Litchfield enquirer., 1837-08-24
From Me Piflsburg T'imes.

Government labor with extreme inconven- ience."
 So exclaimed MT. Secretary Dallas ir 1914, when the destruction of the first Ma. tional Bank, and the substitution of State ill. stitutions, had so deranged the currency anC embarrassed the fiscal operations ofthe gov ernment, as to render the establishment O the U. s. Bank indispensable to national anC individual prosperity. With still greate force is the language of MT. Dallas applica ble to the present disastrous condition of ou affairs, when the whole country has beer prostrated by the signal failure of a drea9ff experiment.
 We design to present to our readers, con- densed view of the system of Banking, as has been incorporated with the policy ot the U. States, believing that an authentic state ment of prominent facts will be not only ln- teresting but useful in guiding them to cor rect conclusions upon this all-absorDlng SUD- ject.
 Before the adoption of our Constitution, the Bank of North America (l78I was char tered by the continental Congress, with a capital of four hundred thousand dollars.- Its operations being very limited, it afforded but little relief from the pressure and ditfi- culties occasioned by the revolutionary war. In 1767. our present Constitution became the fundamental law; and in l79l, with Wash ington at the head of the administration, and by the advice of other patriots of the revolu- tion, and sages of the Convention who fram- ed the Constitution, was National Bank, with a capital of Ten msllions, incorporated tor 20 years. During its existence, its bene- ficial effects were every where visible In ta- cilitating the operations of government, in promoting commercial enterprise and domes- tic industry, and in establishing the charac- ter and credit of our people. The local banks were also solvent. Prior to its expiration in 1908, they applied for recharter; and MT. Gallatin, then Secretary of the Treasury un- der MT. Jefferson, recommended to Congress the propriety of the measure in the strongest terms. The bill was lost in the Senate in 1911 by the casting vote of the V. President, and the Institution expired on the 4th day ot March following. There was then an inter; val of nearly six years without National Bank: during which, there was an increase of bank issues to the amount of 65 millions, and almost general suspension ofspecie pay ments. So wretched ard appreciated was the currency, that the general government lost on this score over five millions of dollars
 In 1914, Mir. Dallas, Secretary of the Treasury under MT. Madison, then pressed upon Congress the necessity of National Bank, "operating upon credit, combined with capital, as the only efficient remedy for the disordered condition of the currency."- In 1915, a bill for this purpose passed both houses of Congress, and was vetoed by MT. Madison, not on the ground of its unconstitu- tionality, but the inexpediency of some par ticular provision ; for in December of the same year, he, recommended the establish ment of National Bank and in April, l616, the act creating third National Bank was approved by MT. Madison.
 The bill to, charter the Bank of '91 was passed when there was a majority of Feder- alists in both houses of Congress, and was ap- proved by Washington. That of 1916 was democratic measure, and was passed when there was majority of republicans in both houses, and was approved by Madison. In Feb. 1917, it went into operation and at that time every solvent bank resumed specie pay ments.
 In August, 1929, the Secretary of the Treasury under President Jackson said it had been all the government could desire.- It had collected and disbursed for the gov- ernment, 0O,OO0,OOO, without expense, and without the loss of cent. It then became the object of the administration to connect the moneyed po,oer with the patronage of the government-which might establish a politi- cat poaoer, and political succession, too strong for the ballot boz. The Bank had never min gled it's concerns with the politics of the country; it's Stockholders and Directors were composed. of both parties.
 In June, 1929, the Sec'y of the Treasury, at the instance of Isaac Hill, demanded of the President of the Bank the removal of the President of the New Hampshire Branch, who had unfortunately made himself obnox- ious to the central power, and the substitu tion of friend of the administration in his stead. This audacious effort to stifle public opinion, by combining the moneyed powers with the immense patronage of the Exccu- tive. was instantly rebuked by the patriot. ic Riddle, who, much as he loved the Bank, loved his country more.
 Until this period, there was no symptom snown or the Presidents displeasure. The Bank had been entirely disengaged from pol ltlcs, was deeply involved in business rela- tions, and was almost universally popular but by a firm adherence to correct principles. the Bank incurred the wrath of the President. lie was from that hour resolved upon her des- truction. By stealthy steps he finally reach. ed the accomplishment of his purpose.
 In his message of Dec. 1929, the first at. tack was cautiously made by the sugges. ton of doubts as to the expediency fthe law creating Bank, and an unfounded declara. uon. that it had failed in the great end of es. taDlishing unlfOrm and sound cuyrencv He then submitted to Congress, whether Treas. ury Bank might not be substituted, without !ntlmating the Benton humbug notion of a hard money currency. This item of the message was referred in the house to the committee of Ways and Means, (M'Duffie chairman.) and in the Senate, to the Finance committee, (Gen. Smith, chairman.) Both of these gentlemen were democrats, and ar. dent supporters of the administration. Sc