The Caledonian. [volume] (St. Johnsbury, Vt.) 1837-1867, 1837-08-08

selection, he might thereby reach the long arm
of his power into the states-lay hold of their mon
led institutions, and secure their support and the
support of their borrowers by the consciousness of
pecnniary dependence upon Executive favor.
The President and his friends admonshed
of the ruin which this experiment would bring up
on the country. They were told that the public
monies in the hands of the state banks could no.,
be made to perform the beneficial operation in reg
ulating the exchanges of the country, and main
tanning sound currency, which they had been
known to do in the depository which congress had
provided. They were told that the destruction of
the national institutions would have the effect of
multiplying state banks, enlargng their capitals,
and increasing the aggregate amount Of bank circu-
laton; that appetite for wild and extravagant
speculation would be thereby excited and fed; and
that the currency would be expanded, until the
bubble should burst, and universal bankruptcy fol-
low. We could fill pages with these warnings but
our limits will not permit We give from among
them the summary prophecies of two distinguished
members of Congress, in speeches delivered three
years ago.
Mr. ADAMS said-"Your President has usurped
legislative power. He has laid his hands upon
your treasure. He has seized it, and Yields
it a weapon of power to himself and instru-
ment of plumber to his partiZans. Yet his expert
ment has but just commenced. Its object is not
merely to destroy, but break the bank. His chos-
en- state banks are to be HIS repositories, and en-
gines to RESTORE A METALLIC CURRENCY. With
what intuitive sagacitY are the means adapted to
| the end! Sir his state banks will land the nation
they are already hurting it to UNIVERSAL BANK
RUpToY His hand must be stayed, or the nation
is undone."
| Mr. BINNEY said-stSr, the project of the Sec
rotary of the Treasury astonishes me. 1t has as
| tonished the country. 1t Is here that we find a
pregnant source of the present agony. 1t is the
| clearly avowed design to bring, second time, up
on this land, the curse of an anarcgauated uncOn-
trotied state bank currency. We are again to see
the drama which already, in the course of the
present century, has passed before us, and closed
in ruin. If the project shall be successful, are
again to the paper missiles shooting in every
direction through the country-a arrangement OF
all values deprecated circulation, a suspension OF
specie payments, then further extension of the
same detestable paper, n still greater depreciation
with failures of traders and failures of banks in its
train arrive at last to the same point from which
| we departed in 1917"
| These prophetic warnings were dsregarded.-
The President had got possession of the public
monies, and put down the Bank of the United
States, and it seemed to be imagined that he who
had done all this, without being crushed under the
weight of public indignation, might subvert the es
tablished laws Of finance and sustain n forced and
unnatural system of monied operations by the mere
| magic OF political power. But how incorrigible
and unyelding are the laws which regulate and
control, in spite of the execucte fats, the financial
operations of country. The moment that Gen
Jackson had removed the public MONIES, and pur
down the bank, he pul IN operation causes which
even his power could not control. The fatal deed
had been done and It's legitimate effects giust
| follow These effects soon began to DO visible -
New state banks were chartered by scores, and the
throughout the country; and especially in states
aohere the Jackson party had adecided prSdominance
The public monies became the basis of discounts
| and circulation by the selected banks, to an UMPIRE
cedented amount; and speculations in the public
lands, with the aid Of these very discounts, swelled
the nominal amount OF receipts from that source
to an extent unknown in the history of nation
al domain. These effects may be illustrated by a
few facts to which we beg leave to call the special
attention of the people.
The pumber OF banks in the United States, in
July 1882, when the experiment was begun by the
veto of the bill recharterng tho bank of the u. S.
was Alb.
Their capitals amounted TO $4,000 900
Their circulation 10 $4,000 900
Their loans and discounts TO 262 900 ,OO0
On the LIST of December 1886, the number of
banks had increased 10 677, besides 146 branches
Their capitals had increased to 1924, OOO, 900
Their circulation to ISO,OOO 600
To show how very extraordinary was the in
crease of banks, bank capital, circulation and dis
counts, during the four and half years of exper-
iment from July 1882 to December 1886, let il be
compared with the increase from 1920 to 1904
period entirely free from experiments upon the
currency.
From 1890 to 1880 the increase in the number of
banks was but ~.
lnclease of bank capital $8,000,0 900
I" of circulation, 10000 900
of loans and discounts, 10000 900
Behold the contrast Ten years increase of the
number of banks without "expeIiment-12
Four and half years, under the experiment
264, besides LAG branches.
Ten years increase of bank capital without " ex-
pertinent" $8,0O0,0O0
Four and a half years increase
with the I" experiment." $151 200, 900
Ten years increase of bank circulation without
" experiment" $l6,000,000
Four and half years increase
with the " experiment" 100000, 900
Ten years increase of loans and discounts with.
out experiment $30,000,000
Four and half years increase,
with the experiment" $326,O0O,OO0
What an experiment.
Let us now Took at single item Of the specula-
tons produced by it, The following statement
will show the advance in the sales of publiclands
cotemporancousy with its commencement and
progress Their sales from 1929 to 1886, inclusive
were as follows
1899 $972,O59
1880 1899, 1856
1881 2,479,658.
1889 3,115,376.
1888 4,072,294
1884 6,O99,991