Morning herald. [volume] (New York [N.Y.]) 1837-1840, 1840-09-29

the dcpositcs having been removed they suddenly
discovered they had no place wherein to lodge the
public money. 1t would not do to trust the banks
that would be lying in the face Of their own doe
trines. What then!
They began experimenting. They stretche d
the whole couutry on tenter hooks. They placed
the mercantile interest the rack, and AIDED the
merchants 10 distraction. They went on as If II was
no part of the duty Of government to protect the
mercantile community, but TO make it the sport Of
every idle device of every charlatan scheme the no.
vel doctrines Of the day on currency and hard mo-
ney engendered or conceived When Gen. jackson
in his message to Congress declared it was his inten-
ton 20 give a better currency TO the country, he
made no calculation of the kind OF instrument he
would have to work with, Having vetoed the Bank
that was unavailable. The State banks were
turned to-they were found totally incompetent
to perform the duty required They could not per
form the duty Of National Bank, they were not
adapted to it-they were not made for it, The task
they attempted was one National Bank alone could
perform. (Applause) 1t was useless to multiply
them-s small banks were liable to the same objection
large ones, and the government found itself in
new and uuthought Of dilemma (Applanse)
Well, gentlemen in 1887, that theory, aye and its
practice too, exploded. Martin Van Buren, found
MINIS fun pleasantly situated The country call
ing loudly for relief. 1t was necessary something
should be done; the State banks had been tried
government had sgnally failed. Well, in 1887, the
banks exploded, carrying with them the better cur
rency system. What then! why then we first he I'd
of the notable Sub-Treasury scheme. "a laugh
These some Of the successive steps, and some
Of the successive resources of course OF series
Of baflied and dsgraceful experiments, into which
the present COVE rnment has thrown ITSELF always
hoping and always defeated, and plunging deeper
and deeper into the mire at every turn.
And now, my friends let me remind you, taat from
1888 to 1897, never let month pass in Congress
that We did not say that this system Of deposits
must soon come to an explosion. We were always
arging il upon public attention, that the deposit
banks must break. Well, what comfort did We de
rive from stating onr opinions? Why, we were
told that we were enemies Of the State banks. We
were told that whole desire to crush the in
stituto1 Of the State banks; and that would not
be satisfied unless we had great National lnstitu
ton, that must ride ever and break down all the
State banks.
Why, il we're then at any time to get up in my
place in the Senate and say this, was told, sob,
you arc an Anti States Rights man, and want to
crush all the State banks
Well, what bappenedl What happenei! Why,
the system failed. TIE State Banks failing. The
whole experiment failed. Then those very gentle
men were the first to turn round and rcvle all these
State Banks, which Just before they he'd praised
much. And they charged them with all the corrup
tion and all the prohigacy that had beionged they
said, to the opposition, and added that they con
sidered them not much better than British Wings,
any Of them Ard then. too, we, who had merely
wished protect the State Banks IN h ir just rights,
we we're told that had sided with these very
banks TO put down the purest administration that
ever existed. Loud cheers When we, who had
merely wished to keep these banks to their proper
purposes and were then charged with wish to
wished to raise them up-we, say, were stigma
tized as bank and being bet er than
the most wicked British Wings amongst them.
Now, | ask you, merchants, do you expect
this administration can possibly do anything for you,
or that it will do anything for you, in order to
store the times which have once enjoy ed9 Cries
Of mo, no.
Well these words agree with my opinions on thes
subjects. Because they have turned their backs
upon the merchants, they have turned their backs
upon the people and because they say that they
~ .Unrt IN do, Chear
Now, gentlemen, what ] wish to observe to you
further is that this administration has treated the
States in their affairs, Just as II has treated the
State Banks. They have first seduced them into
trayacant habits and then turned round and abused
them We have seen this, beginning with Mr. Van
Buren's message 10 Congress- we have seen it in
Mr.. Benton's resolutions we have seen 1t IN Mr.
Grundys resolutions and we have this line Of
conduct ever since.
The whole Of the movements have been systema
tic attempt TO depress the credit OF tha several
States. Every where il has been said that these
States have ran them selves deeply into debt with
iptcrna al improvements have incurred unnecessary
expenditures and that they could never repay the
| money they had borrowed That my friends was the
barthen of MIR. Van bursn's message-thst was the
burthen OF Mr.. Grdndy's resolutions, and that has
been the burthen Of the whole party.
Tha, was the burden of Mr.. Van Buren's message,
and os Mr.. Woodbury's report and resolution, and
Of Mr. Grundys report and resolution, and | leave
il 20 you il it was not the miserable tendency Of
such proceedings, to affect the credit Of those states
which had undertaken pubic works, ana winch hai
bonds in the market, to enable them to
| carry on those works. Let us look at the history
ofgthis little and how IL was, and under what
| circumstances these enterprispg states were in
| due cd to contract these large debts, Let me call
| YOUR attention TO a few facts, and To dates and
| figures respecting this. In the first place, ] do
| here to-day, gentlemen, in your presence, charge
upon the administration ri the national government,
the great expansion Of paper money, and the sudden
contraction Of IL, both OF which have so mach de-
ranged the Affairs Of the country; and propose to
prove it-that is, propose to lay before you fac's
and dates, and transactions, which shall carry
yiction Of this truth 10 the mind o. every honest
man. Now, let us go back no further than the year
IS,2 when IL became settled, by the exercise Of the
veto power by General Jackson, that the Bank Of
the United States would not be rc-chsrered. Now
suppose we take series OF years, by tens and
fiyes and trace the history, very shortly, ofthese
things aud of the creation and institution Of State
hanks in thiscountry. From $50 TO $50, period
OF ten wears, there only twenty two new banks
created in the United States and those p new banks
added 10 the capital Of the banks Of the country no
more than eight millions OF dollars During that pc
Rod from 1870 To $780, the Bank Of the United
State, was in actual operation, and at the termina-
tiou of that period nobody entertained reasonable
doubt that IL was TO be continued. Now, how do YOU
take the next ten years What Happened from 1880
To ISi0l why, there an increase in the nu.nser
Of Banks during these ten Yeas Of no less than BIS
instead of % banks and the increase 10 the capt
tai was 26S millions instead Of eight millions. So
that instead &C ~ baAks there yiS, and instead
of an addition OF millions, there addition Of
26S millions. And this was the progress Of bank
expansion during the charming years Of that expe-
riment. (Applause) Now, allow me 10 60 little
further. Not only there in these years Of expe
riment, the augmentation Of banks in nupber and in
capital, but there was that extraordinary proceed
ing Of g. vernment, when in 1923 II removed the de
positos and b, which IL made IL the duty Of all dc
posite banks 10 loan money freely o the mercantile
community. The Secretary Of the Treasury, by an
order in September of 1893 after the removal OF the
deposites, told the banks that it was their duty to
discount freely, and that the money Of the govern
ment received during that period should be at the
use Of the banks for that purpose. And cashier ~
a bank in this street then told me that he hardly
knew what to do for he had orders from the govern
mcut Co lend more money than he could get good