The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1844-01-08

land turned the screw down went the price of I
Ion and tobacco, and run universal IulD, oyerwhelm
| ca every merchant who, tempted Ivy the false Fights
held ont by the Bank Of Engend, had, by pnrchas-
ing your manufactures placed themselves IN the pow
er Of that institution, Who does nos see that the
bank acted on adcberate purpose
/ do not charge that the directors of the bank first
inflated and then contracted the currency for the
purpose Of producing the caaailies which followed
what do charge is, that, occupying their position
they can ioresee coming cIs Shat III such case
it's their policy to encourage the export Of British
manufactures because your exporis the only
OF forcing back the precious metals to London the
centre Of the commercial world The bank by turn
ing the screw can put the precious melas in motion
in every quarter Of the globe into which your exports
are greater than Your Imports derived thererom. The
shock fails most heavily upon those who are nearest
and most indebted. they are compelled TO sell their
commodities at The reduced price, and make up the
/ deficiency In specie. The consequence Is that the
the temporary necessity has pass-
III NuAAhe precious metals, once put in motion,
contsnun 10 How IN upon YOU causing plethora stun
uaat'Hg new rpecuia'ionss forcing aron the haak aha
4 s4se stringent ~ ~ atermnate ugain in like dis
asiers. trace these disasters Bank OF England
to show that he responsibility and the blame should
attach to the syste m, which Produced them and not
to those who its victims. Ii is the system which
| condemn, not those who administer it. So much
as TO the Bank of England; word as to the
] Bank of the United States.
| AS the hypothecations made by Mr.. Jaudon fell
due, the bank was compelled to remit specie from
the United States TO pay interest and renew the hy
| pothecatons. To command the specie thus remit
| ted the bank issued post notes, which sold in
| the American market al discount varying from Is
to 20 per cent. These notes were bought by Amer-
can capitalists who, induced by the high rate Of in
erest and the supposed solvency of the bank with
drew funds from the ordinary channels of business,
thus increasing he pressure produced by the Bank of
England at the time when the country had been eX-
hausted by the commercial crisis, and therefore
| least able to bear it. The consequence was so great
a demand for money that the current funds Of the
| Bank of the United States were absorbed in the
payment of usurious interest; its remaining assets
consisting chiefly Of securities which, in consequence
of the proceedings before referred to, were for the
! time being, comparatively vaueless. Some Of the
! hypothetical bonds were held by persons who re-
ceiyed Them fair rate of interest, as bona fde
security and without Interior purpose. Some of the
parties are high minded honorable men, who have
been great losers by these transactions and yet have
given countenance to the ISLANDERS we denounce.
! To these America debt which money cannot
pay butt console myself i'll the confident belief that
the time Will soon when their money will be paid
and when it will be their pride and pleasure to say
81 have never lost confidence in or slandered the
| Americans" Such men have never sold the stocks
hypohecated to them, much less have they deprecis-
ted them for the purpose Of buying them in that they
i might go upon the bank for the residue, and pay
themselves by purchasing in its assets at nominal
prices. What they would not do, others have done
than other persons responsible for the losses which
the innocent holders of American State bonds have
suffered. The bonds thus hypothecaed were chief,
those Of the States OF Pennsy lyania Indiana Illinois
and Michigan These States had been stimulated by
the high price oil American produce, and the abun
dance OF money in England TO enter upon the eXpen
diture Of large works of internal improve
ment The acts authorizing these expenditures were
resisted the ground that they would involve the
cessity Of taxation. They were sustained upon the
Igr al "a he ovved IN
complete the works thus undertaken, and that when
completed the derived therefrom would pay
principal and interest The argument addressed to
| the people ''your agricultural produce is now
comparatively yalueless, because the cost Of trans
poration almost quite equal TO the price in the
market. Complete these railroads and these canals,
and then the increased value Of your public lands in
the line of these improvements and moderate toll
for the use Of them, will pay the debt thus created,
rtthOW tGrdttoH y! That such was the understanding
Of the people of the States appears from the fact
that they levied no lakes FOR the payment of interest
The Bank ofthe United States purchased their bonds
Indiana as delrau ed ola large sum- believe, about
50 000,t 90 Michigan was also detrauded Of nearly
the same amount Their public works were com
menced; he non-payment Of what due on them
the hypothecaon Of their bonds and the depreciation
of their credit consequent upon their hypOthecation
compelled them 10 abandon their public works in
their unfinished condition, sacrificing the entire
penditure and making themselves liable for large
sums to contractors use the credit of the State IN
the shape OF scrip a temporary loan from banks TO
meet the pressing emergency. Ii was of this mo-
ment, when the States were in this condition, the
whole country suffering under the exhaustion pro-
duced by the process Of the Bank of England, and
the consequent failures Of the United States Bank,
which have before explained that the London press
and the London CREDITOR demanded taxation and the
! payment Of interest cou led with insulting and abu-
siye epthets.
II was in vain that these States pleaded their pecu-
liar condition. In vain they urged that by the de-
struction Of their credit and their currency the coun
try was 50 exhausted that their produce could not be-
sold at any price, and that taxation beyond the re
demption of the local issues mpos on them by ne
cessity was impossible Certain parties hau been in
duced TO believe that the Federal Government coulC
be bued into the assumption Of Sta debts that is
that the Federal Government would assent TO the prin
ciple that Of 26 States may contract any amount
of debt, and that the other % bound TO pay II
II the Stale has right 10 contract there IS no OBJ
LEGATION TO nay and If the State has right TO con.
tract who can limit the sum- The proposition that
one of % partners may contract what debts he will
IN his name, and on his account, and that all
the others are bourd to pay, or be denounced as dis
honest is so prosperous that 1t needs but be stated
TO demonstrate ITS absurdity.
Now if instead of this attempt to cocrce the Fed
eral Government TO assume the State debts, which
the slightest knowledge Of the relations between the
States and the Federal Government ought TO have
convinced them impossible 1.-THE of the effort
had been made to sustain the credit Of the new
States and small advances had been made TO relieve
them from the necessity of making temporary loans
by the issue of scrip and local bank paper receivable
in payment Of current taxes and without which con-
dition it would have been worthless these States
, would have completed their public works, and the
innocent boudholders would, at this time, have beer
receiving their regular dividends. But this did not sui
the purpose THOSE who have pundefed and broker
down the Bank Of the United States, and whose Oh
iect was to purchase in the bonds Of these States
one-ffth their value and then TO make up the den
cheney on the sum for which they had been hypothe
Gated by purchasing the other assets OF the bank
I, much the same rate. What did these parties care
for innocent widows and Orphans what does th'
: stock exchange know Of sympathy for those whom
q they have impoverished
r Am told that the bondhoders were under mo OBJ
T. legation to advance additional sums to finish the pub
s lie works or protect the credit Of tho iautln