Indiana State sentinel. [volume] (Indianapolis) 1841-1853, 1844-05-09
The United States Bank.

As the Wings now happen generally 20 believe, con-
tTary 10 what they did in 1910, that an svowed support Of
another Bank of the United States, will be the most polite
course for them 10 pursue, II may not be Improbable to
recall TO the peoples attention some Of the "reminiscences Of
the last bank. whose history is flied with III, scenes Of two
greal revolutions-whose existence has teen the greatest
curse the Commercial classes have ever been afflicted with;
and whose dissolution was the prelude TO a better state Of
times. After years OF the most desperate spcculaiions-
after having exhausted all its substance-it lived on its own
yitlls, until its corruption could no longer be disguised.
Among the greatest evils which the Bank inflicted uuon The
country, was its immense speculs,ions in cotton. Having
tiled every thing else-having induced young and inexpe-
Tenced States TO contract heavy loans-having created an
artificial and inflated currency, and created times that
deceived the shrewdest calculations having created fancy
and yslueless stocks and speoulated in them until II could
do s. no longer having made itself bankrupt and thoroughly
rotten by all these operations, as a deToieT resort, as the last
desperate move, and with the hope Of realising immense
pIohts-prohis sufficiently large 10 cover all the losses BY
previous oFerations-the Bank went into all the Cotton
markets al the south, and monOpolised the movements Of the
season in that great staple. Two thi,ds Of the cotton, at
tina, period, that went to LIVERPOOL from Mobile, New
Orleans, &c, was consigned TO the agent Of the nited States
Bank at that port. Having any quantity Of money-in
the shape of its own bills-a, command, no clique could
compete with them, and The Tank was able to establish
prices and control the mar et. The manufacturers of Great
Bri'ain were IN the power of this institution, 80 far as plices
"tA vhetiHtu Out OltuudttlN " tntm, u ullOltuDalclN
for the Bank parties interested in the speculation, they were
not manufacturing goods TO satisfy an actual demand. The
spnners of Great b litain were even manufactulin ing goods on
speculation, and only submitted TO prices so long as they
chose TO carry on the movement. The moment prices
reached 4 point too high for Them 10 submit 70, they left the
market, and prices found a level below what the c, mkiuei
capital of the American Banks could stand against. The
reduction then commenced. The immense quantity of the
law material in the hands Of the agent Of the United States
Bank, accumulated at high prices, at rates much higher than
the best market in the world could produce, and The state Of
commercial affairs all over the world FASTENED The dirsoIu-
ton Of that institution. That was not he only result. The
United States Bank induced all the Banks of the extreme
south TO enter the field as cotton Spectators. By loaning
post notes, by extending its own Liabilities, and BY every
system Of fnancerng The Directors Of the United States
Bank could invent-by the adoption OF every expcdient, no
matter how Iuinous or at what saciifice-the Banks Of
Louisiana, Mississippi and Alabama. PARTICULAR , were led into
the arrangement, aud all went down together. The whole
for the purpose Of exchanging for cotton. At that pc iod, a
than gold itself, and the cotton-growing classes became
strong advocates Of the Banking System. Had the effect OF
this great speculation gone no farther than the de >tIuction OF
the Bank, 1t never would have been regretted. We should
have got M of a great evil by temporarily su1e ing a
greater, but the effect fom the movements made at tina,
time is siill felt. Those States whose Banks were thus led
aStiay by the great regulator. are 10 this day cursed with a
currency of the most deprecated natnle. Many of the
in~titu'io"s are in a state Of liquidation, and many have gone
out OF existence without having had any assets 10 liquidate
Il will yet be a long time before the last vestises OF that
revolution have passed fom sight.