The spirit of the age. [volume] (Woodstock, Vt.) 1840-1844, 1842-03-18

II
was intended to protect, well as all other BRAN
| ches of industry. Bold as is the assertion, am
prepared to establish it TO The letter.
II hns already been proved that the great expan-
sion OF the currency in 20, 80, and 'Si, was the
immediate effect of the tariff of 2S. 1t remains to
| be shown that the cause, Of the still greater and
longer continued expansion which terminated in
the overthrow of the banking system, and the deep
and almost universal distress of the country, may
be clearly traced back TO the same source. 10 do
this, we must return 10 the year '32, and trace the
chain of events to this time In that year, the pub
| lie debt was finally discharged. The vast revenue
which had been poured into the Treasury by the
| tariff or 49, and which had accelerated the pay
meut of the public debt, could, after its discharge
no rOnger be absorbed in the ordinary eXpendilms
of the Government, and n surplus began 10 ac-
cumulatc in the Treasury. The late Bank of the
United States was then the fiscal agent Of the
Government, and the depository Of its revenue
Its growing amount, und prospects Of great future
increase, began 10 act on the cupidity of
many Of the leading State banks and some Of the
great brokers Of New York. Hence their wal
against that institution; and hence, also, the remo-
yaT of the deposits. The late President | believe
to have been really hostile to the Bank on princi-
pie; but there would have been liine or no motive
to remove them, bad il not been for their growing
importance, and the hostility which the the desire
Of possessing them hud excited Theyl were
removed, and placed in the vaults of certain State
banks 10 this removal and dopose in the State
banks, the members over the way are in the habit
Of attrbutng all the disorders of the currency
which have since followed. Now | ask in the
frs, place Is Il hot cerain;had not been for the sur
plus revenue, the deposiIes would not have been
removed: And, in the second ,irthere would have
been surplus had it not been for the tariff OF 2S?
Again; is il not equally clcur that it WAS the
magnitude N the surplus, and not the removal, Of
itse II, that caused the after arrangement and dis
order Iftht surplus had been but no or three
millions. the ordinary sum in deposite it would
have been of little importance where it was kept;
whether in the vaults of the Bank of the United
States. or those oihe States but involving, as it
did, fifty millions and more, 1t becomes question
OF the highest Importance. again ask, to what is
this great Surplus to be attributed but to the same
cause Yes sir, the tariff of 1928 caused the sur
plus, and the surplus the removal and all the ai-
ter disasters IN the currency, aggravated It is true,
by being deposited in the State banks; but it may
be doubled whether the disaster would have been
much less, had they not been removed. BE that,
however, as it may, it Is not material, as have
shown, that the us rplusHsef wa sthe motive for the
removal. We all remember what occurred after
| the removal. The surplus poured into the Treasury
by millions, in the form Of bank notes. The with
drawal from circulation, and locking up in the
| vaults OF the deposite banks, so large an amount,
created an immense vacuum, to be rcplenshed by
repeating the issues which gave to the banks the
! means of unboundcd accommodations Specula-
ton now commenced on Il gigantic scale; prices
rose rapidly, and one party to make the removal
acceptable 10 the people, urged the new deposit
IN IN nj ,,liin ia do,
dnced the same effect, by censurng them from not
anor!ing as extensive accommodations as the Bank
Of the United States would have done, had the
revenue been left with it. Madness ruled the hour,
The whole community was intoxicated with in-
ngnary prospects Of realizing immense fortunes
With the increased rise of prices began the gigan-
tic spoculailons in the domain, tho price Of which,
being fixed by law, could not partaIo of the gen.
eral rise. TO enlarge the for their operations,
| know moi how many millions (dIty, would sup
pose, at least, Of the public revcnue) was sunk in
purchasing Indian lands, at their fec simple price
nearly, and removing tribe after tride to the West,
NJ enormous cost; thus suhieetng millions ON mil
lions Of the choicest public lands 10 be seized on by
heon and greedy spectators. Tho tide now swccd
with irresistible force, From the banks the de-
poslcs passed by discounts into the hands Of the
lard spectators; from them into the hands of the
again rCpeding the same circle, and, at every rcvo.
n,on, passing mieGs Of acres Of the public do
main from the people into the hands Of spectators,
for worthless rags. lind the state of things con-
tnucd much longer, every acre of the public lands
worth possessing, would have passed from the
Government. At this s,agc the alarm took place.
The revenue was attempted 10 be sqnandered by
the widest extravaganza; resolutions passed this
body, calling on tho Department to know how
much they could spend, and much resentcmnt was
felt because they could not spend fast enough The
depoSite act was passed, and the Treasury circular
issued; but as FAR as the currency was concerned,
in vain. The explosion followed, and tho banks
fell into commissions, 30 be rcsuscialed for moment
hu, TO fall again from more deadly stroke, .undeT
which they now lie PROSTATE.
! have now presented, rapidly, the 'unbroken
chain of events on the prolific source Of our dis
0sers, and down 10 the present time In addition
TO the causes originating directly in the tariff of 1889
there were several collateral powerful ones, which
have contributed 10 the present prostrated condi-
ton of the currency and the banks but which would
have been comparatively harmless of themselves.
Among these was the important change in the chat
acer of the Bank of England, at the last renewal,
abou. the time our surplus revenue began to accu-
mulatc, by which its notes were made a legal ten
der in all causes, except between the bank and its
creditors, The obvious effect of this modification
was to diminish the demand ofspecie in that great
mart Of the world, and, in consequence, must have
tended powerfully to keep the exchange with us in
an easy condition, while the tide of circulation was
rapidly rising TO a dangerous height. But there
was another cause which contributed still more |
powerfully TO the same result: refer 10 the great
loans negotiated abroad by states and corporations
To these add the operation of the United States
Bank Of Pennsy lyana, the direct object of which,
in some Of its prominent transactions, was TO PIE
vent the exchange from becoming adverse to US.
BY the operation of these causes combined, the
exchanges were kept easy for years, notwiihstand-
ing the vast expansions which our circulation had
attained, from the powerful action of the more d.
reel causes TO which have adyerted. The stroke
was delayed but not averted, and fell but She heav
Ter and more fatally, because delayed. And where
did ii fall, when il came, most heavily? Where
the measure which caused it originated; on the |
heads, of its projectors, Behold how error, folly,
and vice, in the ways Of an inscruble Providence
turn back on their authors.
/, lima Far ,l,a al ,,o.o