The Hillsborough recorder. [volume] (Hillsborough, N.C.) 1820-1879, 1840-05-14

a. this fyslfm wiil 10. | bel.ese th.s
Generalization and dssale.iinn nil esiy
be increased. and Ihs, BET has been ne
history o. me past. sill only BE eor6fn-
Cd BY lhsl 81 The future.
The sdyoesles Of The sub-srsssury
scheme. Tor he purpose Of exciting pph-
lie prejudice sesinsI de bsnkipe iaslils-
lions Of lhe country. ndihrOugh lhai in-
slrsmsnsali,y. securing he sJoplian o.
their pei srhsme. have uniformly aserib-
ed The severe resulsian shieh orerlook
Ihe country. 10 tie cverseiion Of ,hs
banks. A fes simple facts viii falsify
this charge. General Jackson vas in,u-
enr4lej on The 4lh Of March, 1929. On
he frs, 81 January. 1890. there were
$40 state banks. with capital IL sI4s.
l92. eos, and eircula.ion az Sc. 323,
SOS. In 1882. Geaersl Jackson vetoed
the bill for rechsrlering The Bank Of Tie
United States. and earnestly recommend.
cd The use OF state hanks ss fiscsI sgen.s.
The policy Of General Jacksaa vas 10
use slate banks IS auxiliarirs in his ope-
ra,ions sgainsi The Bank Of tie Uniied
STATES; and in September. 1893. he with
drew ihe depesiles Of tie ppblle money
from that institution. and employed the
state banks IS public repositories. Iie
also. for The purpose OF avoiding The dis
tress which Ale ~ill,Jrawal Of the cireu-
lalion Of that bank would produce, and
the speedy COLLECTION Of is loans. urged
upon The state banks 10 expand their cir.
eulslion. On the IsI Of January, ls35.
under The influence Of this rolicy. the
nuober of state banks had increased 10
SIS. will capital Of S33i .250. 337, and
. circulation Of SlO3. 692.495. Through
the years 1885 and 1886. Ibis system
was in The foil tide Of successful experi-
menl: and accordingly we find that on The
lst Of January, 1897. The number Of
banks had increased 10 700. with capi-
ial II S440,l95.710, and circulation III
Slf9. lS5S9O. This increase ol banks
and banking capital. during General Jack
sons administration. ecuain!y grow DOT
Of the policy Of The government n rsla-
lion 10 The Bank 81 The United States. II
was greatly stimulated. loo. BY The rapid
increase Of surplus revenue during The
years ls34-'35-'3 which, on The Isl OF
January, 1887. amounted 10 The enor-
nous sum Of s42.00O.000. which the
banks we're authorized 10 discount upon,
under The dauering prospect that j, would
not be speedily called for; The prices OF
our sfspls rnm mobilize ahaas- ..i.- .s-~.r
particularly cotton, which constitutes The
larger portion of our domestic expors.
began 10 rise in value. and gave . new
impulse 10 the spirit Of speculation anil
enterprise which acted and reacted upon
The banks and speculation. until all oser-
acted themselves, and produced The reyuI-
sion which followed. That revulson, dis.
asirous as il certainly was 10 The com.
meIce and agriculture Of the Country,
swept over all interests, and seriously az
fecled The banks. Tho oserlrade in TO-
reign productions left an Immense foreign
deb, hanging over Us; the rapid and i'm
mense fall in the prices Of cotton and OH
er productions, rendered iescri 10 some
other resource for payment Necessary.
This resource was specie. Tbs heavy
foreign demand for specie. The deposiie
aci Of 1886 distributing the 100000, 900
OF surplus revenue among the states, ia
injudicious execution, The enlbarrassmenls
Of The country. and the alarm of deposii-
ors, produced sudden rush upon the
banks for specie, which left them no al
tentative but 10 suspend or add hopeless
ruin TO the embarrassmenis which had
oyeriskcn the people and themselves.
They wisely resolved upon Suspension.
for which The government changed i,s po-
LEY. Withdrew its confidence, added 10
The prolrsc,ion of The suspension, and in.
creased The prevailing e.nbarrassmenis.
10 1888. specie. pay enis were generally
but prematurely resumed. In 1899.
growing out Of this premature resump.
ton. aided by The injud,cious specula-
tons oil the Bank Of The United States. in
the great staple Of The country and iis
consequent losses. a partial suspension
took place in 1899. OF The $50 banks
in the United States in 1889, 343 only
suspended; GO suspended IN par,; 49S
continued payments in specie, aud Sc
broke or discontinued. OF those that
suspended. 4S have resumed. and The ha-
lance will resume. / have no doubt. in
the course OF this wear. unless the policy
Of The government prevents il. When
we consider the extent Of the revulsian,
the iamense losses wnich have been sus-
tanned. il is mailer Of surprise that all but
56 Of these numerous institutions have
weathered the storm, and viii be so
promptly ready to resume iheir business.
OF the suspension Of 1899. the President
thus speaks in his late message: $50 +
"A large aud highly respectable por.
ton Of our banking Institutions are. il
affords me unfeigned pleasure n stale.
exempted from all blame on account of
this second delinquency. They have. 10
their great credit, mol only confined. to
meet their engagements. but have evtn
repudialed The grounds of suspension now
reser,ed TO. Ills only by such course
thai the confidence and good-a i'll u The
community can. be preserved, and, in The