The pilot and transcript. [volume] (Baltimore, Md.) 1840-1841, 1840-07-13

ard Of the hard money dcspotisms of Europe
These men, in the same breath that they advo-
cate this doctrine, cry sut against the ''ant-re-
publican tendency Of associated wealth. They
heap curses and imprcoations upon the "aristoc-
racy of wealth" and shed crocodile tears over
the misfortunes and miseries Of the poor. But,
sir, this doctrine, as shall presently show, must
inevitably innure to the benefit of the rich, and
to the utter destruction of the poor It's legitl-
mate effect, under the existing state OF things,
must be 20 make the rich richer and the poor
poorer.
/ insist, Mr.. Chairman, that the state OF sui
fcring and pecuniary pressure under which the
country is now suffering, is attributable, IN
very great degree, to the policy of the govern
ment. No of candor will assert that we
had redundancy of currency, or any over ac-
ton in business, until the late administration
commenced tinkcring with it and experimenting
upon it. And, sir, their experiments have turned
out about like the experiment of the farmer upon
his axe. | have heard story OF a farmer IN
some of the new countries Of the west, who lived
ut n great distance from blacksmith shop, and
being very much troubled on that account, he
determined to try his hand at the business him,
self He accordingly purchased small set oil
tools, and set up shop. And being very hon
est man, he determined to try an experiment
upon some of his own work before he undertook
any for his neighbors. He had very good axe,
and one that answered his purpose very well;
but he thought that he might improve its shape
a little by ''upsctting" it. So he went to work
upon it, and, after hammering at it for some time,
he found he had got it entirely out of shape for
an axe, and he concluded to make mattock Of
it. After working while on the mattock, he
found he should not be able to make mattock
OF it; but he thought it would make very good
cleaver lie continued to work upon the cleaver
until he burnt up the iron and Steel and he final
ly found that he could make nothing of it but
what he called 'Eskow." So he heated 1t red
hot and threw it into the slack tub, and the last
of the axe was the kissing noise 1t made as 1t
was plunged into the water
This case, sir, think is quite analogous to;
the experiments we have had within the last six
or seven years on our currency. We had cnr-
rency, before the commenced tam1eyirg with it,
which approached as near to perfection az IL IS
possible for any human institution to do We
were enjoying a state Of prosperity almost, II
not altogether, without an example in the his
tory of the world Our currency has been de
stroyed, literally annihilated; and we are re-
duced to L state of ruin and disaster without
parallel in any free country in time of peace.
And, sir how was this state Of things brought
about2 Gentlemen answer, by the wild, extra
VACANT and reckless course of the banks-by the
enormous increase of banks, banking capital and
bank paper circulation Grant it, sir, and then
ask VINO caused this vast increase of the num-
Der of banks-banking capital and paper circu-
lation? Who can have the hardihood to deny
that it was the party now in power during the
late administration? Sir, as soon as they dcs-
troyed the 'Emonster," as they denominated the
United States Bank, they came out for an in
crease of State banks The official organ and all
its echoes throughout the Union, called on the
States to incorporate banks and increase their
banking capitalize avail themselves of the BEN
efts of banking. The politicians who support
Cd no obi etratf homo and be unn
the champions for the establishment of new State
banks; and, sir, what did we see? Why, Mr..
Chairman, in very short time saw the num-
Der of State and local banks increased from about
three hundred to upwards of nine hundred. This
is fact which no man can deny. | might cX-
hibit the proof of it, but | will not detain the
committee to do so.
Then, sir, the state bank deposit system was
established. The public moneies were placed in
deposit, in the pet banks. They were autho-
rized to discount upon it-nay more, they were
encouraged to discount freely on the public
monies in their custody. II it were ncces-
cary, | might read to the committee large
number OF circulars addressed to these pet
banks, by the secretary of the treasury, urging
them to extend their accommodations, to discount
freely on the peoples money deposited with
them, for safe keeping, to fill up the Yacu-
UNI occasioned by the withdrawal from
circulation of the notes Of the United States
bank But it is unnecessary. The fact cannot
be disputed. The banks thus encouraged and
stimulated to overaction by the government,
flooded the country with their notes This pro-
luced the unnatural state of prosperity of which
the friends of this bill complain. The whole
thought they were growing rich
A perfect sea of prosperity, and golden harvest
opened up before their enraptured visions. The
claimed credit for all this as the
happy results of their experiments on the cur
rency, and the people sang hozannas to the
q greatest and best.o They were assured that
his was only the s'beginning Of the end,' that
lines were to continue to grow better, and their
was to go on increasing, until finally
t was said that gold was to C for mp che MIS-
Sissipi.n Under these dslusiYe promises and false
expectations, sir, the people were induced to I'M
lertake improvements-to buy property and Gre
tie large debts. The whole country became IN
lebted to an alarming and enormous extent
The people relied upon the success of their en-
reward of their exertions and in
lustry, and the high prices then commanded for
I'll descriptions of property, produce and labor
n all its departments, to enable them to dis
harge these debts. But, sir, in the midst of
hese enchanting but elusive and deceptive
rcams of prosperity, they were awakened as by
clap of thunder from a clear sky. The specie
circular was issued, requiring specie in all pay
aents for public lands. The administration had
become alarmed at the result Of their own folly,
nd it became necessary to check this mighty |
urrent of speculation and extravagance which |
lad resulted from the causes have just emu
nerated This requisition caused run to be |
made upon the banks for specie, and the great re-
.ulsion which took place in the spring Of 1887, |
vas the necessary and unavoidable result. Since |
hat tiae, sir, we have been sinking deeper and |
eeper in this whirlpool OF destruction, thus let |
Dose upon us by the folly or kaavery, or both,
( our rulers.
Sir, have said that the effects Of this will |
nder the State of things have attempted to
reduction in the amount of the cir
ulating medium of the country, and the conse-
Iuent reduction of the prices of property, labor
nd produce, would be to make the rich richer, |
nd the poor poorer go farther. 1t will pro-
luce the very result which these democratic peo-
leloving gentlemen affect to look upon ard to |
eprecate with such holy horror. 1t will pro-
luce the same result in regard to the division of
property in this country which was produced in
England by the Norman Conquest. It will over
hro~ and obliterate that equality of rights and