Boon's Lick times. [volume] (Fayette, Mo.) 1840-1848, 1842-08-06

the cautious and the prudent, as well as
the enterprising and adventurous. The
error Of the argument consists in mistak-
ing the effect for the cause. What pro-
duced the over-tradingl What was the
cause of speculation How were the peo-
pie tempted 10 abandon the industrious and
secure pursuits of life, and embark in
doubtful and perilous, but seducing enter
prizes! That is the important question.
Now, fellow citizens. | take upon my
self to show that the people have been far
less TO blame than the General Govern
ment, and that whatever of error they
committed, was the natural and inevitable
consequence of the unwise policy of their
rulers To the action Of Government is
mainly to be ascribed the disorders, en-
barrassment and distress which all have
now SO much reason to deplore. And, to
be yet more specific, think they are to be
fairly attributed to the action of the Ex-
ecutive branch of the Federal Govern
ment.
Three facts or events, all happening
about the same time, il their immediate
effects are duly considered will afford a
clear and satisfactory solution of all the
pecuniary evils which now unhappily afflict
this country.
The first was the veto Of the re-charter
Of the Bank of the United States. The
second was the removal of the deposites
Of the United States from that Bank TO
local banks. And the third was the refu-
sal of the President Of the United States,
by an arbitrary stretch of power, to sane
ton the passage of the Land Bill. These
| III 81
in 1929, and each of them deserves
! particular consideration.
/. When the Bank of the United States
had fully recovered from its early admins
traton, and at the period when it was
proposed to re-charter it, it furnished the
best currency that ever existed. possessing
not merely unbounded confidence in the
United States, but throughout the whole
commercial world. No institution was
ever more popular, and the utility of a
Bank of the United States was acknowI-
edged by President Jackson in his Veto
message, in which he expressly stated,
that he could have suggested to Congress
the plan of an unexcePtonable charter, If
application had been made to him. And
state as a fact, what many, am sure,
, will here remember and sustain, that dur
ing the canvass then going on for the Pres
idency, many of his friends in this State
gave assurances, that, in the event of his
reelection, Bank Of the United States
would be established.
1t was held out to the people, that a
better currency should be supplied, and
more safe and faithful exc uiion of the
fiscal duties towards the Government would
bo h,,t bo tbor h.,
the Bank Of the United States.
What was the immediate effect of the
overthrow of that institution! The es-
E Enlistment Of innumerable local banks
which sprung up every where with "a
: pidity to which we cannot look back with
out amazement. A respectable document
which now hold in my hand / believe
correctly states, that "in 1880 the aggre-
, gate banking capital of the Union was
Sl45,l9O,26s. Within two years after the
removal of the deposites, the banking CAPT
tai had swollen to 1891 ,25O,337, and in
1887 it reached S440,l95,7lo. While the
United 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, they were chartered without
necessity and multiplied beyond example.
In December, 1887, there were no less
than 100 State banks. Nearly four hun
dred banks sprung up upon the ruins Of
the United States Bank, and $3.50, 100000
of capital was incorporated, to supply the
uses formerly discharged by the S35 900 ,OOC
|, capital of the Bank of the United States
The impulse given to extravaganza and
speculation by this enormous increase OF
banking capital was quickened by the cir
culars Of the Treasury Department to
7 these pet State banks that were made the
custodiers of the National Revenue"
A vast proportion of these new banks
. more believe than four-fifths, were char
9 tered by Legislatures in which the Demo
e cratic parry had the indisputed ascendan
= cy. ] well remember that, in this State
II the presses of that party made a grave
. charge against me of being inimical TO tn,
establishment, here of State banks; and
:. was opposed TO their establishment, until al
. prospect vanished of getting Bank O.
!, the United States.
it The effect upon The country of this sud
l. den increase, 10 such an immense amount
J. Of the banking capital of the country
= could not fail TO be very great, if not dis
f. astrous. 1t threw out, in the utmost pro
: fusion, Bank accommodations in all the va
J. riety Of forms, ordinary bank notes, pos
n notes, checks, drafts, bills, &c. The cur
It rency thus put forth the people had beef
e assured was better than that supplied b,
n i e