Lincoln telegraph. [volume] (Bath, Me.) 1836-1846, 1841-06-10

n
II NAV be regarded in great degree as cohtloH-
ing both If paper be used as the cher tneu' u
of circulation, and the power be vested IN l'ie
Government of issuing it at pleasure ei'ier "a
the form of Treasury drafts or any othtr' ol ..,
banks be used as the public repositories, with
liberty to regard all SURPRISES, from day 10 day aS
SO much added to their active capital prices are
exposed to constant fluctuations, ana industry 10
severe suffering. In the one case, political con-
sderatons, directed to party purposes, may con
troll, while excessive cupldIty may prevail I'D liie
other. The public ID thus constantly liable TO
imposition Expansonssand contractions may
follow each other in rapid the one en-
rendering reckless spirit OF adventure ana
specuation, which embraces States as well as m
dividuals the other causing fall IN prices, and
accomplishing an entire change in the aspect OF
affairs.
Stocks of all kinds rapidly decline-individuals
are ruined, and States embarrassed even N their
efforts to meet with punctuallty the interest on
their debts. Such, unhapply, is the state of
things now existing in the United States These
effects may readily be traced to the causes above
referred to.
The public revenues, on being removed from
the Bank of the United States, under an order of
late President, were placed in selected State
banks, which, aGtuated by the double motive OF
concating the Government and augmentng
their profits to the greatest possible extent, en-
larged extravaganty their discounts, thus ena-
bling all other existing banks to do the same
Large dividends were declared, which, stimula-
ting the cupidity of capitalists caused a rush to
be made to the Legislatures oft respective States
for similar acts of incorporation, which, by many
of the States, under temporary intatuaton,
were readily granted, and thus the augmentation
of the circulating medium, consisting almost en-
clusively of paper, produced most fatal deluson.
An Illustration, derived from the land sales of the
period alluded to, will serve best to show the eff
feet of the whole system. The average sales of
4ba 10 cd IN
1884, had not much exceeded S., 900 per
annum. In 1884 they attained, in round num-
bers, to the amount of Sc, 900, 900. In the sue
ceeding year of 1885, they reached $4,000, 900.
And the next year, of 1896, they amounted to
the enormous sum of %, 100000. Thus crowd
ing into the short space Of three years, upwards
of twenty three years purchase of the public do
main. So apparent had become the necessity
of arrestng this course of things, that the Exc
cutive department assumed the highly questiona-
Bile power of discriminating in the funds to be
used in payment by different classes of public
debtors-a discrimination which was doubtless
designed to correct this most ruinous state of
things by the exaction of specie in al! payments
for the public lands, but which could not at once
arrest the tide which had so strongly set it,
Hence the demands for specie became unceas-
ing, and corresponding prostration rapidly ensued
under the necessities created with the banks to
ecurtail their discounts, and thereby to reduce
their circulation. | recur to these things with
NO disposition to censure pre-e xisting admmistra
tons of the Government, but simply in
plifcaton of the truth Of the position which |
have assumed. IT, then, any fiscal agent which
may be created shall be placed, without due
strictlons, either in the hands of the admnistra-
tors of the Government, or those Of private in
dividuals, the temptation 10 abuse Will prove to
be resistess.
Objects of political aggrandizement may Sc
duce the FIRST, and the promptngs of boundless
fEn aaf had hp he q
perience of the past, it will be the pleasure of
Congress to guard and fortify the public in
terests in the creation of any agent, to
place them, so far as human wisdom accom-
plish it, footing Of perfect security. Within
a few years past, three different schem mes have
been before the country. The charter of the
Bank Of the U. States expired by its own lilita-
ton in 1886. Az effort was made to il,
which received the sanction of the two Houses
of Congress- but the then President 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 unqualfedly pro-
nounced his opposition to any new charter of
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. After the
public moneys 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 question whether that
experiment was made under propitious or adverse
circumstances, it may safely be asserted that it
did receive the unqualified condemnation of most
of early advocates and it is believed also
condemned by the popular sentiment. The
listing Sub Treasury system does not seem TO
stand in higher favor with the people, but has
Gently been condemned in a manner too plainly
indicated to admit of doubt. Thus, in the short
period of eight years, the popular voice may be
regarded as having excessively condemned each
OF the three schemes of finance to which have
adv,Tted. As to the first, it was introduced at a
time (l5l6) when the State banks, then COMPARE
lively few in number, had been forced suspend
specie payments, by reason Of the which had
previously prevailed with Great Britain. Whether.
IT the United States Bank charter, which expired
IN 1911, had been renewed in due season. it would
have been enabled 10 continue specie payments dur
lng the war and the DISASTROUS period TO the com
merce oil the country which mme diately succeeded,
a. to say the least problematical; and whether the
United States Bank of1Sl6 produced a restoration
oi specie payments or the same was accomplished
thorough the instrnmenaiity Of other means, was
matter of sene difficulty at that time 10 determine
Certain II is that for the first years Of the operation
o' that bank, its dsaste US rs for the
greater part of its subsequent career became emf
gently successful.
As 10 the second, the experiment was tried with
Il redundant Treasury, which continued TO increase
until seemed to be the part of wisdom to distribute
the SURPLUS amony tho C,.,as ,.h;,b oner