The Caledonian. [volume] (St. Johnsbury, Vt.) 1837-1867, 1842-07-26

world No institution ever more popular,and
tho utility of Bank of the United States was ac-
i knowledged by President Jackson n his Veto mes
sage, in which lac expressly stated t,,aI he could
have suggested 10 Congress the plan OF an nnoxcep
tionable charter, ifapplication had been made To
him. And state ms fact, what many am sure
will hore remember and sustain, thal during the
canvass ihon going on foi tho Presidency, many oil
his friends in This Slate gave assurances, that, in
tho event of his reelection, Bank ofihe United
States would be established.
II was held out to The people, that better cur.
rency should be supplied, and more safe and
faithful execution of the fiscal duties towurds the
Government would be performed by the local banks
than liy the Bank of The United States.
| What was tho immediate effect of the overthrow
ofthat institution The establishment Of innumer
able local banks which sprung up every where
with n rapidy 10 which wo cannot look back WIKI
out amazement. A respectable document which ]
now hold in my hand believe correctly states, that
Sin 1880 the aggregate banking capital OF the Uni
ion was $i45, 100 265. Within Two years after the
removal Of the deposiles, the banking capital had
swollen TO 1881 $50, 1897, and in 1897 had cached
| $440, 1885, l0. Wilde The Uuitod States Bank was
in existence, the local banks, not aspiring TO the
regulation of the currency, were chartered with
small capitals as occasion and business required
After 1888, there were no less than 700 State
banks. Nearly 400 banks sprung up from the ruins
of the United States Bank, and $3.50, 900 600 of
capital was Incorporated 10 supply the uses form
erly discharged by the $35, 900 900 capital Of the
Bank of the United States. The Impulse gwen 10
|
crease of banking capital was quckeDed by the
circulars OF the Treasury Department TO those pet
State banks that made the cusodiers Of the
National Revenue"
a vast proportion Of these new banks, more be
liove than four fl,s chartered by Legislatures
in which the Democratic party had the undispued
ascendencY. well remember that, in this Slate,
the presses OF that party made grave charge
against me OF being inmical to The csabli shment of
State banks here and was opposed TO their
Enlistment until all prospect vanished OF getting
Bank of the United States.
The effect upon The country OF This sudden in
creasc 10 such an immense amount, of The banking
capital nf the country, could not fail 10 be very
great, if not disastrous 1t threw out, in the utmost
profuson Back accommodations in all variety of
forms, ordinary Bank notes, post notes, checks,
drafts, bills, Nc The currency thus put forth the
people had been assured was better than tina, sup>
piled by the Bank OF the United States and, after
the removal Of The deposites, the Local Banks
urged and stimulated by the Secretary of the Treas
ury, freely 10 discount and accommodate upon the
basis Of those deposites Flooded as the country
was, by these means and in this way, with all spe
ces Of bank money and facilities, is il surprising
that they should have rushed into speculation, and
freely adventurcd in the most desperate onicrprl-
ses Ii would have been better 10 have avoided
them il would have been better that the people
shoHld have been wiser and more prudent than the
Government; but who is most - blame, they who
Welded To temptation throw n before them they
who yielded confidence TO their rulers-tbcy who
could not see when this inordnatc issue Of money
was 10 cease, or become vitaed or Government,
that tempted, seduced and betrayed them
[Couclu next week