The Charlotte journal. [volume] (Charlotte, N.C.) 1835-1851, 1837-05-12

1882, 3,ll5,S76 1895. 24.OOO,OOo
The question here arises, how has this
immense amount OF capitol been so long dl.
vcred from the ordinary channels of trade,
and invested las a large portion of il has
unquestlonably BEEN IN unproducslve prop.
erty, without leading, even before this Time,
to general explosion! An able writer
in the Philadelphia National Gazette sat.
lstactorlly answers this question. After
showing the evil results Of the removal Of
the DeposItes In 1893, from the Atlantic
Cities 10 the Southern and Southwestern
States, throwing into those States new and
foreign capital and thereby atiordiDg facll.
ties 10 the Deposlte Banks 10 make loans to
SPECTATORS and others, in addition 10 what
they were otherwise able to loan, he saws:
" These loans rlade by the Western and South
western Deposlte Banks, constituted the capital
with which new Banks were created, and with
which Spectators were enabled TO embark in the
nordnate purchase Of public lands.
"These inordlnate purchases OF public lands
created fresh and greatly augmented accumula.
llon OF revenue 10 The Western Deposite Banks;
which being loaned out owe. and over again, as
the Presidents Message informed US, furnished
another set OF Spectators I:h the means OF over
trading IN land, until finally fund was created,
from sales Of land alone, which amounted, in the
Years 1854, 80, aud SO, TO the enormous sum of
S44,o57,66l, which was upwards Of thirty toxr
millions of dollars than The sales OF land. in
The years Immediately preceding, and upwards
Of forty millions more than in the years next
! preceding; aud which, taking the average OF the
SIX years, constituted, within fraction the whole
OF the surplus revenue, now in the course of dis.
tribuilon among the respective States
| This operation Of the Government, which was
mere lending OF the money TO people 10 enable
them to BY It's own lands, and taxing security
Tor the payment OF the money. promissory NOES,
endorsed by the Deposlte Banks, rendered credit
in the Western and Southwestern States easy 10
be had; and the spirit of speculation furnishing
itself the very ament upon hich il fed, urged on
the whole community 10 over trading and stock
lobbing. The creation Of new Banks, was nres-
sed en- until nearly hundred were brouph, in.
to existence. Railroads were projected in every
direction new Towns we're built in the wilder.
ness aud town plots every where exposed for sale.
Planters augmented the number OF their acres and
slaves by purchasing on credit. scene OF COIN
petition went on with the gradual augmentation
OF The Government Deposltes by which specula.
rich by the nominal rise of prices. An air Of
prosperity seemed 10 spread itself over the Whole
country Every body appeared to grow rich
Merchants extended their purchases of merchan.
die al New York, Philadelphia, and other Allan.
tic Cities, on the usual credits. and in many cas-
es took the proceeds arising from their sales, 10
speculate IN lands. ExtravRe ance in expenditure,
diminished Industry, reckless abuse Of credit,
drawing and redTawlng at immense sacrifices,
and an undue conversion Of floating capital into
hred capital, were the concomltant effects of this
wild system. Shadows were mistaken for sub
stances, and appearances for realities.
whilst these seeds of ruin were getting scat.
tered throug huut the West and Southwest, tho
public depostes in the large seaports were also
auementiug from duties. The Opposite Banks
had publlc money 10 lend aud wherever there is
plenty Of money, there will always be borrowers
The news OF the wonderful prosperity OF the West
and Southwest and the astonishing fortunes which
were said TO be there making by purchasers in
pubhc lands, town-pOts, banks, and railroads,
reached New York aud Philadelphia and inject
ted large portion of their inhabitants with III .
mania of speculation in those distant regions. A.
gents were sent out to share OF these bles.
, sings whilst others arrived loaded with magnlf-
cent maps and drafts OF land and with bank and
, rail road charters, TO open subscriptions by which
Eastern capital might be most preftabiy Unrest
cd The Government money here furnished the
means for these operslions, which every one
4 knows were carried on, in the year 1885, 10 ar
immense extent.
y "lhe arrangement Of the currency, effected b,
9 the new system OF finance adopted in 1883 BY Tia,
h President, greatly augmented the profits of al
- banks which dealt IN inland exchanges, BY alter
= ing the rates Of premium discount TO double Oh
{ treble the old rates Even the monstrous anoma
d " was presented Of bills upon New Orleans being
r sold at loss at Philadelphia whilst at New Or
/ leans bills on Philadelphia also sold at loss
These profits on exchange being enjoyed by tn,
, Western and Southwestern banks, as well a 9th
ers, enabled them TO make large dividends, so tina
n Eastern capitalists we'll as Eastern borrowers o
c the pubic money, were induced 10 make large in
i, yestments and by these operations, united viii
I those previously mentioned, large amount OF &C
tual capital was transferred from the East TO IN,
: West and Southwest; and, if not annihilaed
Il must remain there until real sales to persons re
i siding IN those quarters can be effected.
But this is no, all widespread spirit O.
, speculation is apt TO infect q whole community
q and hence VT have seen The mania extend itsel
every species OF stocks and real property all oye
n The uuited States, TO such an extent, that b,
l. means of sales snd re.sales credit il is no, I'M
- reasonable TO suppose that engagements for III,
l. payment of money, In the form of bonds mortc,
II ges, promssory notes, bills of exchange, book 9e
:, counts, &c, have been created 10 the amount n
Five Hundred Millions of Dollars, which coul,
y not have had an existence ir Andrew Jackson har
not been prompted, by his personal hatred agaius
; the Bank OF size United States, 10 lay violent hand
e on the public funds.
!, Ill these things be true-and we do no, zee
how they can be con,roverted-it is as plain a,
day, that the present disastrous state of things il
nothing but the necessary fleet of the operation