Lynchburg Virginian. [volume] (Lynchburg [Va.]) 1829-185?, 1837-04-03

The question here arises, how has this immense.
mount OF capital been 50 long diverted from the ord
nary channels of trade, aud invested (as Iargr ra
ton OF 1t has unquestionably brcn) in unrr,duca'
property, without leading even before this time. t91
general explosion An able writer in the Phlgde'
phla National Gazette satisfactorily annwcrs lis
question. After showing the evil results Of the
moval of the dcposi;es in 1888, from the Atlantic
ties TO the Southern and Southwestern States throw
ing INTO those States and foreign cal tal and
thereby afordng facilities to the deposite banks 10
make loans 10 spectators and others. in addition to
what they were otherwise able to loan, he saws:
These loans made by the Western and South
Western depo>lte banks, constituted the capital with
which new banks were created, and with which spec
ua'ors were enabled embark in the nordinatc pur
chase of public lands.
"Ihese nordluate PURCHASES Of public lands Great
ed fresh and greatly augmented accumulation nI
revenue i'll the wcster" deposite banks which benz
loaned out over and over again, as the Presidents
message informed u.s. furnished another set OF Spccu,
latolS win the means OF ovcrtradng III Hnd. uha
hnaly fund was created tro Tie sdtes of tn"d doRf
which amounted in the years 1884, le33, and le"''
to the enormous sum of S44, 9j1.611, which was up
wards of Hirty- tour niloaS N dol'arS more than the
sales of lands the three years immediately pieced
ing upwards of t6riY millions more thanh the three
wears next preceding. and which, taking the average
of the SIX wears. constituted within traction me
whole OF the surplus revenue, no" IN the COURSE VI
distribution among the several States
This operation Of the Government "lich was
mere lending of money TO people to enable them 10
buy its own lands and taking as security Tor the PH
ment OF the money promssory hoies, ehuoi'
the depose banks rendered credit in the western anu
south western States easy to be had, and the sP'"
speculation furnishing itself the very aiimen' "lo'
nh ,I u c,I AhnlP
trading and stock obblng. The creation OF ne" c'h,
pressed on until nearly one hnndrcd were oio"-n
into existence. Rail roads were projected III w.
direction; new towns were built IN the "Hu n, '
and town plots every where exposed for sale f'al1,,
augmented the number of their acres ana sla'''' -
purchasing on credit. scene of competition "on'
with the gradual augmentation of the SOVefhl'o",
posites, by which spectators bid upon one ahotn.,'
and appeared to grow rich by the nominal f'sc W |
ces. An air of prosperity seemed to spread i,s'"
the whole country. Every body appeared TO s,o
rich. Merchants extended their purchases V' i" A.,
chandize at New York, Philadelphia, and o'll'a
lanc cities, on the usual credits, and III many n
took the proceeds arising from the sales to sPecu
in lands. Extravaganza in expenditure dinnJ 70
industry, reckless abuse of credit drawing 'n"
drawing at immense sacrifices, ana an uhoue on-
sion OF floating capital into fixed capitai, wet' were
comant effects ofthis wild system Shadow r,ie.
mistaken for substance, and appearances Tor fecrsd
''Whllst these seeds OF ruin were getting schGc
throughout the West and South-W est, the Ppc
deposes in the large seaports were also aus ,non,y
from duties. The deposite banks had pam. herr
to lend and wherever there is plenty OF mon'y
will always be borrowers. The news OF the W." .ts az
prosperity of the West and South West ana wv max
tonishing fortunes which said TO be tile. hanks
ing by purchasers in public lands town Po.si snha
and rail roads, reached New York and nlls With
and infected large portion OF their InIiao'' o,s-
the mania of speculation those distant fesob cs-
Agents were sen, GU, to secure share OF these O'