Herald of the times. [volume] (Newport, R.I.) 1830-1846, 1840-04-30

the Presldent, IN noDic message Whlcn
approved him the worthy successor Of jack
sou, and the worthy choice Of the American
people (; this calm, sagacions, firm, patrotic
President hung out the banner for The divorce
Of Bank and State-for a return 10 the Con-
stitution, and the oct of 80, in the establish
ment Of an Independent Treasury for the ex-
elusive keeping of the Peoples money, which
money was to be the exclusive gold and sill
yer currency of our wise and vsncratee Coa-
stituiion. The President did his part the
people backed him; but their Represe atives
| faltercd and second explosion Of the paper
system had to add itself to the argument be-
| fore the minds of;he doubling could be con-
vinced and the spirits the wavering confirm
ed. The second suspension came, and tho
argument was conclusive"
| Mr.. Benton was not the only one who FORE
told the suspension of the banks IN IS3.-
/ The writer as well as many others, also fore-
. told il some months before il took place.
! The writer's opinion as well as MIR Benton's,
was not "gucss work." but "concluslon Of
reason and Judgment, formed from a view OF
facts" but they were not altogether the same
! facts as ihosc stated by Mr.. Benton. Mr..
/ Benton, informs us he knew the Banks must
I fail bccanse--"Gd"h he Isl, the "Unlled States
bnnk was rotten und wicked, and would fall
and draw down the rest with her." Now
I this s'Gnci" was not IA fncf The real fact was,
that the banks in Mississippi first failed, then
those of New York and the United States
bank, $50 rotten and wickei" instead of "drap-
ing dorm" other banks, WAS among the last
that was drawn down by these other bdRks.--
So it is clear this was not the "fdct' that
caused the banks TO fail, agrceably to Mr..
Denton's prediction. Mr.. Benton's 2dJdct,"
which was 10 cause the failure of the banks
wns-"'rlal the whole paper system was dis
tended to the bursting point" That Is Eict
so il was--and the writer has no donbt Mr..
Benton knew it. and knew Likewise Gf the
Secretary Of the Treasury, aud OF Reuben
NJ. Whitney aud other agents Of the kitchen
Cabinet, having used every means to insli-
gate the banks To extend "to the bursting
point" Mr. Benton's ;M''(aci," for the cause
of the failure of the banks il seems was
I" ! hat ;he smaller class Of our deposIte banks
we're ready for bankruptcy, many of them
having from twenty to thirty, and even forty
dollars Of liabilities for one dOHar in specie"
tbs, also, icas facf, and The writer can re-
fresh Mr.. B'nton's memory with another
|cct, which he has not II seems, ,lhongh; worth
while To state, viz that IN Feb. Is;}5, MIR.
Blnney, Wing member in Congress moved,
that each deposit bank shonld be- required To
keep IN It's vaults specie to the amoun, OF
one nm part oi their notes IN circulation, and
oI their public and private deposits. A bill
to this effect passed the lower house Of Con-
gress by vote of lC9 in favor, to 80 against
II T; all who voted ln favor of The bill wIiI the
exception Of Sir, being UhigS. Mr.. Benton
beng member oi the Kitchen Cabinet, may
perhaps be able TO inform Us Thy it was, that
on The next day his friend Mr.. Pummcr, of
Mississippi, moved Tor reconsideration Of
this vote, aud after call of the house The act
was annullcd by n vote Of li9 to 100, the
whole OF the majority ercem Jour being ad-
men, and OF course under tho
cont ol of the Kitchen Cabinet. The Wings
have ever been accused by Mr.. Benton. Of
being in favor of bank expansions. If this
bill had been allowed Ia become n law, il is
probable the deposit banks would mol hnvs
had "Joriy dollars Of liabilities J1r one doiiar
IN specie" But ~ that case il would have
been more d.DicuA to have driven them to u
mat is a fact. Mr. Benlon's 4,h
and last ".jaci," has been treated of IN pre-
'ious nnmbcr-in which the writer cndcuvor-
ID to shew, that the "tad' of the deposit
banks having about forty millions of public
money IN their vaults, while their specie did
lot amount To about one third of that SUN,
,laced The banks entirely at the mercy of tho
knchcn Cabinet; who used their power puy-
,os'iy to destroy them, Us before described.
|hIs wns done IN order no doubt 10 furnish
an .1RGU U.NE.NI' which Wouid courince the
afion," that Mr.. Bcnton's specie currency
nd s,ib-leasury bank was the best.
Those who are not ia miar with bankin.
do not readily comprehend how
he operations of one bank necessarily effects
he affairs Of other banks. The eight hui n
red banks ia the United States may be COM
arcd To so many lakes or ponds Of different
lzcs. all lying on the same level, aud oil
with each other by intermediate
auals. II water Is drawn ont Of any one of
lesc lakes, the surface of the tchoie is lower
~ equal proportlon--so with the chain Of
anks-thc same cause that affects one al
,cts the whole.
Suppos" an individual hns deposited ina
ank 40 0CO dollars, aud that bank has but
jOOO dollars III specie, which we will sup.
Ose Is IT'S lair proportion in relation 10 MlInt
possessed by the other banks in the u.
tates- and Of course the amount Of spe-
% cannot be readily increased; does not any
ne see that the individual dcposi,or If he is
Sposed To be- InschicvOus, can eat his break.
81 of a morning aud in few minutes walk
The bank and cause ii to suspend, by dc.
andlng hls 10000 dollars in specie. This
rs The precise situation Of the deposit banks.
hey had been instructed by their pretended
ends, the Kitchen Cabinet, through their
ol the Secretary of the Treasury and other
eats, 10 extend their discounts to wha, Mr.
nlon calls the " bursting point" This cx.
nsIon us before stated, caused spectators
every dcscrlpliun-,he merchant imported
lnense quantities oi goods, the duties on
iich swvlled The revenues of the country,
did also the unprecedented socs Of tho
blc lands, until the government deposits
lVunicd to about l0,CO0,U00 dollars. ,is,r.
ted among 81 deposit banks, while tie ng.
"gale oi their specie did not exceed l5,.
O,OCO dollars, which so far from the banks
Ing able to increase, wha, they had was
Instantly being drawn from their vaults by
; operations Of The specie circular, and a
nvy dram Ia pay the balance now due in
rope, ns before shewD. Does not every
. sec that these banks were as much IN The
wcr OF the KITCnRN CABINET. through
lr auton,aton, the Secretary Of the Tres-
y, ns the bank before described was IN the
wer of the ndlvidual!-ThIs no doubt was
seen by Mr.. Benton, aud the certain sns.
aston OF The banks was ns 'd,monsiraJie 10
I, as a proposition az Euciid" The de-