Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1843-05-09
tensions and suiltrngs of the people, had failed in


precisely opposite, and uahapry Tar more cSte"sl'
ana iata! III lis consequences. .esored 10 expansion
instead OF contraction; and nowi,is and,ng The Eeces
sliy o! preparation 10 Wind up lis alairs which has
been made pre;ext for sudden curiamen,, still tx
listed, and had became every day more pressing il sud
itny opened the !incd gates ot accommodation, with
view Of corrupng those whom it could not coerce o
deceive. In the space CT eight months, it extended
its loans TO the amount Of nineteen and a haf million
Of doiars, and the State Banks as they had followed
ITS lead IN con;ractlon now followed it in expanding
This sudden influx OF paper money produced is in
svahle consequences. There was no employment io
II IN the ordinary channels oil business nor in the usua
prudent restrained sphere Of well directed enterprise
II accordingly expanded itself into every speces O
exra:agce, every variety of visionary and desperate
undertaking, and every scheme which men withou
property but who could borrow WILL could devise
Tor wasting nancy in Tie shortest possible time in The
most anprcfiiabe manner New banks sprung from
the bowels Of the old, and the real or ina ginary
capital transmit grated from corporate body 10
ther until ~ less than two years bank capital increased
from about two hundred to Two hundred and fifty mil
lions, their circulation from ninety five to hundred
and forty millions, and their loans and discounts from
three hundred and twenty -four 10 four hundred and
fifty millions Tothis, if we add the vast amount
Of credit acquired abroad by foreign loans and BY lavish
accommodations of foreign dealers TO our merchants
may furm estimate ct the extent to which this
unparalleled expansion Of credit and currency was
RED, and the drp.orabc consequences which would
necessarily .ollo" lis sudden downfall which legs
aton, public prosperity, nothing but miracles could
prevent.
The final results of this extraordinary deusion, wlc
may be distinctly traced to the operations OF the Bank
Of the United States its successor IN PENNSYLVANIA
IRE known 10 all. There no. citizen Of the T. S
be he rich be lie poor, who has not felt the blight
of this all-pervadng influence in way other,
his habits, his morals, his property. In The briel
period Of three bcggared hundreds of thousands
of citizens impoverished States, we'll nigh bankrupt
I'd the General Government, inflicted deep, if not
deble stains, not only national character but
on Republican Institutions, aud rendered all The
blessings OF uneSampled abundance, incapable Of ad
ministerlng either To private happiness public pros
perity. In short, il las become OF those wide
spread, universal cssmlics, which have been hitherto
only looked lor the direct dispeTsaton of Provi-
dence.
The greater portion, if not the entire mass Of evil
resulting from the sudden contraction and subsequent
expansion of currency and credit, is distinctly charge
able the desperate and unscrupulous efforts Of the
Bank Of the United States 10 wrest renewal Of lts
charter from the people, first by ncting upon the NJ
pccunary distress, aud next, the still greater evils OF
redundant means, which could not be benefcaliy
employed. Had it proceeded to wind up its affairs,
with that steady purpose, united with that sanitary
delay Of which the history of the first Bank furnished
an instructive example, lis final extinction would have
led 10 greater distress, inconvenience, Than
But its managers before and behind the curtain chose
to act otherwise. They combined political and pecu
mary elements together; they kept the whole Country
stale Of levcfs agitation which has not yet sub
sided; they administered additional fuel 10 The fire Of
party conenton; deranged the entire system of trade
and commerce; corrupted political pastIzans by leans
aod doceurs, for which they did not dare 10
specify dcirauCed widows and orphans, and stock
holders, foreign well domestic; bankruped indi
vduals, destroyed the credit of States and after
Of Injuries under which The whole Union is still
smartng finally sunk beneath the weight Of their own
transgressons. leaving blot on the history Of the
country which can never be wiped away.
Though ell but omnlpoten. for evil, it sufficient y
demonstrated that ii wanted either the will the power
to Go good 1t neither regulated the currency by re-
siraining the issues Of the State Banks, nor the eS-
changes by accommodating them to the course u.
trade. On the contrary, IN the various stages OF Its
progress and decline, the example Of unbound
expansions Il set the example in suspension O: spe
cic paynenis and to the last moment oI its existence,
was the great enemy Of and obstacle 10 resumption -.
The only mode by which 1t sought to regulate
exchange, so far as my information extends, was by
an arbitrary rule Of The Bank, instead of leaving II 10
the natural laws OF trade, which the best OF all rcgu
ations, because it regulates itself. Snch is the
at this moment. There IS no u. States Bank in ex-
stence and no legislation The subject; yet the rates
&C exchange between the different portions of the T..
States beng thus left entirely TO the operation c
farm nd equitable than they were during any period
in which the Bank exercised lis bnas,cd power of
regulation. Whatever diversity exists, beyond the
COS. and risk Of transporting specie arises from
difference IN the currency, ard cannot therefore be
lastly ascrbed TO the want OF regulator OF ex-
changes.
ajy views on the subject of exchanges and of the
propriey necessity expediency OF any interference
OF government in their regulation, were communicated
to Congress in 1887. To rcpeu, them here would
lengthen this communication, which from desire TO
answer your questions fully frankly and explicitly, Will,
fear be extended 10 the verge OF ediousness. must,
therefore, respectfully refer you to that document
You will there see q clear. broad distinction between
ha, species o. exchanges apily denomlnaed kliing'
which was little bet tier than an instrument OF frauo, ana
bills drawn for the transfer OF actual funds from one
place 10 another END, avored also 10 satisfy Congress
o.. what is now 50 apparent, that the exchanges would
here as they do other countries regnlac themselves,
# Congress would but leave them they lei else
where, 20 ,ae management oil private enterprise IL
is Doubtless within your recollection, what tempest
of Remuneration ! received from those who thought
proper 10 overlook those considerations. The opinions
then advanced would ii is quite certain, he received
with more favor now; and have only 10 add that they
have undergone other change, Than that ii add.
icna conviction arising from additional experience oi
their truth.
The tremendous power of bank for evil, when i'm
ppllcd by avarlce ard auibiiicn self preservation or
vengeance has been seen. II IS maxim in every Go
vernnei; constituted OH Tree principles, 10 Withhold al
mower fran rulers which not indispensable to the
rfe-eryaian nd def. OF the rights Of person a"G pro
pe7ty And tins maxim is founcsd on the experience
of mankind which has laugh, them, by long series 81
So ternr that NJ; only is power much more Liable 10
abuse Than to beneficial exercise, but that with 'he
cures Il can do sr less good than ii pe,raie ls
chief when perverted 10 evil The people oil the U .
have repudatcd spotc discretionary pcwer IN oil
their pc,ica! institutions because oi lis propensity 10
abuse Ye, they have been, and, mark my wofcs, ~i'
be again and again, called upon TO create despoc IT.
responsible moneyed power, stronger than their 90
vcrnmen because it is expected TO do what mat 20
vernment cannot CT itself perform. hope and 'rus;
that such appeals will again be successful, and
that the good people OF the IT, S will always Lear IN
mind tina, al institution which do what us advo
Gates i.m ts can must # subservient TO The Govern
men,, give il vast accession Of power dangerous 10
the gh;s of The States, ard which, If from any cause
il should become hostile, either subject that Govern
nent It's wi, like le deunct institution Oh which
hare spoken, involve The country IN confusion ana
difficulty: lis Government III perpetual Struggles "ho
is faop!a in an nerm:na5e series Of panic aud d'snay
N0ihinr hut evrr-ga,ca vigilance IN ne pa,i u
tie pe,pis vii prevent recurrence OF these e's-
The enemy is not dead doth he sleep. The schsii
in The ranks of the opponents Of Democracy, turns az
mos, exclusively the question of National Dams
and the complete triumph of Federalism VIII oe the
precursor of such institution.
II. nt,ayrn m h n