Baton-Rouge gazette. [volume] (Baton-Rouge, La.) 1819-1856, 1843-08-19

A lsfge portion Of These bsfks failed, Nh
the tapffa1 vanished, Az might have been e1
peefsd. The United States AIfh#hac, for is4s
(which we suppose IL god apthorify), state
The number Of bank failures, AZ Consequence
Of the revulsion IN Tr31-442, 1T Ife; the loss
es OH bank 6ifehIation AID deposits, sds Goo
90 and 6n bank capital, sz4sD00,0 0t
This ~ a heavy reckoning f6r the loss IA 4 N
gahhr. But The effect bn the counffyyin d
koriny, il also 10 BIZ considered.
Who me the buph gum5krsF
In the increase of banks, from 1890 ~ 84f
h4Ufs MN mn Hfras N thtfa were ereafed D,
that political party which has faken the Leaf
in d~enogBeine banks and well they nigh
denout6 them, for Ngoys hun haB Of their owl
creation baes fatzed, while m int fps create
by their opponents, during the same period
had resumed specie payments early In 1912
thus proving their sottndnesss
WHEN Il hmm future uas ,ayh
During the existence If national inssifh
ton lis i balance power, IL was seldom the
country witnessed such al event ~ ) bahl
failure but since this regulating influence
was removed, The Wbois country has bsan de-.
vaststed BY bank explosions and the Unitet
States bank itself, after II beeaf6e sStas in
stftution, was swept away in the general yor.
lex.
Hue The Uaied s9atts Bank bstanst oorrnpt.
There is no evidence that this bank was
susoa nd, while ID was a natf0nat Institution
but The contrary, If The profit Of the pudding ID
in the eating. II always discharged its fun6.
tons ne fiscal agent Of the Government with
fidelity. without reward, ard without loss To
thre public ; ii yielded MP the Government de-
posts ON demand the Government stock d
sin months, and the dividends thereon,
amounting 10 upwards Of a million, we're all
realized and il served the country equalIy
well in various functions Of supply regulator
and e6nserystor Of the currency No man, Or
woman, on child. ever lost anything by II.
But, being driven ~ from its connection
with tbs eebeysI G5esfhnenf. il was compel
led With its large capital, 70 take refuge an.
der The wing Of one Of the States, where tbers
wss nj roorn for il. IL was Ike putting a ses
venty. four gun ship in d mill pond. Doomed
10 struggle against The continued and atti9e
hostility Of the national Executive, IL wac
tempted, for the employment Of its capital, to
20 beyond the legitimate sphere Of banking,
into the field Of commercial adventure, and
commenced buying and selling cotton, &c,
this putting in jeopardy its capital and credit,
till sjl was lost 10 the nnaatiojpated revutsioh
II Trade. Persecution furnished the plea OF
necessity necessity led 10 crime , and crime
ended In ruin@peeisely ~ n mas becomes a
bandit, wh6b society sets itself aEainst him
fos A supposed 6ffsnee, aid then lives oh the
spells Of his Victims n was the action Of The
general Government, after snd betanss IL be-
came d StaN Institution, that tempted IL 10
crime, and the vengeance Of Federal power
that sealed its dom.
sopt sptaft results IF Mis tonktsh
FIRST. the balances power Of the currency
was broken dowB. What followed that, we
have sesn. Next The public funds, which the
constitution had assigned ~ the custody Of
the Legislative branch II the Governments got
into wrong hands. Thirdly, they wers useds
III tho wsy Of their disposal 10 carry on this
feud, Fobtthly, leaning The deposits vss aha
other stage pf the saHfe dasrrel~@Sotne fbrty
suttNons, that had fbba beer forced ont N the
constitutional custody into t~tfhstyAsis banks,
we're ordered 10 be- Enthusiastically hhtonstie
.tutionat. A cashier in one Of the pet banks, in
Wall street, said, (as EtHed by Mr. Webster
IN his speech on The etpfshty, At New YORK,
is4O), 'sbe hardly koew what 70 do, for he was
70 loan more Of the public money than
be tottId find ssebftJ fof. The fhonay was
on spectators.
Tie s6at If baning tie a<posita
IL WIS q temptation, an eatieem6nt 10 gen
sral extfavagshes, and wild spstulationj and
he whole country, individuals, corporations,
md States, wers sedu6ed by The bait Banks
rev up like mushrooms States launched ont
n Internal Improvements, and The whole COM
was infected with the madness Of the
inc. The initiation Of credit, produced BY
his course, was unnatural, and deemed TO
Ordinarily, trade, in its natural action,
in constant vibration, will regulate it.
elf ; bat this unnatural impulse forced the
,endulum 10 fearful height, ard IFS backward
weep pot the whole machinery ont Of order.
Aproef(M.
The history Of the state debt shows. that
rom 1920 to 1896. the increase Of State bonds
vas S12,O0GD00; from 1926 TO 1890, the in
,rease was gl3tDGg,6O0; from 1880 to 1886,
this stimplant began 70 operate, the in
SUDDENLY rose TO S40OO0,000; and from
1896 to 1910, il was Si09,0001G00 nearly the
vhoIs N which was issued in 1895 and 1896,
,sfore the destruction N general credit. The
OF 1896, tempted by the safoe seductive
nfaences, were ss1 100000 in excess Of the
Exports; and the home speculatiorrs and ad
Ventures prompted by this cause, we're ON The
anne scale of extravagaucet Thepeopk Dsrs
,nnaturaIly stimulated 10 eeeess By The action
5he general Gorernment.
A eonpaek
II cannot be denied, that there was a virtual
in these e~ncorsragefnents 10 s~pecula-
ion held out by the general Government TO
ho States and people Of the Union. The in
estment Of the Surplus revenue in State
,onds, was publicly talked Of in Congress,
nd a Senator, regarded az an organ Of the ad-
said in his place. 'that he was
lot afraid TO recommend such an investment
{ the national funds, as The States pouH issue
~ many bonds as ne Government might choose
b buy" That the seducer should after
Yards turn round, and accuse and berate
as victims for the crime Of seduction, was not
cry kind.
The e6ses efhe speett circular,
That was cruel. Bot it had no~ become
scsssary TO break Down all spectators. thus
empted into the fieid~-yndivjdual, banks,
and slI-~ir order 10 break down the
rince Of spectators at Philadelphia. The
pecie that was Indispensable 10 sustain even
the excess Of credit occasio1ed by
the deposits, was suddenly withdraw
rem under this stupendous superstructure,
nd sent TO places where it was not wanted
nd doson came ereryhing. Individuals went
in heaps, banks blew up in scores, States
eeled on their foundations--and the aohole
uas prostrated.
Remarks.
The destruction of credit, and the great re-
ulsion of trade in 1872, and the conse-
uent caIamities, public and private, have been