The spirit of democracy. [volume] (Woodsfield, Ohio) 1844-1994, 1844-04-26
HISTORY on THE u. S. BANK.

ods. The bank went into operation in 1916, and
on the 1st Of January of the year following, its
circulation amounted to 81 9l1 200. January l,
1918, the institution became involved in difficulty,
and was on the point of failure, the circulation
amounting to 1899 ,4IS. In 1920, the circulation
had been reduced to 1859 ,4Sl. In 1923, Nicho-
las Bddle was chosen president, circulation ST.
361 058 In 1924, there occurred general revul-
sion in business; circulation "a ,647,077. In 1928,
the bank commenced its political operations; and
its circulation at this period was $9,s55 ,6f0.-
From this time until 1892, it continued to expand
when its circulation run up TO $S2l .345,724. In
1886 the charter of the institution expired crcu-
lation $23 ,422. In 1887, general revulsion
occurred, followed by universal suspension of
! the banks,-the U. S. bank turning cotton specu-
lator in June of that year, to 'ssustan the price of
cotton;" circulation, $1l ,44796s. In 1898, the
| New York banks resumed specie payments; crcu-
lation of the United States bank, $6, ,768;0G7. In
1885, Southern and United States bank resumed;
circulation of the latter, 5, ,9s2, ,62l In April of
the same year, the bank in the midst of its cotton
speculaons, Mr.. BiIdle resigned the presidency
of the concern, received the thanks of the direc-
tors and a service Of plate worth $20, ,00O-the
bank being voted 'in prosperous condition."
circulation $S6,630,l44. In June of the same year
the circulation was reduced to four hundred thou
sand dollars; the bauk having sold bills of ez.
change to large amount in New York-more
than 50 ,OO0, ,C0O-drew the proceeds in specie and
shipped it to England. In October oil the same
year the bank failed after notice Of the dishonor
of her notes in Paris was received at New York,
circulation 100000. In January, 1910, the cir
cuation had increased to $6,695 ,s6l-the bank
having been in suspension since October ii. In
January, 1871, the circulation amounted TO $S7,-
1857, besides $6 ,445, $50 in post notes held by
other banks in order that itself might resume,
which it did. In February Of the same year, the
final failure Of the concern took place-circulaton
being $3 ,6S2, ,522, and post notes $3, ls2, ,963 In
the April following, the bank was put in liquida-
ton; its circulation at the time amounting to
$3,294,576.
Here is a concise history of the rise and fall Of
national banking, and it is full Of instruction
From 1917 to 1928, period of eleven years, the
circulation never rose over $6 ,OOO, 900 except in
1918, when it was brought within 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 a
country like this, where party politics run high,
), without being seized upon by ambitious lawyers
for their own advancement In the four succeed
ing years the "spread" of the bank was very rapid.
Like an enormous political spider, its web was
) spread wherever votes were to be caught-but the
result very different from what it anticipated.
Instead of defeating the opposing party, the nfla-
ton of the currency caused an universal rise in
prices; and in 1882, with full currency and high
prices, the second election Of Gen. Jackson was
carried almost by acclamaon. The fact of high
prices operated upon the whole country in favor of
the party in power, and was far more effective than
the immediate and direct Influence OF bank loans,
which resulted OILY in the ruin OF the concern.
From that moment its fate was sealed. The enor-
nous loans then made were never recovered, and
to the extent of 1900 900 900, now exist charac-
terized by the investigating committee only as not
'smercantile power" From that time up to 1887,
the safety of the bank existed by the strength OF
its remaining credit and the UNIVERSAL expansion OF
other banks. In 1887, universal suspension COW
cred its insolvency. Its struggles were desperate
to prevent the resumption Of the New York banks
in 1888, but in vain. Public opinion compelled
all the banks to resume in January, 1889. From
that time to June it appears that its circulation was
driven in upon it to the extent of six millions, in
consequence of loss of credit The immense mass
of assets which the concern held were inactive.
To supply the active means of which it was
deprived by the return of its circulation, post notes
were sold at 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, subsequently published, to
compel suspension 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 one of the greatest
curses ever inflicted upon people In the final
failure of the bank the country escaped only by
J three weeks, one of the greatest calamties that
could have, befallen it. The revolution of 1910,
brought about by the fall of prices, occasioned by
an approach of the currency to specie level,
brought into power the national bank party, March
4th, 1871. The bank failed in February, 1s4l.
Mr.. Biddle explained, in subsequent letter, the
error the bank committed by resuming in January,
ls4l He stated that if they had kept on until
March lst, they then under the new administration
would have received the government deposites;
have again become the national bank, and with
credit and means thus renewed, have recovered
their affairs. The "inanciers" overshot themselves
in this matter, however. The governmen: could
not have given its depositcs to a suspended bank,
and il was with view to gain little character
prior to recovering the public money, that the
resumption was effected january !, ls4l. The
rotten concern had, however, less strength than