The Charlotte journal. [volume] (Charlotte, N.C.) 1835-1851, 1842-07-28

ment, and that whatever of error they CON.
United, was the natural and inevitable con.
sequence of the unwise policy OF their ru-
lers. To the action OF Government IS
mainly to be ascribed the disorders, embar
rassmeni aud distress which all have now
go much reason to dePlore. Aud, TO be
yet more specific, | think they are TO be
fairly attributed 10 the action of the Execu
tive branch of the Federal Government.
Three facts or events, all happening
about the same time, if their immediate et'
fec,s are duly considered, will afford clear
aud satisfactory solution Of all the pecunla
ry evils which now GuhaPpiy afilicl this
country.
The first was the veto of the recharter
Of the Bank of the U. S. The I'd was the
removal of the deposites of the United
States from that Bank TO local Banks
And the third was the refusal OF the Presl
dent Of the United States, by an arbitrary
stretch Of power, TO sanction the passage OF
the Land Bill. These evenis all occurred,
10 quick succession, 10 1928, and each OF
( them deserves particular consideration.
( l.. When tue Bank oil the United States
had fully recovered from the errors of ITS
early administration, aud at the period
when il was proposed TO recharter ii, II fur.
niShed the best currency that ever existed,
possessing not merely unbounded confidence
10 the Unitud States, but throughout the
whole commercial world. No institution
vas ever more popular, and the utility Of
! Bank Of the United States was acknowedg
ed by Presiden, Jackson 10 his Veto mes.
sage, in which he expressly stated, that he
could have suggested to Congress the plan
Of an unexcepl,onable character, il applica-
ton had been made to him. And | state
as fact, what many, am sure will here
remember and sustain. that in the canvass
then going on for the Presidency, many Of
his friends IN this State gave assurances,
that, in the event OF his re election, Bank
of the United States would be established.
Il was held GU, 10 the people, that bet
ter currency should be supplied, and a
more safe and faithful execution OF The ifs
cal duties towards the Government would
be performed by the local Banks than by
the Bark of the United States.
What was the immediate effect Of the
overthrow Of that institution! The eslab-
lishmeui OF innumerahle local banks, whicb
sprung up every where, with rapidi,y to
which we cannot look back without amaze
men;. 4 respectable documen. which |
now hold in my hand, believe correctly
states that in 1888 the aggregate bapk
ing capital Of the nion was Sli5, / 80, EOS.
Within two years after the removal Of the
deposites, the banking capital had swollen
TO 1891 $50, 337, aud in 1897 i: reached
SAC, 1870. Wills. the United States
Bank was in existence, the local banks, no,
aspiring to the regulation Of the currency,
were chartered with small capitals, as occa.
sion and business required. After 1893
they we're chartered without necessity ), nd
multiplied heyo0d example. 10 Decem
Der, 1897, there were no lass thur zoe
State Banks. Nearly 400 banks sprung
up upon the ruins OF the United States
Bank, and $3.50, 003,0 900 Of capital was To
cofporaled, TO supply the uses formerly dis
charged by the S35, 00O,0 900 capital of the
Bank Of the United States. The impulse
gwen 10 extraYagance and speculation by
this enormous increase Of banking capital,
was quickened by the circulars Of the
/ Treasury Department to those pc, State
banks that we're made the cus,odiers OF the
National Revenue.
A vas: proportion Of these new banks,
more | believe than four.iihs, we're char.
tered by Legislatures 10 wLIch the Demo
cratic party had The lndspuied ascendancy.
well remember that, IN this State, the
presses Of thai party made grave charge
against me oil being InImical to the estab
llshment here, Of State banks; and | was
opposed 10 their establishment, until all
prospect vanished Of getting Bank of the
Cnued States.
! he etfec. upon the country Of this sud
den increase, to such an immense amount,
of the banking capital of the country. could
not fail TO be very great, If not disas
trous. Il threw out, in the utmost profu
sion, Bank accommodations IN all the VAR.
ETY. Of forms, ordinary Bank notes, post
notes, checks, drafts bills, &c. The cur.
rency mus put lorth the people had been
assured, was better than that supplied BY
the Bank Of the Uuted States and, after
the removal Of the deposles, the Local
Banks were urged and stimulated by he
Secretary Of the Treasury, freely to dis
count and accommodate upon the basis Of
those Geposiles. Flooded as the country
was, by these means and IN this way, with
all species Of Bank money aud facilities, is
II surprising that they should have rushed
into speculation, and freely adyentured 10
the most desperate enterprises 1t would
have been better to have avoided them :;
il would have been better that the people
should have been wiser and more prudent
than Government; but who is to blame,
they Who yielded TO temptation SO thrown
before them-!hey who yielded confidence
to their rulers--they who could not see
when this inordinaie issue of money was to
cease, or to become vtiated; or. Govern.
men. that tempted, seduced and betrayed
/ them
And now fellow citizens, do lei US, in