Grant County herald. [volume] (Lancaster, Wis.) 1850-1968, 1861-07-10

NIX. EDITOR Ill is Salu LnaL there IS
no use In controverting with an Editor in
bis own paper, for, like a scolding woman,
he will have the last word, anyhow. But
as yon have the reputation of being can
did with those with whom you may differ
in opinion if you do have the las word,
and as candid discussion tends to elicit the
truth, venture to address you ON this all
important subject.
The present distress carries us back in
the history of the country to 1871 and to
1916, the latter Of which periods was
within my recollection and whom had
some knowledge of the state of the country
ard the saIutary effects of the charter of
the U. s. Bank on the currency of it, and
if it is wise to profit by past experience
we should do so now in this distress. The
failure of our State Banks, the scarcity Of
money, and the crushing price Of exchange
induces the call for specie as CIRCULATING
medium. But its Inconvenience in com
mercial business, from its weight, will keep
exchange high; and the fact that if every
dollar of gold and silver in the country
were in circulation it would not be sufH-
cent to carry on the commerce of the
country, shows the necessity of some other
remedy for the prevailing evil.
But the failure of the late u. S. Bank is
deemed by some to be proof positive of
the impracticability Of such thing, with
out considering for moment that but for
one error-that of the cotton speculation
that bank would now probably be in sue
cessful and useful operation. But, If be-
cause bank which in 20 years erred ONCE,
and that when struggling under the pres
sure of the Government, the system of
banking IS to be condemned, while another
in 20 years did not so. err? then, upon the
same principle, if a man ers in business
and fails thereby, he should never try
again, though he knows and guards against
it eyer so much; and the farmer who from
error in selecting his seed, fails Of a crop,
should never SOW again.
After the Revolution the monetary mat
tiers of the country were SUCH that stagna=
ton and ruin in business stared every one
in the face, and the utter prostration in ag
riculture, commerce and manufacture. COM
PEELED, in 1871, the charter of the Bank
of America" and pnder its influence BUSH
ness revived and the country prospered.
History is unequivocal in this statement.
In 1911 the charter expired, and a mis-
taken idea of " State Rights" prevented its
renewal. In 1912 the war with England
commenced, and British agents were draw
ing the specie from our banks and taking
it to England; to prevent which Congress
recommended the suspension of specie
payment till the war was over. The de-
Inand for a circulating medium increased
with the operations and effects of the war;
and, as no specie was to be paid, the
.'wild cats" sprung into existence as thick
as etoads in a thunder shower" but on
the return of peace and the resumption Of
specie payments, these proved to be worth
less and failed as fast as those of like char
acter are now doing. Exchange between
Ohio and New York ran up to 10, 5 and
even 20 or 25 per cent; and those who
bought goods, procured at such rates, had
to pay prices to cover the expense, and
Government funds were transported from
one place to another, as needed, at great
expense.
Under these circumstances, in 1916,
Congress, from sheer necessity, chartered
the " Bank of the United States" with a
capital Of $35,00O,OOO, which was all paid
in specie. This Bank was made the de-
pository Of the revenue from customs and
lands. Each state hid branch, or
neatly so, and some hid two or more.
Government or individuals could deposit
in one place and draw it out in another.
The bills of State banks received for du-
ties or lands went into the nearest branch
Of the bank and the specie for them imme-
diately demanded. If the State bank re-
deemed its paper. eilherin specie or Y. ).
bank bills, its credit was good, and for 10
cal purposes equal to the other. Such
bills were received on deposit and drafts
given for one half Of one per cent, on any
other branch or on the parent bank. put
if the bills were not redeemed that bank
was killed at once. BY this means in one
year or less the country was freed from
awiid CATS" and the currency became
sound as the specie. The national bank
acted as pendulum to regulate the bank
ing machinery Of the county and kept all
in a healthy state. Its bills were good IN
Europe, Asia and America as specie, and
preferred because lighter for conveyance,
and this State of the currency continued
for the time of its charter. Thus two ma
tional banks, for 20 yeays EACH, had regp-
lated the currency of the country and the
country had greatly prospered under their
influence.
But in 1880, six years before the charter
expired, Gen. Jackson commenced war
upon it, because, as it was said, he could
mot control it as be did the Government
and It's officers. Be that as it may, the
war was declared and waged with vent
geance. Congress re-chartered the bank
but the President vetoed the bill. The