Burlington free press. [volume] (Burlington, Vt.) 1827-1865, 1836-12-16

higher denominations; and the object may
be materially promoted by further acts of
Congress, forblddIng the employment, us
fiscal agents. Of such banks as continue to
issue notes Of low denominations, n I'D threw
pedments in the way Of the circulate ion
Of gold and silver.
The effects of an extension Of bank cred
| It's md over issues OF bank puper, have been
striking'y illustrated IN the sales Of the
pubic lands. From the returns made by
he various Registers and Receivers in the
early part Of last summer, it was perceived
he receipts arising from the sales Of the
public lands were increasing to an UMPIRE.
cedented amount. In effect, however these
receipts amounted to nothing more than
credits in bank. The banks lent out their
notes to speculaiors; they were paid to he
Receivers, and Immediately returned to The
banks, TO be lent ont ogaln and again, be.
ing mere instruments To transfer To eprcu.
ators the most valuable public land, aud
pay the Government by credit on The
books OF the banks. Those credits on the
books ut some OF the western banks, usual
" called dcpostcs, were already greatly
beyond their immediate means OF payment
and were rapidly increasing. Indeed each
speculation furnishe ed means for no sooner
had one individual or company paid in the
notes. than they were immediately lent to
another for like purpose, and the banks
were extending their business and their is
sues so largely, as to alarm consideratc
men and render it doubtful whether these
bank credits, if permitted to accumulate,
would ultimately be Of the least value to
the Government. The spirit of expansion
and speculation was not confined 10 the de.
pose banks bu, pervaded the whole mul-
iltude Of banks throug bout the Union. and
wasgiving rise TO new institutions to sg-
grnvate the evil.
The safety Of the public funds, and the
interest ct the people generally, required
that these operations should be checked;
and il became the duty Of every branch of
the General and State Governments to
adopt all legitimate & proper mrans to
produce that salu'ury effect. Under this
view ofmy duty. directed the Issuing of
The order which will be laid before yon By
the Secretary ct the Treasury, requiring
payment for the public lands sold to be
made in specie, with an exception until the
| 5ih of the present monil,.in favor If acl unl
settlers. THIS measure has produced many
salu'ary Consequences. II checked til. Gu
rcer of the western bank-. aud gave 'Icin
additional strength 10 anticipation of the
pressure which has since pcrvadcd our rn>.
tern as well as the European cnntncrc,a
cities. BY preventing the extension "f til"
credit system, IL mcnsurnbly cut off the
means of speculation. and retarded its pro-
grcss in monopollzing the most valuble OF
the public lands. irhas tended tn save the
new States from non. resident proprietor
ship, one of The greatest obstacles /" the
advancement of new country and the
prosperity ni an old one. |, has tended to
keep open the public lands Tor entry by ON
grants at Governm'n prices, Instead nl
their being compelled to purchase Of spec.
nlators at double nr treble prices. And il
is conveying INTO the interior large sums in
silver and gold, there TO enter permanently
into the currency Of the country, and place
It on firmcr foundation. IL - confident.
y believed that the country " III find in the
motives which induced that order, and the
happy consequences which will have en-
sued. much TO commend and nu,hur to
condemn.
II remains for Congress. if they approve
the policy which, dictated this order, to fol-
low II up in lis various behring's Much
good, in my judgment. would be produced
by prohibiting sales If the public nnds ,ex
cept to actual settlers, nra reasonable re.
duciion of price, aud to l,mt the uunn,ity
which stall be sold to them. Although it
is believed the General Government never
ought 10 receive any thing but the con>inn
iional currency in exchange for the pubic
lands that point wOnld be of less importance
if the lands were sold for immediate settle
ment and cultivation. Indeed. there is
scarcely a mischief arising out of our pres
ent land system. including The nccumnlaiing
surplus of revenue, which would not b..
remedied at once by esiricion on land
sales TO actual settlers; and it promises
other advantages to the country in general.
and to the new States in particular, winch
carnot fail to receive The most profound
consideration of Congress.
Experience continues to rcahze the cx
pccrntions entertained as TO The capacity Of
the State Banks to perform the duties of
fiscal agents for the Governmrnt. at the
time of the removal of the dcposi,es Il
was alleged by the advocates of the Bank
Of the United States hat the Sa'c banks.
whatever might or The regulations of the
transfers required by the Government, or
negotiate the domestic exchanges of the
country. II is now well ascerainad that
the real domestic exchanges pcrirmrd.
through discounts, bv the UmtJd States
Bank and its twenty five branches, were a,
least one third less Than those nf the depos.
tie banks Tor an equal peri"d Of time; and
it n comparison be instituted between the
amounts OF service rendered by those insti.
iutions, IN the broader basis which has
been used BY the advocates of the Untcd
States Bank IN estimating what they con
slider the domesiic exchanges transacted by
il, the result will be still more favorable to
the deposite banks.
The whole amount OF public money
transferred by the bank Of The United States
in 1892. was l6 900 900 The amount
transferred and nctualy paid by the depos
tic banks in the year ending the first of
October last was 500 3le 500; the amour,
and pad between that period
a L.. =. 4. a