The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1843-10-16
From The .Neio Bedford Morning Register.
HISTORY OF THE LATE u. S. BANK

| The New York Herald furnishes concise history
of the late Bank Of the United States in the item OF
ITS circulation, at different important periods. The
Bank went into operation in 1916, and on the lst OF
January of the year following, its circulation amount
eG to Sl9ll 200. Jan l, 1918, the institution be
came involved in difficulty, and was on the point o
failure, the circulation amounting to So 339 44S. il
1929, the circulation had been reduced So 500 46
In 1923, Nicholas Bddle chosen President, cir
culaon Sa,36l ,05S. In 1924, there occurred gene
raj revuision IN business circulation, S4647 ,O77.
La 1928, the Bank commenced its political operations
and It's circulation at this period 50 o55 677.-
From this time until 1892, it continued to expand
when its circulation had up to S2l ASS, 724. IL
1886 the charter Of the institution expired crcuIa
tion $23, O75,422. In 1887, general revusion DC
CURED, followed by universal suspension of the
Bank, the U. S. Bank turning cotton Spectator in
June OF that year, to sustain the price Of cotton "
circulation, $ll ,447,96S. In 1888, the New York
Banks resumed specie payments; circulation of the
United States Bank, S. 76SG67 In 1889, Southern
ter, S5,9s2,62. In April Of the same year, the
Bank IN the midst of its cotton speculaons, Mr. Bid
die resigned the Presidency of the concern, received
the thanks of the Directors and service of plate
worth $2O,GOO-the Bank being voted g in prospe-
rous condition." circulation So 630,I In June of
the same year the circulation reduced to four
hundred thousand dollars; the Bank having sold bills
OF exchange to a large amount in New Ycw York
more than S3,0tO,00O-drew the proceeds in specie
and shipped it to Eng gland In October of the same
year, the Bank failed after notice Of the dishonor of
her notes in Paris was received at New York circu-
lation $500 900. In January 1910, the circulation
had increased to SG,695 S6l--the Bank having been
in suspension since Oct. III. In January, l54l the
circulation amounted to S7,l57,5l7, besides Sc 445,-
$50 in Post Notes. held by other banks in order that
| itself might resume, which it did In February of
the year, the final failure OF the concern took
Decentralization being 81, 6S2 522 and Post Notes,
80, lS2,963. In the April following the Bank put
IN Liquidation; its circulation at tie time amounting
| to S3, 294, SIC.
| Here is concise history Of the rise and fall of ma
tonal banking, and it is full of instruction From
1917 to 1928, period of eleven years the circulation
never rose over S6,000,0U0, except in 1885, when it
was brought wthn the brink OF destruction, and was
saved from suspension only by miracle. In 1928
the bank entered the vortex of politics, which was
inevitable-so large and overshadowing an institution
cannot exist in country like this where party poll
ties run high without being seized upon by ambitious
lawyers for their advancement In the four sue
ceeding years the "spread" OF the bank very
rapid. It's loans pushed into all sections. Like
an enormous political spider, its web spread
wherever votes to be caught-but the result
was very different from what it anticipated Instead
Of defeating 4 c opposing party, the initiation of the
currency caused an universal rise in prices and in
1882 with full currency and high prices the second
election Of General Jackson carried almost by
acclamatlon. The fact of high prices operated upon
the whole country in favor of the party in power
and was far moe effective than the immediate and
direct influence Of bank loans which resulted only
| in tie rum OF the concern. From that moment IFS
| fate sealed. The enormous loans then made
were recovered and to the extent Of $40 000-
900 now exist characterized by the investigating COM
mittee only as not "mercantile paper From that
time up to 1897, the safety of the bank existed by
the strength of ITS ming credit and the universal
expansion Of other banks. In 1897, universal sus-
pension covered It's insolvency lis struggles were
desperate TO prevent the resumption of the New
folk banks IN 1888 but in vain. Public opinion COM
PEELED all the banks to in January lS39.-|
From that time to June it appears that its circua
ton was driven IN upon II to the extent Of mil
lions, in consequence of loss Of credit The immense
mass of assets which the held inactive.
To supply the active means Of which 1t was
deprived by the return of its circulation, post
notes sold at a heavy discount in all !
sections of the Union, and finally the sale of
fictitious bills OF exchange resorted to, as avowed
in the letter Of Cowperthwaite, the cashier suisse
quently published, to compel a spenson Of the New
York banks, in order that the universal insolvency
might again cloak the bankruptcy of the late National
Bank. The ruSe failed, however, and the mask was |
torn from the corrupt remains Of Of the greatest
curses ever inflicted upon a people. In the final
failure OF the Bank, the country escaped only by
three weeks Of the greatest caamies that could
have beiallen If. The revolution of 1870, brought
about by the fall Of prices, occasioned by an APP
proach of the currency TO specie level, brought into
II. Il.
The Bank failed in February, l64l. Mr.. Bddle ex-
planned, in subsequent letter, the error the Bank
committed by rcsuming in January, lS4l. lie stated
that if they had kept on until March l. they then
under the new administration, would have received
the Government deposites; have again become the
National Bank, and with credit and means thus re-
newed, have recovered their affairs. The "hnan-
ciers" overshot themselves in this matter however.
! The Government could not have given It's deposiles
to suspended bank, and II with the view gain
little character prior TO recovering the public mo-
ney, that the resumption effected January /,
lS4l The rotten concern had, however, less strength
! than its doctors supposed. II could not, with
the most prodlgious efforts, not even by saddng the
other banks with S. 900 600 Of its post notes. be made
to hold the prescribed 60 days IL staggered on un
Ill the strength Of its supporters was exhausted when
it fell, carry ing with 1t the regulations of all con-
nected with it. There il lays amid the dcsolation il
has created surrounded by bankrupt States and dis
honored public faith, corrupt and fostering mass a
foul ulcer on the national character.
Such brief history OF the late Bank Of the United
States. At the present time, IL is full of interest and
importance. The whig party IS again plucking up
courage, and making bold TO put forward the 6slab-
lishment of another Bank as among its leading mea.
sures. The wings OF Georgia say that &. s. Bank
IS called for in tones not 60 be misunderstood MIR
Clay the wing candidate for the Presidency declares
that the failure of the present administration 20 es-
tablsh Bark is defeat Of the wishes of the people
In the late election in Tennessee a Bank was held
up the great purpose Of the wing party In IndI-
ana the ground taken, and in fact all over
the country there indications not TO be mistaken,
of the designs Of the wing party The old Bank
therefore, must not be permitted TO sink into oblivion
Its crimes its monsrous deeds o. wckedness its de-
predictions upon public and private virtue must not
be forgotten. They were part OF the system and /
will always be the incidents of any similar institution |
They must be held up before the people, beacon
admonish them Of the dangers and pcrils of estab
fishing another institution of similar nature The
light Of experience is the safest guide, and should
not suffer il TO be dimncd or quenchcd Let the ma
ton now and forever avoid the curse OF National
Bank and TO this end let the FIRST advances of its
friends be met by signal and decided rebukc
T1-TorALLERs Father Matthew, on his return
from England to Dsbln, told the audience al his first
meeting that he bad administered the pledge Of total
abstinenco 10 the Earl OF Sanhnne the Duke Of Nor