New national era. [volume] (Washington, D.C.) 1870-1874, 1873-10-16

The following is from the Washington cor
respondence of the Chicago TriJsns:


corn. wampun, etc, all recognized by differ
ent colonial courts. In lG+j Virginia adopted
the spanish silver coinage for currency, aud
soon alter mint was set upin Massachusetts.
PAPER money was first issued In Massachu-
sets in 1890, and South Carolina created a
bank in lI0a. Pennsylvania issued paper
money in l523. hut Virginia never did prior
tn the war OF independence. Then came
the Continental money, in May, l115, which
did not depreciate up to the issue of 80 .OeO ,0o0
and was well maintained until the subsistence
of the triumph over Burgoyne's capture. At
last the whole $500 .0oo. 600 was worth in silver
only g., 100000. la ISL Congress offered to
give new money for the old, at the rate of
one dollar for forty, and then both sunk in
one day to nothing.
THE ANCIENT PERIOD.
In l7Sl-the war still going one congress
chartered the Bank of North America, which
began the following wear, and declared divi-
dends of from II To- Ii per cent per annum
Penns ylvauia repealed the charter of this
bank, but it refused to close up. claiming Il
national paternity. The General Con>titu.
ton then came INTO play, forbidding any State
to coin money, emit bills of credit, make any
thing but gold and silver coin a tender in pay
ment of debts, or pass any law impairng the
obligation of contracts. This left unsaid the
right or want of right of Congress to estab-
l,sh a national bank, although Judge Story
maintains the right. Hamilton at once drew
up plan OF such bank, and the Cabinet
divided upon it, but it was approved by Wash
ington and the bank went into being in 1871
with capital of sl0, 900, 000-One-tifth Gov
eminent subscription. 1t was a success, and
paid per cent. dividends, and its stock
partly held in Europe-rose above par.
In 1911 Madisonian Congress refused to
ahn NJ In, = f.,n g 81,
the American State banks suspended for the
same reason as at present-to close up before
they should be drained and bankrupt. The
Middle States, which had subscribed to the
war loan most literally, led the panic, as
now, for they had contributed $50 900 900
out of al 900, 900. Government taxes were
Of necessity receivable in State currency !;
Treasury notes, or bills of excheGuer, bear
ing interest, were, therefore, issued for II
time, but second Bank Of the United States
became imperative. 1t was created 10 1876,
and began business the following year with
S35 900. 900 capital being Govern
ment subscription, as before. This bank, by
importing 100000 of specie, lifted the
State banks to their feet, and resumption was
general throughout the Union.
THE MIDDLE PERIOD.
With the exception of commercial ditllcul-
ties in 1919, everything went on smoothly
until 1892, when Il re-charter Of the United
States bank was vetoed by Congress, followed
by the wthmoval of the Government de-
posts (more than 81 | 900. O00l in 1898. The
charter ran out in 1896 but a new charter
was obtained by device from the State of
Pennsylvania. AT that date there were about
six hundred banks in the country, with $3.50
900, 900 capital, a circulation of slO3 ,OO0, 900,
and S45, eco 900 OF specie. One hundred and
rix h.l IlJlI
and 1890, The facility Of our system Of bank
ing had its advocates in England-amOng
them Lord Althorp; but the joint stock banks
of that kingdom being Of united liability,
and covered by the private property Of every
shareholder, were preferred by Parliament
1t was not until 1876 that the English Joint
stock company was 'limmited' in individual
liability; and even now director or official
Of any " limited " compan, engaged in bank
ing, insurance, &c, who publishes fraudulent
accounts or false advertisements, is liable
criminaly and for damages.
The removal of deposits led TO their trans
fer to certain selected banks as repositories
The specie-circular of General Jackson
being rescnded by Congress, all kinds of
banknotes became receivable for the public
dues and lands, making vast surplus of
paper truck, which for sate-keeping was dis
tributed among the States. May 10, 1887 -,
specie payments were suspended over the
country generally, and New York city was
garrisoned with militia. Shinplasters, tokens,
and deprecated bills of exchange were now
the currency; the Government was threat
encd with Treasury deficit, and Van Buren,
had TO call Congress in extra session five
days after the Suspension. He opposed the
re-charter of 4 national bank, and recon-
mended a perpetual dissolution of the con-
.,,,t,.
and any bank of issue, even as a deposition.
Caleb Gushing led OF against the message
Clay, Webster, Bayard, Quincy Adams, Fill
more, Dick Bddle, Wise, &c., followed. Van
Buren, was defended by Silas Wright, Cal
hOun, Buchanan, Benton, Bob Walker, &c
The President prevailed. Treasury notes
were issued to provide for a deficiency Ga
leb Cushing-that young, or old, lawyer of
Baby touched the issue of the day thus
on the retention of an nstalmcut of money
due rotten States:
THE American Government" said Caleb,
- is not to exert itself for the relief of the
American people: Very well. Ii this be
your policy, ] as representing the people,
will not exert myself for the relief of Your
Administration"
Benton says this wa. chicanery.'
In January, 1889, the Treasury was bank
rupt; bat this stopped the distribution OF
surplus to the States, led to banE-rcsump-
ton, and founded the Independent Treasury.
Biddle's Pennsy lvania Legislature Bank
of the United States" meantime made use
of its dead circulation as assets, and claimed
nearly $40, 900, 900 circulation, which conduct
Congress stopped By severe enactment. The
banks of New York resumed MAY 10, 1888.
August II, following, all the banks resumed
including Bidlle's bank, which kept its stock
meantime up to a premium of 3l2 per share.
October 9, 1882, Biddle's bank followed him
into retirement, carrying with it nearly all
the banks Of half the Union. Yet, as late
as January, $40, this chimera returned its
assets at s74 900 600, and its liabilities at
| only s37 900, 900. 1t sold fictitious bills on
Europe, and thus ran more honest banks
hard for specie, and prOtessed Ia be solvent
long after il repealed the Independent Treas
ury bill, and was about providing for a third
national bank, when Tyler. detection ar
rested it. The Wings forthwith repudiated
! Tyler. Caleb was the champion Of board
! Of exchequer, with a national currency Of
/ paper money; and the proposition died before
/ il was born.
sa5- \ physician in a small town IA Mace
! had long been pestered BY little street Arabs
| who came to peddle candy. At ia=t, when
/ patience had ceased TO be a virtue, lac tOlG
the boy TO go into the next room, where
there was fellow who had q sweet tooth IL
his head. The young pedler went in, and