The Charlotte journal. [volume] (Charlotte, N.C.) 1835-1851, 1842-03-17
From The Fayetteville Observer.
MR.. UENRYtS LETTER.

Eaited States Baak.--The great and
good men who framed the Federal Consti
tuition, bad been taught by sad experience,
the evils Ct paper currency. Its course
for nearly century before, both 10 Europe
and America, bad been attended with the
same disasters 10 trade and industry.
Instructed by the will Of a people whose
wisdom aud virtue had been purified by the
fires Of the Revolution, they ordained IN
the Federal Constitution that coin, hard
money, should be the federal currency, and
only standard of rdiuC. The experience
Of all men, 10 all ages, and the regulations
Of Providence in the affairs Of men, have
given US no other stable measure of value,
by which balances can be settled between
nations, States and communities, and couG.
dence given 10 trade, wl!hou; which, II will
langulsh, or periodically break forth into
rulnous expansions and contractions. That
exccrable paper making macLiue, the Uni
ted States Bank, was the primal sin agains,
the Constitution, and like the sin Of Cam, the
Bank, has sunk uuder the doom OF perpet.
ual infany, as the scourge and perpleXly
Of nations.
The history Of this Institution will be
useful al this time, as shelving that such an
institution, or any like Government Bank,
can never furnish uniform currency Of
permanent value, DOR regulate the exchang
es aud that can always WELD q power
dangerous to the freedom, and 10 the NOR.
ais Of the country, and that the Government
can be administered without IT,
The late Bank Of the United States went
into operation in the year 1917, and in S
months afterwards, July 1918, it vas on
the eve of bankruptcy, with but few thous.
and dollars on haad, and mnny millions OF
notes in circulation. So disgusting, fraud.
ulent, and ruinous, had boen its manage.
ment, within that short period, that reso.
luton was introduced into Congress to re.
peal the charter, 10 1919, which was sup.
ported bv Gen. Harrisoo. These facts
NAV be seen a, length in the proceedings
Of Congress, in 1919 and 1890, and in the
repor. of lis President, Mr. Cheyes, 10
/ 1922 '23. During that IS months il had
made large loans in Europe, which ulti.
/ mately raised the price OF exchange against
this country. Instead Of checking grad
ually, by prudent course Of discounts, the
tendency Of the local Banks TO excessive
issues, Of paper money, like bold leader
! il headed the phaanx Of State Banks, and
! plunged the country into every excess Of
debt, speculation, extravaganza and luxury.
The natural consequence followed, and in
the spring Of 1910, the bubble burst IN the
South; all the Banks suspended payment,
and the people woke up as from @ dream,
and beheld all around them distress ard
ruin. Property sunk so per cent, or more,
in value, and in the cities Of New J ork,
Philadelphia and Baltimore, 1t was estimal
ed that 80 thousand laboriug men and
women were wondering abou, the streets
in search of food and work. The notes
Of our North Carolina Banks were quoted
10 Baltimore a, discount of % per cent,
and the exchanges between The United
States and Europe were ruinously high.
A Change Of policy takes place in the
management of The Bank, from this time,
to the time General jackson is abou, 70 be
made our President. Mdri il lreli as Hou
go along Orders issued from Fhlladel-
phia 10 all the southern Branches, not 10
issue their notes when exchange was
against them, and to replenish their vaults
by draushts Of specie from the State Banks,
which was shipped 10 the North; thus de-
privinG the South Of its own uotes, which
had been promised as currency, GRIPPING
our own Banks, and raising the exchange
against the citizens Of the State, when
they could least bear it. This pres.
sure Of the United States Bank upon our
local Banks, continued for nearly 10 years
until, finally, IN the years 1897 - and 20,
every Bank in the State was broken down.
Had the e. S. Bank furnished the curreu.
cy and exchange it promised when charter
ed, our suffering would have been greatly
allevated; on the contrary, however, it Go.
prived US of the best We had, and refused 10
furnish substitute. Twelve years Of lis
charter had now rolled out, aud the paper
exchanges during all that time, between
North Carolina and the North, averaged D
Il G per cent this as tax upon the consu.
mer, amounted in that period to many mil
lions. The years l827.lS2S and 20,
spread deep gloom over the State. The
Banks ruiued-thcir notes dlscredIied out
of the Staie--exchanges, scarcely TO be
had, aud when so, very high-prlces OF
produce and labor thrust down-property
could only bo sold at the greatest sacrl.
flee, and instances were known, of cotton
being purchased in Fayetteville, at 6 cents
pound, shipped to Europe for a market,
aud there sold at loss TO the owner.
Another Change takes place.-Generai
Jackson was made President IN 1929; the
charter of the Bank was 10 expire 10 few
years, unless Congress should renew IT,
| The President felt it to be his solemn duty,
in his first Message, to call the alten
ton of Congress to the past course OF this
Bank, preparatory 10 its application tor
renewal of its charter. This, Nicholas
Blddle viewed as great presumption, that q
renuhjicap President should dare to cues