Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1842-03-29

4
the scorn Of all honest men. If any one is ~
ceycd, it is those who attempted tn use him n i C.
others, and not those who conided in him 's''
If the Wing party have fallen by the hand Of NJ
Ter, as they charge, like Laeres they are the v,c,
the weapon which they poisoned for o,hers-anG,I1 q
| him they may exclaim: ~ am Justly killed VIII WIN
own ireachery.
! beg pardon of the House for this DEPRESSION
This distribution policy, continued Mr.. b. i.;ol
inc with, and is part and parcel Of system a..
sures originated just after the adoption of the rs@
Constitution, which have made the South hewe.''
wood and drawers Of water TO the North Tho
of these in point CT time was the funding Of H.. s>
debts by the General Government. The ,no,.
| funded is yariouslv estimated. DR. MALLORY IN l;"
port TO the Commercial Convention says, that fron.
best accounts which could be obtained al the Tea,r.
Department, the amount assumed was ss,y,I.
n,illions-others estimate il as high as eighiy my
lions In the American Almanac, which is r..
piled with great ability and accuracy, the public g..
on the LIST Of January, 1871, is stated TO have BE-
SO 169, $40. Marshall in his life of Washington s,,
| GAS an inevitable effect of the State of soc;ety H.
public debt had greatly accumulated in the Mide,r5
Northern States, whose inhabitants had derived i-e
its rapid appreciation proportional augmentation r:
their wealth" Why this was, that the public deb, .,
cumuated at the North, he would not detan the l!o,,
10 explain. Most probably it was because inyesms,,
at the South profitable; and the rate Of ie,
rest higher But the House would be satisfied ~,
Judge Marsalls authority for the fact. lie also STATE,
that the public debt, at the time ii funded w,.r
IS Cd in the pound. In Other words, il was delreci,s
| to the extent OF 1.crlis If lis hole value For H.
calculation assumes that the Of the public te.,
which was held at the North hat was held a,,b
South, was 60 millions-He did not think this wouldb
far from the fact-and the value of the public de, >.
the time Of the assumption, was $500 900. Alter
was funded, It at once went up 10 par. So Of course m
of that operation capital was at once created 2, ia
III of tba Snntb &c D -nn
the payment of the interest and principal of that sun
for long time an eAhaustng dram upon this psr
ton of the Union. And this done in The ec,hoi
circumstances from the Legislatures of Maryland ",
GINA, and North Carolina
Blu, the matter did not stop here Fifty two million.
FIVE hundred thousand dollars worth Of capita! va, 3d.
solu,ey created the North by the action of the Co.
vernment; but yet it was not available for CONNER
cal purposes. To make II So the first Bank of the
States chartered in 1884, with capital of Sl0(0.
000 of which, fourth was TO be paid in specie ,.t
three -fourths in the evidence Of the funded deb. and
most of this owned in the Northern States trey
obtained the control OF that Institution. The mots,
Bank located in Phadel phia with branches in the
principal cities. In the distribution Of the capi,sl
81 zoo, 900 was allotted 10 the mother Bank, S.G0Gt0
10 the bank at Boston, 81 100000 10 that at New York
100000 to Baltimore, So00,000to Norfolk S600060o
Charleston, TO Savannah 100000, 10 NeH Orlfan,
S300,0 and 100000 to the District Of Colarbs;
giving but S2,s000U0 to the staple States, and $50
000 to the o,hers-and that too, nj period wien tue
trade of each section about equal. The subscra.
ton of large portion in the evidence OF the iurt
debt, added value to ii, and gave TO the holders
creased means, and still greater control over the 10.
dusiry of the country. The location of the mohet
Bank, and The allotment Of SO large portion Of The
capital 10 portion Of the country, gave it the
plee control over the commerce and exchanges Of lie
whole Union-both Of which were regulated Through
the agency Of the Bank.
adv btrbf NILS tin af bapL
pita at the North, which had in fact been created b.
the action of the Government, by the passage
a law, gave that portion Of the country tins be
would shew by simple illustration. Suppose there
two merchants in the same town. each oil them Ia,
a capital of $4,000. They make profit on il d
10 per cent. Each Of them, OF course realses $1,000
But suppose the Of them gets bank accommods.
ton of 100000 upon which he pays an interest OF per
cent. With the same profit lie would make TIE SlGol
on his capital and clear cent on the borrowed lis
clear gains would be $4,000; when the gains Of his
competitor with the same capital would only be one
thousand dollars. The would be getting rich,
while the other was barely making living. Blu, Iii,
would not be the only advantage which the mer.
chant enjoying bank facility would have. lie could
afford a smaller profit, and then make more money
than his competitor. Suppose, instead of making
10 per cent he should put up with s. He would then
clear $500 OF course he would drive his competitor
from the market. What would be true of two lndr
viduals in the same community, would be equally true
of two distinct communities; and hence we find ih,l
the exports of New York, in years from the passage
of the law creating the Bank, and when its influence
began 10 be felt, had increased her exports from S2o
4G5 in 1871, to $l0,304 ,SSl in 1195-Pennsy vana,
during the same period from $3,436,o93 10 $ll,5I'
0J2; while Virginia. under its influence, had advanced
from S3l3l s65 TO S3,490, 04l with rapidly declining
import trade.
Next came Gen. i}amlton's order 10 dispense with
the constitutional currency the collection OF the
n nmnn md II n,nk Ia
show the operation of that, he begged leave 10 quote
from DR.. Maorys very able report TO which he had al.
ready referred:
ain this connection and operating in like manner may
be placed the privilege conferred the Bank, of taking
It's notes in payment of the dues OF the Government
and also the Treasury order of 1882 which made bank
notes receivable in payment of public dues and which
made theui, for the fiscal action of the Govern.
ment was concerned, equal to specie On touching en-
this topic, It'll proper to remark that intention
not to express any opinion the questions which asi
tate the party feelings of the day Our object is sun
ply, to trace the which have led to the present de-
preston OF our commerce and industry, whou, look.
lag beyond them, regardless Of the effects on pOcs
parties.
"Ihe effect OF these measures was 10 give great iaci
lily and advantage to the places where banks existed,
both in the payment OF custom house bonds and oihef
dues to the Government over those where there Wa
none-and oil course 10 attract the commerce 10 the iof
mer and divert it from the latter To Illustrate Sup
pose instead of receiving bank notes in the public dues
the Government had ordered nothing bn, gold and l'
yer to be received in payment Of its dues OJdfo
and ricc-t is obvious that it would have added greatly
to the means Of the States that produced those staples
and contributed TO give great impulse 10 their Industry
and commerce, al the expense OF the other States Where
they not produced.-No reason can be nsslsnet,
why order to receive bank notes, the exclusion OF
every other product (for they but produc would
not confer similar and not less decisive advantages The
States where they exclusively existed, and which Of
course could only furnish the article.
ITO ascertain, then, how this privilege, conferFeden
bank notes, acted on the commerce of the county,
IS necessary 10 ascertain the number and location Of
banks, and the amount Of their capital, particularly st
the date Of the order and shortly after, when its relative
effects before commerce had its channels deep
would be greatest.
son examining the public documents, find it'!
the date of the order, there but banks IN tie
Union, of which not one was in the staple States "
these, in Philadelphia with capital Of 81
900, 000-anoher at New York, of S95O,GOo, and ne
other at Boston, of Sl,600,nGO- making the Hh.r
$4,000. In the year 1885, the banking capital IA"
IL, 10 D. 81.