Staunton spectator, and general advertiser. [volume] (Staunton, Va.) 183?-1849, 1842-07-21

~. ioho"eu inc passage OF the Tariff Of
And that period embraced the whole term of the
of Mr.. John Q. Adams which h,s
been 50 unjustly abused!
ahecontRastt In the state of the country at the
two periods Of 1872 and 1919. is mos, renarkabie
anu ssarthny. What has precipitate6 US from
fhat great height Of enviab,e prosperity down IN
the lowest depths of pecuniary embarrassment
What mas occasionedthe wonderful chanyof No
foreign Toe has Invaded and desolated the country
we have had neither famine nor earthquakes
hat there exists cause there can be no doubt:
and think it equally clear that the cause. what.
ever 1t may be, must be general one; for moth
sny OUT general cause could have produced such
widespread RUN; and every where we behold
the same or similar effects; every interest affect
ed, every section Of the Union suffering, all de-
scriptions Of produce and property depressed in
value. And whilst l cndeavor to find out that
cause, and to trace 10 their true source the disas
trous effects which we witness and feel and la
inent, entreat the Democratic portion of NV an
dlence, especially, to listen with patience and
candor, and, dismissing for moment party bases
and prejudices, to decide with impartiali,y and
In spirit of genuine patriotism.
1t has been said by those, in high authority that
hePeople are to blame, and not the Government;
and that the distresses of the country have
ded irom speculation and overtrading. The PEG.
pie have been even reproached for expecting too
much from Government, and not relying sufficient
~ upon their own exeruons. Aud they have
been reminded that the highest duty of the Gov
eminent is to take care Of ITSELF leaving the peo-
pie to shift for themselves as well as they can.
Accordingly we have the GOVERNING nt retreat.
ing from the storm which it will be seen, IN the
sequel, itself created, and taking shelter under
the Sub-Trcasury.
That there have been some speculation and a..
vertrading, may be true; bat all have not specu-
lated and overloaded; whilst the distress reaches.
II not In the same degree, the cautious and the
prudent, as well as the enterprising and adventu-
rous. The error of tho argument consists in mis-
taking the effect for the cause. What Produced
the over,rading! What vas the cause of specu
iasion! How were the people tempted to aban-
don the Industrious and secure pursuits of life,
and embark in doubtful and perilous, but seducing
enterprise? That is the important question.
Now, fellow citizens, l take upon myself to
show that the people have been far less to blame
than the General Government, I'd that Whatever
OF error they committed was the natural and in
'cvitabe consequence of the wise policy of their
rulers. To the action of Government is mainly
to be ascrbed the disorders, embarrassment and
distress which all have now so much reason TO
dcpore. And, TO be yet more specific, think
they 10 be fairly attributed to the action of the
Executive branch of the Federal Government.
Three Facts or events, all happening about the
same tune, II their immediate effects are duly con-
sidered, will afford clear and satisfactory solu-
ton OF all the pecuniory evils which now unhap-
PLY atiiict this country.
The first was the veto Of the recharter of the
Bank of the United States. The second was the
removal the deposites of the United States from
that Bank to local Banks. And the third was the
refusal Of the President Of the United State, by
an arbitrary streach of power, TO sanction the
passage of the Land Bill. These evonts all oc-
Cured, in quick succession, in 1923, and each
OF them deserves particular consideration.
j. When the Bank OF the United States had
fully recovered from the errors of its early add
ministratlon, and at the period when it was pro-
posed to rc-charter ii, tiurnshed the best curren-
cy that ever existed, possessing not merely un-
bounded confidence in the United States, but
throughout the whole commercial world. No in
sututlon was ever more popular, and the utility
oil Bank of the United States acknow lodged
ny 4hohas4i IaskSo9 IL his a NetS he Message in
suggested TO Congress the plan of an uneycena
,'onabie charter, ii application had been made 10
Num- ana stale as fact, what many, | am
sure, VIII here remember and sustain. that in tho
canvass then going on for the Presidency. many
~ IN, . ilehaS IN thiS state gave assurances, that
IN the event ofhis re election, Bank of The H.
hited States would be established
IL was held out to the people, that a better cur.
Iehcy should be supplied, and IA more safe and
faithful execution OF the fiscal duties towards the
government would be performed, by the local
Banks, than by the Bank of the United States.
What was the immediate effect of the over
throw oil that Institution? The establishment of
anhumerasle local banks, which sprung IN every
wheTe, with rapidity 10 which we cannot look
oack without amazemcnt. respectable docu-
ihehl winch now hold in my hand, | believe
correctly states, that Sin 1880 the appreoate
oanhng capital OF the Union was-$I45 100 26S.
"i'uih TWO years after the removal of the depos-
ltes' line banking capital had swollen to 1881 $50
ooI, ana In 1887 it reached $lI0,I957IO-
whist The United States Bank was in existence.
'ie locai banks, not aspiring 10 the regulation of
the currency, were chartered with small capitals,
as occasion and business required. After 1893
aney were chartered without necessity and multi
Phed beyond example. In December 1887, there
were no less than 7O9 State banks. Nearly four
hunared banks sprung up upon the ruins of The
United States Bank, and $3.50 ,OOO,O oc capital
was incorporated, to supply the uses formerly
discharged by the S35,000,0O0 capital of the
Bank oil the United States. The impulse given
10 extravagance and speculation by this enormous
increase OF banking capital, was quickened by
aae circulars oil the Treasury Department to these
pea State Banks that were made the custoJiers of
the National Revenue
A vast proportion Of these new banks. more I
believe than four fifths, were chartered nv Ieois
iature5 III which the Democratic party had the
undlsputed ascendancy. | well remember that.
In this State, the presses of that party made a
grave charge against me Of being inimical to the
establishment here of State banks; and was OBJ
posed to their establishment, until all prospect
vanished OF getting Bank of the United States
fhe effect upon the country Of this sudden in
crease 10 such an immense amount, of the bank
ing caPitai oithe country. could fail to be We
~ great, IL not disastrous. 1t threw out, i'm the
utmost profusion, Bank notes, post notes checks