Vevay Times and Switzerland County Democrat, Volume 4, Number 24, Vevay, Switzerland County, 14 May 1840 — Page 1

AND SWITZERLAND COUNTY DEMOCRAT.

BY ISAAC STEVENS.

“THE SENTINEL ON THE WATCH-TOWER OP LIBERTY.”

AT.82 PER ANNUM.

YEVAY, THURSDAY, MAY 14,1840.

T0IiUME-.lv.

NUMBER 24.

poned until 1839, we should now be in a triumphant majority in the other House! The Whig party know this; and I am greatly mistaken in the sign of the times, if they have not determined that this bill shat) pass. They will no longer give us the battle cry of an Independent Treasury, The bill Is*destined to become a law during the present seestop. I prophesy this result, and prophesy it solely upon my opinion of the sagacity of the Whig piny.—It is possible 1 may bo mistaken, but if t should, I shall have one congelation in my disappointment. If my political existence depended upon'the result, I should rather have the success of tho Indepen-

Published every Saturday.Moraine,

specie payments- No efficient restrictions were imposed; and the banks were thus taught that they might thereafter go unpunished—tin whipped ofjustice. Past impunity prevented them from reducing their business and curtailing their profits in such a manner as to render them secure in the.day of trial. They have fallen again; 1 I fear again to enjoy the same impunity. In the second place, the immense amount of money loaned to many of the States in England,' large portion of which was brought home in the form of foreigh merchandise, afforded greafsfc cilities for overtrading, or rather overbuying. And in'the third place, the conduct of the Bank of the United Stales greatly tended to produce these excessive importations. That institution became the broker fur the sale of alt State bonds in Europe. It endeavored to monopolize the entire cotton trade of the country; and'it drew bills of exchange on England, most freely, at moderate rates, against the proceeds of these bonds, and of its cotton. ‘ temptation was thus presented to speculations in foreign merchandise. . v . . These three causes combining, have occasioned a second suspension of specie payments within two years of the first, and produced that bloated credit ayslem, from the wreck of which our country is now deeply suffering. I most heartily concur with the Senator from Kentucky in one of his positions. We certainly prodoce / ioo little and import too much. Our expanded credit system is the great cause of this calamity. .Confine it within'safe and reasonable bounds, and this, disastrous effect will no longer be produced. It is not ih the 'power of Congress to do much towards a consummation so desirable. Still we shall do all we can; and the. present bill wilt exercise some influence in restraining the -banka from making extravagant loans and emitting extravagant issues. What effect has this bloated system of credit produced upon' the morals of I he country! J*i the large commercial cities, it has convened almost all men of business into gamblers. Where is there now to be found the old|fashioned importing merchant, whoso word was'as good as his bond, and who was content to grow rich, «s bur lathers .did,- by the successive and regular profits of many years of patient industry! Such then were the glory and pride of commerce, , and elevalbd. the character of their country both- at homeland, abroad. I ask, they!- Is not the race almost extinct! Ail now desire to grow Itch rapidly. Each takes bis chance in the lottery of speculation, Although there may be a hundred chances to one against eagerly intent upon the golden the intervening rocks and quicksands bet ween .'him and it; aml wlien he fondly thinks be is about to clutch it, he sinks into bankruptcy add trimt. Such has been the fate of thousands ofiur most enterprising citizens. | ' If tlie speculators should provepuccessful and win the golden prize, no matter by what means he may have acquired his wealth, this* clothes him with honor and glory. Money, moneyi money, confers the highest distinction in society. The Republican simplicity and virtue of a Mscon would be subjects of ridicule in Wall street or Cliesnui street. Tho highest talents, directed by the purest patriotism, moral worth, Hteraly and professional fame, in short; every quality which ought to confer distinction in society, sink into insignificance when compared with wealth. .Honey is equivalent to a; title of nobility in our larger commercial cities. This is the effect of our credit system. We have widely departed from the economical

measure was a choice of evils; but it was a much less evil than to have left nearly forty millions of the public money in possession of the banks. Under the Independent Treas try system, we shall never again be placed in such a fearful dilemma.

jdrawn trom the banks, and ibis'will compel them to keep more specie in their vaults in proportion to their circulation and deposites, and to bank less. This, eo far as it may 50, wiH'striko at the root of the existing evil,- 1 fear, howevcrer, that if will prove a very inadequate restraint upon excessive banking. ' In the second place, this bill will income degree, dimmish our imports, especially .after June ItT*. I most heartily concur with the Senator in desiring this result. What is the condition of 1}* importing business at the present moment!— It is almost exclusively in the hands of Jlrillsb agents, who self all the manufactures they can dispose of in other portions of the world, and then bring the residuum here to glut our markets. According to our existing laws, thcy.receivc a cicdit-from the; Government from tba nT{?3upof its duties. They sell the goods for this credit becomes so much capital in] their bans, to enable them to make fresh im-

Corner of Ferry and Market ifrccfr, Vex ay, Indiana,

Per tea*, paid in advance - - , - $2 00. Paid within six months, - - 2 50.’ If dot paid until the year expires, -3 00,, No subscriber will be taken for a leu term than six months,and in all such cases the subscription money, will be required in adfance. Subscribers not residing in the county, will be required to p?y i<t advance. No paper wid be discontinued until all arrearages -arc paid,-unless at the option of the editor.

TERMS

I was very much astonished that wo had no homily from ' ilie Senator against the specie clause of the bit). Even ' this seems to have, lost much of its terrors. It is no longer the terrific monster which was to devour the banks and establish a pure metallic currency for all the transactions of all the people of the United Stales.

POLITICAL.

dent Treasury identified with the re-election of Mr. Van Buren, than any other argument which can be used in Ills favor. It alone would be sufficient to defeat the Hero of Tippecanoe. Now, eir, great changes have taken place in public opinion since September, 1837.—The protnent arguments thenurged upon this floor against the Independent Treasury bill have nearly all vanished away. AVe now hear no mote of a system of well regulated specie paying State banks to act as Government depositories. The half-way bouse has been abandoned.' .-The accommodations there are no longer good." it is in a ruinous condition, and can no longer shelter those who formerly took refuge in (t.- The banks have blown up twice within little more than two years, and thus, blown this' argument of their friends sky high. No statesman* after our recent experience, would now think of placing the peopte’e treasure with the banks on genera) deposits for safe keeping. . Far different is the Independent Treasury.

There could be no' Independent Treasury without this'clause. If you were to receive bank notes in payment of the public dues, and, retain them in their possession, you would, ip, this manner, encourage the banks as tmichio' make extravagant expansions, as though jflu.

TBJ, INDEPENDENTTilEASURY.

SPEECH OF-HR. BUCIIANAXj OP PENNSYLVANIA.

In Senate of the United Sales, January 22,1840, aa the Independent Ttenety Bill, its. reply to Mr. Clay of Kentucky.* . [continued.]

placed the same amount with them *011 general depositc. You would thus confer 1 dangerous power upon the Secretary of the Treasury, en'abling him to favor some banks and to ruin others; and even if this power should not be abused,

Wrtations.. The Independent Treasury bill retires that alt duties shall bo paid in gold and silver; and allcr June, ItJ43,.tho compromise law will take away the credits altogether. * \V« shat) .then have. a system of cash duties in operation. which will contribute much to reduce the amount of our importations, and to chcourage domestic manufactures. , ’ , “ , ■

Whit lias been, the financial history of this country for the last twenty-live years! 1 can .speak with positive knowledge upon this subject during the period of eighteen years since ! first came into public life. It has been a history of constant vibration—of extravagant expansions in the business, of the country, succeeded by’ ruinous contractions. At successive intervals many of the best and most enterprising men of -the country have been crushed. They have fatten victims al the shrine of the insatiate and insatiable spirit of extravagant banking and speculation.—Starting at the extreme point of depression of one of these-periods,'we find that the country has been glutted with foreign merchandise, and it'requiriiVall.our efforts to pay the debts thus contracted to foreign nations.—At th e crisis the bank's can do nothing to relieve the people. In order lo'preserve their own exthey are compelled to contract their loans and their issues. In the hour of distress.

suspicion would always surround its excrcjse. You must separate from the banks in every particular. . Evils, both to them and to the country will follow front the least connection with them; Besides, if you receive notes at ail, to thc.cxtent of tho amount which you hold on hand, you incur the very same risk of having them converted into irredeemable piper by an exposition'of the banks, as if they held them on general dcposites. The Senator commenced his speech by presenting us the most gloomy picture of national distress. He predicted that this distress would continue to increase during the present year, and that it would affect, all clashes of the community. The suffering, ho thinks, will be peculiarly severe during the approaching summer. I might say to hint. ■ ‘ Thy with was father. Jinny, lo Ike thovght* 1 do not believe, however, he would desire that the people should suffer m order to accomplish any political purpose. Rut if without'contributing to this result himself, it should be the will of the powers above to involve us in pecuniary distress between this time and the Presidential election, he would doubtless bear the dispensation with Christian fortitude. It would furnish political capital for hie friends, and might contribute greatly to verify his prediction, .that Gen. Harrison will take - possession of the White House on the dth of March 1841. , : In my opinion the Senator,has greatly-exag-gerated the extent of the existing distress.— That all classes .of community have suffered in some degree, is certain; but intense suffering has been chiefly confined to the large commercial cities, and to those portions of the Union, such as the Stale of-1 Mississippi, where the banks have eo evidently ruined the' people as to place ail doubt of the cause at defiance. Where is there the country tinder the sun on which a bountiful Providence has poured, out more blessings, than on Mississippi! No population on the globe, in proportion to their number, produces a larger amount of wealth from the cultivation of the soil. And yet the bounty of Providence has been counteracted by her miserable banking system, and her people are now subjected to intense Buffering. In this instance the effect flows so palpably' from the cause, that every man sees and feels and knows it. What an as'-

In the third place, this bill yvill make the banking interest the greatest economists in the country, so far as the Government is concerned. Their nerve of self interest will bo touched in !favor of economy, and'this will"induce them to unite with the pcople.in -reducing the revenue and expenditure*! of, the Government - to the lowest- standard consistently with the public good. They will hereafter abhor a surplus, revenue as much as they delighted, in it formerly, when they used, it for banking! purposes. Any surplus which may exist in future, will be locked up in gold and silver in'the vaults of our depositaries; and, in proportion to its amount, will deprive the banks of so much of their specie.— They will therefore become (he partisans of reducing the revenue to’ the . actual and necessary expenditures' of the Government; so that the specie may flow put ofvfhb'Sub Treasuries with a rapidity corresponding with its influx.. Nothing buV a. large surplus can seriously injure the banks, ' This was demonstrated to . me by one of the most distinguished financiers which our country has ever prodneed, not himself, 1 believe, friendly to-the Independent Treasury. These Treasury drafts, in the natural course of business,>will find their way cither into banks at the very-point where our depositaries are situated, orjnto the hands of individuals'thgre {taring duties to pay id the Government. , Take, for examplcj Nfw York. A public creditor receives such a draft on the receiver general in payment of his debt. . Will he carry it to New York, receive payment, and transport the specie from that city! Such instances willhc rare. He will generally deposits to his credit in the bank with which he transacts his business, wherever that may-be, This bank, if not in New York, will transmit it for collection to one of the banks there: and thus these will draw the spepie from our depositary as rapidly as it is draft'd from them for the payment of public dues. Tims the equilibrium will be preserved, so donga's tho Government is without a large surplus. In other instances, llicse drafts will be sought after and proffered by individuals having duties to pay, sild they wilt be presented to the receivers general,'and apeepted by them instead of gold and silver.

presents ever/ guarantee "which can'be afforded Tor the safety and security of the public money. It will be in the custody of officers appointed by the Government, responsible to the Government, and punishable'aa felons for every violation ; of their trust. In the day danger,,when the'country is involved in war, the money will always be ready; and at such a crisis, the banks would almost certainly; suspemTVbecio payments. Desides, they are Stale institutions, oyer which we have no cbntroji and they may, when they please, convert ouj&uoney into rags, and then place .ua. at are beyond the reach of punishment under authority. The Federal Government cannot justly be considered independent if we must report to State banks, or to any other power except our.own, for the purpose of .keeping.,!he money raised from the peoplpi by taxation, until it cah be applied to execute thegreat powers conferred upon tta by the Constitution, . \ * .. ■ ! ' Again: public opinion has annihilated another, argument against the Independent • Treasury. The .Senator from. South Carolina, in .Biarch, 1838, [Mr. Preston,] in bis tenderness towards the State banks, and for the purpose of enabling them to resume specie jrirpnenis, proposed that we should, for a limited period, receive their ir~ redeemable paper in the payment'of dues to (ha Government, Much eloquence was also formerly wasted upon the extreme cruelly of having one currency for the Government and another for the people. Thank God! wb hear no . more of all this. No person now contends that, under any circumstances, the Government ought to receive depreciated bank paper. Such fanlasiea have proved too light for earth. They have risen to the moon, where it is said the crude notions of speculative politicians ate still floating about, and have alocal.habitation and a name.

when their assistance is most needed,they can , do nothing for their votaries. Every article s|uks in price, men are unable to pay llicir debts, and wide-spread ruin pervades the land. During the first year of the cycle, we are able in import but comparatively, little foreign merchandise, and this affords the country an opportunity of je- . bruiting its exhausted energies. The next yeap the patient begins to recover. Domestic' manufactufea flourish in proportion as foreign goods become scarce. The industry and enterprise of -our citizens have.been exerted with energy, and •our productions have liquidated the foreign debt. The third year, a fair business is done. The •country presents!flourishing appearance. The banks, relieved from the drain of specie required .for foreign export, begin once more to expand, and tempi the unwary to their ruin. Property of all kinds commands n fair price. The fourth or the lifilt year the era of extravagant banking and specuration returns, again lo be succeeded by another ruinous revulsion. * This was the history of the till 1S37. Since theii-we have travelled the'road to ruin much more rapid!;:'than in. former years, liefore that period it had required from'three- to six years to gel up an expansion and its corresponding explosion. We have now witnessed the astounding fact that wc can pass through all these changes, and even from one suspension of specie * payments to another, in little more than two years. ' It is cuilbus to observe witji how much accuracy you can read the ever changing condition of this country in the varied amount of our importations.' Tbo. year 16*«56 was one of vast expansion, and produced the explosion and suspension of specie payments in 18*17. The imports were greatly diminished in 1837, being less .than they bad been in 1830, by nearly filly millions of dollars. In 1838, they sunk 'down to . twenty-seven millions Ices than they had been in lfl37, ; and nearly seventy seven millions less .than they were in 1S36I In 1839, wc had another expansion, and our imports were forty-four millions of dollars greater than they had been in 1833- - This .expansion preceded the- explosion and suspension ofspecie payments in the month of October last. 'Thus we have become such skilful architects of ruin, that a single year was sufficient to prepare the late explosion. There never has existed a nation on earth except our own, that enduro such rapid and violent expansions and contractions. , It .is the buoyancy of youth—it is the energies of our population—it is the spirit which never quails before difficulties—which enables-us to endure such shocks without utter rtijn; Yes,sir, a difference in the amount of our imports, between the years 1836 and 1633, of seventy-seven millions of dollars, is sufficient to excite the astonishment of the world. .What causes chiefly operated to produce this speedy recurrence of the second explosion and the second suspension of specie payments! Three may be mentioned. In the first place, after the bank suspension of 1837, every person who 'was friendly to well regulated banka, if juch a thing be possible under the present system, ardently desired that the different State legislatures might impose upon them some wholesome restrictions. It was expected that they would be compelled to keep a certain amount .ofspecie in their vau'ts in proportion to their circulation and deposites; that the foundation of a specie basts for our paper currency should bo laid by prohibiting the circulation of bank notes st’tbe first under the denomination of ten and .afterwards under that df twenty dollars; that the amount of their dividends should be limited; and,, above all, that upon the occurrence of another suspension their doors should bo closed at once, and their affairs be placed in the hands of commissioners. The different Legislatures met. Much indignation was expressed at the conduct af the banka. They were severely threatened; ' but at last they proved loo powerful for the people, Indeed, it would almost seem as if moat of lb* State Legislatures had met for no other purpow than to fcgaltze the previous suspension of

The Senator charges iu with having employ* cd the Stale banks as depositories, and having commended their conduct m the highest terms. This wu a grevious sin, and greriously have

tonishing Tact'was that stated by the Senator from Mississippi, (Mr. AValker) that in those couhties in his State where banks do not exjsi there is no suffering even at the present moment!. If you wanted an illustration of the pernicious effects of the banking system, when it tempts farmers and planters to abandon their; own proper business, and embark on the ocean of wild speculation, you could not have one more-stri-king than dipt presented by Mississippi at, the present moment, i am not aware that there is much individual,distress among the mass of the people in the interior of Pennsylvania. There it. is chiefly confined to those who have been tempted, in the day of prosperity, logo beyond their means by the facility of obteioining bank accommodations.

I now come to another and the most important' portion of the gentleman's argument. If the President bad taken the Senator from Ky., under his umbrella, ami wrapped his India :ubber cloak around him, and made him bis Palinurus lo steer the ship of Slate—[Hero 3Ir. Clay said this was not a possible case.] '■ j. Mr. Bnehahan replied that all things are possible, nml wonders will never cease, I • admit that such an event is not very probable; but should it eycr occur, true as the needle to the pole, ilioSenator would stcerdirect for a national bank. This is the Senator's sovereign panacea lor regulating the currency of the country and ..restraining the extravagance of the State banks. I admit that the true issue now before the country is between an Independent Treasury anda National Bank. “The Pet Dank”.deposits system has been such an utter failure that another resort; to it cannot be scrously contemplated by any considerable ponton of the A mereCdn.people, I (cel the utmost confidence in the success of the Independent Treasury, should the lawi.be ably and efficiently executed; .but should - it fail, the next experiment will doubtless-be; another Bank of the Untied States, ■ Waiving, at present* the constitutional 505** tion on which I have often expressed thy opinion. before the Senate, I propose to taWup the Senator's argument, and prove- that such a, bank - would not rcgii late the currency if It could; and that even if it felt the vilj to do so, it is entirely destitute of the power. / Would such a bank, then, ifitjcould,- cmlrol and regulate the loans and issues of the-State banks! In the affairs of human life,if you ex- .* peel one agent to restrain another, you-ought to render their.interests conflicting., This propb-i qition is emphatically true, when such agems.erebanking corporations, intent upon declaring ‘the largest, pbssible'-’diyidends among: their stockholders. Now'*, a.Bank of the United States, so far from feeling ady interest.averse to the State basks, would have ifie very same, inducements with them to make extravagant loans and issues. The duty of such a ; bank, as a regulator of the currency, would he directly at war with its interests as a banking institution. You cannot raise men above the selfish passions of their nature, by making them directors and stockholder! in the Bank of the United States. Whin their interests as bankers conflicts with their duty as regulators - of the currency, the history of mankind points you to the probable result. Like the Scale banks, they will always extend their Inane and their isiues, whenever they can do so without endangering their own security. This is

Iiabiis,“ and simple virtues of our forerat here.

wa answered it. The difference between him and us is this: that after they had shown themselves to be utterly unworthy of our confidence.

Three are the only sure foundations upon which our Republican institution? can. rest: The desire to make an ostentatious display of rapidly acquired wealth, has produced a splendor and boundless expense unknown in former times. There- is now more extravagance'in our targe commercial cities, than exists itrtSny portion of the world, which 1 have 1 among the wealthy nobility of England/'Thank Heaven, thisf extravagance has but partially reached the mountains and valleys of the interior. The people so far as their potential voice can bo heard are determined to pin an end to this bloated credit system, which-thrcatcns to involve not only thrjr private fortunes, but tlieir political liberties iu ruin. , r ■- After the revulsion in 1^37—after the banks bad-blown up, and left the Government without a dollar, the President found it necessary to convene Congress. It ihcn became indispensable to take a new departure. The course which ought to be pursued was the questiori. The banks had betrayed our trust; they had converted our money into rags, by a species of atebymy the very reverse of that which was attempted in

we abandoned them; but at tlial moment lio clasped them to* his bosom.' Admitting that there has been inconsistency on both aides, the state of the fact is this; .we Adopted the State banks; they betrayed us.jand we cast them off forever. The opposilionjtlenounccd this system in the beginning, and prophesied that it would prove a failure; but at thc'very moment, when their prediction was verified* they embraced these castaways themselves with, all the ardor of lovers. These banks; as deptsitaries of the public money, are now repudiated by all parties. Their day has passed, and we shall hear little more in connexion with this subject. : All men are wise, after the fact; but, to.look back, it-lias often occurred to me as wonderfulhow we could ever : have confided to the Stale banks as safe general depositories of the public treasure; Our system of banking is .toe very worst, and the most irresponsible that has ever existed on the face of the .earth. The charters of these banks nowhere impose any efficient restraints upon'the first instinct of their nature, which is to make as much money for their stockholders as possible. t They will, therefore, always expand their credits and their issues in the day of delusive prosperly', ( without regarding the approaching storm. .The immense deposttes of the Government increased this fatal tendency; whilst the public money was freely loaned, and its security placed at ha-; zard, for the benefit of their stockholders, and for the ruin of the country. The wonder, perhaps, ought rather to be, that they held out so long, than that they should have finally exploded.

But if I read the signs of the times aright

the crisis has passed, or rather is gradually*pass* ing away/ We cannot return (o a state of prosperity before the Presidential election! but the condition of individuals,'generally, will not be one of intense suffering. The resources of this vast country are so great, and the -productive classes are so industrious, that with.two years of fair play, they produce as much wealth as the speculators have been able to. srfuander in one. There will be no great suffer! ig during the next summer, unless it may be,in our large commercial cities. t

farmer times, of converting baser things into gold. The President then recommended an absolute divorce pelwceo Bank and State, and Ins political friends in Congress cordially respond to ibis recommendation. We ttien gave our banner to the breeze, wijh the motto of an Independent Treasury inscribed uson it. Hays we not firmly and immovably maintained one position! Had we been the cormorant after office which our enemieaUave described us to bo, we eboutd have

After presenting in glowing coin ri, the d is-' tressof the country, the Senator askatvhal measure of relief ‘ have we proposed! imtghl ask him, in retarn, where he will find any clause in the Constitution conferring power on t Congress to regulate the banking and erediUsystein of the respective states, and thus strike at the root o& our calamities and embarrassWais! 1 The presen tad ministration have not had the.:slightcst agency In creating the existing diatreAfrand can do but littlo (o arrest it, or prevent its recurrence. This is a duly which devolved upon the States still we have proposed a raeasurp which we believe will produce this effect Id a limited extent. Our chief objects in adopting the Inde*. pendent Treasury, are to disconnect the Government from all banks, to secure the people’s money from tho wreck of the banking system, and to have it always ready to promote the prosperity of the country in peace and defend it in war. Incidentally, however, it will Jo some good in checking the extravagant epirit'df speculation, which is the baneef the country. In the first place,.by requiring specie in all receipts and expenditures of the government, yon will create on additional demand for gold and silver to the amount of five millions of dollars per annum, according to the' eslimttq of the President. A large portion of this.eum will be

yielded our convictions, when we found one State after another abandoning our standard. Neither the love of power nor of place made us faltsr. We did not yield to the panic of the moment. We have ever since kept this issue dis-

In 1836, the immense amount of these depos-

tinctly before the people, honestly believing that a seperation of the Government from bank was necessary to promote the best and dearest interests of the country. In the opinion of our political 1 opponents, we stood self immolated. But the people have at length gloriously come to the rescue. The Senator is entirely mistaken in supposing this bill 10 be unpopular. In every instance, during the elections of the last year, when the question of an Independent Treasury was distinctly made before the people, the result has been either the election of the Administration candidates, or a greatly increased number of votes in their favor. Is it not certain, tbit if the Congressional elections in those States which elected their members iu 1638, had been post-

itee had stimulated them almost to madness; the expansion was then great beyond any former example. Speculation raged throughout the land. The supicions of the country were aroused against the Government and the banks were charged with granting peculiar favora to men high in office, and to infiucntal partisans of the Administration. , They were denominted the ♦‘pet banka.” Such was the general sense of the insecurity of the public money in their pos-’ session, and such the jealousy which existed among the people, in consequence of their connection with the Government, that I verily believe the present Chief Magistrate would never have been elected, had it not been for the passage of the depoaite bill. The adoption of this