Rutland herald. [volume] (Rutland, Vt.) 1823-1847, 1840-04-12
mo. lO

N'"''t "h'Nh Huu I'bNcu cUcCtuui,
without rejecting upon the consequent
ccs which might happen TO the coun.
try, II the new one they intended TO
substitute proved worthless. Neither
can il be said in their defence that they
were mol distinctly warned beforehand.
The oldest and wlscst fnanccr OF the
country, Mr.. Gallatn, had done all
that could be done TO put them on
their guard. He forc;old the difficult
ties which would OCCURS thew did
occur-but the Administration was
wlliul rs well rs ignorant, and chose
10 make the country pay the severe
penalty now inflicted upon il for the
error.
II may he laid down rs q certain truth
that no mistake can be made in the adj
mInistraiIon of the Treasury depart
ment of "A government, which will not
very soon come back, TO mike itself
felt by the chief manager in every part
of his direction. The first consequence
10 the Administration of the creation
of the new league Of Deposite Banks,
ms government agents, with instruc-
tons TO accommodate the public, was
a mostuneypccted, and unwished for
| acquisition OF revenue. The currency ofthc
country had been supplied 10y the government
with powerful spring. In the place OF the reg
ulator which was taken away What should
we think OF matchmaker who should undrr-
take TO repair watch in such way as thisi
Should we wonder il the watch proved after
wards TO 90 much too fast The paper currency
banks went on expanding soon as all check
was taken away, and this expansion had its
! necessary effect IN raising the prices Of land
and comomdltics Olcourso this made profits
and stimulated speculation. Some persons inn
ported foreign commodities more than usual,
and this swocd the receipts OF the Custom
houses, Others invested largely in new hnds,
and as the government is holder OF these, a
| great deal more money than common was nc.
! ceved from the sale ofthem. There is album
dan, evidence TO prove that these results were
not at all fOrescen as the consequence of chan
ging the mode of keeping the public money, al
though the same had happened when the same
experiment had been in progress twenty years
before. They proved 10 be excessively en-
barrasing. The celebrated specie circular
was the only remedy which, the administration
could devise on the spur Of tho occasion, and
this tuned out nero nullity. Tho National
Treasury was inundated with what appeared
TO be money, which tho Secretary did not
know where TO keep, or how to use.
Very much against the will ofthe President
Congress stepped in and helped the Treasury
out of is dilemma The order for the dstri-
r button Of tic surplus of the receipts over the
expenditure, in deposirc among the States, was
passed And then tho Secretary commenced
a series Of atthmetical operations among his
depositc banks, which will remain forever
after, rs I monument of financial experience
. | lac had tried 10 see how fast he conld DESTROY
the system OF his own exertion, il is doubtful
whether he would have bit upon a more elTc-
tive course of policy than that which, in the
simplicity Of his heart. he adopted He fully
believed that the Deposile Banks could refund
the money az moments waning, which he
had ordered them 10 lend TO tho public for pur-
roses of speculation; and he did not appear to
suspect for n moment that il was that specu-
laiion alone which gave such great fooings to
the accounts Ofthe Government dcposites
When, therefore, he went on 10 order the
money about from place 20 place, just as II II
was IN gold aud silver he did no more than to
accelerate ihcgaiurc Of the grand experiment
(, of Dcposi'o Bahk paper. Throughout III this
history, the only ihgg that strikes an observer
! at every turn, u the incompeiency OF the ad-
, mihsirailun 20 The tnsk which II had under
taken. Every fresh error was attended with
s pariic ular effect, md tins WIS as little fore
? seen by tho persons committing 1t, as the nature
: Of that error itself understood The ca,as,ro-
q phe which tho Secretary FASTENED, mus, never
> heless have happened too soon to warn him Of
bis error, at any rate. As II was, it over
whelmcd him with afon5hmcnt. lie read IL
, ! first ia the newspapers, and could hardly be-
iere ms cycs, ifis favored Banks did not
! even pas up1n him tie poor compliment Of a
, special notification Of their disaster. They
knew very well that tic Treasury had blunder-
ed and the Treasury was 10 suffer for il; and
2 they probably felt, that If they had been put
g into a lrilc extra confusion before their time
by tie ScTalary'g ari, he thc great patron Of
their fr,urcs) would not thsak ,hem for telling
= him hc was 'ic cansc oft BosfOn Courier
From ile l.osis,iHo oufasI