Morning herald. [volume] (New York [N.Y.]) 1837-1840, 1839-10-19


England, will carry out the intelligence Of the
coud suspension of specie payments, by large por-
tioa Of the banks throughout this country-begin-
ming with the u. S. Bank, and embracing already a
part within the geographical limits Of Charleston and
Providence. The New York, the Boston banks,
and probably those Of New Orleans, may be able to
maintain cash pay ments, but how long. is beginning
already to be debatable question.
The causes which have produced this second con-
yulson, the real position Of affairs at this moment,
and their probable termination, all questions Of
great magnitude to England and France
1t is not simply a financial evil that afHiets the
United States. The elements producing the present
state of things have been social POLITICAL CONNER
cial and financial, in more or less proportions and
covering period Of at least twenty years or mere
statement has been put forth by the Philadelphia
press, full Of sophisry, errors, false reasoning
and unfounded assumptions, that It Is due 10 the
commercial communities of Europe and America,
that some indie pendent and intelligent mind should
expose that paper, and present the real facts and
reasonings appertaining TO the present crisis.
Soon after the close of the last and after the cre-
alton of the late United States Bank, the late Dewitt
Clinton set ON foot spirit Of internal improvement in
New York, which, after many obstacles, accom-
plished Of the most signal trumphs ever record
ed in national enterprise. This was the first germ
of that mighty social movement, which, guided by
rashness, avarce and ambition, has concentrated in
the present convulson multitude Of evils, the end
Of which few can venture TO predict.
The spirit let loose upon New York by Clinton
was spirit Of good-but his successors, not actual
ed by rational impulses, have forced upon the coun-
trya succession Of mighty evils and wide devasta'
Sons.
The success Of the internal improvements in New
al fo~ .fy.r hauE
institutions, clothed with the power Of creating pa
per currency, based ON cash payments Other states
followed the example State stocks were at first is
sued in moderate quantities, banks were multiplied
&c siessS~.bl< exieas, aad ~ ceu,Ay scanned be
an the brightest degree of prosperity This WAS about
the years 1929 and - About this period two rtmark
able men began to appear in public life. whose ambi-
ton and tactics-the one in finance, the other in
poItics-soon gave new and remarkable direction
TO the course Of events.
We allude TO Martin Van Buren, and Nicholas Bid |
dle-the one politcian-the other 6nancier
Mr.. Van Buren, wanted to be President of the Uni
tad States-Mr. Biddle to procure 1e-charter for
the o. s. Bank. To the plans and Prcjscts OF these
two men, all parties and factions were more or less
.ub.erviest. Through General Jackson, who was
utterly ignorant Of naLce, though honest man in
the main Mr.. Van Barren governed the democratic
n.rtv-through Messrs. Clay, Webster and others,
ol;cians but not possessed with clear ideas Of po
l;tical economy, Mr. Biddle communicated the im-
pulse to the whig or opposition party.
II 10 to this mixture Of politics. finance, currency,
and personal character that indebted for the
irregular action Of the last ten years.
The Safety Fund system established in New
York. in IS29 IL grew out Of the success Of our in
ternal improy ements and the success Of these i'm
provements again stimulated the creation Of new
banks and the consequent expansion OF the currency
Soon after this period, the national debt was paid
off, and left large surplus annually in the hands OF
the government. These large sums were taken from
the United States Bank and deposited with the state
banks which then formed antoganist power 10 the
former Stimulated by this surplus, new banks were
created-mighty speculations entered into-and vast
enterprises projected The U. 8. Bank only aided the
spirit Of the times, and accordingly new branches
were established and vast expansions ordered, TO
courage trade and commerce.
The State governments contributed to accelerate
the career efthe country. From the time that the
success Of the New York canals were made certain,
spirt broke out in the States that created fully
Sl00000,000 in stocks and scrip, before 1885. The
law OF 1886 for the distribution of the surplus
nue., giving the States go 100000 in year. only
aggravated the wild spirit Of the times. That
plus revenue, which had been first the Of the
vast expansions of the currency and the multiplied
toa Of banks, became, when paid to the States
the basis Of fresh expansions Of State stocks, and
additional engagements among individuals. State
stocks were again issued 10 such extent, that at
fhs moment, our State debt is over 500 oOO,OOO,
with many of the works unfinished and snpro-
ductivs and annual payment Of 600 Of in
ferest. These vast expansions in currency, State
stocks, Corporation stocks, were simultaneous with
the creation Of equally vast pecupiary engagements
among individuals.
These movements accordingly produced the natu
raj effects upon prices Of commodities, upon habits
and manners. Prices rose-extrayagaace hourished; ;
debt was rncurred-and one looked abroad in ap
prehenson Of payday
In this state Of things, with the banking forces
fssenist 10 each other the United States bank ami
mated by Mr. BiddIe, and part Of the State banks in
1uenced by Mr.. Van Buren,, the revulsios Of 1897
came upon ms like clap Of thunder That event
was only the begnsing Of which the present state Of
fhisgs IL the sequel.
bat In that year a new movement was began, and
HAT Nv the Banks Of New-yerk. II was evident
that unless the Banks began gradual contraction