flock back to the once betrayed and abandoned standard, having found that they had gained nothing by their treachery- the truant lover does penance for past fickleness, and beseeches a renewal of the former smile. This is all well; Mr. Clay will not be too obdurate; and he is now once more in his proper and rightful place, as the acknowledged head and representative of his party. This is the second post of honor in this country to be the head and representative of the majority in their hour of triumph and dominion being the first; and as Clay is a man who would always prefer to be the Cæsar of the village than the second at Rome, we have no doubt he entertains a sense of pleasure and pride and most rightfully and worthily-in the eminence of his present position, far greater than any inferior rank under any other chief could yield him, however it might be accompanied with the outward trappings of power or place. Between the two parties, Mr. Tyler falls to the ground like lead. In the course he has pursued he seems to have exhibited great weakness, at the same time with a commendable firmness in some respects. It is a pity for his fame that he did not, early in his administration, come out with a declaration of adhesion to the " oneterm principle," which, coupled with their professed and promised proscription of proscription," was almost the sole distinctive principle which the Whigs, as a united party, carried into the election. There were, on the contrary, several indications which made it manifest that Mr. Tyler did cherish the idea of a possible re-election; and the course he has pursued ever since, endeavoring to organize a middle party for his support, between the opposite extremes of the two main bodies which divide the country, has resulted only in provoking suspicion of the disinterestedness of his motives on the part of all, without attaching to his administration any considerable strength from any quarter. Mr.Tyler might have become the candidate of the Democratic party for re-election. No statesman has ever had a more glorious opportunity than that afforded to him on his accidental accession to the Executive chair. There was a most liberal and patriotic disposition on the part of the Democracy to sustain him, had his course been such as to challenge their sympathy, and to secure their respect and confidence. But he fell short-far short of those expectations and hopes which not a few were well disposed to cherish of him, that he would at once take a strong and bold position on the high ground of Virginia principles-frown sternly down the whole bad set of measures which a bad set of men, placed in the possession of power by the most abominable of political frauds, were endeavoring to fasten on the country-and by manfully braving, from the outset, the worst hostility he had to expect from the baffled cabal thus deservedly punished and exasperated, rally to his support, as against their opposition, that great mass of the Democracy who care far more for the ascendency of their principles than for the possession of place by their politicians. No, he still clung to the ghost of the old imposture of" Whig Principles," of which he made several demonstrations that went far to disgust the Democrats. It is true he vetoed the Bank Bills, but in the manner of the act he showed such a miserable want of any distinct and fixed ideas on the subject, and such a desire to keep still on the sunny side of Whig favor, as effectually threw the most freezing discouragement over any tendency of the Democrats to open their hearts to him and to identify with his person the cause of their principles. It is true, too, that he has now again given to the country another veto, for which he deserves well; yet the best that can be claimed for it is that he has thereby simply taken the sting of another bad measure which he ought to have vetoed at the last session. His course, too, in the Rhode Island affair, in suffering his mind to be swayed so weakly and so widely from the truth and the right, by the strong federal and anti-democratic advice that stood next to his ear, would alone have sufficed to be utterly fatal to any possibility of awakening a friendly feeling on the part of the Democratic Party. His promise of interference with the whole force of the armed hand of the General Government, was one of the most flagrant acts of invasion upon the independence of State sovereignty that has ever yet been perpetrated; while it was put forward on the side of a cause and a principle irreconcileably hostile to the first elements of the democratic political theory. To that promise, too, in its moral influence upon both of the parties to that controversy, is more directly to be ascribed its mortifying and disastrous result than to any other cause, and it could never be forgiven to Mr. Tyler, nor forgotten in the account of public opinion to be settled with his administration. Nor has he gained much more credit by his singular course on the Apportionment Bill-a measure of high-handed Federal usurpation,and clearly contrary to the contemporaneous views and understanding of a majority of the original parties to the compact of the Constitution. A statesman may entertain" serious doubts" as to the constitutionality of a measure on the first blush of its presentation to him; but to remain so long in such a state of opinion as to be able to sign a bill only under protest, after so thorough and protracted a discussion as had taken place, argues a feebleness, and a want of all clear and manly decision of mind, calculated to forfeit still more of our respect for the head, than it can gain for the heart, of a President so acting. Mr. Tyler, then, has no chance now left with the Democratic party. He lost them, irrecoverably, while he was trying to maintain his foot-hold among the Whigs. The latter attempt proved as futile in its results as it was feeble in its mode of action. Clay would not tolerate the idea an instant. Early perceiving the aspiration Mr. Tyler dared to entertain, and for the promotion of which the latter had the power and influence incident to the actual possession of the administration, he exhibited his characteristic energy and promptness in the means he adopted to drive him off into a hostile relation toward the main body of his party;—an object in which he so well succeeded, that poor Mr. Tyler, though then guilty of no other serious offence against his party than the veto of the Bank Bills, and though straining every point in his power to enable himself to remain a Whig, and retain the favor of the Whigs, soon found himself so abused by the Clay press and Clay politicians, and so harassed by the opposition of the Senate in the performance of his Executive duties, that a mutual exasperation of the angriest character arose between the united body of the Whig leaders and himself. Nor has either side been sparing in the most candid expression of their mutual feelings; to the signal entertainment and edification of the Democrats standing quietly by the while, and generally disposed to regard both as not far from right in their mutual opinion of each other. Who may be the candidate whom the Democratic Party will select to beat Mr. Clay, we neither can know, nor do we regard it as a point of much comparative importance. There are half a score it would be easy to name, among whom it would be safe enough that a choice should be made blindfold. The object of our efforts will be, less that a great statesman, of this name or of that, of this section of the Union or from that, should be made President, than that the Divorce of Bank and State, involved in the policy of the Independent Treasury, should be consummated; that the indirect and partial assumption of the State Debts by means of the distribution of the land revenue, to be replaced by customhouse taxation, should be rescinded; and that Federal Taxation-the proper name for a tariff-should be kept down to the lowest possible point. These are the three main branches of the issue now to be contested between the two great parties of the country-the one under the guidance of Clay, and the other under the lead of we little care whom. We have now a fair field, and ask no favor. And if the American People-as we have, indeed, little apprehension-should hesitate to decide such an issue, thus distinctly made up, in accordance with that enlightenment we are wont to ascribe to them, it is enough to say, that they will well deserve the infliction of the worst consequences to result from the consummation of all the measures, of which Mr. Clay may be regarded as the embodiment and expression. MONTHLY FINANCIAL AND COMMERCIAL ARTICLE. SINCE our last Number the aspect of financial and commercial affairs has undergone no very material alteration. The general state of the country is such that the rapid recovery of its commercial activity might be safely looked for, were it not for the untoward action of the federal government. There are now no revenue laws, or, at least, none the validity of which is undisputed, and the imports are wavering between free entry and high protective duties, affording so broad a sweep, that, in the extreme uncertainty which attends the result of the present movements at Washington, but few merchants are inclined to speculative enterprises, the success or ruin of which must depend alone upon the fortune of desperate political partisans. The holders of those goods on which a high duty is proposed to be levied by the advocates of protection, are firm in their demands, and by no means anxious to sell. On the other hand, buyers and importers have not given up the hope of receiving The ingoods on more liberal terms. fluence of these conflicting opinions, growing out of the state of the tariff question, causes all branches of trade to be exceedingly inert. There is no demand for money for business purposes, and the banking institutions continue to find great difficulty in employing their funds to advantage. The Banks of this city have more specie in their vaults than circulation outstanding, so that the volume of the currency would absolutely be increased were the institutions to redeem their liabilities. A large proportion of the capital employed in banking is now idle for want of suitable investments; consequently the institutions have been obliged, some of them, to pass their usual dividends, and others to declare a reduced per centage. They are all making efforts, generally with fair success, to collect the old debts due them in various parts of the country. This process moves very slowly, however, in consequence of the greatly reduced volume of the currency of the interior, which diminishes the means of remittance to the Atlantic merchants on their old indebtedness, as well as the availability of the Bank The condition of the Western assets. Banks has generally improved, since our last, with the exception of the There Bank of Illinois, at Shawneetown, which has refused to resume. is, therefore, now no sound bank in that State. One only of the New Orleans Banks has maintained specie payments, viz.: the Bank of Louisiana. The Mechanics' and Traders', and the Union Bank, having again stopped before the opposition of the suspended banks. All the others have failed, and their circulating bills are from 10 to 40 per cent. discount. The Banks of Tennessee have agreed to resume on the 1st of August; also, the Miners' Bank of Dubuque, Iowa. This will leave the following as the only States where an irredeemable paper currency is now tolerated, and in Virginia the Banks have held a consultation as to the propriety of immediate resumption, which resulted in a resolution to resume on the 15th of August next. While the currency is thus purifying itself and approaching a sound basis, the productive wealth of the country is greatly in excess of that of any other period, and the elements of prosperity exist in greater abundance than ever. Agricultural products, which are the chief source of wealth in this country, exist now at the close of the year, just previous to the receipt of the new crops, in such quantities, that prices rule lower now in the New York market than for any period within ten years. The following is a table of the prices of the leading articles in the month of July of each year since 1833: PRICES OF LEADING ARTICLES OF AGRICULTURAL PRODUCTS IN NEW YORK, IN JULY, FOR TEN YEARS. 1836. 1833. 1834. 1835. In the abundant products and low prices now presented by the above table, we have the sure indication of great national wealth, as well as of an absence of paper credits. Where those credits cease to be the means of purchase, only those become the possessors of the product of the farmer's industry, who can give him an equivalent, All these articles enter into the cost of manufactured products, the prices of which must be proportionably reduced. The abundance and cheapness of agricultural products become, therefore, the cause of abundant and cheap manufactured goods. The interchange of these goods and produce forms the great trade of the country. Every canal and every rail-road carries the produce in one direction, and transports the goods back in payment. The great medium by which these exchanges are effected, are the private bills of the dealers, which are created in representation of every bill of goods shipped, and every quantity of produce sent to market. These take the form of foreign bills of exchange, internal exchange, and the notes of all grades of dealers, coming between the importers and manufacturers, and the consumers. These bills are all based upon, and represent actual property, the equivalent values of which are all measured by the constitutional standard-gold and silverwhich is itself the product of labor, and therefore an actual equivalent. In England a stamp duty is paid on all similar bills, which is necessary to their recovery at law, consequently the quantity in circulation may be pretty nearly approximated, and was ascertained to average for five years, outstanding at one time, £116,000,000 or $580,000,000. In the United States, by data derived from the late census, these bills outstanding, or running to maturity, may be estimated as follows: This amount of private paper forms the real credit system of the country. This paper in a great measure cancelled itself; that is, the notes given for imports and manufactures in one section, were cancelled by the bills drawn against the crops on their being sent forward. At the close of the accounts, the existing balances required to be settled in specie, in which all this paper was payable. This paper was, however, seized upon and made the basis of the banking system. Through the instrumentality of the banks, accommodation paper began to be mixed with the mass of business paper, and liabilities to a great extent were set afloat, to meet which no actual wealth existed. The specie, which was be $125,000,000 125,000,000 200,000,000 20,000,000 $470,000,000 fore equal to the wants of the community, no longer sufficed to represent the volume of paper afloat. Instead, then, of requiring specie in payment of these bills, the promises of the banks became substituted. An immense fictitious system became thus engrafted upon and interwoven with the regular business of the country, burdening it with most oppressive taxes for the support of the banking machinery by which the false paper was engendered and kept afloat. The operation now going forward is to sift out this false paper from that which represents the real wealth of the country, to confine banking to this latter description, payable in the constitutional standard. We some time since gave a table of the comparative cost of the paper and specie currencies of the United States, France, and Great Britain. Events recently transpired in London enable this comparative cost to be traced more closely. The government of England issued a proclamation calling in all the light sovereigns in exchange for those of standard weight, preparatory to a new coinage. The result of this movement exhibits in a clear and tangible light the economy of a specie over a paper currency. We refer now to the mere expense of keeping up the circulation, without taking into view the immense losses growing out of the disastrous revulsions incident upon the fluctuation of paper money. Of 50,000 sovereigns received at the bank, 15,000 were light-averaging about 3 per cent. short weight. These sovereigns were mostly of the coinage of 1817, and the average time of the circulation of the whole was computed at twenty years. The whole gold circulation being estimated at £12,000,000, one half, or £6,000,000, may be considered as light. This would give a loss of 1.25 per cent. upon the whole amount, or £150,000 for the wear and tear of the gold circulation of the realm for twenty years, equal to 1-16 per cent. per annum. This was the whole loss to the nation by the use of a metallic currency. Let us now examine the cost of the paper circulation furnished by the late National Bank. It has been ascertained that the mere cost of the material to manufacture paper money is 1 per cent. The highest circulation of the late National Bank was $24,000,000, which must have cost $240,000 to make it. From the creation of the bank up to the time when the United States government dissolved partnership with that precious concern, its circulation had averaged per annum $8,500,000. The committee of examination at that time, with the concurrence of its president, allowed $900,000 for circulation worn out and lost. This for sixteen years was $56,250 per annum, or .66 per cent. of the circulation. Here are two items of expense which are more than equal to that of the gold currency of England; but there is a far more important consideration. Specie gets into circulation in exchange for the products of industry as a fair equivalent without extra charge; on the other hand, every emission of paper money is attended with a charge of at least 6 per cent. We may now compare the expense of the two currencies for a period of twenty years. Expense per annum. Expense 20 years. $750,000 10,200,000 66 510,000 the actual wealth of the country, to an extent probably equal to its own value. On the other hand, it has decreased the wealth of the country by promoting consumption instead of production, and sloth instead of industry. Burdened with the enormous bank tax indicated in the above figures, it is no wonder that the people have found themselves too poor to pay their debt, and have in some instances had recourse to repudiation. English gold currency, 60,000,000 14 per cent. 37,500 United States bank paper, 8,500,000 6 In this enormous expense of the paper currency to the public, consisted the chief source of the profits of the bank, and enabled it during twenty years to divide 8 per cent. on its capital of $35,000,000, which dividends amounted to the enormous sum of $59,000,000! Of this amount $37,333,000 were sent to England. This was the case with the United States Bank alone. The other bank capital in the United States averaged, in the twenty years from 1820 to 1840, $251,000,000, on which 7 per cent. dividends were declared, making the enormous sum of $351,400,000 taxes paid by the producers of this country to the banks for the use of their credits as paper money to the average amount of $105,000,000 per annum. A large proportion of this bank capital was fictitious. One half the remainder, say $100,000,000, would, if applied to the prosecution of productive industry, have been instrumental in developing We have here treated only upon the actual cost of the paper money. The ruin and distress caused by its disastrous fluctuations and revulsions are incalculable. These effects are described in a parliamentary speech of Henry Lord Brougham, as follows: "It is monstrous, my Lord, that any man or body of men, corporate or otherwise, should have the power of making money cheap or dear, at will, combining the office of regulator of national cur |