The North-Carolina standard., 1843-05-17

anu next SuuueI ana reckless expansion
both having the same object in view, namely tina
OF wrestling charter from reluctant people L
cannot be forgotten that President Jackson in tn
exercise of power delegated by the constitution
refused his assent to bill renewing the charter O
the Bank of the United States, and returned it t.
congress where it failed of the constitutional ma
Jorlty For this he was assaied with every spe
cles OF denuncation by the adherents of the bank
while trumphantly sustained by the people, who
reelected him by a great majority. That the
bank refused to submit to this decisive expression
OF the public will, indicates the consciousness o
extraordinary power, and determination to exert
1t to the utmost. Accordingly it renewed the con
test on the recurrence of the first preliminary
steps taken by President Jackson for carrying in
to effect the decision so solemnIy ratified by the
people This was the removal of the public mo-
ney from the custody of an institution in which, il
1t had been suffered to remain, it is now morally
certain the Government would have shared the
fate of the destitute widows and orphans, who are
now lamentng their confidence, in poverty and dis
tresS
The bank determined to coerce the government
into an abandonment of this necessary measure of
precauton, by sudden curtalment of discounts,
which would be severely felt and the odum of
which, it employed all its arts and influence to
throw upon General Jackson. In the short space
OF fourteen months it withdrew from the exigen-
this contraction followed by that of the State
banks, either from necessity or a common sympa-
thy, on the part of some at least, in a common
cause. The result of this combined action, was
rapid decrease of accommodation to the trade and
business of the country, amounting to at least SIC
ty millions of dollars.
1t must be obvious that the sudden abstraction
OF such an enormous sum from the general fund
of business, would be severely. felt by those who
traded IN whole or in part on borrowed capital,
and through them, in lesser degree bv other
classes of the community. These partial incon-
veniences were magnifed into universal distress
and wide spread ruin, by newspapers and public
speakers, either under the direct influence of the
bank, by the strong bond of dependence, or who
were united with that institution in system of ac-
tion calculated to subserve the purposes of both
parties Speeches IN Congress, presenting ag
gravated pictures of public distress, infammatorv
proceedings of public meetings, memorials, relief
committees and an infinite variety of other ap-
pliances, which great moneyed institution, gift
ed with ample means of corruption, and unscru-
pulous in employing them, could command, were
brought into requisition in order to create panic
among the people, and overawc the infexible
and just man who then administered the govern
mcnt.
These measures of the bank proved, however,
in shaking the frmneSs of Gen. Jack
son, in deceiving the people, whose own expe-
rience taught them, that though there might be
some partial Inconvenience, and some reduction
of prices there was nothing like general public
distress. Years of successful industry and well
regulated enterprise, had laid the solid basis of
prosperity not to be shaken by abstraction of a
portion of that capital, which very few Of them
had shared the benefits. They saw, too, the mo-
lives for all these exaggerated pictures of public
suffering, these inf1ammatory appeals to the most
sordid passions; they knew there was a deep
laid, widely extended plan of deception and be-
came indignant at the attempt to cheat them into
he abandonment of their principles, by an appeal
o those interests which they felt had not been
'iously affected, or if so, not by the measures of
he government but of the bank alone.
The bank, perceiving that an appeal to the ap-
,rehensions and suerings of the people had failed
n producing that revolution in public opinion so
anticipated, changed its course TO di-
ection precisely opposite, and unhappily far more
extensive and fatal in its consequences. 1t resort
ID to expansion instead of contraction; and not
the necessity of preparation to wind
lp its affairs, which had been made pretext for
sudden curtailment still existed, and had become
very day more pressing, it suddenly opened the
lood gates of accommodation, with view of cor
upting those whom it could not coerce and deceive
IN the course of eight months it extended its loans
o the amount of nineteen millions and q half of
zolLars and the State banks, they had followed
is lead into contraction, now followed it in expand
ng.
This sudden influx of paper money produced
is inevitable consequences There was no en-
,loyment for it in the ordinary channels of busi-
less, nor in the usual prudent, restrained sphere
If we'll directed enterprise. 1t accordingly ex-
landed itself into every species of extravaganza,
very variety of visionary and desperate under
aking, and every scheme which men without
but who could borrow at will, could de-
Use for wasting money in the shortest possible
ime in the most Improbable manner. New banks
prung from the bowels of the DID, and the same
eal or imaginary capital transmigrated from one
corporate body to another, until, in less than two
yea1s, bank capital increased from about two hun
lred to two hundred and fifty millions their circu
alton from ninety-fve TO one hundred and forty
Millions and their loans and discounts from three
hundred and twenty-four to four hundred and fifty
even millions To this, if we add the vast
lmount of credit acquired abroad by foreign loans,
ind by lavish accommodations of foreign dealers
o our merchants, we may form an estimate ofthe
extent to which this unparalleled, expansion of
.redit and currency was carried, and the deplora-
DE consequences which would necessarily follow
is sudden downfall, which no legislation, no pub
ic prosperity, nothing but miracles could pre-
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