Richmond palladium. [volume] (Richmond, IA [i.e. Ind.]) 1839-1854, 1841-06-12

to all the essential interests OF society; and o
Tho wisdom to be manifested IN IFS creation niue
depends. So intimately interviewer are lis opei
ations not only with the interests O individuals
but with those of the States, that nay be regard
ed 10 a grea, degree as controlling both. Ii pape
be used tho chief medium Of crctlasion, ant
The power be vested III the Government of IsSu
ing it at pleasure, either in the form OF Treasury
drafts any other. If banks be used as The pub
lie repositories, with liberty to regard all surplus
ses from day day much aided 10 their
active capital, prices are exposed to constant
fluctuations, and industry II sevac suffering
In the case, political consideraions. directed
to party purposes may control, vale excessive
cupidity may prevail in the other. The public
IS thus constantly liable to imposition. ESpan-
slons aud contractions may follow each other IN
rapid succession, the one engenderng reckless
spirit of adventure and Speculation which enbra
ces States as well as individuals; he other caus-
ing fall in prices, and accomplishing entire
change in the aspect of affairs Socks OF all kinds
rapidly decllne---indl iduaIs ruined, and
States embarrassed even III Then etorts 20 meet
with pHnctuality the interest ttel' debts. Such,
unhappily, is the state of things Dw existing IN
the United States. These etfecs may readily
be traced to the causes above rnerred TO. The
public revenues, on being remoed from the then
Bank of the United States, undo an order of
late President were placed in selected State
banks, which, actuated by the dOble motive OF
their profits TO the greatest possible extent, eular
ged extravagantly their discouns. thus enabling
all other existing banks to do tt, same. Large
dividends were declared, which, stimulating the
cupIdity of capitalists, caused usa 20 be made
to the Legislatures Of the respective States for
similar acts of Incorporation, W ich, by many OF
the States, under temporary ltatuation, were
readily granted, and t0us the augnenta OF the
circulating medium, consisting lmost exclusive
iy OF paper, produced most fail delusIoa. An
Illustration, derived from the aId sales OF the pc
rod alluded to, VIII serve hes; te show the effect
OF the whole system. The averag. sales Of the
public lands, tor a period of lie" Years PRIOR to
ls3 1, had not much exceeded s. 900 per an
mum. In 1881 they attained III ound numbers,
to the amount of So, 100000. In he succeeding
year Of 1880, they reached Sl6,O0,000. Aud
the next year, OF 1885, they amounted 10 the C.
normous sum of SD 100000. Ius crowdGg
INTO the short space of three year upwards OF
twcnty-thrcc years purchase of tic public do
main. So apparent had become the necessity OF
arresing this course Of things, tha. tie Executive
department assumed the highly ques.,on~oie pow
cr or discriminating IN the funds n be used 10
payment hy different classes Of pubic dbtors-a
discrimination which was doubtless teigned TO
correct this most ruinous state of things 10y the
exacton of specie IN all payments to' he public
lands, but which could not at once aest the tide
which had so strongly set ~ Heucehe demands
tor specie became unccasing, aud UreSponding
prostration rapidly ensuod under tn necessities
created with the banks to curtai thir discounts,
and thereby 10 reduce their circulate. | rccur
these things with dISpnsIiIonto censdre
pre- existing admin ra iIonS of tie soveTnment
but simply IN exemplifi:ation of the ruth of the
position which | have assumed If then, any
fiscal agen: which may DC erected :naii be pia-
ced, without due restrictions. ether n the hands
OF the administrators OF the Government or those
OF private individuals. the tenDtat!,n to abuse
will prove 10 he rGslstiess. Objects OF political
ACKNOWLEDGEMENT may seducc first, and the
promptings Of bouGdIcss cupidty viii assail the
last. Aided by the experience Of tbs past, 1t
will be the pleasure Of Congress to guard and
lorIty the public interests, III the creation OF a
ny agent, to place then, ur as human
wisdom can accomplish ii, on tooiIn, of perfect
security. Within Il few years past, hree differ
ent schemes have been before the coutry. The
charter Of the Bank OF tho United Staes expired
by It's own limitations ia 1886. An effort was
made TO renew it, which received the'auclion of
The two Houses OF Congress, bat the hen Presl
dent OF the United States exercised hI ret0 pow
CIR, and the measure was defeated. ! regard to
truth requires me TO say that the PRECEDENT was
fully sustained in the course he had by the
popular voice. Ills successor IN tn Char OF
State unquaIiliedIy pronounced his OPPOSITION to
any new charter OF a similar nsttutin; and not
only the popular election which brought him into
power, but the elections through ulch of his
term, seemed clearly 20 indicate a occurrence
with him IN sentiment on the part Of he people.
After the public moneys were withdrawn from
the United States Bank, they were placed in de
posite with the State banks, and tteresuit of that
policy has been before the country To say
thing as 10 the question whe Their tiat experiment
was made under propitious aderse cIrcum-
Stances it may safely be asserted hat il did re-
ceiye the unqualified condemnation of most oflts
early advocates, and II Is bclievedsas also con-
demned by the popular sentiment The existing
sub-Treasury system does not TO stand In
higher favor with the people, bh has recently
been condemned in a manner too JaIniy IndIca-
ted TO admit of doubt. Thus, IN he short PER-
Cd OF eight years. the popular vote may be re
garded as having successfully concerned each Of
the three schemes Of finance TO wirh | have ad
verted. As to the first II Introduced at
time (l>l6) when the State banks, then compar-
lively few In number, had be en- fol;ed TO suspend
SnecIe paYuants. by reasnn ri he var which had