Vermont watchman and State journal. [volume] (Montpelier, Vt.) 1836-1883, 1837-08-28
MIR. sPRAGFE (OF r. ~ AND THE
CURRENCY.

MIG. SPKAGfE (Of' IL. ~ AMI HE
CURRENCY.
Some weeks since it was said in the Watch
man that Mr.. Sprague Qatc Member Of Con-
gress,) declined reelection, and had aban-
doned the administration. The Patriot, If we
do not misremember, denied the last part
of the account We have now the pleasure
of copying an extract from letter, written by
this gentleman 10 the Hon. ]. D'Wof, and
just published. We commend the article e.
poclally to those Of the antimasons who last
fall went overto Van Burenism, and TO those
original Jacksonmen who have not yet had
their eyes open TO the truth. Mr.. S. has been
in Congress, and was then n supporter of the
administration generally, though not strictly
collar man, Since that time he has reconsid-
cred the course of that administration, and
now, when he is no longer a candidate for Of.
flee, seen fit TO publish his views.
The extract is as follows:
at appears 10 me that the main cause of
all our troubles cannot be mistaken. Ii will
be found 10 exist in the deranged and dis
ordered Stale Of the currency of the coun-
try; Of that which constitutes the medium
for exchanging the productions OF the in
dustry Of one class for those of another
We have only to look 10 facts as they have
taken place for few years past, and we
shall completely understand how, and by
whom, this deranged and disordcred state
ofthe currency OF our country has been pro-
duced aud effected.
The President of the United States an
nounced in his Messages to Congress in
1890 and 81, his hostility to the 5a nix
of the United States. This annunciation
created desire among the people to es.
tablish new banks to supply the place of
that institution and accord ingly we find,
that large number were established. In
July, 1882. he vetoed the bill racha rierine
il, which also created an increased demand
for new banks. The public deposiles were
removed IN October 1888, and placed in
the Stale institutions in different sections
of the country. That portion which was
sent TO the West and South Yves. was, un-
doubleday, the cause of the commencement
of the land speculations, and was loaned
ont over and over again for that purpose.
New banks were also established for re-
ceving portion OF these deposiles. The
law altering the standard value of gold
was passed in June, 1884. By the opera
ton Of this law upwards Of thirty millions
vi coin and bullion came into the country,
over and above the exports, even where
the balance of trade was against us, and
immediately became the basis upon which
new banks were established.
In consequence, therefore OF those meas
ures of Gen. Jackson, the banks AMI bank
ing capital OF the country have increased
nearly three 10 one since the first OF Janu-
ary 1880. They have afforded facilities
for specula,ions in lad, and in almost all
kinds of property, and in connection with
the law reducing the duty on imports, have
been the cause of excessive importations
and saddled US with very large amount o
foreign debts.
We have seen how these banks have
been created, let us now see how they have
been affected. The Treasury Circular re
curing gold and silver in payment Of pub
lie lands was issued in July 1886. BY thu
operation of this instrument about sever
millions were distracted from their vaults
in rs many month";, and placed in specia
deposie hanks, to the credit OF the govern
ment. Continued drains were made upol
them by the Loco Focos, who have array
ed themselves as party, against all banks
and for ought | know, against every thin.
:, that is useful. Remillances were Gale,
for 10 liquidale the balance against us il
favor Of Foreigners. The consequence wa
certain. The banks were at once deprive,
Of the foundation upon which they were e
recled. A suspension OF specie payments
and a general proslration OF business an
industry was the inevitable result.
From what ] Rave said, il necessary
follows as my belief, that if Gen. jackson
had let lccLt enough alone, as he found i
in 1880, the erits zoe no,o suffer ,couid hau
been spared us. do not believe that III
banks would have increased beyond tn
wants of the legitimate business OF TN
country. Consequently, speculaiicns i
/ lands, over impOrlalions, and surplu
revenue could not have existed; and lher
could no, have been any necessity Tor ih
suspension OF specie payments.
But the past is beyond our control. w
may, if we will, provide Tor the future. w
t must have general currency; gold an
silver for lis basis, and a circulating medi
um equivalent 10 it. The government c
the Omitted States has the power, and it
IFS duty TO furnish such currency. II
: idle TO suppose that il can be furnished b
the fiuctuating legislation OF 90 indepen
dent State governments. As well Nigh
we suppose that the movements OF a n arm
could be judiciousy directed by twenty 81
independent Generals or, as well migt
we say that the Government of the IJnite