The pilot and transcript. [volume] (Baltimore, Md.) 1840-1841, 1840-08-01
AMOS KENDALL.
TO THE ORIGINAL JACKSON MEN.

CHAPTER FIFTEEN.
Since the publication ofGeneral Jackson's let
ter in the Globe, and the part acted by the ma
jority in Congress, upon the question of re-char-
tering the Banks in the District of Columbia,
there is no longer any doubt as to the line which
separates the parties, in the great contest now
before the country. Awaiting themselves of an
existing prejudice against Banks and Banking,
instead of enlightenins the public mind and ex-
planning the causes which have produced the
monetary commissions in the country, the party
now in power have thrown themselves upon
what they believe to be the popular current, and
have raised a clamor against all Banks. Gen.
Jacksons dictUnl is, that the paper credit system
shall be put down; that first, all notes under five
dollars; next, all under ten; next, all under
twenty; next, all under fifiy and ultimately, all
under 500, shall be suppressed; and this policy
is to be carried into the State Legislatures and
enforced by party discipline. When we look to
the fearful odds arrayed against us, and to the
power and talent, which are enlisted under the
banner of the Executive, it might well alarm
the country, If there was that want of intelli-
gence among the people, which constitutes the
hope and governs the political action Of the lea
ders of the party. We admit that the deprecia-
tion of paper money has been such, especially
under the suspensions in 1920 and 1887, as to
give some color OF propriety to the war which
is made upon the Banks. And, before go into
more minute detail of the immediate action of
the Government, it may be proper to look back
to the suspension in the Western States, in 1920
and 1921.
In 1910, France and England, and the
whole of Europe were engaged in strug-
gle for their political existence. The demand
for bread stuffs and other products of our soil
was so great, that bills upon London were sell
ling in Baltimore at II per cent. discount. A
very great proportion of the carrying trade had
fallen into our hands, and the country was in a
state of unexampled prosperity. Under thes'
circumstances, the few Banks then in exis
tence, had almost unlimited credit; and, as Their
was no demand for specie for expectation, thu
Banks issued very large amount of their pa
per. Our Government declared against
Great Britain in 1912, which war created an ex-
penditure of some 5000, zoo, 900 beyond the cur
to cut off our foreign trade, and greatly to di-
minish our receipts, and consequently, the Gov
eminent itself was compelled to use its credit in
carrying on the war very large portion of
this 5000, 900, 900 was expended West of the Al
leghany mountains, as the seat of war was trans
ferred to the extreme frontier; and the Govern
ment, unable to use its own Treasury notes, was
rent disbursements. Under these circumstances,
so strong was the temptation Of profit, and so
gent the appeals of the Government to the pat
rioism of the directory of the local Banks, that,
with view to enable them to meet the demands
Of the public treasury, there was general sus-
pension South of New-England.
As the seat of war was transferred to the In
dian country, in the Northwest, West, and
Southwest, and as the talent, energy, and enter
prise of the Northern and Middle States were
called into service, our troops, in repelling the
enemy, explored the fertile regions of Ohio, In
diana, Illinois, Missouri, Mississippi, and Ala
hama.
immediately upon the return of peace in 1915,
the GovernIzent largerly indebted, looked to the
Lands as well as to commerce for the means of
sustaining her credit and extinguishing the war
debt. The demand for foreign goods was so
great that, in 1916, bills on London, which. in
1910, had been II per cent below par, rose to 30
per cent premium. The Banks in New England
still continued to pay specie, and it was found
impossible, under the existing demand for specie,
for the local Banks to resume specie payments
with the large amount which they then had in
circulation. The return of peace, however,
brought with ita restoration of the credit of the
Government, ofthe United States, AMI the gov
eminent creditors availed themselves of that oc-
cason to obtain charter for the Bank of the Unit
ed States. The Bank commenced its operations
In 1917 The report furnished to the Secre' ary
of the Treasury gives the following statement of
its condition in October, 1915 Notes of the bank
ald its branches issued 1892, 25S 4s, Of which
only S3,Sl0,111 30, were in circulation. The
bank had loaned, personal security, S21, 1885,
1872 Sc; on funded debt S229,024; on bank stock
$7,937, SIS S3, making together, sum of y22,-
532, 666 80. The deposites were IS, 494, All go;
Specie 1884. 479 81. The capital of the bank
was s35, 100000, a very large part of which
consisted of funded debt of the United States
which had been issued at very great deprecia-
tion upon bank notes. OF the fourteen millions
Of its notes issued, less than four millions were
IN circulation; its thirty fve millions capital
and I've and half millions Of deposites, its dis
counts were but S22, 1892 ,665 80.
BY the treaties, concluding the peace, the In
ian title to very large amount of fertile lands,
ad been extinguished. This was Immediately
ought into market. 1t was then the policy of
l.