Lexington union. (Lexington, Miss.) 1838-18??, 1841-06-19

t existing in the u. States.
} These effects may readily be traced to
, the causes above referred TO- The public
: revenues, on being removed from the bank
of the U. States under an order Of late
President, were placed in selected State
! banks, which, actuated by the double mo-
tive Of conciliating the Government and
] augmenting their profits to the greatest
, possible extent, enlarged extravagantly
their discounts, thus enabling all other
} exciting banks to do the same. Large
dividends were declared, which, stimulus
, ting the cupidity of capitalists, caused a
rush to be made to the legislatures Of the
J respective States for similar acts Of incor-
Pcration which, by many Of the States,
I under temporary inlatuation, were readily
} granted, and thus the augmentation Of the
J circulating medium, consisting almost
exclusively Of paper, produced a most
fatal delusion. An Illustration, derived
from the land sales of the period alluded
to, will serve best TO show the effect Of
the whole system. The average sales Of
the public lands, for period Of ten years
prior to 1884, had not much exceeded
S2,OO0,OO0 per annum. In 1884, they
attained in round numbers TO the amount
Of 100000. In the succeeding year
of 1885, they reached $l6,OO0000. And
in the year 1886 they amounted TO the
enormous of $25, 100000. Thus crowding
into the short space of three years, up
wards Of twenty-lhree years purchase of
the public domain.
So apparent had become the necessity
OF arresting this course of things, that the
Executive department assumed the highly
questionable power of discriminating in
the funds to be used in payment of differ
ent classes Of public debtors; discrimi-
nation which was doubtless designed TO
correct this most ruinous state OF things
by the exacton Of specie in all payments
for the public lands, but which could not
at once arrest the tide which had so
strong y set in. Hence the demands for
specie became unceasing, g. correspond.
ing prostration rapidly ensued under the
necessities created with the banks to cur
tail their discounts, and thereby 10 reduce
their circulation.
| lrecur to these things with no DISPOSE
ton to censure pre-existing Administra-
tons of the Government, but simply in
exempll6caticn of the truth of the position
which | have assumed. If then. any
fiscal agent which may be created, shall
be placed, without due restrictions, either
in the hands of the administrators of the
Government, or those Of private lndiviGu-
ais, the temptation 20 abuse will be resist
less. Objects Of political aggrandizement
may seduce the first, and the prompting Of
boundess cupidity will assail the last.
Aided by the experience of the past, il
will be the pleasure of Congress so to
guard and fortify the public interest in the
creation of any new agent, as to place
them, so far as human wisdom can accom-.
pllsh it, on footing Of perfect security.
Within few years past, three diflerent
schemes have been before the country.
The charter Of the Bank Of the Uuited
States expired by its own limitations in
1886. An effort was made to renew il,
which received the sanction of the two
Houses of Congress, but the then Presi-
dent Of the United States exercised his
VETO power, and the measure was defeated.
A regard to truth requires me to say, that
the President was fully sustained in the
course he had taken by the popular voice.
His successor in the chair Of state un-
qualifedly pronounced his opposition TO
any new charter to a similar institution,
and not only the popular election which
brought him into power, but the elections
through much of his term, seemed clearly
to indicate concurrence with him in
sentiment on the part Of the people. At
ter the public monies were withdrawn
from the United States Bank, they were
placed in deposile in the State banks, and
the result Of that policy has been before
the country. To say nothing as TO the
question whether that experiment was
made under propitious or adverse circum-
stauces, it may safely be asserted that il
did receive the unqualified condemnation
of most Of its early advocates, and it is
believed was also condemned by the popular
sentiment. The existing Sub.Treasury
system does not seem to stand in high
favor with the people, but has recently
been CONDEMNED in manner too plainly
indicated to admit Of doubt.
Thus, In the short period Of eight years
the popular voice may be regarded as
having successfully CONDEMNED each of the
three schemes Of finance to which / have
averted. As to the first, it was introduc-
ed at lime (lsl6) when the State banks,