The DeLamar nugget. [volume] (DeLamar, Idaho) 1891-1900, 1893-04-08
Our Country's Financial History,

! Ifone will study the legislation of the
United States upon financial questions,
and read the discussions that accompa-
MED it, he will, unless crazy, discover
that the banking and monetary classes
have always proved to be dismal proph-
cts. There is not single instance in
the history Of the Union where the logic
of events has not proven them to have
been wrong in every prediction they
made. Why they have always been
wrong, and why the commsn sense of
the masses, which at every step has ale
ways been combated by the fnan-
ciers, has always proven to be wisest, is
an interesting subject for the student of
intellectual forces in history. We have
nothing to do with it here. The average
man has more interest in the fact that
they have been wrong than in the res-
son for the fact.
The important financial legislation of
this country began with the establish
meDt of the United States Bank, imme-
diately after the war with Great Britain
in 1872. The country was without a
financial system, and out of many plans
proposed the fnanciers and boards of
trade and state and private banks all
favored the creation of the Bank of the
United States, which was modelled on
the plan of the Bank of England. Ac-
cording to them it would surely prove
to be great financial protection to the
commercial industries of the country,
and through its great power prevent
financial scares and accompanying
smashes. 1t was to abolish the chance
lection, indirectly and directly, of both
debtor ond creditor. In obedience to
their dictation, Congress created the
bank, aud it began its work. When it
had got well under headway, and had
established branches in almost every
principal city, and was III excelent
shape to give all its boasted protection,
the terrible financial smash of 1928
came on, and the bank was powerless
TO prevent, if indeed it did not produce
it.
Then again in 1882, when the bill was
before Congress to extend its charter for
another twenty years, every financial
industry in the country favored it. They
said the system was established, and to
abolish it would ruin the land. Thanks
to Andrew Jackson's veto message it
was abolished, aud there was an imme-
diate rapid increase in commercial pros
perity instead of ruin.
Again when President Jackson pro-
posed the removal of the government
deposits from the bank, before it went
out of existence. another great howl of
calamity went up. The twsnty-four di-
rccters of the bank met in solemn con-
clave and issued manifesto, predicting
collapse of all business if be carried
out his threat. They were supposed to
be the possessors of all known wisdom
on finalcial topics, and what they said
carried weight. Without an exception
every newspaper in New England and
the far Eastern States, howled about the
disaster that would follow, just as they
now howl about the disaster that would
follow free silver coinage.
Every eastern banker and every east
ern chamber of commerce and board of
trade, and every exchange or other COM
mercial organization passed resolutions
predicting dire disaster to all industries
if the President did as proposed. The
stages and boats-there were few rail-
ways in those days were crowded with
delegations visiting Washington to beg
of President Jackson not to do as he
threatened. There was more of sem
sation over that issue than there has
ever been over the silver issue. All
recognized northern and eastern fnan-
cial authorities were united in their dis
NAL phophesies. The only support tho
President had was from few men in
the North who were then called crazy
but would now be called cranks, and
from the southern regions which are
now in favor Of free silver coinage. On
Septem Der %, 1888, the President did as
he threatened to do, and again these
prophets of evil were proven to be false
prophets. The country increased in
prosperity instead of meeting disaster
Again, in 1910, the proposition was
made to require all payments to the
United States for land to be made ia
coin instead of in currency. This was
in the days preceding the existence of
a homestead or prs-emption law, when
the land question was more closely al
lied with the financial prosperity of the
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