The evening telegraph. [volume] (Philadelphia [Pa.]) 1864-1918, 1869-08-18


In notes, returned to them by the Treasury when
they file their bonds, with loans on the Government
and individual deposits ana profits on bills Of ex-
day discounts, paid i'm advance cleared at least forty
per cent on the J., amount mount Of their capital And
the first year This is the crushing taxation that is
running the country.
This modern system Of national banking on the
bonds Of the Treasury paying interest," and then con-
verted into capital, ana next almost duplicated by
nne.tenths Of their amount being given TO the
creditors of the Government in bank notes. turned
over to them for bank circulation, with the whole
credit Of the nation and all its deposits to back
them, you may well say is a more absolute and,
therefore, worse monopoly Of its whole monetary
concerns than was ever conceded to the Bank OF the
United States.
The older national banks had to hold a competi-
tion with State institutions and contest with the
State Government in its attempts to subordinate
them to its purposes Now, In effect, the national
banks have absorbed all the State Observation-Disclosures
1t was the attempt Of the Bank of the United
States to subject the State banks and the States to
its power that began the war against the mammoth
institution which grew ont Of the debt of 1912.
The first efforts to restrain its power were made
by the States OF Kentucky and Ohio. The United
States Bank, under its President, Mr.. Cheves had
Quilted the State institutions and it may be said the
States themselves, and rid them of all their coin
and transferred 1t, in wagons, over the Aleghenies
to the parent bank in Philadelphia. The States to
resist this high-handed measure, imposed tax on
the branch bank within their limits.
The Federal courts took the part OF the great cor
poraton, and under the influence of its commanding
attorney, Mr. Clay the state laws were annuled and
the State Treasury, (that Of Ohio entered and the
tax imposed amounting to 100000. taken from il
This decided the fate Of the taX-law of Keutncty
The State courts and the State BankinT insttntioSs
became subject to the national Institution and 10
subject the people it brought nnumerable suits
against lts citizens debtors to the branch banks
tabllShed within the State.
The people and their representatives resolved on
resistance, ana, to supply cirulating medium for
the business of the country (coin and the national
bank circulation being alike withdrawn by the policy
of Mr.. Cheves, Bank OF the Commonwealth of Ken
LUCKY was Incorporated 10y the Legislature, and re-
pleyln laws interposed to prevent immediates sales
under executions
The latter were assailed in the State courts; but
before hnal decisions could be had the Bank OF the
commonwealth was organized, ami the people had
breathing spell and were enabled to raise crops
from their rich soil and throw them on the markets
contemporaneously with the issue of the Common
wealth's paper.
had been deputed during the winter to have tho
bank notes engraved at Philadelphia, and with the
opening of the spring laid them before Mr. Crtten-
den, who, although opposed to the relief measures
OF the State, and the bank itself the nucleus of
those measures was elected by the Legislature pre-
sdent of the bank, both to dvest their plan of
party aspect and to make his popularity sbservien
to the public interest Athoughit was great sacr-
flee of MIR. Crtendens personal interest, he had the
magnanimty to accept the situation and give the
projected system of finance a fair trial.
The bank was, as its name imports, naked State
institution for the common veal All its capital was
state credit and all Its product went into the State
Treasury, all its managers were elected by the State
Legislature, and they were authorized to make loans
on the real estate OF the applicants backed by en-
dOrsement Of suretes, adjudged by the Directors
responsible persons. At first the hostility of the
classes opposed to the COmmonwealth's bank depre
cated its paper so per cent. below par of coin
But as it was received in payment of taxes to the
state and for all paymeps from the Treasury and
in liquidation OF all obligations between citizens of
the State, it presently became current in payment
for all commodities within the State and soon the
merchant princes OF New York and Philadelphia to
whom the Kentucky merchants were indebted were
found busted, some in person. others by their agents.
riding through the country buying the tobacco the
hemp, the baggng, the cOrdage, the whisky etc
with the Commonweaths currency received in dis
charge Of KentuCky's debts.
The banks issues gradually rose to par: even the
factors and customers Of the Bank of the United
States became the instruments of converting its
paper into gold by transferring thesrch products of
the soil of Kentucky, bought with it,, to foreign
markets, where they commanded specie.
The result of the honest management of the Bank
of the Commonwealth was that its profits relieved
the people from taxation to great extent, the ofi-
GERS of the State and creditors generally being paid
in its currency; and as its redeemed paper, towards
tne close of its charter, burnt instead of being
reloaned, the eXigencies Of the country no longer
requiring it, the bank was found to have realized all
the hopes of its founders
The State was redeemed from debt, the people
were redeemed from debit the business of the state
was prosperous, and the corporation wound up leaV-
ing large surplus of earnings, which, if recollect
| rightly was appropriated as aschool fund by the
You have alluded to my connection with this insti-
tuition and too generally ascribe to me "a prominent
part in protecting the people and State of Kentucky
| against the power which the Bank of the United
States exercised in other localities and atteringy
add "that the country was much indebted to me for
| the aid rendered in aboshing that Bank"
| might avail myself of this kind feeling, as
subaltern attached to the great man who led, and to
| the exalted men through whose assistance he
achieved the deverance of the country to which you
advert to write autobiography of myself and as
sume as by the right of survivOrship the credit of
| destroying the mOnopies christened by Mr. Clay
| "the American SYSTEM through which the adminis-
| tratiOn he headed, under Mr.. Adams, sought to
establish the British system, welded by a corrupt
| oligarchy among us.
But this am sensible would recall the fable of the
fly on the axle of the chariot, that gloried in the
cloud of dust that was hurled from the wheels as eX-
hbiting its own power. The simple truth is that the
Irish stripping soldier, who knighted by a Bri-
tish officer at Camden 10y the cut of his sword on the
head for refusing to clean his boots was the nstru-
ment OF providence in breaking down the coalition
ernment into the British system.
| Adams and Webster of New England Clay of the
West, Calhoun Of the South combining with Biddle
and the bank intrenched within the buwarks of the
| Federal Government, all fell under the superior
genius, prohity, and patriotism OF Jackson. Ken
tucky, indeed, was the first battle-ground where re-
sisance to the expressions of the bank enforced by
her own illusriOus son (MT. Clay, began. We then
called in the aid OF Jackson's name and fame TO
effect our measures Of relief of which the Bank of
the commonwealth became the nucleus
The victory gained there in carrying the electors
for jackson over Adams with Clay commanding i'm
the tield gave an importance TO Kentucky in the
councils of the Jackson administration which identi-
fed the policy of that administration somewhat with
that which characterized the canvass in that State
That canvass was based on the known Jeffersonian
principles of General Jackson. My father as Al.
tOrney-General OF the State of Kentucky was the
lrst public man TO enter the arena against the bank
IN the maintenance OF the State law taxing the mo-
neyed corporations.
IN the press / had taken some part in sustaining
him, and in advocating all the measures of tho
Legislature to support the State authority against
the domination OF the great corporation 1t was q
subject of eering that the Bank of the Common
wealth was brought across the Alleghenies in
trunk behind the stage, to suppant the branches OF
The United States Bank, but the result for its envoy
that when elected President OF the institution by
the Legislature on the resignation of Mr.. Crttenden
that accident pointed him out TO General jackson
as one suited 70 carry on his war against the Bank.
Ths and his exposure IN the Kentucky press o.
the then embryo scheme Of dissoving the Union