The pilot. [volume] (Baltimore [Md.]) 1840-1840, 1840-04-16

ment funds were perfectly safe in the vaults OF
the Bank of the United States After these
| funds were safely placed within the keeping OF
the pet banks, the next step was TO issue
treasury circular, advising these banks to loan
| out their funds lreely-to discount for the mer-
| chants Ilberally-in fact, to supply the country
with that deficiency of currency which other
wise would have grown out of the veto Of The
United States Bank charter. ! need not, said
Mr.. T., read you this circular, which now
hold in my hand, to prove this position, as it
would be useless consumption of time. What
is now the aspect ofthe affairs ofour monetary
concerns? Why, sir, bright and glowing Gas
the party there in power would have US be-
lieve) as the rays of the May day sun! The
broad ocean ofthe commercial world was calm
as sea Of glass! Not cloud, or even rip
! pie, 10 portend the coming storm! Mr.. fancy,
| the Secretary of the Treasury, in his report to
Congress, congratuates the country upon the
| ushering in of his golden dream OF better
! currency. He assured the nation that these
depoSite banks were performing all the duties
| assigned them as well, yea, even better, than
did the Bank Of the United States; that ex-
changes were equal throughout the whole
country; and, in short, that the experiment had
already realized to the country all, and even
more, than the friends of this system had ever
predicted.
About this period, said Mr.. P, new idea
seemed to have, for the first time, fitted across
the brain of the old Hero and his oadutors.-
The gold and silver age was about ushering
in; Europe was about to be drained of all her
precious metals, to give TO this country better
corrency; and here, sir, said Mr. P, permit me
| TO remark that the sovency of our currency
does not always, nor indeed mainly, depend
upon the quantity of specie on hand. In sup
port of this position, will refer you to a few
| facts; and first, previous TO the war which has
oflate been so furiously urged upon the banks
of the country, we had in this country, accord
ing to official accounts now before me, but for
ty millions in specie; and according to the Off
cial document Of the Chief Magistrate of this
nation, transmitted TO Congress at the present
session, we now have eighty-fve millions; and
vet strange to tell, when we had but forty mil.
lions as have before shown, we had the best
currency in the world; and now, with double
that amount, specie is entirely banshed from
circulation. Again, in 1897. the Bank of Eng
land failed to redeem her notes in specie, and
! four months after, the fiscal concerns OF that
bank were investigated, when it fully appeared
| that she had in vault four millions pound ster-
| ling for every eleven millions in circulation,
which was much larger proportion OF specie
than she usually had previous to the suspen-
sion. The Bank ofFrance suspended in 1906
| when her specie capital was the enormous a
mount of six hundred millions ofdoars.
But, to return. At the time he deposit bank
system was adopted by the government, all
the State banks became the objects Of executive
care. have shown you already, that Presi-
dent jackson by his official circular 10 the de-
posite banks, had occasi0ned the greatest pos
sible expansion ofthe currency, for the accom-
mediation of the merchants and other portions
of the community; and at this very crisis he
was seized with the gold and silver mania
He, sir, was about ushering in that glorious era
inthe history of this Republic, when the broad
waters of the Mississippi were 10 bear upon
their bosom the accumulated gold and silver OF
every cline. The mines of Span--of South
Amerca--oi' Africa, and every other country
were TO be exhausted for the special benefit of
the favored sons of this most favored nation
Whilst this most brilliant dream was lighting
up the fancy of the Hero and the great finan-
Ger of the nineteenth century, he issues, as a
means of calculating his iavorte project, his
famous specie circular, demanding in payment
for the government lands nothing but the pre-
cous metals. Now, sir, need not tell you
and learned gentlemen upon this floor the dis
astrous effects upon the banks and the currency
which such an order was sure to produce. The
modus operandi of such measure, must at the
time, have been obvious TO even tyro in the
science of finances. The Banks at such time
and under such circumstances, could not long
sustain the shock. Their resources were Grip
pied; their capital exhausted; their gold and
silver was to be seen moving from the borders
of the Atlantic, from our maritime cities, from
the great marts of commercial enterprise, to the
wds of the far west. Even, sir, the granite
hills of the Allegany were made to 9roan be-
meath the weight oil the precious metals in con-
slant transitu 10 the borders OF our western ter
ritores. The effect of the repeated expert
ments upon the currency were now beginning
to be felt and deeply deplored by all classes OF
the community. The banks, ever anxons to
sustain their credit, and to redeem their liabii
ties, were forced to curtail their discounts
They could not longer afford their usual facii-
ties to commerce. Their creditors were called
upon for payment at the very time they were
least able 10 meet their engagements.
One disaster followed another in quick sue
cession; bankruptcy became the order of the
day; and, sir, from East to West, from North
TO South, in every direction, throughout the
whole country, nothing met the eye but one
wide spread scene of universal ruin. Like the
deadly Srocco, nothing but blight and mildew
followed 10 the train Of these reckless expert.
rnantS Tho State RonLe No lonpor . he t,> hao.