Baton-Rouge gazette. [volume] (Baton-Rouge, La.) 1819-1856, 1841-06-19

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other. The public is thus constantly liable to
imposition. Expansions and contractions may
follow each other In rapid succession, the one
e%ngendering a reckless spirit Of adventure
and speculation, which embraces States as
we'll as individuals the other causing a fall
in prices, accomplishing an entire change in
rapidly dacline-indivfdHals are ruined. and
States embarrassed even in their efforts to
meet with plncflaltty the interest on their
debts. Such. unhappflyis the state of things
now existing in the United States. These
effects may readily be straeed to the causes
above referred To-. The public revenues, on
being removed from the then Bank Of the
United States, under the order of d late Pre-
sident, were placed in selected State banks,
which, actiated by the double motive of coa-
ciliati1g the government and auementing
their profits to the greatest possible extent,
enlarged extravagantly their discounts, thus
enabling all other existing banks to do the
same Large dividends were declared, which
stimulating the cupidity Of capitalists, caused
a rush to be made to the legislatures of the
respective States for similar acts of ~incorro-
ration, which, by many Of the States under a
temporary intatuation, were readily granted,
and thus the augmentation of the circulating
medium, consisting almost exclusively of
paper, produced a most fatal deIuslon.
An illustration, derived from the land
sales of the period alluded to, will serve
best to show the effect o. the whole system.
The average sales Of the public lands, for
a period OF ten years prior to 1884, had
not much exceeded BE, 1000, 900 per annum.
In 1884 they attained, in round numbers,
to the amount of $S6, 900 900. In the sue
ceedlng year, of 1885, they reached BIG,
100000. And the next year,, of 1896,
they amounted to the enormous sum of
s25,00O,0o0. Thus crowding into the
short space oftffee years upward, Of twcn-
ty three years purchase of the pubic do
main. 80 apparent had become the nc
cesslty Of arresting this course of things,
that the Executive Department assumed
the highly questionable power of discrimin-
ating in the funds to be used in payment
by the different classes of public debtors
a discrimination which was doubtless de.
signed to correct this most ruinotls state OF
things BY the exactlon of specie IN all pay
ments for the public lands, bat which could
not at once arrest the tide which had so
strongly set III. Hence the demands for
specie became unceaslrg, and correspond
ing prostatlon rapidly ensucd under the
necessities created with tae banks to cur
tan their discounts, and thereby to reduce
their circulation. | recur to these things
with no disposition to censure ~pre-existing
administration efthe Government, but SIM
ply in exempIifcation 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 Il vernment Or those Of private in
dlyiduals, the temptation to abuse will prove
to be resistless. Objects Of political ag-
grandIzement may seduce the first, and
the promptlngs Of a boandless cupidity
will assail the last. AIDED by the expert
ence OF the past, it viii be the pleasure of
Congress SO to guard and fortify the pub
lie interest, in the creation of any new
agent, as to place them, SO far rs human
wisdom can accomplish it, on Il footing of
perfect security. Withina few years past
three different schemes have been before
the country. The charter of the Bank of
the United States expired by its own limi-
tatlons in 1886. An effort was made to
renew it, which received the sanction of
the two Houses of Congress, but the then
President of the United States exercised
his Uato power, and the measure was defeat
ed. A regard to truth requires me 10 say
that the President was fully sustained in
the course he had taken by the popular
voice. lis successor in the chair Of State
unquallfediy ~prononounced his opposition
to any new charter Of a similar institution:
and not only the popular election which
brought him into power, but the elections
throug.'1 much Of his term, seemed clearly
to indicate a concurrence with him in SEN
on the part of the people. After
the public Moneys were withdrawn from
The United States Bank, they were placed
in deposite with the State banks, and the
result of that policy has been before the
country. To say nothing as to the qaes-
ton whether that experiment was made
propitious or adverse circumstances,
may safely be asserted that it 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-Treasurv system does
not seem to stand in higher favor with the
but has recently been condemned
n a too plainly indicated to admit
Of a doubt. Thus in the short period of
eight years, the popular voice may be re-
gardcd as having successfully condemned
each of the three schemes Of finance to
which have adverted. As to the first it was
introduced at a time Oslo when the State
then comparatively few In number,
had been forced to suspend specie pay
ments by reason of the War which had pre-
prevailed With Great Britain.
Whether, if the United States Bank
which expired in 1911, had been
renewed in due season, it would have been
enabled to continue specie payments during
the war and the disastrous period to the
commerce of the country which imme-
succeeded, il, to say the least,
probleInatical; and whether the T.. States
Bank Of 1916 produced q restoration of
specie payments, or the same was accom-
through the fnstrumentaIity of other
means, was d matter Of some difficulty at
that time to determine. Certain it is that,
for the first years Of the operation OF that
its course a as disastrous as for
greater part Of It's subsequent career it
became eninantly successful. As to the
second, the experiment was tried with a
Treasury, which continued to
increase. until it seemed to be the part Of
wisdom to distribute the surplus revenue
among the States; which, operating at the