Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1840-02-20


South and West to consume and the rapidly growing
Importance of the foreign market. - ,
But have not vet done with the system. thas aac
ditional and heavy sins to answer Tor. inc lfi u
- the source in which has originated that very DE-
ronpement of the currency, which has so greatly en-
barrassed at this time, the very intereS' u was ~
cd to protect as well all other branches Oh
Bold as the assertion, am prepared 70 "
the letter. -.
&c ,ha currency in 80, 30, and 81 the immediate
r,ct of the tariff of % 1t remains to be shown that
The cause of the still greater and longer continued ex
,s;on which has terminated in the overthrow OF the
banking SYSTEM and the deep and almost universal ds
rrss Of the country, may be clearly traced back 70
the same source. To do this, we must return 10 tne
year - and trace the chain of events to tins time In
that wear the public debt finally discharged Inc
vast revenue which had been poured into the treasury
m the tariff of 90 and which had accelerated the pay
ment of the public debt could, after It's discharSe, no
nuer be absorbed in the ordinary expenditures OF the
Government and surplus began 10 acsuuate IN, ,he
Treasury The late Bank of the u 3 was then The
fiscal AGENT of the Government, and the depository OF
lis revenue Its growing amount, ana prospects OF
reat future increase, began to act on le cuPuiy Oh
many of the leading State banks and some OF the great
Lrotcrs of New York Hence their war against that
;,;,n,ion. and hence ALSO the removal OF the depo-
sites The late President believe to have been really
hostile to the Bank principles but there would nave
been little or motive to remove them had not oee
FIR their growing importance, and the hostility winch
The desire of possessing them had excited lhey were
removed and placed i'll the vaults OF certain State oahs
To this removal and depose in the State BANKS the
members over the way are IN the haot OF altriouhg
all the disorders Of the currency when nave since o
lowed Now ask, in the hrSt place, Is II not certain,
f had not been for the surplus revenue the depostes
would not have been removed? And, IN the second,
there would have been surplus had It not been Tor le
tariff of %! :, ;
A,p. Is il not equally clear that it was tho magn-
the surplus and not the removal, of itself, that
.sod the after arrangement and disorder: Ii the sur
plus had been but two or three millions the ORDINARY
snm in depose it would have been OF little Importance
where II was kent; whether in the vaults OF the BANK
&c he limited States or those of the States but involV
inc. as did fifty millions and more, IT became ques
ton of the highest Importance. again ask, 10 "na'
is this great surplus to be attributed, but TO the same
cause? Yes, sir the tariff OF 1919 caused 'e
and the surplus the removal and all the after disasters
in the currency aggravated it is true, by being dePo
sited in the State banks; but it may be doubted We
Their the disaster would have been much less mac te
not been removed Be that, however, as may 1t Is
not material as have shown, that the surplus hSeil
was the motive for the removal we all fenemoe
,bot occurrcd after the removal The surplus poured
into the Treasury by millions, III the form OF oahh
The withdrawal from circulation and locking up IN le
vaults ofthe dePose banks, SO large an no
an immense vacuum, to be rcPlenshed by repeating inc
which cave to the banks the means OF
accommodations. Speculation now commenced on
gigantic scale, prices rose rapidly ana one party "
make the removal acceptable to the people, urge" ,e
o;da nraduced the same effect by censurng them ior
no, afordnp as extensive accommodations as the BANK
oftbe United States would have done, had the revenue
been left with it. Madness ruled the hour Inc "hoie
community was intoxicated with imaginary prospects
- a,i,;na immense fortunes With the increased
rise OF prices began the gigantic specuiatiohs IN 'ie
public domain, the price, otwhch, beng hHeG py law
could not parake of the general rise 10 eHiagG 'ie
room for their operations, know not now MANY hiioiS
any would suppose at least, OF the pubic reseiac)
wos SINK in purchasing Indian lands, at their ice SIM
ME price nearly and removing tribe after trDe 70 Tue
West at enormous cost; thus suhlec'hS ihiiiohs y"
millions of the choicest public lands to ne se2ea on
Nv the keen and greedy spe2ulator ! ne liae no"
s;,oIloa with irresistible force From the banks the
deposites passed BY discount into the hands OF me aO
specuators from them into the hands OF Inc receivers
and thence to the banks and again ana again repeat
ING the same circle and at every revolution PaSs'
niIlions of acres of the public domain from the people
into the hands ofspeculatos, for worthless rags at
This state of things continued much longer every acre
of the public lands, worth possessing would nave passe
from the Government At this stage Tile alarm tooF
Mace The revenue attempted 10 be s'i"aiius!e'
hy the widest extravaganza; resolutions passed 'i,
iiody calling on the Departments 10 know he" niuci
they could spend, and much resentment vas ici' oe
cause they could not spend fast enough lie afpo
site passed, and the treasury cire"'a ssuto
IT, S,r the currency was concerned" IN VAN
ita@ more aesa~ ssRSs
PROSTATE. .
have now presented, rapidly, the unbroken cha
oc events up the prolific source otonr disasters, an
down to the present time. In addition to the cause
originating directly the tariff OF le2S, there were Sc
yeral collateral powerful ones, which have contribute
10 the present Frustrated condition OF the currency an
the banks, but which would have been comparative
harmless of themselves Among these was the import
ant change the charter OF the Dank OF England,
the last renewal, about the time our surplus reSehu
began 10 accumulate, by which It's notes were made
legal tender in all cases. except between the bank aii
It's creditors The obvious effect OF this modification
was TO diminish the demand for specie IN that grea
mart of the wcrld and consequence, must have tend
ed powerfully keep the exchange with Us IN an cas-
condition, whetbc tide of circulation was rapidly RI
sing to dangerous height. But there was anothe
cause which contributed still more powerfully to tn
result refer to The great loans negotiated abroa
by States and corporations To these add the opera
lion of the United States Bank of Pennsylvania, tn
direct object of which, in of IFS more prominen
transactions, to prevent the exchange from bccon
:ng adverse 10 US.
By the operation Of these causes combined, the eN
changes were kept easy for years notwithstanding tn
vast expansion which circulation had attained iroT
the powerful action of the direct causes TO whc
have adverted. The stroke was delayed, but nc
avcrted and fell but the heavier and more fatally, be
cause DELAYED And where did it fall, when it came
most heavily Where the measure which caused it or
gnated; on the heads of its projectors. Behold hoy
error folly, and vice, in the ways of inscrutabl
Providence, turn back on their authors
1t is full time for the North, and more especially 70
New England, to pause and ponder. If they woul
hear the voice of one who has ever wished them vel
would say that the renewal of the protective syster
would be cfe greatest calamites that could beia
You. Whatever incidental good could be derived iroI
il, yon have already acquired 1t would if renewed
prove pure, unadulteraed evil. The very reverse
your true policy The great question for you 10 decid
is, how to command the foreign market. The lom
market, Of ITSELF is too scanty for your Skill you
activity your energy, your uneqnallcd inventive pow
ers your untrng industry, your vastly increased popu
md rod thnnf thp cir,
market your unexamplcd march to wealth and i'm
provement must come to stand. How, then, 20,
to obtain command of the foreign market: That is TIL
vital question
The first and indispensable step is thorough refor
nation of the currency. Without a solid, stable, ant
uniform currency, you never can fully succeed Thu
present currency incurably bad. 1t is impossible It
give i; soidity stability convertible bank cur