Boon's Lick times. [volume] (Fayette, Mo.) 1840-1848, 1842-08-13
SPEECH OF MIR. CLAY.
At the great Festival, Lexington, June OH
CONCLUDED

resolved that the public deposites were safe
in the custody of the Bank of the United
States, where they were placed, under the
sanction and by the command of the law;
and it was well known at Washington, that
this resolution was passed in anticipation
and to prevent the possibility of their re-
moval In the face and in contempt of
this decision of the Representatives of the
people, and in violation Of positive law,
the removal was ordered by the President
few months after, the Secretary of the
Treasury having been previously himself
removed to accomplish the object. And
this brings me to consider the effect pro-
duced upon the business and interests of
the country, by the
I'd event to which have alluded. 1t is
well known to be the usage of Banks, to
act upon the standing average amount of
their depostes as upon permanent fund.
The Bank of the United States had so reg
ulated its transactions upon the deposites
of the United States, and had granted
accommodations and extended facilities as
far as could be safely done on that basis.
The deposites were removed and dispersed
among various local banks, which were
urged by an authority not likely to be dis
regarded, especially when seconding, as it
did, their own pecuniary interests, to dis
count and accommodate freely on them
They did so; and thus these deposites per-
formed double office, by being the basis
of Bank facilities, first in the hands Of the
Bank of the United States and afterwards
in the possession of the local banks. A
vast addition to the circulation of the
country ensued, adding to that already so
copiously put forth and putting forth by
the multitude of new Banks, which were
springing up like mushrooms. That spec
uation and overtrading should have fol-
lowed were to have been naturally expect
ed. 1t is surprising that there were not
more. Prices rose enormously, as another
consequence; and thousands were tempted,
as is always the case in an advancing mar
ket, to hold on or to make purchases, under
the hope Of prices rising still higher. A
rush by spectators was made upon the
public lands, and the money invested in
their purchase, coming back to the depos-
lite banks, was again and again loaned out
to the same or other spectators, to make
other and other purchases.
Who was to blame for this inflated and
artificial state of things! who for the
speculation which was its natural offspring?
The policy of Government which produced
it, or the people! The seducer or the Sc
duced! The people, who only used the
means SO abundantly supplied in virtue OF
the public authority, or our rulers, whose
unwise policy tempted them into ruinous
speculation!
3. There was measure, the passage OF
which would have greatly mitigated this
unnatural state of things. 1t was not diff.
fcult to foresee, after the Veto Of the
Bank, some of the consequences that would
follow. The multiplication of Banks, a
superintendent currency, rash and inordi.
nate speculation, and probable ultimate
suspension of specie payments. And the
public domain was too brilliant and tempt.
ing prize not to be among the first objects
that would attract speculation. In March
1888, bill passed both Houses of Con-
gress to distribute among the States the
proceeds of sales of the public lands. II
was a measure of strict Justice to the
States, and one of sound policy as it res
poets the revenue of the United States; but
the view which now propose to take Of il
applies altogether to the influence which il
would have exerted upon circulation and
speculation. 1t was the constitutional duty
of the President to have returned the bill
to Congress with his objections, if he were
opposed to it, or with his sanction, if he
approved it; but the bill fell by his arbitra
ny Withholding it from Congress.
Let us here pause and consider what
would have been the operation of tina
nd ol,,4o - 10,
not been arrested. The bill passed in 1888
and in short time after sales the of pub
lie lands were made to an unprecedented
, extent; in so much, that in one year they
+, amounted to about $25,OOO,OOO. 1t wa
manifest that, if this fund.- so rapidly accu
!. mulating, remained in the custody of tn
+. local banks. in conformity with the Treasu
+ circular, and with their interests, it woul
4 be made the basis of new loans, new &C
}. commodations, fresh bank facilities.
y was manifest that the same identical sun
e of money might, as it in fact did, purchas
h many tracts of land, by making the circu
d from the land offices to the banks, and froI
the banks to the land offices, besides stiml
c, ating speculation in other forms.
'e Under the operation of the measures
i, the distribution, that great fund wou
n have been semiannually returned to tn
ot States, and would have been applied, undo
j. the direction of their respective Legisl
I'd lures, to various domestic and useful pu
g, poses. 1t would have fallen upon the Ian
l. like the rain of heaven, in gentle, GEM
ne and general showers, passing through
as thousand rills, and fertilizing and beautif
Of ing the country. Instead of being emplo
el- ed in purposes of speculation, it won