Lynchburg Virginian. [volume] (Lynchburg [Va.]) 1829-185?, 1838-05-17
INNtirHI.E, NAY Il. IA9s
ANINSOLVENT GOVERNMENT

Nb'N nv 1h''ib5 bhb hIOb 10 helm HI.
out o the mife INTO which their Experiments. ..,
their ~pro1igate expenditures combined have rloouo1
them. This single fact furnishes an aamh,i,s
commentary on the wisdom of our Rulers. and :, ~
ting sarcasm upon the pledges of economy. wbl
which the party in power came into office. What F.,
contrast, too, does our condition now present w,L
that which but two years ago elected The wonder and
admiration Of the world. The Treasury then was
laboring under a plcthora-and the country cro,re,
under the weight of It's Surplus Revenue. Nenlv
forty millions of dollars had accumulated in the nub. \
lie Golfers beyond the requirements Of the public SER
vice, Notwithstanding the greatly augmented animal
expendIturcs-and the ingenuity of lhe Executive
and Of its friends in Congress was on the rack to de.
wise objects of expenditure, upon Which it nigh, be
squandered. Mr.. Benton proposed a vast scheme Of
coast and inland Qualifications, 10 absorb the excess.
and to prevent its distribution among the States.
And now, the treasury is empty and for the first
time III the history Of the nation, during a period of
peace, Che Seminole war always cxcepted,) the
President has deemed it necessary to proclaim
10 the world our national bankruptcy, and to goad
Congress into more rapid movements, in order to pre-
vent a total suspension ofPayuenl! We commend
TINS astounding TACT to the consideration OF the
" %ashlngton Globe, which has been so zealously Ia
boring, for some months past, to prove the bank
ruptey ofthe Pennsylvania Bank Of he United States.
Here is a Government, which, buttwo years ago, WIS
puzzled how to get nd Of its surplus funds. now
equally puzzled how 10 cXtricatc itself from pecunig-
~ embarrassment. IHGl, its wheels were retarded
by the weight of its wealth nor, they aie almost
stopped by It's poverty What a commentary, We
repeat, upon the wisdom Of tie Experiments, mhicl,
have illus suddenly banhruped the Goyernn .ut, as
well as the People What il Brilliant lulllment OF
all the speeious promises oil = RetrencIlmem and
Economy, which, as much as any thing else, con
t!buted to elevate Gen. jackson to the Presidency,
and enabled him to nominate and virtually to APP
point his successor
But we are told, by the Secretary Of he Treasury,
that, although the Treasury is empty, it has still mil
lions Of dollars on dcposite with the States. Whtn the
thiIty millions OF surplus was deposited with the States,
was itcyer anticipated, that, within so briet a period,
It's reclamation would be rendered nceessary! On the
other hand, was it not believed, and asserted, by both
the advocate ties and the opponents of lIIat measure,
;hat, although uomiually Il d4pos5te, ii WAS rally i
gii,? that, although the law provided for It's it-
clanation, that provision was only inserted to obviatn
the constitutional %scruplcs oil so.ne, who believed
that the General Government Lad no right to
make an absolute distribution 10 the States-and
consequently, that, although the right TO reclaim
the money was tn Is provided for, yet II never would
be exercised, because therc would never be any ncces-
sity for lis exercise : Aud yet, before the louIth IN
stalmcut became due, 50 sudden and unexpected WAS
the blow inflicted upon the prosperity of the eoun-
Try by Gen. Jachsou's humble efforts TO restore the
!, constitutional curreHcy Of gold and silver tia,
Congress was called upon to withhold it from tho
> Siates-anG now, there is reason TO fear that
f they will be called upon to return the three install
mcntS which they have already received, OF some por-
ton Of it, and which, in that event, will prove 10 have
been the most disastrous ett that ever was bestowed
upon them The President and his Secretary,
therefore, Lave really no right 10 refer to tins mo-
ncy, as a part Of the Government funds, since II vol
UNFAIRLY parted with it under circumstances when
justified the States in supposing that 1t would never
be rccallcd-or, if it ever should be, that it would DO
at some yery remote period, audlna season OF waf'
: requiring an extraordinary eXertion OF the na'lopa'
energies. Indeed, no one can believe tih 'o
States would have received Ia all, II they had sup
posed II possible that 1t would have been tcc'a'h'e"
within any brief period.
We are also told by the Secretary OF the treasury
1 that he Government has likewise some millions oil
dollars on depostc with certain unnamed Statel'alh''
which, in consequence Of the suspension OF SPteo
payments, are 4" unavailable" This is tfue-anu
what fact more strongly than this demonstrates to
!, folly OF the FIRST slepi in Gen. ~JaLkson's financial IN
| perlmenis-the removal otthc deposites from thcBanA
of the United States--rhe~ beginning of The war that
:. resulted in the destruction Of that institution! Pe-
!. cisely the same resale occurred when the first Ma
!, tional Bank charter expired. The public moneys
were confdcd to the custody of the State Banks
which rapidly augmented in number and in capital
and as rap dIy expanded their issues, until the buo-
bic burst, involving the government and the peoP'o
in embarrassment AID ruin. From that day to 'hs
, oui Treasury Reports have exhibited a large a'ho""
of" unavailable funds"-in other words, the no'eso'
these broken Banks. eau we wonder that the any
result has followed the same policy at a later PeIop
that the removal Of the deposites from the u"
, Bank to the State Banks, followed by the a'"''
renew the charter Of the former, and the cohso4u'"'
multiplication of the latter, and the impfuue"' ""'
ner in which they have conducted their business ''
led to a similar initiation Of the banking sys'0"'
suspension Of specie payments, embarrassing"
people, and loss TO the government thai We
gain old of" unavailable funds and the cons'
quent bankruptcy of the treasury +! All TINS ~
repetition Of The old story-a re-cnactlon oil Il ~
same scenes through which we passed IN loli-
and which are rclcrnble to precisely the same =