The Charlotte journal. [volume] (Charlotte, N.C.) 1835-1851, 1837-11-17

, expenditures, uas followed By a CORRESPONDING ex
panslon OF The business OF the banks They had
TO discount and lssue freely to ensble the ,per
cnsh's 10 pay their duty bonds, as well az 10 meet
, me vastly increased expenditures Of the Govern
mont. Another effect followed the act Of lS2s.
which gave still farther expansion to The acton
Of the banks and winch is worthy Of notice II
turned The exchange with England in favor of his
country That portion of the proceeds of our ev.
ports, winch IN consequence OF tie high duties
cooIa no longer return with profit in the usual ar
'cies, which we had been in the la biz of receiyir,
principally from that country in EXCHANGE Ia, or
exports, returned ia gold aud silver IN order 4,
purchase similar articles at the north. TINS VA
me hfsi cause which gave that western direction
70 we precious metals, the reyu!sve return NJ
Wnlch mas been followed BY SO many dissters
"iih The exchange IN our favor and corseopsp,Iv
no demand for gold aud silver abroad. and tbe
vast demand Tor money attendant on an increase
o. ne revenue, almost every restraint was rcirav
ca on ,he discounts aud issues Of The banks, espe
Peflaliy 10 The northern section OF The Ugnn. uhere
lhese causes principally operated. With their in.
crease, wages eue prices OF every dcsorIuiop re
10 proportion, followed OF course by an ircreaSirg
demand on the banls far further issues This il
Tie true cause OF that expansion Of The currency
"Hlch began about thc-eommencemeut of the lale
administration; but which was erreneousIy cbarc.
cd by At TO the Bank OF the United States II rose
ou' " the action OF the Government. The bank
IN increasing its business, scted in obeeienc. 10
me condition of ibngs at the Tine and in con.
iofmlty With the banks generally IN the same I'd.
ilon' Il vas 81 this juucture that The lsie admin.
istfdlloh came into power-a iuncrufe remarkable
IN many respects, but more especialyin relation
70 me question oi Tho currency. MIST of the eau.
ses inch have since Terminated it, tie ccmpete
ProsirSiion OF The banks and the commercial uros
'istIon OF the country Mere in foil activity.
Another c-la about that tine Il do not re.
member The precise dat began To produce power.
Iui effects; refer 10 The last renewal OF the char
Ter OF The Bank OF England II renewed CO..
en- years, and, among other provisions contained
me aAing the uotes OF mat bank legal ,gaocr
= al eases except between the bank aud It's credi
oTs be effect was 70 dispense sill further with
ne use q the precious metals Ia HAT great COM
h-fciai county, hlch, o. course, Censcd Ihcu 10
low out y every direction Though ne various
hanntls o. ~ commerce. A urge portion look
direction htherward, end served ,ill further
2 increase The current eaich from causes area
3 enumerated, va flowing 50 strongly in this
F'c'.n u"d which sill further increased lie
'Fee 81 lhe returning current, Of the da
The administrator did not conprchepA .''e dIf'
culllrs and dangers v Aink ~ss"a'ided H. IN
tead Of tercrlyll-e ,ne true reason OF the expan-
inA 81 the currency, and adopting the measures
to arrest IT, they atrlbuled II 10 the
al [
r nrerext ar WaoiDg war npop tbat Institution.
rn,,r ,bo IRA, aeis ~ bo.tifitr Tho dsoosi,ss
.ers 9,r,ovsd and transferred ia ssiecfed STATE
anks; the ttFcct OF which, instead OF resisting the
udency 70 expansion, vas 10 throw of the only
asiraIn that held the barking Institutions OF The
amir, III heck and ~ cenrse psve ~ the swell
Il ,,5. uli,h - d..ti,,.d ~ .nln,. ~, conn
oo,,,rtol i,.nnI-.. B,uks snrpr, IN IN
.s,r si,ccii,o. discounts tad ,s,ue. Increased
n.s, ui,bonl limitation. and an in,,reose spr.
ns r.cea9s a,cnaul.te4 in tbs 6rro.i,e hanks
inch after the patusnt Of the pubic debt the
recommendations eapla not rxb.pst
.a which srted a. ad55sion.I bapkisg CANAL.
= valns nj p,,tv daily d.areefsl. d. nT,ces rise
nd then commenced those uubouoded specuIa.
ans. particuInrly in ontIie lands. which v,a
sn.t,ired Ly million. of acre. frop the urblie
tb, spsonlatnrs far worthless bapa uo,rs mn "A
ngtb tn s,,etIing flood !, Bs checked and the re-
nlsivs ct,rrent hpr.t lis barriers, ana uyrrspread
IA desol.tsa ,be land
TIE drs, sbscA came from the Bank Of ENGLAND.
,hich alarmed At The los Of It's urecipus metals
.tpsrc "a discount American bills in order To me-
,rt f,rtbsr decrease OF It's cash means ard cause
rctnrn those which il had lest. Then tnIow.
A lie eyscp,ion Of the aeposite act. which. in.
,o,5 remedial measure. as i; faisb t have been
81 irnroos~lv exscntet. was made the instru.
asut Of wesksniu- fbe banks At tho point Of pres
ms. esncciaIIy in the grea, mrtrouolls of the L.
,ion q here 60 larqo a portion OF the surplus rcye
~. accumulated And finally the Treasury o.
.r u, bicl sin fnrtbsr weakened their banks. by
itbsrawing those cash means to be invested in
nhbc lands at the west.
II is often easy 10 prevent what cannot he rene.
led. which the present instance strongly Illus.
RATES. II The administration had formed true
of the danger in time, what has since