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BAIIS 09 SUBtSCBIPTIO".The subscription prieeof the Spectator U
#S.OO A. YEAR,BTBICTLY IN ADVANCE.
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VOL. 55.
StatintonSTAUNTON, VA., TUESDAY, JUNE 18, 1878.
Spectator.NO. 39.
fiuutttutt jgpfctator.I_at_|»_rij-Lri J'L T-TLTLTU'I J~LriJ-| J~lJTt~aTV'aO>*VV*ar^nr*' J"afa~~~"~ J^^^^*"^^'M**
BATES OF ADVEBTISUe. _^*_Advertisements will be inserted at the rate
of 11.00 per square of eight lines or leu, for thefirst Insertion, and SO cents for eaoh aubaer_neotinsertion.
4__r A liberal discount will be made on adver-tisements published for3,6, or 12months.
Ma- Special Notices will be Inserted at dou-ble the advertisingrates.
49- Obituaries, Announcements ofCandidatesfor office, and all communications ofa personalor private character, will be charged for as ad-vertisements,
Address-"Stsu-to- Spectator," SUaitoa, Vs.
PROFESSIONAL DIRECTORY.? 0 aai a \u25a0\u25a0
ALEX. F. ROBERTSON,ATTOBNEY-AT-LAW,Staunton, Va.,Will practice in the court of Augusta and ad-joiningcounties. , ? . _
Special attention given to the collection ofclaims, and promptreturns made. febl_-3mWM. A. HUDSON. WM. PATRICK. ,HUDSON * PATRICK,ATTORNEYS-AT-LAW,
Staunton, Va.,Will practice in the Courts of Augusta and ad-joiningcounties. Special attention paid tocollections. feb!2-tf
OA-. JACEMAN, M. »??a HOMOEOPATHIC PHYSICIAN,STAUNTON, VA.Office and Residence, Miller House.Office Hours?B to 10 A. M. 2t03 P. M.,
7 to 8 P. M. jan29-tfJ. E. OUT. B. la, PARRISH.fIXY aft PARRISH,lX ATTORNEYS-AT-LAW,Staunton, Va.Office In SullivanBuilding 2nd floor, Angusa Street. dec4-cfA LEX. H. H. STUART,jfV ' ATTORNEY-AT-LAW.Having recovered his health, and retired from
publiclife, will hereafter give diligent atten-tion to such causes In chancery, and in theCourt of Appeals at Staunton, as may be en-trusted to his care. no2o-4t
JOHN W. STOUT.~
ATTOBNEY-AT-LAWAND
Commissioner in Chancery,STAUNTON, VA.,Will practice in tbe Courts holden in Augustaand adjoining counties.Office?Formerly occupied by N. K. Trout,deed. anM-tf
DR. S. H. HENKEL, jjLNew Dental Rooms,
No. 15, West Frederick Street,marlS-ly» Staunton, Va.
J. R. TUCKER. H. ST. GEO. TUCKER,Lexington, Va. Statrtvton, Va.TUCKER aft TUCKER,ATTORNEYS-AT-LAW,
Staunton, Va.,Will prat lice In the Courts of Augusta and theadjoining-counties. Also In the Court of Ap-peals of Virginia, and will attend regularly theCircuitCourts of Rockbridge. an2--tf
N. K. TROUT. W. E. CRAIG.TROUT aft CRAIG,ATTORNEYS-AT-LAW,STAUNTON, VA.
;We have entered Into Partnership asLawyers, occupyingthe old Offices ofthe Seniormember. The Junior member will aid in con-ductingthe old business.
«*\u25a0 Particular attention given to collections.Jels-tf
A" M. HSWREE, M. OT,a PHYSICIAN AND SURGEON,STAUNTON, VA.,
Respectfullytenders his professional services tothe public, andmay be consulted at his officeatall hours.
JajFSpeclal attention given to Surgery.Office?ln hisMiew building on Frederick
st.,bett. een Augusta and Water streets.feb I?lyH. M. MATHEWS. ALEX. F. MATHEWS.MATHEWS aft MATHEWS.ATTORNEYS-AT-LAW.Lewisburg. West Va.,
Kractlce regularly in the Courts of Greenbrier,lonroe, Pocahontas and Nicholas counties, W.Va., the Court of Appeals, and the FederalCourts for the District of W. Va.
.03-Particular attention paid to Collectionsnd to special cases anywhere In their State.may 17?ly
JT\ EOROE H. HARRISON,lX ATTORNEY-AT-LAW,Staunton, Va.,
will practice In all the Courts holden in Au-gusta county,and in the Circuit Courts of theadjoining counties.
ajar-Strict attention given to the collection ofClaims.
Office?East of Court-house, over Clerk's of-fice of Court of Appeals. oc 31?tf
iIOSAS 11. HANSON.ATTORNEY-AT-LAW,
Staunton, Va.offers his professional services in the Countyand Circuit Courts of Augusta,and In the Hus-tings Court and the Court of Appeals held inStaunton. Will also prosecute claims else-where through legal correspondents in this andother States. may 30?ly.M/TEADE F. WHITE7_____
ATTORNEY-AT-LAW,Staunton, Va.,
A-tll practice In the Courts of Augusta, Rock-inghamand Highland.
Refers, by permission, to the Law Faculty ofthe University of Virginia.Office on Court-house Alley. feb 6?ly.
PRESTON A BAYLOR.ATTORNEY-AT-LAW,And Solicitor in Cliancery, STAUNTON, VA.,
firactices in all the Courts of Augusta and ad-orning counties.Office?The same formerly occupied by his
father, Gol. Geo. Baylor, deed, on Augusta St.,opposite the Court-house. no 21
M. M. MCALLISTER,ATTORNEY-AT-LAW,
Warm Springs, Va.Courts?Alleghany, Bath and Highland, Va.,nd Pocahontas, West Virginia.\u26663-Special attention given to collection of
claims and proceeds promptlyaccounted for.dec23?tf
DR. JAMES JOHNSTON,DENTIST,Main Street, Staunton, Va.Office :-Over Turner A Harman's Grocery
Store. dec 21?tf't. c. elder. wm. J. nelson.ELDER aft NELSON.ATTORNEYS-AT-LAW,and Real Estate Agents,
may 5 Staunton, Va.
WHTES, LIQUORS, &ca a) a
TI7"M. aw. BUMGARDNER at CO.,
In connection with their full stock of
WINES, LIQUORS,Tobacco, Clears, «Sco.,
have erected a
BOTTLING ESTABLISHMENT,
where they bottle the celebrated
QUEEN OF THE WEST
AND
MILWAUKEE BEERS.
The trade supplied
AT GREATLY REDUCED RATES,
and families furnished at prices greatlybelow
those heretofore charged.
Orders Solicited.
Star Satisfaction Guaranteed, -©a
Smpty Bottles paidfor when returned.
WM. L. BUMGARDNER & CO.,So. 3, New Street,
0. T. COCHRAN'S OLD STAND,apr23-tf Staunton. Ta.
WM. WHOLEY,t dis Old stand, New St., Staunton, Va.,
Keeps constantlyon hand,PURE OLD AUGUSTA COUNTY
WHISKEYS,Clemmeb's, Beabc's, Koiner's, Buxgabd-
nek's, Fulcher's, ?? -
J 11. WATERS A SON,a MauufiictufursofCARRIAGESAND BUGGIEB,
Near VirginiaHotel, Staunton, Virginia.Keep constantly on hand Car- ______ _riages .and Buggies of every de- . J _to business and fair dg_Jjng,___££2_-«5
.hey guarantee entire satisfacficii.43-Strict attention paid to Repairing.Give them a call before purchasing. Apr 28
nABKIACIE MAKINO.? -___.\u25a0\j At tiie solicitation ofman y/\u25a0sSSJaJvNof my former patrons, Iagain taken charge at my ninKi g x t-u-vstand, wliere Iwill carryon theCarriage Ma-sting Business in all its various branches, andlam determined that my work shall not besurpassed iv finish, style, durabilityor price.
Special attention given to repairs.»ug4-tf JOHN M. HARDY
~~. AGRICULTURAL IMPLEMEKm» 0 a _
rpnE BUCKEYEMower and Reaper,
The New End-Shako Sweepstakes Thresher,THE IMPROVED MONITOR FARMENGINE,
Manufactured by C. Aultman A Co., Canton;Ohio; The Steel Tooth Hagerstowu Horse Rake_!The Thomas Patent Smoothing Harrow andBroad Cast Weed-ax, manufactured in Geneva.N. V.; all of the best material, best workman-ship, and the
Best Articles on the Market !of their kind. For descriptive catalogues,prices and further information, address,
JAMES M, RICE,j.pr_3-2m Covington, Va,
RALTIMORE ADVERTISEMENTS.» a> «
Highest Award at the Centennial.Diploma of Honor and Medal of Merit, for
Grand, Upright and SquarePIANOS.
The principal points of superiority in theSTIEFK Pianos are brilliant singing qualityof tone, with great power? evenness of touchthroughout the entire scale, faultless action,unsurpassed durability,and unexcelled work-manship.
A large varietyof Second-hand Pianos,of all makers, constantlyIn store, and ranging
In prices from 975 to $300.We are also Sole Agents for the Southern
States of tbe *
''MATCHLESS" BURDETT ORGANS,The best now made.
A full supply ol every style constantlyIn store,and sold on the most liberal terms.
For Termsand Illustrated Catalogues ofPianosand Organs, address
CIIA.H. M. STIEFP,No, 9, North Liberty Srreet,jes-tf Baltimore, Md.
TjlNTABLINHED 1816.CHAS. SIMON & SONS,
63 N. Howard Street, Baltimore, Md.,
IMPORTERS AND DEALERS IN
Foreign and Domestic
DRY GOODS,would call especial attention to their extensive
stock ofDRESS GOODS. LINEN and COTTON GOODS,EMBROIDERIES, LACES, GOODS for
MEN'S and BOYS' WEAR,COR-SETS, LADIES' READY-
MADE UNDERWEAR,_
Ac, Ac.*g- SAMPLES SENT FREE! -«?
Also to theirDress-Making Department.
Cloaks, Dresses, Ac, made to order, promptly,in a superiormanner, and In the latest style, atmodarafe rates. Orders solicited. Rules forself-measurement, and sample of materials,with estimate ofcost, sent upon application.All orders amounting to __0 or oyer, will besent free ol freight charges byExpress, but par-ties whose orders are not accompanied by themoney, and havingtheir Goods sent C. O. D.,must pay for return of money. feb27-ly
- -\u25a0\u25a0 JJ _B_r?--J a-a-Pla-aL
DAVID M.TJO.TV&9 t* CO.. , _ _ .(Successors to Taylor, Chadwlck A C0.,)MANOFACTUHERS ANDDEALERS IWTINWARE,
Stoves anti Hollow Ware,No. U South Howakd Stkeet,
marl9-3m BALTIMORE^
THE UNEQUALLED JAS, LEFFEL DOUBLE
PORTABLE AND STATIONARY
SAW, FiOiJlt AMP OBIST MILLS.
sßArryc.nrLLETs akd ham«jbs_
& H?^'_
JAS. I. SCOTT'SBALTIMORESTAMPING!- DEPOT,
NO. 36 N. Greene Street,BETWEEN FAYETTE A LEXINGTON STS.,
BALTIMORE, MD.Constantly on hand, Hon.ton Lace Braids,Braiding and EmbroideringMaterial.We are daily receiving the Newest r.tvles ofBRAIDING and EMBROIDERY PATTERNS,&c, &c. Embroidered Work constantly onhand. Stampsfor sale. Wholesale akd Re-tail. marl9-3m
m I i R N.W-'.ArV?'i£ I*. \u25a0 \u25a0 ..?-..\u25a0\u25a0* _f!h J*;-s _}M.v- - ; * :"'-"- \u25a0' \u25a0\u25a0 * * ->-'*£gfea \u25a0 ?'?S'li ..:\u25a0\u25a0 - -'.-'\u25a0-.'
'? \u25a0\u25a0?? ; * Also; «iUi*e ..-..V- ,__ -~. r . T a-a--.a-.. .*??
my2B-6m
PHILADELPHIA ADVERTISEMENTS.\u2666 -+. \u2666
tt |lH;fi g 3 S Sm ? w(d a * _ pari h v-*iiiiHiliSiS Bsod__jl2.c_s t» 1 ST b_ ill 2..»]§»" . § t L 9 S 22t we are selling at Bottom Figures.feb26 GEO. W. MAY A CO.
TWO TONS LEWIS ITBE LEAD,5 BBLS. LINSEED OIL,. " LUBRICATING OIL,5 » No. 1 STRAITS OJL,8 " TURPENTINE,
At very low Agues.feb2ls GEO. W. MaY A CO.
A LARGE ASSORTMENT OF
WINDOW GLASS,AT LO*" FtoURBS, at
feb26 MAY & CO.'S Drug Store.7T]EO. AY. MA.V & CO.
Are Agents for
THE TJEST TRUSSfeb26 IN MARKET. Call and esamlne.^
PAINTS AND PAINTING.\u2666 a» \u2666
To Preserve and Beautify Your Homes UsaG7TTA PEBCHA PaAINT.
FpPE BBS? PRESERVATIVE EVER USED1 forWood, Iron, Stone or Brick $tr_cti4re ._FOR INSIDE OR OUTSIDE WORK. Sendfor Sample Colors and Price Lists (FREE) toGUTTA PERCHA PAINT COMPANY, 356Euclid Avenue, Cleveland, Ohio.UI'TTA PERCIIA PAIKT is composed of
the BEST
STRICTLY PURE WHITE LEAD,(Mixed Ready for the Brush,).
with the additian ol" ijesi, Leuigh Zinc, and(Jutta Percha, all thoroughlycombined, bygrindingin Strictly Pure Linseed Oil.It is absolutelyfree from Water and Chemi-
cals; Is adapted to all work outside or Inside;has a better body, will cover more surface, and ischeaper and more durable than Lead and Oilmixed by hand. Put up In neat packages. InPurest White and all Colors and Tints, from 1Pound Cans to oneBarrel.
OUR
Floated Xi-on-clad. Paintcontains about GO per cent, by analysis, of PureLake Superior Iron. It is the cheapest andmost durable Paint ever used for Tin or IronRoofs, Barns, Agricultural Implements,Woodor Iron Bridges, Railroad Cars, dkc. It has a pe-culiar affinity for Tin and Iron, and will in-crease their durabilityfour-fold. O'TRY IT.All of the above In stock and for sale, by
Da. S. WAYT A BRO., Druggists,my7-6m Main St., Staunton, Va.
SfINBH. 3l__a*ss_faiHß(hlssaa-_«_aas-a-_fr
READY FOR IMMEDIATE USE.Is endorsed by every PRACTICAL FAINTER.COVERING CAPACITY AKD DURABILITYEXCEED AS. KNpWN pAIi.T. BulldlrigsPainted with our Prepared Paints, if not satis-factory, will be Repainted at oar Expense.
FOB SALE BYGEO. W. MAY CO.,my2B-3m Staunton, Va.
PAINTIW6! PAIXTIKGI!DOSE BY?JiyQ. J2. ,|p^]*rSo3W,Practical Painter.
HOUSE FAINTING,BOOS" PAINTING,
FENCE PAINTING,and all otherkinds of Painting, at as lowprices as It pan be done Al. wprjfc(icatly executed.
_a~SAT.SrXT.ON GtIAKAKIEED. APPIy *>tapr3o-.f T BTo. 0 sT Augusta St.
LUMBER BUSINGS,"
HJ. ..USHBAH.H * BRO.,a Manufacturers ofSashes, Doors and minds.
BRACKETS, MOULDINGS, FLOORING,etc., 4c, Ac.
Near Chesapeake 4 Ohio Railroad Depot,STAtnrrow, Va.
N. B.- No material but seasoned lumber usedby hi. does?ly
I»OET R, Y.TRANSLATIONS FOB THE DISPATCH FROM THE
THE HERMAN OF HEINE.Who for the first time loves, unloved,
Is God-like in hispain;But what a fool of fools Is he
Who loves, unloved, again.I love again without return?
I?Ruch afool am I!Oh! sun, and moon, and stars laugh out!I laugh with them?and die!
Art thou verily so cruel;"Canst thou whollyaltered be?
To the world will I proclaim it?Thou hast so 111-treated me.
Oh, ungratefullovelylips!Say, how canst thou evilcry
Against the man who long agoKissed you often lovingly?
There was a poor old King once,His heart was hard, his head was gray.
This poor olifcKlng a maidenTook towife one day.
Ther abandsome young page,his bead, gay was his mien;
The silken train he carriedOfthe lovely young Queen. L
Knowest thou the olden legend ?So sweet to tell, so sad to tell;
Ah, both! They needs must perish?They have loved much too well.
In the morningI send thee a violetWhich fresh in the forest grows,
I pluck In the hour of twilight.And bring thee at evening,arose.
Oh, knowest thou what these sweet fiow'retsWould softly from me to thee say?
"Oh, love me alone In the dark night,And be true to me all the day."
In the wood Iwander weeping.The brown thrush sits on high.
She sings tome so sweetly,"Why art thou sad, oh, why?"
"Thy sister swallows, little one,They can the reason tell,
In tiny, cunningnests they nearMy darling'swindows dwell."
» » «
For the Spectator.MAT.
BY WILLIAM TENNYSON HEATON, AUTHOR OFSONGS OF THE SHENANDOAH.
May is singing low and sweetlyIn herhome beside the stream,
Stars are shining on the watersWhere tho tigcr-Wlles dream.
May is sleeping, gently sleeping,In thehome beside tbe stream.
Starlight twinkles thro' the window,While the ripple? flash and gleam.
May Is resting?yes, forever,In a grave beside the stream.
While the stars theirwatch are keeping.And the forest flowers dream!
HARD TIMES ACCOUNTED FOR.CONTRACTION Vaß CAUSE?BETTER
TIMESCOMING?ABLE LETTER OF HON.A. H. H. STUART?READ WHAT HESAYS.
In response to the letter of a numberof citizens of this County requesting his"views on the prospectsofthe (Jountryfor a revival of its life and return of itsprosperity," Hon. A. H. H. Stuart haswritten a long and able letter, which wegive below.
Gentlemen:?I have had the honorto receive your'letter of lstb of May, inwhich you refer to the gloomy conditionofthe financial affairs of the country,and the distress which has resultedtherefrom, and ask me to give you myopinion ofthe probable duration of thisstate of things, and of the prospects of achange for tj_e p;.Recognising among the signers of thisletter many of my most valued friendsand intelligent neighbors, and properlyappreciating the motives which prompt-ed you to send it, I cheerfully complywith your request;.Although * |ajy no claim to the spiritof prophecy, yet, having passed the ageof seventy years, for more than fifty ofwhich I have been an attentjvp andthoughtful observer of passing events,it would be strange if I had not profitedin some degree by my long experienceand observation.
Periods of financial revulsion andbusiness depression, like that underwhich .fe are now suffering; arp npf,without precedent in bur history?onthe contrary, they frequently occur incountries wheregreatcommercial activ-ity and enterprise exist. Hencewe haveseen them prevail from timeto time inEngland, France and Germany, as wellas in the United States. Sometimesthey result from what is called "fiypy-trading,l' ftr tup injudicious investmentof too large an amount of capital in somebranch of business, and sometimesfromunwise legislation; but morefrequentlythey follow long and exhaustive wars.In all cases, however, the immediatecause is the sudden contraction of thecurrency, which had been previouslyunduly expanded. Their continuanceis in proportion to the magnitude qf tb;ecauses which produced thein.
We have had four vejy distressingrevolutions in theUnited States, sincethe achievement of our National inde-pendence.THE PANIC AFTER THE REVOLUTION-
ARY WAR.The first followed theclose ofourrevo-
lutionary war, during tbe progress ofwhich contest, theresources of the peo-ple were tased .o t tie utmost limit. Alarge debt was contracted,and tbecoun-try was flooded with "Continentalmoney," which steadily depreciated,and finally lost its purchasing power,leaving our fathers without the neces-sary pecuniary facilities to carry on theordinary business, between man andman. This continued until 1791, twoyears after the inauguration of the gov-ernment of the United States. In thatyear, under tbe auspices of AlexanderHamilton, a bank of tbe United Stateswas chartered by Congress, to continuefor twenty years. British capitalistssubscribed liberally to the stock of thebank, and its wise administration con-tributed largely to the relief of the peo-ple, and the revival of business. Grad-ually the traces of the devastationocca-sioned by tbe war were obliterated andcomparative prosperity was restored.?This occurred in the latter part qf theeighteenth century. It -fffl thus heseen, that it required the labor of tenyears, to recover from the effects qf thiswar.
THE PANIC (.f .819.From the close of the lastcentury, un-til 1811, mainly through the agency of
thebank ofthe United States, the coun-try was blessed with a sound currency,convertibleat the pleasureof the holderinto gold or silver. g
In 1811 the of- the bank expir-ed, and for reasons which I need notpause to consider, congressrefused tocharter it; and hence the country wasleft without an institution competent toprovidpa safe and uniform currency.?4s might have been foreseen, statebanks, as substitutes, sprang up likemushrooms, in all sections, which flood-ed the country with irredeemablepapermoney, the influence of this ex-pan.ipn a fictitious prosperity was creat-ed. Prices of every speciea of propertyrose to fabulous rates, and a spirit ofgambling speculation pervaded thewhole country. In 1812, war was de-claredagainst GreatBritain, and the de-mand for the products of agriculturecreated by it, intensifiedthepopular de-lusion that aplentifulsupply of(so call-ed) money, and noni};_al high pricesTor
every thing were evidences of real pros-perity.
In the beginning of 1815 the war clos-ed, and sagacious statesmen like Mr.Calhoun, Mr. Clay and Mr. Lowndes,detected the cheat, and with theview ofrestoring a healthy condition of affairsand the blessing of a sound currency,introduced into congress a bill to incor-porate tbe Second Bank of the UnitedStates. In 1816, under the lead of Mr.Calhoun, thebill was passed andreceiv-ed the sanction of Mr. Madison.
The bank with a capitalof $35,000,000two-fifths of which was owned by thegovernment ofthe United States, wasorganizedearly in 1816. It at once ad-dressed itself to the duty of restrainingthe extravagent issues of the StateBanks, by calling on them to redeemtheir notes and thus opened the way totheresumption of speciepayments. Thiscompelled the State Banks to curtailtheir discounts and call on their debtorsfor payment.
A distressing contraction of currencyensued and therewas a general shrink-age of values, very similarto that whichwe have recently witnessed. This pro-cess of contraction continued from 1817until about 1825. During that time theprice offlour declined from $14 and $15to $3 and $2.50 per barrel.Finally the currency was reducedwithin proper limits and specie pay-ments were resumed. From that mo-ment business revived?bank noteswereequal to specie, because they were ex-changeable for specie?gambling specu-lations ceased, trade was establishedona solid basis; entire confidence was feltin the currency, and every farmerknewwhen be sold his products that he wasgetting actual money and not merepromises to pay in exchange.
Thus tbesecond great crisis in our fi-nancial affairs was safelypassed, mainlythrough the conservative agency of theBank of the United States, and thew holecountry rapidly advanced in pros-perity until 1833.
By the terms of its charter the eontin- <uanceof thebank was limited to twentyyears which expired in 1836.
THE PANIC OF 1837.In 1832 the bank applied to congress
for arenewal of its charter. The subjectwas maturely considered in both houses;and while it was pending Mr. GeorgeMe Duffle made a masterlyreport (whichis well worthy of perusal at this day) inwhich he demonstratedthe utility ofthebank in regulating the oqrrpnoy, equal-izing exchanges and maintaining speciepayments.
After full deliberation, thebill rechar-tering the bank was passed by decidedmajorities in eachhouse; but Gen. Jack-son, for reasons which it is needless todiscuss, vetoed the bill, and it could notcommand tberequisite majority of two-thirds of eaoh house, it failed to becomea law.
Not satisfied with baying defeated there-charter in 1833, GeneralJackson or-dered the Secretary of the Treasury toremove the deposits of governmentmoneys, which had, theretofore, underthe authority of law, been kept in theBank of the United States, from thatbank, and to distribute them among theState banks.
As might have been anticipated, thesedeposits gave a fictitious strength tothese banks. They commenced at oncea liberal system of discounting on thefaith of the government deposits, thusinverting the natural order of things,and loaning moneyfreely on debtswhichthey owed, as if they constituted actualcapital which they owned.' The Bankof the United States, being about to em-pire, wag pqwPi'leo3to Mstrai'n the Statebanks in their mad career, and theyproceeded to the wildest excesses. Thencame the "Flush Times," which havebeen so graphically described by JudgeJoseph G. Baldwin, in his admirablebook, bearing that name. The conditionof things was, in many respects, similarto that which existed from 1811 to 1818,and more recently in Confederate times.
In 1836 Congress, perceiving the gravemistake which had been committedby depositingthe money, ftf the Uni-ted Staffs ttjf. btatebanks, and thedisastrousresults which had flowedfromit, passed what was called the "Suh-treasury Bill." By the terms of thatlaw the President was required to with-draw the government deposits from theState banks, and place them in the cus-tody of bonded officers ofthe govern-ment.
The passage of that law at once dis-closed the weakness of the state banks.They had been doing business on a falseprinciple. They were unable to meetthe demands upon them, and in May1837, every bank south of NewEngland,suspended speciepayments!
Then followed tbe old process of strin-gentcontraction, after extravagant ex-pansion. The inflated currency, like afullblown blEdr,e?, pricked by a pin,pojlapeed, Nominal values shrunk toalmost nothing. Nominal fortunesvanished like bubbles and widespreadruin and bankruptcy were the fruits ofthis mischievous policy. The disasterswhich followedthe Revolutionary war,and the war of 1812, were in some mea-sure attributableto those wars, bu. tbecrash which came on the country in1837,was thureaul _pl partizan prejudiceand unw.se statesmanship.Nor were the mischiefsof this revul-sion confined to private citizens. Thegovernmentof the United Stateswas re-duced to a stateofinsolvency. Its re-sources were in the hands of brokenbanks, and it wasleft without the meansofpaying its currency expenses, On the31st of May, 1841, I took my seat inCongress, as the representative, of theDistrict of wh .eh Augusta then consti-tuted apart, and I rememberthat therewas not money enough in the treasuryof the UnitedStates to paythe membersof Congress the eight dollars per day towhich they wereentitled for their ser-vices. And, worsestill, when Congresssought toborrow the insignificant sumof five millions of dollars, to meet theimmediatewants qfgovernment, theNa-tional credit was so low, that the loancould not be effected without pledgingthe proceeds ofthe public lands as secu-rity for its payment.
The Whig partyunder the lead of Mr.Clay, sought to givereliefto thecountryby the modewhich had proved success-ful on two former occasions, viz: thecharter ofa third Bank of the UnitedStates. The two houses by respectablemajorities passed the bill, but, unfortu-nately, John Tyler who bad succeededto thePresidency on the death of presi-dent Harrison, under the influence ofbad advisers, vetoed the bill, althoughhe had himself beer, an active at.ent inframing it. \u25a0All that could then be done for therelief of the country was to pass thetariffof 1842, which replenished theTreasury, revived the public credit andgavea great impulseto industry, in allits departments. * **v.
Th"a,Jafte? W* * years of travail,the toird great financial difficulty wasovercome. *
From 1843 to 1861, notwithstandingmany mistakes ofpolicy, which retard-ed our national advancement and wereattanded with seme disturbances, thecountry was in a condition of compara-tive prosperity-the currency had beenbrought to the specie standard, in par-ticular localities,but business operationswere seriously impeded by the want ofa circulation of uniform value in allparts ofthe Union and by burthensomeratesof exchange.I think, from the above narrative thatm_} Bt be obvious to all unprejudicedminds that I have not erred in statingthat the immediate cause of financialrevulsions is the contraction of ourren-cy which is the necessary sequence ofundue expp.nsWn.THE PANIC OF 1873.I come now totheconsiderationof the
- distressing condition of money matters,under which we are how suffering. It? will be found that it presents no excep-
. tion to the general rule which I have, stated.f Ofthe secession oftheSouthern States,i in its political aspects, Ihave nothing te, say; nor do I propose to dwell on itsconsequences in a moral, social, or in-I dustrialpoint of view?myremarks willbeconfined to its financial consequences.During the four years' war which fol-lowed, it became necessaryfor both sec-tions to incur large debts, by the sale ofi bonds and the issue of treasury notes.?As the war progressed these issues in-creased, and with each emission theirvalue decreased. At one period in theNorth a dollarin gold was worth $2.80in U. S. Treasury notes, and in the lat-ter part of 1864 in the South, a dollaringold had a purchasing power equal to$60 in Confederate States Treasurynotes!
Bargains madewith reference to thiskind of currency were, in substance,gamblingcontracts?mere wagerson|theresult of the terrible conflict which wasin progress. When the war ended bythe defeatof the Confederatearmies andtheoverthrow af the government, hun-dreds of millions of Confederate bondsand currency perished in the hands ofthe holders. In this way, thousands ofthosewho had been over sanguine ofthe success of the Confederate causewere reduced to insolvency. Of theamount of the issue of Confederate ob-ligations in their various forms, it is un-necessary to say anything, as, with theclose of the war, they ceased to be of anypractical importance.
The matter which concerns us now isthe amount of the obligations of theUnited States, which, since therestora-tion of the Union have become our obli-gations.
In the progress of the gigantic strug-gle, the resources and credit of the Uni-ted States' government were'sorelytried. Besides the expenditure of allcurrent resources, it became necessaryto inour a debt, which, in its variousforms, of bonds, certificates and treasu- ,ry notes, amounted in the aggregate totwo thousand eight hundred and forty-five millionsof dollars. Of this amount,one thousandtwo hundredand eighteenmillions of dollars, was in the form of jUnited States bonds. The residueamounting to sixteen hundredandtwen- (ty odd millions of dollars, was in theform of negotiable paper, which pos-sessed many of the qualities ofmoney, * ith $affe.]
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