The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1840-09-18

L
some personal experience Of the manner in
which the continued high prices Of labor and
provisions were welded against the opposition
in 1898. Whatever facts or arguments might
be advanced to show the errors Of the Admins
tration on the subject of the currency and the
interests Of trade and business whatever plau-
sble or solid reasonings were employed to per
suade the people that great embarrassment and
suffering had been inflicted upon the country by
the laundering policy of the party in power, that
commerce and credit were prostrate- all
silenced by pointing to the fact that the laborer
and the producer of provisions Of every kind
were as richly rewarded as at any other period
Of the republic and hence il was inferred that
II was the Spectator and the merchant only who
had suffered in consequence Of the arrangement
of the currency.
The impetus which had been given by the
policy of the Government to the credit and sale
of State stocks, and the means which they al-
forded in keeping up a delusive prosperity, con
tinued TO operate until the middle of last year,
| IS39,) when, by an over-issue, as in the case
OF the banks-by an excess of supply, the Eu-
ropean market was glutted-their credit declined
they were no longer saeable at any price, and
so there was an end Of this resource. Then il
was seen that the catastrophe, properly belong
ing to 1887, had only been postponed until 1910.
This was no sooner perceived than the leaders
of the Administrations gentlemen whose tongues
had been tied all the years OF 1897, 1888, and
part of 1S39-suddenly discovered the enormity
Of creating State debts and State stocks The
conduct and policy of the States themselves, the
independent members Of the Confederacy, were
forthwith attacked with furious spirit, and with
an energy and talent which would have been
more appropriately employed against the enc
mics Of the country and its institutions. ! take
it., sir, that the preservation of the credit and
character of the State Governments is of the
very essence of State rights, and of a republican
i policy But least and last of all did ii become
those who had been sustained by those very
State debts and stocks, and saved from the doom
which seemed inevitable in 1897, to turn round
and malign and denounce them-viper-like
singing the very hand that supplied them in
the day of their restitution!
will now show, sir, how deeply responsible
the present Administration and its supporters
have made themselves for the issue of the i'm.
mense amount of State stocks which they have
lately signalzed themselves by denouncing. As
early as December, 1885, the Secretary of the
i Treasury recommended the investment of the
surplus in the Treasury in stocks. In the win
ter following, GS36,) the distinguished chair
man of the Committee on Finance Of the Sc
nate, (Mr. Wright, of New York, not only ad-
vocated the investment Of the surplus moneys
in State stocks, but he actually introduced a
bill in due form for that purpose; and it will be
seen from the various reports Of the Secreta
ry of the Treasury Of 1886, 1887, and 1888, thai
it continuedto be his favorte policy during those
years. In the year 1896, another movement
was made from another distinguished quarter
which indicated strongly the favor which wa
then felt towards State stocks and State debts
The chairman of the Committee the Pos
Office Department of the Senate (Mr Grundy
proposed to invest the surplus moneys in rail
roads, constructed and owned by companies in
corporated by the States. He pressed this poll
cy upon the Senate and the country in an elabo
rate report, and accompanied it by bill provd
ing, in detail, for the investment in such roads
on the condition Of carrying the mail.
But il is not upon the acts or opinions OF lndi
viduals that | rest the charge against the Adm
nistration of having stimulated and encouraged
the issue Of State stocks. Congress gave its
sanction to the sound policy and wisdom of the
States, in raising money upon stocks for the
purpose Of making their own Improvements, by
authorizing the investment of certain trust funds
in them and this very day. sir, the United States
hold about five millions Of these stocks invested
under the provisions of that act. You have,
besides, made treaties in which you have pro-
vlded for the investment OF certain funds in
State stocks. What do you say 10 that, sir ?
Have you not endorsed these stocks Have
you not contributed, by the recommendation of
your Secretary Of the Treasury and other dis
| tinguished leaders of your party, and finally by
making large investments in them, TO give them
currency and credit both at home and abroad
If there has been excess-if there has been ex-
travagance, in the creation and sale of them,
you are the authors of them, and you are respon-
! sible for the consequences
/ have yet to present you, sir, with state
ment Of the actual amount of revenue derived
| tn the Government from the State bank and
State stock MANIA before it was denounced by
the Administration. This is proper in order TO
bring out in bold relief a peculiar trait in the
character Of the party in power, and one which
is perfectly characteristic Of the principles by
which they are kept together. They never de-
sert or renounce their friends until they have
first exhausted their substance. The poor banks
and State stocks have now to bear the SCOTS and
reproaehes Of those very men who owe TO them
their political existence, and who were borne up
for years by that food Of prosperity to which
i they had given rise by those excuses and i'm
prudences, which finally broke down their credit.
But for the extraordinary supplies derived from
the great increase of banks and bank capital,
together with the excessive issue Of State stocks
of late, their prohigate policy and principles
would long since have ceased TO embauass and
vex the country.
The Secretary of the Treasury, in his annual
report upon the finances in IDecember, 1885,
furnished table by which 1t appears that in a
period of thirty years the annual increase OF I'M
ported goods consumed within the United States
was less than three per cent | have found,
upon examination, that in the ten years from
1919 to 1929. inclusive, the annual increase was
within the estimate of the Secretary. The fol-
lowing table will show the amount of impofta-
| tons for each wear of that period of time
In 1890 $50 44l ,97llIn 1926 S63, TAO, 432