The pilot and transcript. [volume] (Baltimore, Md.) 1840-1841, 1840-12-15
vOL. I...NO. 900.

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pendlture be selected, or great enlargement
given to some already existing, the whole
amount must OF necessity, contract hereafter
very rapidly. The same result will be further
promoted by the deaths of pensioners, increas-
ing through advanced age, and the completion
OF many public works as by persistng in
firm policy to avoid the wastefu expense of
unnecessary foreign collisions, and to refrain
from those lavish expenditures for certain
domestic objects, over which the Jurisdiction
OF the General Government is often questions
BILE, and which always opens the widest door
to extravaganza, favoritism, and corruption.
One OF the greatest evils to the public ser.
vice, as well as to the security of private bu-
sIness, during part of the above period. has
consisted in the fluctuations to which both have
been subjected
With only single year intervening, and
without any material change in the tariff, or
any whatever in the price of the public lands,
we have seen the revenue from ordinary sources
suddenl y vary from nearly fifty millions an
nually to eighteen; and, on tive occasions since,
vlbrate to the extraordinary extent of yearly
eight and eleven millions.
The transactions of individuals upon which
our revenue depends, must, of course. have
undergone an unusual change at the same
time
The imports fell within two years, in the
case first referred to, from near one hundred
and ninety millions to one hundred and four
teen; and In the single year Just passed. fell
almost sixty millions. Such mutations and
contraStions must be destructive of all con-
fdence in calculations for the future. while fhe
causes of them shall continue to operate unre-
medied.
What were those causes?
They will be found to have been chiefly con
nected with the abuses ofbanking. On the oc-
casion first referred to, they were the supera-
bundance OF fictitious medium of circulation
with the attendant overtrading and specuIa.
tons IN 1886, and the consequent suspensions
of specie payment in 1887, as well as the dis.
asters and scarcity of any medium till the lat
ter part of A. d. 1888. Then another expan-
sion commenced, extending into 1899, and ac-1
companIed by another increase in imports of
nearly fifty millions, which ended again in the
centractlons by banks, suspensions, and COM
mercial reverses, which have suddenly reduced
the imports of 1910 more than one-third. and
in many places augmented seriously the embar.
easements before existing from similar yacilla-
tons in the paper currency. b
How far some imprudences abroad. at the
same time, similar to these, though in a coun.
try enjoying any advantages which can result
from National Bank, may have augmented
the evils here, by means of the intimate mon
eyed relations between us, need not now be
discussed, though probably their influence was
large and unfayorable.
The causes first named were, likewise in
full operation here in 1916 and 1877. and wore
succeeded by many of the same denlorable CON
sequences in 1919 and 1920. One followed
the other as inevitably as the cbb of the tide
succeeds its flood.
The great principles of trade can never be
long violated with impunity; and any fictitious
or Immature excess OF credit soon ends in re-
Vulslons, as the essence oflegitimate commerce
consists in an exchange of values for each
't1er' or OF values Tor what truly represents
values, and can be readily converted into
hem.
All business otherwise becoms a mere gama
If hazard speculation must enter into every ar
air of life; riches and poverty will be denen-
tent on the merest bubbles; prices will change
'ttener than the wind; regularity in receipt and
be Impossible; estimates for the
uture, whether in public or private matters.
become mere conlectures; tariffs require year
y alteration to meet the fluctuations of bust
ness; and the community be kept under the
constant excitement and depression ofthe hot
and cold fits of a violent fever
The first remedy sought in 1916 by the es.
tablishmeat of National Bank. was suppos-
ed, during afew ensuing years, to have agra
waited those evils; and the next remedy. adopt- /.
ed in 1924 by a high tariff, did not prevent the
low prices and bankruptcies of 1925, which
covered the country wi wrecks and ruin
Undoubtedly, the best relief on such occa-
slons is TO be found in removing the cause of
the disease. So far as regards the General Gov
srnment. this was attempted in 1887, and
'lnce, by gradually withdrawing from the use
If banks and their paperin its fiscal operations,
10 as neither to stimulate nor contract their bv
ssues byotherinfuences than ordinaryhusiness:
lrging on those, who might find their emplov
nent sometimes useful, closer regard in do
ng it, to the safe and sober influences of the
Universal laws Of trade, as well as an infiexible
dherence to the constitutional standard of val
e.
While the General Government shall contin-
to pursue such course, it will mitigate and
heck the evils which others produce land which
hey alone under the limitations in the Consti-
lton, are able entirely to remove. At all
vents, it will faithfully perform momentous
uty and exhibit useful example for imita.
on. ,fa
In period of peace and comparative exemp-
on from public debt, as we'll as from serious
ificulty in financial operations, it would hard
seem proper to attempt more by assump-
ons of doubtful powers, and by forced con-
ruction in favor OF measures by no means GER
in, if adopted, not to aggravate rather than
minish existing evils and not to produce
hers OF character still more dangerous.
uch less can it be considered respectful either
State rights or the people, and certainly not
mpetent, in the opinion Of, the undersigned
exercise such powers BY creating moneyed
operations among them, which MANY of fbe;
mber have repeatedly denounced as unconr
tutional, and the authority to establish which
rs originally refused rather than confined r.
e General Government by the people and tbe
ates that formed it. But some other powers
pressly conferred can, without question be
erclsed further than has yet been done by
'ngress, and in such manner as to produce
ry beneficial consequences upon the cnrren-
. Still, it is hoped they win never be push
SO as to trespass on ground really doubtful