banks, at the control of the President and nothing
could be heard but songs of glory the chief whose
prowess had been thus signazed, and thus success
full But soon there came pressure and panic
Public indignation was reused. The evil was char"
ged upon the experiment, and the administration
was driven to extremities to quiet the public feel
ing.
And now behold the meeting of extremes
States banks, and state bank paper had been the Ex
ecutive favorltes. But now there suddenly arose
the idea of eacLusioe metallic currency; and Gen
Jackson was the man to give it to the country.
Gold was to take the place of U. s. bank bills, and
" long silk purses filled with 4" yellow boys were
to be everywhere found in the pockets of the peo-
pie.
1t thus that the maginations Of one portion
of The people were to be dazzled and capuvated,
while the operation of increasing the number of
state banks, augmenling their issues, and feeding
the spirit of speculation was to fill the pockets of
| another
And the schemes to force into the
country an increased quantity of the precious metals
especially of gold. To this end the standard of
our fgod coinage altered, and the payment OF
the French and NeapoIan indemnties secured in
that metal. And this policy was aided by importa-
ton of specie for the purpose of putting in opera
ton the new state banks which the policy of the
administration had Brought into existence.
by these means the quantity of specie in the
country was greatly increased, while that increase
| was boosted of evidence Of rapid advance
| towards the consummation of an exclusive specie
currency. Fatal infatuation that lost sight of the
relations between and that country from which
| large portion of our sudden accumulation of spe-
Gle was unnaturally forced. The overtrading slim
ulated by the state bank experiment increased our
lmportations with Great Britain The debt thus
incurred TO be paid, either in produce specie.
Our lmpOrtatlOnS OF SDecie had reached the Bank
| of England, diminished its amount IN her vaults,
| and compelled her to curall her accommodations
to the purchasers and manufacturers of cotton, our
chief means OF remittance. Its price suddenly fell
about one half, and our means of payment were
| proPortionally diminished. But the debt still
due, and must be paid, either in cotton or spL Gle.
| Hence the sudden demand for specie. pres
| sure upon the banks necessarily foowed-their
discounts were, of course curtailed-money became
scarce-the call for specie increased-panic follow
| ed-and the suspension Of payments closed the
scene.
| There subordinate branch of the expert
ment which contributed materially to produces this
result. There had been forced operation to get
| specie into the country. There was now forced
operation TO keepAt here, which, like most quack
nostrums, aggravated the disease it professed TO
cure. Against the clearly expressed will of the
Senate the President issued the celebrated specie
clrcuiT, by whichit ordered that
Cor public lands should be made in specie. 1t was
thus dyawfs in large quantities from The Atlantic
cities, whs:c Il might be wanting to sustain pres
SIRE, "a the E.St where to great extentt would be
as useless faI :lat purpose much lead or iron.
| The pressure came and it came upon an amount
! of specie an the Atlantic cities, diminished by SO
much as it had been thus drawn off, and accumulate
| cd in the west. The amount thus uuwisely alb
sracted from the place where it shonld have been,
might, IT lett there, have far satisfied the for
eign demand for specie, to have saved the panic
the run upon the banks and their final suspension
of payment. If it had gone to England, i: would
have answered the purpose of paying part of our
debt while, by relieving the pressure there, it
would have raised the price of cotton to have
aided materially in the payment of the remainder.
The folly of the administration locked it up in the
western deposte banks and thus precipitated the
calamity with which the great experiment for in
creasing ezecutioe poDer had long threatened the
country
And we ask-who can soberly review the
history of the experiment, without feeling, beyond
the power of resistance the conviction that it has
produced the calamity which now overwhelms the
country How vain the attempt to resist this con-
viction by attrbuting the result to over thanking,
and over-trading merely The fire has burned the
city; but who kindled it and famed the flame p
The prodigal wasted his estate, and came to want ;
but where was the wisdom Of the father who gave
him the estate and told him to it ~ The Banks
especially the government favorites-have over
issued, and men have traded and specu
lated. But where was the Government, which was