USA > Kentucky > History of Kentucky, Volume II > Part 4
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The passions of the people had been aroused; and it seemed that no amount of reason and logic could allay them. In the August election the new election supporters were victorious. The Kentucky Gazette, directly following the election, estimated the majority in the House to be from ten to twenty, representing an overturn of the adverse majority of thirty- five in the preceding Legislature. As later determined, the actual ma- jority of the new election men was twenty-six. As only one-fourth of the Senate was elected each year, it was impossible to capture that body immediately by the election method. However, the one-fourth elected at this time were almost unanimously for the new gubernatorial election.27
23 See Robertson, Scrap-Book, 17; Autobiography of Amos Kendall, 184-198; Kentucky Gazette, June 16, 1817, passim.
24 Robertson, Scrap-Book, 5.
25 A copy of one of these letters is in the Kentucky Gazette, July 19, 1817.
26 Robertson, Scrap Book, 18, 19.
27 Kentucky Gazette, August 9, 1817.
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The people had spoken; a mighty power had been awakened; what of the future? A legislature had been elected, backed by the people on any raid on the constitution it should feel impelled to make. Robert Wick- liffe explained and characterized it later: "The war had thrown upon society a mass of sixty days' Majors, aids-de-camps to military generals & some of whom from having worn swords, and all of whom from having eaten public beef, were qualified for the Legislature. You had too, Sir, a goodly number of lawyers, lacking clients, who had time, and who felt as if they had talents, to legislate for you. They also be- came your Legislators : and being homogeneous with the offal of the war formed the basis of the Legislature of 1817. They proclaimed the doctrine of vox populi, vox Dei -- that the people could do everything and that they themselves were the people-that it was absurd to say that the constitution could or ought to control the voice of the people as expressed by their representatives-that the constitution was the creature, and the people the Creator, and to suppose it to be the supreme law was to make the creature control the Creator." 28
Governor Slaughter did not participate in the arguments and debates of the August campaign; but on the assembling of the Legislature in December he sent to that body in his annual message a document far above the average for the governors of American states. He not only reiterated his former recommendations for the development of the state along all important lines-and of absolutely commanding and first im- portance the building up of a school system; but he also gave valuable advice on the science and workings of government and politics. With- out mentioning specifically the past campaign, he clearly showed that it was this development that had called forth his comments. Government in America was a departure from simple democracy where the people acted in the first instance, but it was nevertheless "government of the people, instituted for their benefit, and essentially dependent on their will." The beauty of the American system was that the final and de- liberate will of the people always carried, while momentary passions and prejudices were prevented from destroying the fabric. "It is true," he said, "that every excitement of popular feeling and passion is not to be considered the will of the community; but the deliberate sense of the people cannot, ought not, to be resisted. The American statesmen, who have formed our system of government, warned by the fate of the tumult- uous democracies of antiquity long since buried beneath the despotism of the old world, have wisely constructed the vessel of state so as to prevent its being driven by every popular blast from its proper course, by interpos- ing checks and balances, to stay the intemperance and rashness of the moment, and to give time for sober reason of the community to be exer- cised. To protect the weak against the strong, the minority against the majority, and to secure all and every one against violence, injustice and oppression, the people in their highest sovereign character assembled in convention for that special purpose, have by a written constitution estab- lished certain rules and principles, and barriers, they have solemnly pledged their faith to each other to observe inviolable, until the constitu- tion itself shall be altered or abolished." The three departments of government were so dexterously arranged and balanced among each other, that no single branch could gain complete ascendancy. "These several bodies of magistracy are so many pillars or corner stones of the temple of freedom, the constitutional strength and independence of each one of which are essential to its preservation." They were protections against sudden bursts of unreasoning passion. "Every man who will examine himself, must confess that he is often led by passion and preju- dice into errors the most gross and extravagant ; we acknowledge too that
28 Lafayette to the People, 50, 51.
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neighborhoods, counties, and nations are liable to err for a moment, from the same cause. If every impulse of any community was to be carried into full effect, there would be in such a state, neither confidence nor safety."
A despotism, he declared, need not rest in one person in order to exist ; and as Jefferson said, the concentrating of all power of government into the same hands was precisely the definition of a despotic government- 173 despots would be as oppressive as one. It was not an elective des- potism that Americans fought for in the Revolution; but rather for a government where the departments were so balanced among themselves as that no one could transcend its limits without being checked by another. Slaughter intimated that the personal distressing uproar among the people was due in part to their inability or refusal to understand the principles on which American liberties were based. From this angle he approached his recommendations for a school system: "When we reflect how much the very existence of our government depends on the virtue and intelli- gence of the people, and for how many ages the friends of freedom, and human happiness have been struggling to devise some form of govern- ment alike secure against tyranny and anarchy, how indispensable is it to diffuse information, and qualify those who are to succeed us, to under- stand the plan and principles of government, furnished us by our revolu- tionary sages. Without intelligence the people never can be safe against the delusions to which they are exposed from the violence of party spirit, and the arts and intrigues of designing ambition."
Again he called upon his fellow citizens to abate their party violence and differences. Discord should have no place in a system of equal rights and equal justice. Mindful of the so-called "Era of Good Feeling," elu- sive and ephemeral as it was, that was apparent in President Monroe's administration, Slaughter reminded his fellow Kentuckians that "Every honest and liberal man must rejoice at the prospect of a political jubilee, in the deliverance from the despotism of party names and feuds, which have so long distracted the public councils, and poisoned social inter- course." Let Kentuckians remember that the United States was the only republic on the globe "and that a union among ourselves is necessary to insure success to our system. Let us therefore obliterate party spirit and unite our efforts to give strength and maturity to our republican institutions." True enough there must be differences of opinion on all great questions but that should not be made a ground "for eternal pro- scription or party division." Shall reasoning men, citizens of a free state, "be divided by the mere magic of unmeaning names and terms?" A party organized under any particular name merely for party or personal objects is dangerous in our republic, and its spirit is despotism. In order to observe the accountability of public men, a fundamental principle of a free government, it is necessary that the people should be in a situation to pass an impartial judgment upon public measures, and the conduct of public men." 29 Again Slaughter was charged with merely attempting to allay criticism against himself by calling for a cessation of party spirit.
Immediately the Legislature began the chief work it considered itself elected to perform. A bill was introduced providing for a new gubernatorial election and was soon rushed through the House by a vote of fifty-six to thirty. The Senate, only one-fourth of which had been elected in the preceding August, debated the measure with much spirit and then defeated it by a vote of eighteen to fourteen.30 The Senate had long been the most effective conservative force in the government,
29 A copy of Slaughter's message may be found in Niles' Register Vol. 13, pp. 386-389; also see Kentucky Gazette, December 13, 1817.
30 Robertson, Scrap Book, 1-3; Kentucky Gazette, December 17, 1817; Niles' Register, Vol. 13, 321 gives the yeas and nays.
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and it had often been bitterly assailed because it had cheated the people of their momentary whims. In the present crisis it had sought to find a solution by advocating a constitutional convention to define more clearly the manner of the gubernatorial succession. This bill actually passed the Senate by a vote of twenty to twelve; it was, however, assailed by the new election forces as a move made by that body to allay the opposition to Slaughter and save him, for it was argued that before a constitutional convention could be called and anything accomplished by it, Slaughter would have served out the four year period.31
The high tide of popular passion had all but succeeded ; and thanks were due to the Senate alone that it had been defeated. The only con- cession to the popular feeling against Slaughter that was ever secured was the title given him. In all official documents and communications of the Legislature, he was referred to as "Lieutenant Governor and Acting Governor." Nothing else was left to the people except resignation to their fate, which gave them Slaughter for a governor. The editor of the Argus said, "We shall, therefore, quietly submit to our present rulers in the executive department for two years more, as becomes good republi- cans, confidently trusting, that the people will then put the reins into abler hands." 32 Seeing the futility of further agitation in this political heresy, the people soon forgot the evils and disadvantages of living under a governor whom they did not elect or want. In the elections of August, 1818, the question was hardly mentioned; in fact many of the Slaughter opponents were willing to forgive and forget. But it was not so with the Slaughter supporters. They had been villified and maligned as federalists and tories, and they were not disposed to unite or associate with their erstwhile accusers.33
But the political wounds that had been inflicted on the body politic were not deep or lasting. Old election and new election divisions were soon forgotten; they represented no permanent interests on which parties could be built. But they did point with great force to a condition in the make-up of the public mind and conscience which might develop new divisions on new subjects but along the self-same old lines of intensive popular passions fed on the old heresies that the will of the majority is supreme and transcendent and of reasoning conservatism guided by fixed rules which should control until changed by a method previously agreed upon. The final contest between these two opposing forces was not abanoned ; it was destined to soon break out with great vigor for a final decision.
31 Kentucky Gazette, December 13, 1817.
32 Quoted in Public Advertiser, August 18, 1818.
33 See communication to Public Advertiser, September 1, 1818.
CHAPTER XLVIII
SPECULATION-BANK MANIA-AND HARD TIMES
The intrepid spirit and vigorous energy that had carried the state forward so successfully in fighting the late war, was not lost when peace came. It was merely transferred from the fields of warfare to the fields of industry. The people had never despaired of victory in their gloomiest defeats, for they were fighting for a union they loved. As strong and unalloyed as their patriotism was, still it was assisted by the economic prosperity that was accompanying the struggle. A traveller from Boston, who visited Lexington in 1813, after praising in unstinted terms the loyalty and boundless patriotism of the people, said that the war was after all "making the greater portion of them rich," and that to this "you may attribute a part of their patriotism, although to do them justice, they are the most patriotic people I have ever seen or heard of."1 The state furnished a considerable amount of powder used in the Western campaigns, and other munitions of war and food products were obtained here for the army.2 The output of nitre was far beyond that of any other state. In 1812, 301,937 pounds was produced, as compared to the next two highest states, Virginia with 48,175 pounds and Massachusetts with 23,600 pounds.3
This industrial activity which had existed before the war, but which had been stimulated by it, remained after peace was declared and was intensified. As noted, the quality of leadership and daring initiative, which had been so prominently displayed during the war, were now turned into the pursuits of peace. Progress in agriculture was evident on all sides with the varied crops that indicated a sound and lasting prosperity. In- stead of basing her prosperity on one product as most of the other Southern states were coming to do, Kentucky had at least two major money crops, tobacco and hemp, and numerous minor products as wheat, rye, maize, oats, barley, buckwheat, flax, and Irish potatoes, together with such fruits as apples, pears, peaches, cherries and plums.+ A river commerce with New Orleans and the South had existed since the days of James Wilkinson and his tobacco trade, and was now on the verge of developing undreamed-of proportions with the coming of the steamboats. Emigrants were still finding many attractions in the state, despite the virgin lands to the north and west. There was yet much unappropriated land in the state and within a few years the Chickasaws were destined to cede their lands east of the Mississippi, which included the portion of the state west of the Tennessee River. This treaty of cession was concluded in 1818, by Andrew Jackson and Isaac Shelby on the part of the United States.5 The settlement of this region was so rapid that
1
1 Niles' Register, Vol. 8, Supplement, p. 178.
2 McMaster, History of the People of the United States, III, 557.
8 Niles' Register, Vol. 2, p. 227.
4 For an economic description of Kentucky at this time, see William Darby, The Emigrant's Guide to the Western and Southwestern States and Territories (New York, 1818), 205-208.
5 See Indian Treaties and Laws and Regulations Relating to Indian Affairs (Washington, 1826), 184-187.
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within five years after the land had been opened, four counties of the eight that now constitute it, were laid off.6
Outside of this so-called Jackson Purchase, however, the state had no great amount of land that equalled the rich Blue Grass regions. An "Emigrant's Guide," published in 1818 said, "Kentucky has passed the era of rapid increase from emigration. The best lands are sold and have become expensive." However, with characteristic Western opti- mism it stated that "The state will continue to possess the advantage of its local position ; and when the population of the western preponderate over the eastern and northern states, the seat of general government will probably be removed into this central state." 7 The older portions of the state and especially the Blue Grass area had developed into a respectable landed aristocracy. A description of the country lying immediately around Lexington states that "The farms in the neighborhood are well cultivated, and the farmers are generally rich and opulent, and many of them have coaches and carriages, made at Lexington, that cost one thousand dollars." 8
Manufactories were progressing with the promise that had set them going so strongly a decade earlier. Almost every town had its industries, active and thriving.9 Embargoes, non-importation acts, and war itself, had, all, operated in favor of the manufacturing industries. British goods and all others were kept out with the home field free to America only. Isaac Shelby in his last message to the Legislature believed "We should extend the fostering care of government to our infant manu- factories." 10 But there was a stimulus to industry and to the level of prices that was unsubstantial and dangerous. Specie money had become scarce during the period of the war, and specie payment had finally been suspended, for a time. A certain amount of paper money issued by vari- ous state banks soon appeared to take its place. One of the very first results was the depreciation of it, and the consequent rise in prices. It became easy to obtain credit, and a period of speculation soon set in. The price of land rapidly advanced as speculators and the land-hungry with plenty of money became active. It was stated by one authority that "Land is as dear around Lexington as it is in the oldest settlement on the seaboard, whole farms have sold for $100 an acre; and small parcels for a far greater sum; town lots are exorbitantly high."11 In speaking of Lexington, another authority stated that "It is with delight we note the great prosperity and rapidly rising importance of the future metropolis of the West; where town lots sell nearly as high as in Boston, New York, Philadelphia or Baltimore, which shows that it is not a place in the wilderness, as some people suppose it to be!" 12 This booming condition of town lots was not peculiar to Lexington. During the same period, land sold in the corporate limits of Louisville for $30,000 an acre.13 Speculators aided by a cheap and easy currency were responsible in a large measure for these high prices. And at this time the situation
6 These counties in the order of their formation were Hickman, 1821, Calloway, 1822, Graves, 1823, and McCracken, 1824.
7 Darby, Emigrant's Guide, 207. It states further, "It will be seen by a review of the several states and territories, given in this treatise, that as in any new settlement, the best lands and those near navigable water-courses are transferred to private individuals, the flood of migration must begin to subside. From this sole cause arises the less comparative increase of inhabitants, in periods distant from the original settlement. Tennessee, Kentucky, and indeed all establishments on the valley of Ohio, are examples." Ibid.
8 Niles' Register, Vol. 7, p. 340.
9 Brown, Gazetteer, 91-106.
10 Niles' Register, Vol. 9, p. 319.
11 Brown, Gazetteer, 94, 95.
12 Niles' Register, Vol. 7, p. 340.
13 John Bradbury, "Travels in the Interior of America in the Years 1809, 1810, and 1811" in Thwaites, Early Western Travels, V, 320.
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that was growing up was being strongly deprecated by some. An account of the day declared, "The monster speculation, has fixed his eager grasp on some of the best tracts of land, to the great injury of the state, and with flagrant injustice to the poor. I must confess I felt indignant, when, after passing an extensive and fertile tract of beautiful land, of many thousand acres, and surrounded by rich and flourishing settlements, I enquired the cause why it was not settled, and received for answer, that it belonged to a rich gentleman in Virginia, or to some other opulent, non- resident land-jobber, who would not sell it for less than $30 an acre."14
This movement carried with it a corresponding rise in prices along other lines. Farm products and labor commanded heretofore unheard-of prices, with sufficient amounts of the latter impossible to obtain at any price. Common wool sold at 5oc the pound, while the best grades of Merino sold for $2.00. Hemp was $80 the ton and flax $15 the hundred pounds. There was a great scarcity of artisans "of all classes, especially smiths, carpenters and joiners, brick makers and layers, painters and glaziers, cotton and wool machine makers, fullers and clothiers, up- holsterers, &c." 15
Immediately on the conclusion of peace, England started for America the immense surplus of her manufactured articles that had been accumu- lating for years past, bent upon disposing of them by any method possible and at any price. As a result of this systematic campaign for a market, American merchants were led by long credit and easy payments to greatly over-stock themselves with English goods. A lawyer, who came to Ken- tucky in 1818, said that "almost every man who was able to buy for money
* *" 16 The or on credit, was clothed with European fabrics. *
mania for buying English-made goods was, perhaps more widespread in Kentucky than in any other state, and lasted longer, greatly to the detriment of the home manufactories. Hezekiah Niles gave a graphic description of the course of events here: "Thousands of persons forsook their farms and their workshops to become merchants. Whoever could raise a few hundred dollars in cash, hastened to expend it in the eastern cities, as well as to exhaust all the credit that he could obtain, in ill-advised purchases of foreign goods. These were hurried into the interior with as much promptitude as if every day's delay on the road was the loss of a little fortune-and so the cost of transportation was doubled, to be added to the originally imprudent expenditure. As the goods were bought on credit, they could be sold on credit-and who would wear an old coat when he could so easily obtain a new one at the 'store?'-he could get credit, and pay 'when convenient.' The hum of the spinning wheel was banished from the evening's fireside, and the sound of the shuttle no longer disturbed speculative minds. There was a plenty of everything, because there was a plenty of credit! The needless debts thus created amounted to millions." 17 A committee of the Legislature characterized the situation in the statement that "a vast amount of eastern debt had been created soon after the close of the late war, by extraordinary im- portations of merchandise. * * *** 18
Going with this speculation and boom times was a constant draining away of the always meager amounts of specie to be found in the state. Paper notes of doubtful value were floating around, but instead of aiding trade and ministering to prosperity, they were a distinct hindrance. The
14 Brown, Gazetteer, 111, 112.
15 Niles' Register, Vol. 7, pp. 339, 340.
16 Ibid, Vol. 23, p. 258.
17 Niles' Register, Vol. 28, p. 81.
18 Ibid., Vol. 23. p. 235. Governor Desha in his message to the Legislature in October, 1821, said, "Successful industry laid the foundation of unlimited credit, and impatient cravings for excessible gain, precipitated the adventurous into [in]discriminate speculation." Ibid., Vol. 21, 185.
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Bank of Kentucky with its branches was refusing to redeem its notes in specie, giving as an excuse that the rest of the western country and as far as it could determine, many of the eastern states were still suspending specie payment, and, that therefore, it would be manifestly unfair and ruinous for it alone to pay out its gold and silver.19 To relieve the coun- try from the confused and ruinous state of the currency everywhere, due to the almost worthless paper money of numerous state banks, Congress established in 1816, the Second Bank of the United States, and early in 1817 established two branches in Kentucky, one in Lexington and the other in Louisville. By issuing a uniform currency throughout the United States, it was hoped that the dangerous situation everywhere would be speedily relieved. As was stated by Governor Adair, "The depreciated currency of the states was regarded as an evil of dangerous tendency-and the more so, as it was one which the states could not speedily eradicate. A national bank, with a capital sufficient to furnish a national currency, was proposed and adopted as a prompt and efficient remedy." 20
But the operation of the United States Bank and its branches had the direct effect of forcing out of circulation the notes of those banks which could not redeem them in specie, and instead of increasing the circulating medium virtually destroyed it, poor as it was. And the safe currency issued by the United States Bank, in the providing of which was seen one of the important reasons for the establishing of the bank, was entirely inadequate. Governor Adair inquired, "Has it answered the proposed end? Does it afford a circulating medium for the union ? Whilst it crushes beneath its ponderous weight, every feeble corporation, and displaces the notes of the specie paying banks within the sphere of its operations, are its notes anywhere to be found except in the great emporiums of trade, or in discharging the silent and impoverishing opera- tions of exchange?" 21 The branches also served to drain from the state the remaining specie. As a legislative committee declared, "These powerful institutions immediately opened the arteries of the country through which our precious metals flowed in an unremitting stream." 22 ×
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