Vermont watchman and State journal. [volume] (Montpelier, Vt.) 1836-1883, 1837-07-31

who had done all this, without being crushed
under the weight Of public Indignation, might
subyerl The established laws OF finance, and |
sustain forced and unnatural system Of mon
led operations by tho mere magic Of political
power. But how incorrigible and unyielding |
are the laws which regulate and control, in
spite of executive fats The financial operations |
ol II country. The moment that Gen Jackson |
had removed the public monies, and put down |
the bank, he put in operation causes which O.
ven his power could not control. The fatal !
deed had been done and its legitimate effects
must follow. These effects soon began TO be |
visible. Now state banks were chartered by |
scores, ard the capitals Of the old banks en-.
larged by millions, throughout the county
and especially in states tchGre the Jackson party |
had decided predominaRce. The public mon
les became the basis of discounts and circula
ton by the selected banks, 10 an unprecedcnl- |
cd amounts and speculOllons in the public |
lands, with the aid Of these very discounts
swulled the nominal amount of receipts from
that source, 10 an extent unknown in the his |
tory of our national domain. These effects
may be illustrated by few lacts to winch we
beg leave TO call the special attention Of the
people.
The number Of banks in the U. States, in Ju.
~ 1882, when tie experiment was begun by the
veto Of the bill rcchartcrlng the bank Of the U.
S. was 4I3.
I Their capitals amounted to el73,OOO, 900 |
Their circulation 10 7S,000,OO0
Their loans and discounts 10 262 1000, 900 I
On the st of December 1886, the number OF
banks had increased 10 CIT, besides lac bran
ches.
Their capitals had increased to s324, 900, 900
Their circulation 10 1sO,0OO,000
Their loans and discounts 10 5SS,o00,0 900
Te show how very extraordinary was the in
crease of banks, hank capital, circulation and
discounts, during the four and half years of
experiment, from July 1882, TO December 1886,
let it be compared with The increase from 1920
TO 1904 period entirely free from expert
ment5 upon The currency.
From 1920 10 1880, the increase in tho num-
Der Of banks was but 10.
Increase Of bank capital $4,000, 900
4" OF circulation 100000
of loans and discounts S0,00O,000
Behold the contrast Ten years increase
! of the plumber oil banks wthou; experiment.
".
| Four and a half years under The experiment
! -2G4, besides lac branches.
Ten years increase Of bank caplial without
experiment SS,0OO,000
-Four and half years increase
with the experiment Sl5l, 100000
| Ten years increase Of bank circulation with
out experiment SlG,00O,000
| Four and "a hall years increase
with the experiment Sl02,000,000
Ten years increase OF loans and discounts
without experiment S3O,OoO,000
Four and half year. increase
with tho experiment S326,OOO,O0O
What an experiment!
Let us now look at sing o item Of the spec-
ulutions produced by it, The following state
mont will show the advance in the sales Of the
public lands cotemporaneously with its com
mencemenI and progress. Their sales from
1929 to 1886, Inclusive, were as follows:
1929 S072,059
1880 2,329,356
1881 2,479,659
1882 3,115,376
1888 4,972,2S
! 1884 6,099,9
! 1888 l4,757,69
1886 23,9S4, 1872
Now mark the commencement and progress
of speculation. The bank of the u. S. was
| vetoed in July 1882. In thai year the sales OF
the public lands amounted TO about three mill
ions. They rose the next year 10 about .fpe
millions, the next 10 Sir--thc next TO fourteen
and three quarters, and the next 10 TWEEN
TY-FOUR MILLIONS!!
Thus far we have contemplated the expert
ment as one simply 10 obtain the control Of the
mon en- poirer. This is its true character. We
are now to look at branch OF il, which wears
u somewhat different aspect-deslgned 10 COW
or its real purpose, and amuse the people with
another object.
When the bank was vetoed, the public DC.
posites removed, and the state banks made the
objects OF Executive favor, the idea OF an erclH-
sire metallic currency was suggestedby no one.
1t seemed TO form no part Of the experiment.
The monster had been put down-the public
monies wero in the state banks, at Tho control
Il Ia, Drnsilput md nnthInC COul1 he lpa r1
but songs Of glory 10 the chief whose proves
had been thus sgDazed, and thus successful
But soon there came pressure and panic
Public Indignation was reused The evil was
charged upon the experiment. and the admin
istraton was driven 10 eXremitlcs 10 quiet the
public feeling.
And now behold the meeting Of extremes. -
State banks, and state bank paper had been
the executive favores. But now there sud
denly arose the idea Of an exclusive metallic cur
rency; and Gen. Jackson was the man TO give
it 10 tho country. Gold was 10 take the place
{ OF u S bank bills, and long silk purses filed
with yellow boys were 10 be every where
found in the pockets of the people.
' 1t was thus that The magnalons oil one por-
ton of the people were 10 be dazzlcd and cap
, tlvated while the operation Of increasing the
number of State banks, augrnenting their is
sues, and feeding the spirit ofspeculaiion was
10 fill the pockets Of another.
] And now came the schemes to force into the
= country an increased quantity OF the preciou;
/ metals-especially OF gold To this end the
h standard OF our gold coinage was altered anc
. the payment ofIhe French and Neapolitan in
: IDENTITIES secured in that metal. And this pol
. icy was aided by importation of specie Tor ;h'
purpose of putting in operation the new State
. banks which the policy of the administration
s had brought into existence.
By these means the quantity of specie in The