The Middlebury people's press. [volume] (Middlebury, Vt.) 1841-1843, 1841-06-08

change in the aspect of affairs. Stocks of all
sorts rapidly decline, individuals are ruined,
and states embarrasseG-even in their efforts
TO meet with punctuality the interest on their
debts Such unhappily is the condition of
tnlngs now existing in the United Siates.-
These effects may readily be traced 10 the eau.
ses above referred to.
Inc pubic revenues being removed from
the then bank Of the United States. under an
order of a late President, were placed in Sc.
lected State Banks. which, actuated by the
double motive Of conciialing the government
and augmenting their profits 10 the creates!
possible extent, enlarged extravagantly their
discounts, thus enabling all other existing
banks TO dothe same. Large dividends were
Fdeclared, which stimulating the cupidiiy of
capitalists, caused rush to be made TO the leg.
istaure of the respective States for similar acts
OF incorporation, which by many of the States,
under a temporary infatuaion, were readily
granted and thus the augmentation of the Cir
cuating medium. produced most fatal dela.
sion. An illustration derived from the land
sales of the period alluded to, will serve best 10
show the effect of the whole system. The av.
erage sales OF the public lands for period of
I ten years prior 10 1884, had not much exceed.
~ @-'OONtOOO pei IN 1904, lneV al
taint IN round numbers TO the amount of &c..
100000, IN the succeeding year Of 1888, they
reached Sl6,000,0eO. and the next wear. of
| 1886, they amounted 10 the enormous sum of
S25 ,OOO,OO0-thus crowding into the short
space OF three years upwards of sevcnty.three
years purchase of the public domain.
SO apparent had become the necessity of ar.
resting this course Of things, that The executive
department assumed the highly questionable
power OF discriminating in the funds to be used
IN payment by different classes of public debt.
ors. discrimination which was doubtless
designed 10 correct this most ruinous state of
things, by the exaciion of specie in all pay.
ments for public lands, but which could not at
once arrest the tide which had so strongly Sc,
in. Hence the demand for specie became IN.
ceasing, and corresponding prostration rapidly
ensued under the necessities created with tho
banks, 10 curtail their discounts, and thereby 10
reduce their circulation. recur TO these
with no disposition 10 censure pre.existing ad.
ministratons Of the Government, but simply in
exemplifcation of the truth Of the position
which have assumed. II, then, any fiscal a.
gent which may be created, shall be placed
without due restrictions, either in the hands of
the administrators ofIhe Government, or those
of private individuals, the temptation 10 abuse
will prove 10 be resistless. Objects of poli,i''
cal aggrandiZement may seduce the first, and
the PromPlings ola boundless cupidity will as.
sail the last Aided by the experience of the
past, it will be the pleasure of Congress so 10
guard and fortify the public interests, in the
creation OF any new agent as 10 place them, so
far as human wisdom can accomplish it, on
footing of perfect security. Within few years
past three different schemes have been before
the country. Tie charter of the bank of the
United States expired by its own limitations in
1886; an effort was made 10 renew it, which
received the sanction of the two houses of con.
gress, but the then President Of The U. States
exercised his ueto power, and the measure was
defeated.
regard 10 the truth requires me to say that
the President was fully sustained in the course
he had taken BY the popular voice. His sue.
ceSSor TO the chair of state unqualifedly pro-
nounced his opposition 10 any new charter of
similar institution: and not only the popular c.
lection which brought him into power, but the
elections through much of his term seemed
clearly 10 indicate q concurrence with him in
sentiment on the part of the people After the
moneys were withdrawn from the United States
Bank, they were placed in deposte with 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 propnious or adverse circumstances, it
may safely be asserted that it did receive the
unqualified condemnation of most Of It's early
advocates, and it is believed was also condemn.
ed by the popular sentiment. The existing
Sub.treasury sy stem does not seem TO stand in
IA lar F,.,n L.,
been condemned in manner too plainly indi.
Gated 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 adverted.
As TO the first, it was introduced at time
! (lS16) when the state banks, then compare.
lively few in number, had been forced to sus.
pend specie payments BY reason Of the war
which had previously prevailed with Great
Britain. Whether, if the United States Bank
charter which expired in 1911, had been renew.
ed 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 Immediately succeeded, is,
10 say the least probematical; and, whether
the u 5. Bank of 1916 produced q restoration
of specie payments, or The same was accom-.
plished through the instrumentality of other
means. was matter of some difficulty at that
time TO determine--c it is, that for the
first years of the operation Of that bank, its
course was as disastrous as, for the greater
part ofits subsequent career. it became emf
nently successful. AS to the second, the ex.
pertinent was tried with redundant treasury,
which continued to increase until it seemed to
be the part of wisdom 10 distribute the surplus