Herald of the times. [volume] (Newport, R.I.) 1830-1846, 1840-02-13
WHOLE No. 4S6.

the State Governments prohibited by the
constitution from issuing bills Of credit) were
obliged in many instances to submit to pub
lie necessity, and receive their taxes in
"kind," as il was called-in other words, the
products Of Industry-and Instead OF specie
(which some Of our MODERN RULERS
seem to think scarcely an equivalent for their
services the seroants Of the people at that
time were content to receive their compensa-
ton in the shape Oft bag Of meal, few deer
skins, with muskrats by way Of change. or
soIns other " domestic comforts" Of the sams
nature.-Ths oppressive state Of things re-
maned until after the commencement Of the
French revolution in 1890, which soon in
volved all Europe in one general war-Hith-
erto the ports of the United States he'd been
open TO the products both Of Agriculture aud
Manufactures Of all the nations Of Europe,--
who received scarce any Of our own in RETURN
and those loaded with heavy imposts Tho
whole revenue Of the United States from oil
sources was less than four millions Of dollars
unnually.-Our neutrality soon gave US the
carrying rade Of the civilized world,-and
the drain from tho productive classes neccs-
sary to keep on foot the immense armies OF
the despots of Europe, opened all endless
market for the products Of our soil.-A suf-
foundation, to supply the place Of actual capi-
tai, was all the country now needed TO unite
and call iuto action the Industry and enter
prise Of the people and enable them to reap
the advantages before ihem.-The following
year, 1871, Congress, chartered the Bank Of
North America, with a capital Of Ten Mil
lion Of Dollars, to continue twenty years.
A circulating medium, sufficient for tho
wants Of the then limited population and
Territory was suppled-quckly followed By
the busy hum ofndustry throughout the land.
The products of every branch Of agriculture
found ready market abroad, and superseded
the necessity of a Tariff for the protection Of
industry at home. Not Only were the ex-
ports Of the country sufficient to pay for tho
mforts," necessary to supply the wants Of
the peoplo-but such was the balance Of trade
in our favor, tha, during the continuance Of
the non Intercourse act, before the last war
with Great Britain, exchange had fallen to
Is or 90 per cent below par As the bus'.
ness, the population and extent Of the coun.
try increased, state Banks had been from TINS
to time established to meet the wants of tho
country. At the expiration Of the charter Of
tho United States Bank, in 1911, Congress
declined renewing it, and it proceeded to
wind up its concerns. Exchange on England
being so far below par, consequently inducing
tho importation of specie, was extremely ia.
vorsblc for the operation. The destruction
Of all commerce by the action Of war, which
was declared against Great Brtaia by the u.
States in 1912 aud tho want of manufactures
TO supply our military and naval establish
monts with clothing and other necessaries.
caused the coin to be smuggled to Canada
and other dcpots OF British manufactures, aud
our people were literally clothed by thoir
reimbursing them the expenses Of the war
Our Banks were quickly drained Of their sps-
Gle, aud obliged to suspcnd-in which they
were countenanced by both the people and
the general government. The country int
state Of active hostili,os ond left destitute of
coin, called for excessive issues Of Bank pa
per, which was siiil farther stimulated by the
demands of ofGovernment. Nearly their whole
dependence for the immediate payment Of
the expenses Of the war, now resting on Bank
issues, in the absence of which an equivalent
to the old Continental currency would have
been unavoidable.
Peace al length came, and found the couo.
try loaded with debt Of 1913 100000 Of dol.
lars. The wars of Europe had ceased, and
each nation had resumed its peaceful occu-
patiens, and instead Of requiring our producs
to consume. or our shipping to transport their
own, they had both to spare. Our resources
from commerce we're thus cut of, and the
most pressing wants Of The country could on
ly be supplied by . circu,ous trade, FOR ihe
purpose Of exchanging few Of our s,sples
for the products Of distant climes, which when
brought home must be again resbiPped To
Europe, to exchange for articles Of necessity
thus paying the expense oftwo exchanges
to accomplish one. There being no proiect-
i've duties to shield our manufactures in their
infancy, the British capitalists were enabled
to keepa constant supply Of manufactured
goods in our markets, TO the full oxtent they
would sell, which afler absorbing in remit
tanccs wba, few articles wero wanted from
tho U. States, operated as constant drsn
on our specie, no, dollar Of which was ever
returned. Exchange rose from 20 to Is per
cen, above par. The old system OF barter
was again being resortcd to, and il bccsms
an established custom in many parts OF tho
country, TO demand cash al the shops for oil
European articles, OF the same time that es-
changes were made for country produce,
payable in "Ameiican goods." Foreigs
" Comforts" became unknown to the lsbcrng
man exccp, by bcsrsoy, and wers known to
l.. l..a Al -.