Chapter IV

PROGRESS OF THE DISTRESS, AND PRELIMINARIES FOR THE SUSPENSION.

The speech of Mr. Webster--his appeal for action--was soon followed by its appointed consequence--an immense meeting in the city of New York. The speech did not produce the meeting, any more than the meeting produced the speech. Both were in the programme, and performed as prescribed, in their respective places--the speech first, the meeting afterwards; and the latter justified by the former. It was an immense assemblage, composed of the elite of what was foremost in the city for property, talent, respectability; and took for its business the consideration of the times: the distress of the times, and the nature of the remedy. The imposing form of a meeting, solemn as well as numerous and respectable, was gone through: speeches made, resolutions adopted: order and emphasis given to the proceedings. A president, ten vice-presidents, two secretaries, seven orators (Mr. Webster not among them: he had performed his part, and made his exit), officiated in the ceremonies; and thousands of citizens constituted the accumulated mass. The spirit and proceedings of the meeting were concentrated in a series of resolves, each stronger than the other, and each more welcome than the former; and all progressive, from facts and principles declared, to duties and performances recommended. The first resolve declared the existence of the distress, and made the picture gloomy enough. It was in these words:

"Whereas, the great commercial interests of our city have
nearly reached a point of general ruin--our merchants driven
from a state of prosperity to that of unprecedented difficulty
and bankruptcy--the business, activity and energy, which
have heretofore made us the polar star of the new world, is
daily sinking, and taking from us the fruits of years of
industry--reducing the aged among us, who but yesterday were
sufficiently in affluence, to a state of comparative want; and
blighting the prospects, and blasting the hopes of the young
throughout our once prosperous land: we deem it our duty to
express to the country our situation and desires, while yet
there is time to retrace error, and secure those rights and
perpetuate those principles which were bequeathed us by our
fathers, and which we are bound to make every honorable effort
to maintain."

After the fact of the distress, thus established by a resolve, came the cause; and this was the condensation of Mr. Webster's speech, collecting into a point what had been oratorically diffused over a wide surface. What was itself a condensation cannot be farther abridged, and must be given in its own words:

"That the wide-spread disaster which has overtaken the
commercial interests of the country, and which threatens
to produce general bankruptcy, may be in a great measure
ascribed to the interference of the general government with
the commercial and business operations of the country; its
intermeddling with the currency; its destruction of the national
bank; its attempt to substitute a metallic for a credit
currency; and, finally, to the issuing by the President of
the United States of the treasury order, known as the 'specie
circular.'"

The next resolve foreshadowed the consequences which follow from governmental perseverance in such calamitous measures--general bankruptcy to the dealing classes, starvation to the laboring classes, public convulsions, and danger to our political institutions; with an admonition to the new President of what might happen to himself, if he persevered in the "_experiments_" of a predecessor whose tyranny and oppression had made him the scourge of his country. But let the resolve speak for itself:

"That while we would do nothing which might for a moment
compromit our respect for the laws, we feel it incumbent
upon us to remind the executive of the nation, that the
government of the country, as of late administered, has
become the oppressor of the people, instead of affording them
protection--that his perseverance in the experiment of his
predecessor (after the public voice, in every way in which that
voice could be expressed, has clearly denounced it as ruinous
to the best interests of the country) has already caused the
ruin of thousands of merchants, thrown tens of thousands of
mechanics and laborers out of employment, depreciated the
value of our great staple millions of dollars, destroyed the
internal exchanges, and prostrated the energies and blighted
the prospects of the industrious and enterprising portion
of our people; and must, if persevered in, not only produce
_starvation_ among the laboring classes, but inevitably lead
to disturbances which may endanger the stability of our
institutions themselves."

This word "_experiment_" had become a staple phrase in all the distress oratory and literature of the day, sometimes heightened by the prefix of "_quack_," and was applied to all the efforts of the administration to return the federal government to the hard money currency, which was the currency of the constitution and the currency of all countries; and which efforts were now treated as novelties and dangerous innovations. Universal was the use of the phrase by one of the political parties some twenty years ago: dead silent are their tongues upon it now! Twenty years of successful working of the government under the hard money system has put an end to the repetition of a phrase which has suffered the fate of all catch-words of party, and became more distasteful to its old employers than it ever was to their adversaries. It has not been heard since the federal government got divorced from bank and paper money! since gold and silver has become the sole currency of the federal government! since, in fact, the memorable epoch when the Bank of the United States (former sovereign remedy for all the ills the body politic was heir to) has become a defunct authority, and an "obsolete idea."

The next resolve proposed a direct movement upon the President--nothing less than a committee of fifty to wait upon him, and "_remonstrate_" with him upon what was called the ruinous measures of the government.

"That a committee of not less than fifty be appointed to repair
to Washington, and remonstrate with the Executive against the
continuance of "the specie circular;" and in behalf of this
meeting and in the name of the merchants of New York, and the
people of the United States, urge its immediate repeal."

This formidable committee, limited to a minimum of fifty, open to a maximum of any amount, besides this "_remonstrance_" against the specie circular, were also instructed to petition the President to forbear the collection of merchants' bonds by suit; and also to call an extra session of Congress. The first of these measures was to stop the collection of the accruing revenues: the second, to obtain from Congress that submission to the bank power which could not be obtained from the President. Formidable as were the arrangements for acting on the President, provision was discreetly made for a possible failure, and for the prosecution of other measures. With this view, the committee of fifty, after their return from Washington, were directed to call another general meeting of the citizens of New York, and to report to them the results of their mission. A concluding resolution invited the co-operation of the other great cities in these proceedings, and seemed to look to an imposing demonstration of physical force, and strong determination, as a means of acting on the mind, or will of the President; and thus controlling the free action of the constitutional authorities. This resolve was specially addressed to the merchants of Philadelphia, Boston and Baltimore, and generally addressed to all other commercial cities, and earnestly prayed their assistance in saving the whole country from ruin.

"That merchants of Philadelphia, Boston, Baltimore, and the
commercial cities of the Union, be respectfully requested to
unite with us in our remonstrance and petition, and to use their
exertions, in connection with us, to induce the Executive of
the nation to listen to the voice of the people, and to recede
from a measure under the evils of which we are now laboring, and
which threatens to involve the whole country in ruin."

The language and import of all these resolves and proceedings were sufficiently strong, and indicated a feeling but little short of violence towards the government; but, according to the newspapers of the city, they were subdued and moderate--tame and spiritless, in comparison to the feeling which animated the great meeting. A leading paper thus characterized that feeling:

"The meeting was a remarkable one for the vast numbers
assembled--the entire decorum of the proceedings--and especially
for the deep, though subdued and restrained, excitement which
evidently pervaded the mighty mass. It was a spectacle that
could not be looked upon without emotion,--that of many thousand
men trembling, as it were, on the brink of ruin, owing to the
measures, as they verily believe, of their own government,
which should be their friend, instead of their oppressor--and
yet meeting with deliberation and calmness, listening to a
narrative of their wrongs, and the causes thereof, adopting
such resolutions as were deemed judicious; and then quietly
separating, to abide the result of their firm but respectful
remonstrances. But it is proper and fit to say that this
moderation must not be mistaken for pusillanimity, nor be
trifled with, as though it could not by any aggravation of
wrong be moved from its propriety. No man accustomed, from the
expression of the countenance, to translate the emotions of the
heart, could have looked upon the faces and the bearing of the
multitude assembled last evening, and not have felt that there
were fires smouldering there, which a single spark might cause
to burst into flame."

Smouldering fires which a single spark might light into a flame! Possibly that spark might have been the opposing voice of some citizen, who thought the meeting mistaken, both in the fact of the ruin of the country and the attribution of that ruin to the specie circular. No such voice was lifted--no such spark applied, and the proposition to march 10,000 men to Washington to demand a redress of grievances was not sanctioned. The committee of fifty was deemed sufficient, as they certainly were, for every purpose of peaceful communication. They were eminently respectable citizens, any two, or any one of which, or even a mail transmission of their petition, would have commanded for it a most respectful attention. The grand committee arrived at Washington--asked an audience of the President--received it; but with the precaution (to avoid mistakes) that written communications should alone be used. The committee therefore presented their demands in writing, and a paragraph from it will show the degree to which the feeling of the city had allowed itself to be worked up.

"We do not tell a fictitious tale of woe; we have no selfish or
partisan views to sustain, when we assure you that the noble
city which we represent, lies prostrate in despair, its credit
blighted, its industry paralyzed, and without a hope beaming
through the darkness of the future, unless the government of our
country can be induced to relinquish the measures to which we
attribute our distress. We fully appreciate the respect which
is due to our chief magistrate, and disclaim every intention
inconsistent with that feeling; but we speak in behalf of a
community which trembles upon the brink of ruin, which deems
itself an adequate judge of all questions connected with the
trade and currency of the country, and believes that the policy
adopted by the recent administration and sustained by the
present, is founded in error, and threatens the destruction of
every department of industry. Under a deep impression of the
propriety of confining our declarations within moderate limits,
we affirm that the value of our real estate has, within the last
six months, depreciated more than forty millions: that within
the last two months, there have been more than two hundred and
fifty failures of houses engaged in extensive business: that
within the same period, a decline of twenty millions of dollars
has occurred in our local stocks, including those railroad
and canal incorporations, which, though chartered in other
States, depend chiefly upon New York for their sale: that the
immense amount of merchandise in our warehouses has within the
same period fallen in value at least thirty per cent.; that
within a few weeks, not less than twenty thousand individuals,
depending on their daily labor for their daily bread, have been
discharged by their employers, because the means of retaining
them were exhausted--and that a complete blight has fallen upon
a community heretofore so active, enterprising and prosperous.
The error of our rulers has produced a wider desolation than the
pestilence which depopulated our streets, or the conflagration,
which laid them in ashes. We believe that it is unjust to
attribute these evils to any excessive development of mercantile
enterprise, and that they really flow from that unwise system
which aimed at the substitution of a metallic for a paper
currency--the system which gave the first shock to the fabric of
our commercial prosperity by removing the public deposits from
the United States bank, which weakened every part of the edifice
by the destruction of that useful and efficient institution,
and now threatens to crumble it into a mass of ruins under the
operations of the specie circular, which withdrew the gold and
silver of the country from the channels in which it could be
profitably employed. We assert that the experiment has had a
fair--a liberal trial, and that disappointment and mischief are
visible in all its results--that the promise of a regulated
currency and equalized exchanges has been broken, the currency
totally disordered, and internal exchanges almost entirely
discontinued. We, therefore, make our earnest appeal to the
Executive, and ask whether it is not time to interpose the
paternal authority of the government, and abandon the policy
which is beggaring the people."

The address was read to the President. He heard it with entire composure--made no sort of remark upon it--treated the gentlemen with exquisite politeness--and promised them a written answer the next day. This was the third of May: on the fourth the answer was delivered. It was an answer worthy of a President--a calm, quiet, decent, peremptory refusal to comply with a single one of their demands! with a brief reason, avoiding all controversy, and foreclosing all further application, by a clean refusal in each case. The committee had nothing to do but to return, and report: and they did so. There had been a mistake committed in the estimate of the man. Mr. Van Buren vindicated equally the rights of the chief magistrate, and his own personal decorum; and left the committee without any thing to complain of, although unsuccessful in all their objects. He also had another opportunity of vindicating his personal and official decorum in another visit which he received about the same time. Mr. Biddle called to see the President--apparently a call of respect on the chief magistrate--about the same time, but evidently with the design to be consulted, and to appear as the great restorer of the currency. Mr. Van Buren received the visit according to its apparent intent, with entire civility, and without a word on public affairs. Believing Mr. Biddle to be at the bottom of the suspension, he could not treat him with the confidence and respect which a consultation would imply. He (Mr. Biddle) felt the slight, and caused this notice to be put in the papers:

"Being on other business at Washington, Mr. Biddle took occasion
to call on the President of the United States, to pay his
respects to him in that character, and especially, to afford the
President an opportunity, if he chose to embrace it, to speak of
the present state of things, and to confer, if he saw fit, with
the head of the largest banking institution in the country--and
that the institution in which such general application has been
made for relief. During the interview, however, the President
remained profoundly silent upon the great and interesting topics
of the day; and as Mr. Biddle did not think it his business to
introduce them, not a word in relation to them was said."

Returning to New York, the committee convoked another general meeting of the citizens, as required to do at the time of their appointment; and made their report to it, recommending further forbearance, and further reliance on the ballot box, although (as they said) history recorded many popular insurrections where the provocation was less. A passage from this report will show its spirit, and to what excess a community may be excited about nothing, by the mutual inflammation of each other's passions and complaints, combined with a power to act upon the business and interests of the people.

"From this correspondence it is obvious, fellow-citizens, that
we must abandon all hope that either the justice of our claims
or the severity of our sufferings will induce the Executive to
abandon or relax the policy which has produced such desolating
effects--and it remains for us to consider what more is to be
done in this awful crisis of our affairs. Our first duty under
losses and distresses which we have endured, is to cherish with
religious care the blessings which we yet enjoy, and which can
be protected only by a strict observance of the laws upon which
society depends for security and happiness. We do not disguise
our opinion that the pages of history record, and the opinions
of mankind justify, numerous instances of popular insurrection,
the provocation to which was less severe than the evils of which
we complain. But in these cases, the outraged and oppressed
had no other means of redress. Our case is different. If we
can succeed in an effort to bring public opinion into sympathy
with the views which we entertain, the Executive will abandon
the policy which oppresses, instead of protecting the people.
Do not despair because the time at which the ballot box can
exercise its healing influence appears so remote--the sagacity
of the practical politician will perceive the change in public
sentiment before you are aware of its approach. But the effort
to produce this change must be vigorous and untiring."

The meeting adopted corresponding resolutions. Despairing of acting on the President, the move was to act upon the people--to rouse and combine them against an administration which was destroying their industry, and to remove from power (at the elections) those who were destroying the industry of the country. Thus:

"_Resolved_, That the interests of the capitalists, merchants,
manufacturers, mechanics and industrious classes, are dependent
upon each other, and any measures of the government which
prostrate the active business men of the community, will also
deprive honest industry of its reward; and we call upon all our
fellow-citizens to unite with us in removing from power those
who persist in a system that is destroying the prosperity of our
country."

Another resolve summed up the list of grievances of which they complained, and enumerated the causes of the pervading ruin which had been brought upon the country. Thus:

"_Resolved_, That the chief causes of the existing distress
are the defeat of Mr. Clay's land bill, the removal of the
public deposits, the refusal to re-charter the Bank of the
United States, and the issuing of the specie circular. The land
bill was passed by the people's representatives, and vetoed
by the President--the bill rechartering the bank was passed
by the people's representatives, and vetoed by the President.
The people's representatives declared by a solemn resolution,
that the public deposits were safe in the United States Bank;
within a few weeks thereafter, the President removed the public
deposits. The people's representatives passed a bill rescinding
the specie circular: the President destroyed it by omitting
to return it within the limited period; and in the answer to
our addresses, President Van Buren declares that the specie
circular was issued by his predecessor, omitting all notice
of the Secretary of the Treasury, who is amenable directly to
Congress, and charged by the act creating his department with
the superintendence of the finances, and who signed the order."

These two resolves deserve to be noted. They were not empty or impotent menace. They were for action, and became what they were intended for. The moneyed corporations, united with a political party, were in the field as a political power, to govern the elections, and to govern them, by the only means known to a moneyed power--by operating on the interests of men, seducing some, alarming and distressing the masses. They are the key to the manner of conducting the presidential election, and which will be spoken of in the proper place. The union of Church and State has been generally condemned: the union of Bank and State is far more condemnable. Here the union was not with the State, but with a political party, nearly as strong as the party in possession of the government, and exemplified the evils of the meretricious connection between money and politics; and nothing but this union could have produced the state of things which so long afflicted the country, and from which it has been relieved, not by the cessation of their imputed causes, but by their perpetuation. It is now near twenty years since this great meeting was held in New York. The ruinous measures complained of have not been revoked, but become permanent. They have been in full force, and made stronger, for near twenty years. The universal and black destruction which was to ensue their briefest continuance, has been substituted by the most solid, brilliant, pervading, and abiding prosperity that any people ever beheld. Thanks to the divorce of Bank and State. But the consummation was not yet. Strong in her name, and old recollections, and in her political connections--dominant over other banks--bribing with one hand, scourging with the other--a long retinue of debtors and retainers--desperate in her condition--impotent for good, powerful for evil--confederated with restless politicians, and wickedly, corruptly, and revengefully ruled: the Great Red Harlot, profaning the name of a National Bank, was still to continue a while longer its career of abominations--maintaining dubious contest with the government which created it, upon whose name and revenues it had gained the wealth and power of which it was still the shade, and whose destruction it plotted because it could not rule it. Posterity should know these things, that by avoiding bank connections, their governments may avoid the evils that we have suffered; and, by seeing the excitements of 1837, they may save themselves from ever becoming the victims of such delusion.