Richmond Indiana palladium., 1838-04-07


= they were but a small proportion to the means o
u the Bank, they were removed by the plant Sc
: crctary Of the President, and deposited in the IL
= cal or State Banks. This patronage Of the Gen
eral Government towards these latter Banks. soon
caused such an exten; Of their number and issues
rs to become alarming. The fears Of the patriot
. were aroused, but he was met with the assur
ance from "MY Secretary Of tic Treasury who
registered the edicts of 'tte parfy," that 'the
State Banks can, have no doubt, furnish gen
eral circulating medium, quite uniform in val
NC that which has been afforded by tho Bank
Of the United States. Probably more sos
"By agreements among themselves 10 honor
each others notes and drafts, they providing
General Currency 1t least soInd as that OF
The Il INK Of tho United States, and will aif;,rd
facilities commerce and in the business of do
mes;lc exchange, quite equal 10 any which this
comm unity heretofore cnIcyCt.7
THIS assurance did not, however, afford very
lasting consolation to the friends of the admins
t-a;ion, for it soon began TO be doubted whether
the State Banks could .'furnsh Il general circu
latrg mcdiunn.'' This doubt was firs: expressed
by the President and il was found necessary upon
that expression to occupy still different ground
Il metallic currency. Indeed, there NJ other
resort. 1t would not do to 60 back to the United
States Bank that was a most hidcous monster
"a demon with n thousand heads. The State
Banks were totterns, and nothing but the grand
"cxpcriment'' vas left. 1t bold stride
bu, it taken. The president in his incssag"
of 1924, said:
'.Thc progress Of oar Gold coinage is cceditabe
o the officers Of the mint, and promises III short
period to furnish the country with a sound and
portable currency, which will much diminish the
inconv cnicnce TO travellers of general paper
currency, should the State Banks be incapable OF
furnishing It,"
Here was an ayowaI Of the intent ior Of the adj
ministration which was well understood, for, not
wihstanding Mr.. Tanev had declared. that the
Stnfc Blnks woHld Furnish "a general currency
sound that of the Bank Of the United States,
it had been conclusivc!y demonstrated. at q PEE
VIC period of the session. tina; they incapable
"i acting dishIrsing agents OF the government.
They had become increased (cn,hracing banks
tha. had dcpositcs) since 1850, to the Number
OF .'Oo.-nakIng increase. III four years. oil
iSt; banks! These !> hanks, with arrrccatc
CO fta of $500, ,00J,Gi;. and with :57,,G6j,IS6
of dcposi.cs, had Il circulation of So S3a.5 so
their loans and discounts amounting to s5}21. 49,,
40J,-silowing inc. ease, with but small ex :
tension Of capital, the loan and discounts of
1880, Of Sl23 ,GGs,2S3! This condition of things,
!, forcscen. cOuli not last. for TO check re- {
n,:ncd to curl, the issues Of the State Blnss. &
The United States + INK was w.nding up its con- u
:erns, and could no longer regulate the monetary n
.firs Of the country 1t had been shorn Of its /,
:cugti, and lay prostate 1t the fcot .. the Exc b
.utivc The President bad expressed Gou5t Il
o til, capabiiity Of tue State Banks 10 a,r1 "a Ii
when tho party was compelled = resort 70 some Il
means, however desperate. 20 avert the impending 4
.or;n,-not from the country. but themselves. %
Every newspaper in ti;cIr service from one end II
Il the Union TO :iie o;hc:. harPcd upon the god 81
NJ silver humhns. TO prepare the public mind for IL
nc open avowa Of the President in lS3J- Whcn b'
he session Of 1885; rrived, the Pscslcn: strci, d,
mother blow al h.s powcricss enemy. the United cs
tatcs Eink and assorted that the State Banks
al supplied '',he wants Of the community, in p,
,tion to exchange and currency; well is t.loy
ave ever been bctorc and added, that s'i!c cir
:Ila.ing medium had been greatly iTn2rovcd!' &C
/, the message c avows tina; 'i is apparent al
god and silver will become the pTncl pal cir 70
.lating .ric.liuIn'' The President having thus IL
,-dec'arcd in favor of The State Banks those in Of
iu,ions hay ing the of the DcposlteS. became, ze
once. secure in their course, and again began ba
es rapid increase of tIcIr ISSiics. In 1850. the
-grcsa,e capital of the B,nks in the United tn
atrs had swe!Ied 70 :S5l lI50.:,>7-lcpositcs TO do
S;,OSI ,3iJ-circulton to $Slo3512. :33-1nd CT
,ans and Discounts to the amount of $3.50 1863 ri
;6!-,hus making in ono year, an increase ot co
-cuation of s., ,SJ2 ,92 and loans aud discounts bl;
S5l.O44. .33.. This condition of affairs aiiorsi- pa
a fair test Of the capabiity of the State Banks. be-
,cv soon began to trade like improved dealer, th
40. upon borrowed capital, wrc,tlcs but an in to
INT with ads ersity. before he yields despond to
. victim to his fate. They continued to extend go
cir issues to subservc the demands made by spe Of
IatorS and stock -lobbcrs. ana inc GehlnoS con- COZ
,ucd to increase in proportion to the increase of
bic dcpostes in tho vaults of the Banks. and yo
cir willingness to accommodate These extern 70
issues were based partly upon the capital SEE
,ck of the banks and partly upon the money OF am
. rco2c. The Treasury WAS overflowing and SEE
government could discern use for its funds the
,c Distribution act passed. placing in the ity
ns of the people the surplus which had accumua Ing
from their industry & labor. Thisact was pro- lla
unccd uncons titutiona, bu; Ger. Jackson, ma boz
IL virtue Of necessity. gave ii his sanction:- lne
dared not with all his bo!dncss of spirit. do for
,erwise. So soon ~ the Congress which had sPe
,scd il, had returned to the people. he assumed Ca
c respossibility, of issuing an order requiring ty
payments made for public lands TO be made in ion
,ce. but permitted the customs to be still col gle
ted "a before in notes Of specie paving BANKS. pa
us order not only not sanctioned BY the law, ag
most clearly an express violation OF the do'
rit of the Constitution. even as Gen. Jackson hg
it'-for he declared in the very mes pal
&c which informed Congress of its existence. pee
II $40 temporary nconv venicnce justify the clio
srcise Of power not expressly delegated by that pc:
We are told that these things have Of