The pilot and transcript. [volume] (Baltimore, Md.) 1840-1841, 1840-07-11
VOL. 1....NO. 7J.

late administrations Sir, as as they des-
troyed the "monster," as they denominated the
United States Bank, they came out for an M
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
eits of banking. The politicians who support
ed the administration, went home and became
the champions for the establishment of new State
banks; and, sir, what did we see? Why, Mr.
Chairman, in a very short time we saw the num-
Der of State and local banks increased from about
three hundred to upwards of nine hun lred This
is a fact which deny. l might ex-
hibt the proof of it, but 1 viii not detain the
committee to do
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 the public
monies in their custody. If it were neces-
cary, l 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 Recommendations to discount
freely on the peoples money deposited with
them, for safe keeping, to fill up the vacu-
um 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-
duced the unnatural state of prosperity of which
the friends of this bill complain. The whole
community thought they were growing rich
perfect sea of prosperity, and golden harvest
opened up before their enraptured visions. The
administration claimed credit for all this as the
happy results of their experiments on the cur
rencv, and the people sang hozannas to the
&c greatest and best" They were assured that
this was only the sfbeginning of the end, )" that
times were to continue to grow better, and their
prosperity was to go on increasing, until finally
it was said that gold to G fotc up the Mis-
siSsipin Under these delusive promises and false
expectations, sir, the people were induced to I'M
dertake improvements-to buy property and Gre
ate large debts The whole country became m
debted to am alarming and enormous extent
The people relied upon the success OF their en-
terprizes-the reward of their exertions and in
dustry, and the high prices then commanded Tor
all descriptions of property, produce and labor
in all its departments, to enable them to dis
charge these debts. But, sir, in the midst OF
these enchanting but elusive and deceptive
dreams of prosperity, they were awakened as by
clap of thunder from clear sky. The specie
circular was issued, requiring specie in all pay
Iaents for public lands The administration had
become alarmed at the result of their own follys
and it became necessary to check this mighty
current of speculation and extravagancs which
had resulted from the causes / have Just emu
merated This requisition caused a run to be
made upon the banks for specie, and the greatre-
vulsion which took place in the spring of 1885,
was the necessary and unavoidable result. Since
that time, sir, we have been sinking deeper and
deeper in this whirlpool of destruction, thus let
loose upon Us by the folly knavery, or boths
of our rulers.
rte BE CoNTINUED.l