Herald of the times. [volume] (Newport, R.I.) 1830-1846, 1840-02-20

and had the effort 10 break the distant branch
succeeded, a simultane ous rush would have
probably been made by both public and pri-
vate dcpositors and bill holders throughout
the union, on oil the branches as well as the
mother Bank-and thus by coercing stop
page Of specie payments, IN me asure, the
executive charge OF insolvency would have
been established. The ruin which must have
followed, would have been incalculsbe.
The State depos,e Banks were now re-
quested to extend their discounts 10 The pub
lie, based on the Government funds, which,
however, were kept within bounds, BY tbe
action Of the United States Dank, nolwitl-
standing lis crippled powsrs-unil as Il pre-
paratory step to winding up its concerns as a
national institution, it commenced disPosing
OF Its Branches by transferring their assets to
the state Banks, and receiving therefor the
obligations Of those Incorporated institutions.
AS these branches were from time TO time
gradually disposed of, leaving less and less
check on the local Banks, they in the saue
proportion expanded their issues, until the
disposal Of all the branches being accom-
plished, and the existence of the IT, States
Bank terminated, they broke loose from all
restraint, and stimulated by designing poll
ticians (of which more may be said at some
fIture time TO extend their discounts, n spirit
Of wild speculation was ergeudered beyond
any precedent in our history. New Bank
Charters were readily granted, based on fc
tiious cupi,al--(cspecially in those states
where legislatures were OF the dominant Jack
son party, aud more particularly at the west,)
which following the precederts set by the old
er institutions, Bank paper became literally as
plenty as rags. Such was the spirit Of specu-
lation lha, the sale of public lands which,
until 1875, had never reached 100000 Of
dollars, in that year amounted to abont III,
coo, ,0C0, and the succeeding year, 1886, the
year the charter Of the United States Bank
expired, the sales amounted TO the enormous
sum of 100000 Of dollars. In May, 1896,
Congress passed an act for the dppo'ionment
among The several Siaies, according TO he ratio
Of their representation Of all the surplus
revenue that might be in the Treasury the
next January, exceeding 5000 600 dollars, in
quarterly Ins,aments to commence the lst
OF January, l837.-Ths proved to be con-
trary to the wishes Of the executive from
some yet underlined cause, but ps it was
agreeable and in accordance with his own
message, he could not refuse his signature TO
the Bill more especially as there was every
probability Of It's becoming hw by It's pas
sage through both houses, with two thirds
majority in case of its beng returned to Con-
gress with his Veto--(th number b ing suf.
ficicnt without the Presidents signature to
constitute q law agreeably to the consti,u-
toni The recommendation of the President,
upon which Congress acted was the first,
President Jackson ever addressed TO that
body, December, 1920, before probably the
idea had been suggested Of the political uses
the surplus revenue might be applied to,
speaking of which General Jackson says -
alt appears to me that the most safe, Just,
and frHerm disposition which could be made
of the surplus urenut, would DO in Gpportion-
nent among he Sersrdi states according TO
their ratio of repreStntdiion-an should this
measure not be found warranted by the con-
stitution-that it would be expedient to pro-
pose to the states al amendment authorsing
it,"
II appears by the report Of the Secretary
of the Treasury, that on the first day of Janu-
ary, 1897, there was a surplus in the Trcn'
sury land consequently nearly all deposited
in the Banks Of 42,i6SS59 dollars, which
after rcscrving 10000 600 dollars as required,
left 81 ,I6S, $50 dollars to be deposited with
the siatcs-a sum exceeding the whole spe-
Gle in the vaults Of the dcposte Banks, by
nearly three times its amount. This, AS will
a, once be perceived by those who are at oil
acquainted with Banking principles, placed
lilO1c lUtllluVOlt tIiNl'tll hN N't w WV
men who controlled the dcposltes. 1t did
not necessarily follow, TINT the division OF
the surplus revenue among tho states, should
seriously irjure the doposite Banks IT pro-
per course were adopted TO divide 1t. The
money Withdrawn from the Banks was not ia
leave the country, but on the contrary, IN
many instances, need not have been moved
from their own vaults. The Secretary of tho
Treasury by simply requesting each dePosI'
tory Of the public money to have placed its
quota required for some particular state
lwliere the compsient representative OF that
state should direct) by given day, aniici'
pa,ing the period granted by tho law Of Con-
gress for payment to the slntce, sufficient
time 10 admit Of dram being RENTED from
.hc Treasury department, in case tho dcposl'
tory did not periarm its duty-It would pro
baby have benefited rather than injured The
business of the coun,ry---as by the purchase
Of bills Of exchange and omicable arrange
mont. between the Banks Of different sec
,ion., II would have enabled the debtor states