Martinsburg gazette. [volume] (Martinsburg, Va. [W. Va.]) 1833-1855, 1842-07-14


The Bank Of the United States had 50
regulated its Transactions upon the depos-
ties Of the United States and had granteo
accommodations and extended facilities
as far as could be safely done on That GA !.
ais. The depostes were removed ana
DISPERSED among various loca! banks,
which were urged by an authority not
likely to be disregarded, especially when
seconding as il did, their own pecuniary
interests, 10 discount and accommodate
freely on them. They did so; and thus
these depostes performed double ofhce,
by being the bass 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, ad-
ding TO that already so copi1usIy pu; forth,
and putting forth by the multitude Of ne"
Banks which were sprnging up Ike mush-
rooms. That speculation and oyertrad-
ing should have followed, we're TO have
been na,urcly expected. It 10 surprising
that there were not more. Prices rose
enormously, as another consequence ana
thousands were tempted, as IS always me
case in an advancing market, to hoiu on
or to make purchases, under inc nope %
prices rising still higher. A rush OF spec
uIa,ors was made upon the pubic lsnds,
and the money invested IN thtH purchase,
coming back to the deposite banks, was
again and again loaned out to the same or
uther snecula,ors. to make other and 9TH
er purchases.
WHO was to blame for this artificial and
inflated state Of things7 Who for the
speculation which was It's NATURAL on
spring ! The policy Of Government,
which produced It, or the people F! The
seducer or tho seduced The people,
who only used the means SO abundanily
supplied in virtue OF the public authority,
or our rulers, whose unwlse policy tempt
ed them into the ruinous speculation.
3. There was measure, the passage
of which would have greatly m'tlga,ed
this unnatural state of things II was not
difficult 20 foresec, after the Veto Of tire
Bank. some Of the sequences that
would follow. The multiplication of
Banks, a superabundant currency. rash
and inordnate speculation, and proba-
bio ultimate suspension OF specis pay
men,s And tho public domain was too
brilliant and tempting prize. not to be
among the first objects tina, would attract
speculation. 10 March, 1888, bill pass
ed both Houses Of Congress, to distribute
among the States the proceeds OF sales Of
the public lands. 1t was measure OF
strict Justice to the States, and one OF
sound policy as i, respects the revenue OF
the United States but tho view which |
now propose to tako Of it, applies atogeth.
er to the influence which IT would have
exerted upon circulation and speculation.
Il was the constitutional duty ofthe Pre-
sident 10 have returned the bill to Con-
grrss with his objections, IT he were
opposed to it, or with his sanction, II he
approved it; but tho bill fell by his arbl-
,rnrily Withholding i, from Congress.
Let us here pause and consider what
would have BEEN the operation OF that
mos, timely and salutary measure, 1t It
had no, been arrested. The bill passed
in 1888, and in short time after, the
sales Of the public lands were nude to an
unprecedented extent; in so much, that
m one wear they amounted to about s25,'
600 600, and in a few years 10 aggre-
gate Of abou, $50 900, 600. |, was mani
fes, that, if this fund, so rapidly accumua-
ting, remained in the custody of the local
banks, in conformity with the Treasury
circular, and with their interests, 1t would
be made the basis of new loans, new ac-
communications, fresh bank facilities. 1t
was manifest that the same identical sum
| OF money might, as 1t IN fact did, purchase
many tracts of land, by making the CIR
cui, from the land offices to the banks,
and from the banks to tho land offices,
besides stimulating speculation ID other
forms.
Under the operation Of the measure OF
distribution, that great fund would have
been sem-annually returned to the States,
and would have been applied, under the
direction of their respective Legislatures,
10 various domestic and useful purposes.
/, would have fallen upon the land, like
the rains of heaven, in gentle, genial and
general showers, passing through thou.
sand rils, and fer,liz'ng and beaulitylng
the county. Instead Of being employed
| in purposes OF speculation, It would have
been applied 10 the common benefit TO the
whole people. Finally, when the fund
| had accumulated and was accumuIatng
in an alarming degree, II was d's'rbut'
| ed am ng the States by the deposite act,
but so suddenly distributed, IN such large
masses, and in manner So totally IN Vi
olation OF all the VS. and rules OF finance,
that the crisis of suspension IN 1887 was
greatly accelerated. This would have
been postponed, If no, altogether avoid d,
# tho land bill Of 1888 had been APPROX
I'd and executed.
To these three causes, fellow citizens,
the veto OF the Bank Of the L States, with
the consequent creation OF lnnumerable
| local banks, the removal of the deposltcs
/ ofthe United States from the Bank OF the
/ United States, and their subsequent free
| use, and the failure of the land bill OF
/ ls42, verify believe, all, or nearly all OF
the embarrasSments of the country are
/ plainly attributable. Ii the Bank had
/ been rechurtered, the public deposItes suf
/ f red 1, rcmajn unds,urbed where the
/ law required them to DO made, and the
land bill had gone into operation, 1t is my
g.. .o,,,,;.,,,n TIN, wa shnulI hava had