Nashville patriot. [volume] (Nashville, Tenn.) 1858-1860, 1858-10-30

1876 The increase Of banks. from 1916 +
1920 was 81.
2. That from 1876 to 1880; 4 period c
fourteen years. the increase of banking car
tital Gncluding the s35 200, 900 of capital c
the United States Bank was So, 900. 900. an
the increase in the number oIbanks 81. In thi
| period of fourteen years are embraced tn
four years of the so called Federal Admins
tration of John Quincy Adams. During tn
other ten years, the old Democratic part.
was in the ascendency.
3. That from 1880 to 1887 the increase il
the number of banks was 493 and the increase
in the banking capital of the country wa
SI46.O00,O0O! In that short, burt memorable
term of seren years, the whole number o
banks in the United States was more thar
doubled, and the whole amount of banking
capital in the country was also more than
doubled. The increase of banking capita
in those seuea years. from 1880 to 1887. was
as viii be seen. by reference to the table, $40,
/ 100000 more than the increase during the
/ period of tacenty-one years from 1887 to 1858
President Van Buren in his message to
Congress, at the called session in September
( 1887, says:
I .'At the commencement of the year 1884
the banking capital of the United States,
J including that of the National Bank then
existing, amounted to about 200 millions: the
bank notes then in circulation to about 95
. millions; and the loans and discounts Of the
/ banks to 324 millions. Between that time
| and the LIST of January, 1886, our banking
capital was increased to more than 254 mil
lions; our paper circulation to more than 14O
millions; and the loans and discounts to more
than 457 millions"
Thus it appears from unimpeachable au-
thority that. in tsco only of these memorable
, seven years. the net increase in the banking
capital of the United States was more than
81 millions of dollars-that the net increase
in the paper money of the country was As
millions of dOllars-and that the Increase in
bank loans and discounts was 1873 millions of
dollars. In the seUer years. as have already
shown, the increase in the number of banks
was 493-the increaseJ of Banking capital
Sl46,000 900; -while the increase in the issue
I and circulation of bank notes OK paper money
was upwards of 124 millions, 1Ssfrom SCI $685.
sos in 1880 to SlS5, 1852. 500 iu.yis36,) and the
increase in bank loans and discounts 800
millions of dollars-the increase of the latter
being from 5000, 45l,2l4 in 1880 to $780,.
1872, 66l in 1887! , "a . G
This unparalleled increase of banks-this
enormous imitation of the paper currency
this tremendous extension of bank loans and
discounts, all within the brief space of seven
years, it can be undeniably shown, were the
results of Democratic policy and Democratic
legislation. -ss- u b.. FtrAEeF y 81
General Jackson's first Inauguration took
place on the 4th of March, 1929. In 1880 APP
prehensions began very generally to be felt
that the charter of the United States Bank
would not be removed. In 1882 the veto of
the President confirmed these apprehensions.
In 1888 the public deposits in the United
States Bank were removed, and distributed
among State Banks, in the different States
of the Union. In September 1888, the Secre-
tary of the Treasury, Mr.. fancy, wrote his
famous letter to the President of the Girard
Bank. Philadelphia, in which. was clearly
stated the policy which the Government ex-
pected and desired the depOsite banks to pur-
sue in regard to increasing their paper circu
lation "The deposits of the public money"
wrote General Jackson's Secretary of the
Treasury, Twill enable you TO afford increased
facilities to commerce, and to ertend. your &c
co,nnsodations TO individuals. "
To the course of policy pursued by the
Jackson Democratic Administration in refer
ence to the United States Bank and to the
State Banks, was the unparalleled increase of
the latter, and the enormous extension of their
paper issues directly owing. 1t has been seen
that from 1916 to 1S3O-the first fourteen
years of the existence of the United States
Bank-the increase of banks was but 81, and
the increase of banking capital only $4,000,
900. including the SIS, oO0,O00 of capital of
the United States Bank. The rapid and ex-
traordinary increase OF 453 new banks-of
S146,O00, 900 oibanking capital-of Sl24, 000.-
900 of paper money, and upwards of $500, 000,-
600 in bank loans and discounts. all between
1880 and 1887, could not possibly have taken
place bnt for the putting down of the United
States Bank, and the motives presented for
the multiplication of State Banks by the dis
tribution among them of the public deposits, |
with an intimation by the Secre- |
tary of the Treasury that they would be ex
pected to increase their accomfsSdations to
which could only be done by in
creasing their paper issues. TO lsupply the
diminished facilities that must necessarily re
suit from the extinction Of the National Bank
to come in for share of the business done
by that institution--to procure, in time, por-
lion of the public deposits, and be thereby
enabled TO enlarge their operations and en-
nance their proits,--these were the motives
and Inducements which led to flie overrun-
ling Of the country with banks, and the food
ng of it with paper money between 1880 and
1887. These motives and Inducements were
ratio Administration, and were quickly acted
Ipon by the State Legislatures, Democratic
Is we'll rs Opposition.
Now, those were the palmy daystof Modern
Democracy. which then had possession OF the
National Government, aud was yry largely
"A the ascendant in the States Gen, NELSON'S b
power and influence had become sagreat, that
he opposition" had dwindled Gown 10 a
mall minority, wholly unable to make any
.ffectnal resistance 10 any course o. policy he
or sanctioned. Had not the Demo
ratio party at that period Of i.s greatest
strength been s'HiSae'sfiy hank and paper
money parry. the enormous increseof banks.
,ank notes, and bank loans and Discounts,
.ould not then have occurred For this in-
'rease, and its legitimate consequence, the
DISASTROUS baak-barsiing In 1887. the Demo
ratio party was justly responsible. and was
70 held by decided majority sfths people of
he Upited States Ia isl0. ~hen they rejected
Ar. Yam Buren,, and pas In hls place the eppo-