Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1844-04-20
FOR TIE ENQUIRER
TO THE PEOPLE or VisGlHiA-lNo. vi
S1,AI,L RASk =


MIR Van Buren, was never opposed 10 the money
ed institutions OF the parate States On The con-
rary he treated them with justice and lberaity In
deed no Republican President OF tins country ever
injured them in any way President JACKSON sus-
tanned them with The power OF his and the pa
tronape Of The Government. lie assisted IN making
them tie legal repositories OF the pubic frnds and Tue
discussing agents Of The Goyernment-whie the re
ders party denounced them as incompetent agents
md wholly unworthy of public trust. Before Mr.. "
Buren, was elected 10 the Presidency, the u. States
Bank charter had expired; and the Depos.ta Act oil
the Odd June 1896, had conided mnny millions OF the
public funds 10 the custody OF Stale Banks, when
promised 'credt, as specie, oil sums oepoSited
therein 10 the credit Of the Treasurer OF the United
States and to pay all checks, warrants, or drafts
dra wn on such deposss in specie u required ny Inc
holder thereof" This Deposite Act greatly increased
the number and influence Of the Banks and the rivalry
among them for the custody OF the public funds The
consequence was an expansion Of the currency IN eve
~ direction Each Bank initiating the pernIclous e1
ample of the Bank of the u S, strove to increase the
yed circulation Of the country, and discounted
| and negotiated on unwise terms This genera! dis
! position of every Bank furnish whatever increase
the currency would admit, gave hasly but trans
lent impetus to the business of the county
! Merchants and Manufacturers imported unusual
quantities Of costly goods, and sold them on Gre
dit, 10 purchasers who expected the Banks would
furnish funds honor the bllls as they became due
Spectators borrowed immense sums which they in
vested in wild and ru,ess lands, and calculated That
a continual augmentation of prices would quickly en-
able them by selling portion OF the property, TO re-
turn The borrowed money, and TO realize fortunes from
The residue of their heavy purchases. While THIS
see ming prosperity gladdened the country and pro-
missed the accumulation Of wealth beyond the dreams
of ayarce the banks gained enormous profits on the
extensive business they daily transacted In the pro-
press Of this extravaganza tie moneyed clrcuat on he
came foil and be gan overflow the channels OF onal
trade Then exchanges gradually turned against the
! cd he
The banks contracted their discounts, called in old
debts refused 10 allow new ones ana endeavoTed 10
avoid the general pressure themselves hsh created
This p.l,cy saved some thrifty and sagncious banks-
but il ruined their debtors, and produced ncaculable
calamit,cs throughout the nation. lhose WHO "lnked,
and expected to fulfil their engagements, by he DIS
count Of bills the barter OF property, became sud
denly dsa pponted and submitted to insolvency. Or sa-
orfced their estles in dull and overstocked mark Is
Each dealer discovered alas, late for his reposa
that during the general, epdemical excitement, he
had madly purchased what he could neither protably
DISPOSE OF, nor honestly afford to keep Money cont
nually became more scarce, and prices fell with runous
rspidi,y The depression in business caused redun
dancy in that amount of currency which, III ordinary
Seasons was scarcely sufficient for the need'u exclan
ree of the country. And consequently the induce
ments 10 export gold and silver continued to increase
Under circumstances appalling TO the national proc.
prrty, badly conducted banks were wholly unable to
withstand the shock-and failure to execute their
u
nrecious metals were both boarded and exported until
The currency became sufficiently contracted TO turn
exchanges in favor Of the United States. The panic
which hurried one bllhoder to the banks, to demand
soecie for notes naturally hurried Others until scram.
bile for coin closed the banks. In every crisis of the
sort, distant ignorant, and condng people suffer most
The Banks which cour;cd and accepted The conditions
of the Deposte Act Of 1885, violated their engagements
and pIainv forfeited the custody of public funds
In NAV, 1897 they failed TO redeem their notes; they
closed their specie vaults and refused 10 honor the pub
lie drafts drawn the public funds Had the BANS,
TO which the money Of the nation entrusted, fairly
performed their obligations to the Government The ex
osnse and odum Of the Extra Session in 1885, the crea
lion OF additional public debt, and every distrust OF our
national credit, wosd have been wisely aToidcd-;or
there was no scarcity Of public funds; revenue was
ample; the national debt was paid; and the Banks owes
The Government fourteen millions Of deposited money
Yet The faithless Banks in direct violation OF express
law boldly retained fourteen millions of public revenues
dsed the wishes and exertons of the Government TO re-