Edgefield advertiser. [volume] (Edgefield, S.C.) 1836-current, 1840-03-26
Eage6ela Court House, S. G., Mareh 2e, As4o.


assertion, am prepared to establish it to
the letter.
II has already been proved that The great
expansion of the currency 10 '29, 80, and
81, was the immediate effect of the tariff
Of '2S. 1t remains 10 be shown that the
cause of the still greater aud longer con-
tinued expansion which has terminated in
the overthrow Of the banking system, and
the deep and almost universal distress of
the country, may be clearly traced back
10 the same source. To do this, we must
return to the year 80, and trace the chain
Of events 10 this time. In that year, the
public debt was finally discharged. The
vast revenue which had heen poured into
the Treasury by the tariff Of 1928, and
which had accelerated The payment Of the
public debt, could, after its discharge, no
longer be absorbed in the ordinary expen-
ditures of the Government, and Il surplus
began to accumulate in The Treasury
The late Bank Of the United States was
then the fiscal agent of the Government.
and the depository of its revenue. Its
growing amount, and prospects Of great
future increase, began TO act on the cupidi-
ty of many of the leading State banks and
some Of the great brokers of New York
Hence their war against that institution;
and hence, also, the removal of the de:
posites. The late President believe TO
have been really hostile to the Bank on
principle; but there would have been lit
tie or no motive 10 remove them, had it
not been for their growing importance, and
hostility which the desire of possessing
them had excited. They were removed,
and placed in the vaults OF certain State
banks. To this removal and deposite in
the State banks, the members over the
way are in the habit of attribu,iug all the
disorders Of the currency which have since
followed. Now | ask, in the first place, is
it not certain, ifit had not been for the sur
plus revenue. the deposites would not have
been removed? And, in the second, if
there would have been surplus had il not
been for the tariff Of '25?
Again is it not equally clear that It was
the magnitude of the surplus. and not the
removal, ofi,self, that caused tho after de-
rangemeut and disorder? If The surplus
had been hut two or three millions, the or
dinary sum in deposite, il would have been
Of little importance where i; was kept;
whether in the vaults Of The Bank Of The
United States, or those of the States; but
involving, as it did, fifty millions and more,
II became question Of The highest impor-
tance. Iagaiu ask, to what is this great
surplus to be attributed, hut 10 the same
cause! Yes sir, the tariff of 1928 caused
the surplus. and The surplus The removal
and all the after disasters in the currency.
aggravated, it is true, by being deposited
in the State Banks; but it may be doubted
whether the disaster would have been
much less, had they no, been removed
Be that, however, as it may, it is not ma
terial, as have show n, that surplus itself
was the motive orlhe removal. The sur
plus poured into the Treasury by millions.
in the form Of bank notes. The with
drawal from circulation, aud locking up in
the vaults Of the deposite banks, SO large
an amount, created an immense vacuum,
10 be replenished by repeating the issues
which gave 10 The banks the means of un-
bounded accommodations. Speculation
now commenced on asisantic scale; pri-
ces rose rapidly, and one party, to make
The removal acceptable to the people, ur-
ged the new repositories 10 discount free
Iy, while The olher side produced The same
effect, by censuring them for not affordiug
as extensive accommodations as the Bank
oftae United States would have done, had
the revenue been left with it. Madness
ruled the hour. The whole community
was intoxicated with imaginary prospects
of realizing immense fortunes. With the
increased rise Of prices began the gigantic
speculations in the public domain, the price
of which, being fixed by law, could not
partake oflhe general rise. To enlarge
the room for their operations, | know not
how many millions (ifty, | would suppose
at least, oflhe public revenue) was sunk
in puchasing Indian lands, at their fee
simple price nearly, and removing tribe
after tribe to the West, at enormous cost;
thus suIjecting millions on millions of The
choicest public lands TO be seized on by
the keen aud gready specua'or. The tide
now swelled with Irresistible force. From
the Banks the deposiles passed hy discounts
into the hands of the land spectators;
from them into the hands Of the receivers,
and ,hence to The banks; and again and
again repeating the same circle, and, a,
every revolution, passing millions of acres
of the public domain from the people into
the hands Of specula'ors, for worthless
rags. Had this state of things continued
much longer, every acre Of the public
lands, worth possessing, would have pas
sed from the Government. At this Stage
the alarm took place. The revenue was
attempted to be squandered by the widest
extravagance; resolutions passed this body,
calling on the Departments 10 know how
much they could spend, and much resent
ment was felt because they could not spend
fast enough. The deposle act was pas
sed. and the Treasury circular issued; but,
as far as the currency was concerned, in
r