Southern Argus. [volume] (Columbus, Miss.) 1834-1842, 1839-11-19

OF the country, was greatly extended
the banking institutions fostered, anc
the whole policy of the General Gov
eminent seemed directed to the expan-
sion OF commerce and the increase Of
the tribute which it should pour into
her Golfers,
The first day of the year 1885 ex-
hibited to the world the unparalleled
spectacle of a nation free from debt
That proud distinction belonged to
these United States. The heavy obi
CATION which had been incurred by the
prosecution of two successful wars had
been extinguished, entirely through
the fundamentally of the credit and
commerce of the country, enriching
both the nationand individuals. Such
an epoch was well calculated to cause
a jubilee to be held on the occasion, as
1t did, at the Metropolis, by the digni-
taries ofthe Government.
| With the extinguishment ofthe pub
nc debt new era was opened, but the
accumulation of revenue beyond the
wants of the Government did not cease
nor diminish with the diminution of
these wants. The stimulus that had
been so abundantly administered caus-
ed the revenue to continue to increase
in an extraordinary ratio, when it was
no longer called for, and could not be
legitimately used. Under the encour-
agement which had thus been given for
the purpose of raising revenue from
sales of the public domain and from
imports, the amount derived from the
former was increased, between 1884
and 1886, from 6,O99,981 to $685.
9S3, 1872, and the amount of foreign
imports from $126, 421, 1892 to $780,
9SO,035, and the surplus revenue ac-
cruing therefrom in the short space of
two years amounted to but little less
than forty millions of dollars. That
surplus, Congress, with the sanction
of the Executive, directed to be dis
tributed among the States.
In July, 1886, measures were com
menced by the head Of the Treasury
Department to carry the law into exc
cution. OF the manner in which this
was done, or Of the skill or judgment
exercised on the occasion, it is deemed
unnecessary here to offer an opinion,
but, with the beginning Of the execu-
ton Of that law, the previously SEEM
ing prosperity that had existed re-
ceived a severe and sudden check,
and difficulties and embarrassment,
both to the Government and People,
rapidly succeeded.
The monetary affairs Of the whole
country were conVulsed-millions up
on millions of coin were IN traasitu in
every direction, and consequently
Withdrawn from useful employment.
Specie was going up and down the
same river, and from and to The South
and North, and the East and West, at
the same time; millions were with
drawn from their usual and natural
channels, and forced against the cur
rent of trade, in literal ful6lment of the
distribution law, to points where pub
lie money had previously never been
either collected or expended, except
to very limited extent. The conse-
quences were obvious and inevitable.
The duties which were imposed on the
banks, acting as agents of the Govern
ment at that time, became so onerous
that many of them were obliged, in the
space of little more than three months,
to appeal to the Treasury Department
for indulgence in the ful6lment of the
requisition imposed upon them. The
fidelity with which the banks perform
ed the duties enjoined upon them on
that occasion under the most trying
circumstances, and the transfer of near
ly sixty millions of dollars of public
money in the period of little more
than six months, elected from the Chief
Magistrate Of the Union, in his annual
Message of December, 1886, the
award of the highest encomuims.
Ii was not these difficulties alone
which had befallen the country, and
against which the banks had to contend.
The impulse which had been given to
enterprise, and which had produced a
spirit of improvident speculation, had
led to an excess of foreignimports be-
yond our exports in the year 1885 of
S21, POP, 165, and in 1916 of SOL
SIC, 1895, making an aggregate of excess
of imports over the exports in two
years of $S9, 519,160. This created |
direct demand on the metallic medium |
of the country, and a draught ON the |
vaults of the banks. In their opera
ton, these difficulties became so OPP
pressive on the country, its business,
and the banks, that the latter sought 10 |
give relief by a suspension of specie
payments in May, 1897, which was
nearly simultaneous throughout the
Union, without any preconcert of ac-
ton whatever.
We now pass over the interregnnm
between the suspension and resumption
Of specie payments, which took place
generally in August, 1888. That peri-
cd, it is we'll known, most of the banks