Vermont watchman and State journal. [volume] (Montpelier, Vt.) 1836-1883, 1836-12-13


The progress Of an expansion, or rather
depreciation Of the currency, by excessive bark
issues, is always attended by loss TO the la
boring classes. This portion Of the commu-
nifty have neither time nor opportunity 10 watch
the GIBBS and flows Of the money market. En-
gagged from day 10 day in their useful tolls,
they do not perceive, that although their wages
are nominay the came, or even somewhat
higher. they are greatly reduced in fact blythe
rapid increase Of a spurious currency, which,
as II appears TO make money abound, they are
al fret lnclined to consider IL blessing. IL is
not 30 with the Speculation, by whom this oper-
alton ia better understood, and is made 10 CON
tribute TO his advantage. II is not until the
prices Of the necessaries OF life become 20 car
that the iuboring class cannot supply their
wants out Of their wages, that the wages rise,
and gradually reach Justly proportional rate
TO that OF the products Of their labor. When
thus by the depreciation in consequence Of the
quantity Of paper in circulation, wages as well
as prices becoIne exhorbitant, il is soon found
that the whole affect of the adulterotion Is q
tariff on our home industry, for the benefit OF
the countries where gold and silver circulate,
ard maintain uniformity and moderation in
prices. 1t is then perceived that the enhance
ment of the price land and labor, produces
a corresponding increase IN the price Of pro.
ducts, until thoee products do not sustain o
competition with simiinr ones in other conn
tries and thus both manufactured and auti.
cultural productions cease 10 bear expectation
from The country Of the spurious currency, he
cause they caEnot be sold for cost. This is
the process by which specie is banished by the
. paper Of the banks Their vaults are soon ex
huusted 10 psy for foreign commodities: the
T next step is a stoppage OF specie payment
. total degradation oil paper a currency: I'M
usual depression OF prices; the ruin OF debtors
and the accumulation Of property in the hands
: of creditors aud cautious capitalists.
Ii was in view OF these evile, together with
the dangerous power welded by the Bank Of
d the United States, and ITS repugnance TO our
= constitution, that | was induced 10 exert the
o power conferred upon me by the American
people, 10 prevent the continuance Of that in
u stitution. But, although various dangers to
- our republican institutions have been obviated
= by the failure oil that bank to extort from the
1t Government q renewal Of it, charter, il is ob.
e vous that little has been accomplished, except
Of a salutary change Of public opinion, towards
y restoring TO the country the sound currency
provided for in the constitution. In the acts
:, OF several Of the States, prohibiting the citcu.
10 lation oil small notes. and the auxiliary enact
nr ments of Congress at the last session, forbid.
IN ding their reception or payment on public ac
count, the true policy OF the country hns hcer
er advanced, aud larger portion Of the precious
d. metals infused INTO Our CT culating medium
These measures will probably be followed up
ne in due me- by the enactment OF State law
es banishing from the circulation bank notes @
sc still higher denominations and the oblec
n may be materially promoted by further acts o
IN Congress, iorbddmg employ ment, as hsca
nj agents, of such banks Ms continue to issu
re notes Of low denominations, and throw impo
n dmenis IN the way Of the circulation Of gol,
n and silver.
Sc The ell; Gle Of an extension Of bank credits
| nd nER u hnxt h.at,
L. kingly illustrated in the sales Of public lands
OF From the returns made by the various II egis
I, iers' RecelveTs IN the early part Of last sum
OF mer, It WINS perceived that the receipts srsin,
o. from the public lands were increasing 10 al
ot unprecedented amount. In effect, however
w these receipts amounted TO nothing moro thai
he credits In Banks. The Banks lent out tbei
m notes to Spectators; they are paid 10 tn
10 Receivers, and Immediately returned to tn
a banks TO be lent out again and again, bein,
he mere instruments TO transfer 10 speculation III
III most yalsable public land, and pay the Gov
crnmcnt by credit on the books OF the banks
re- Those credits on the books Of some Of tn
KS western banks, usually called depostes, wer
already beyond their immediate means {
'as payment, and were rapidly incre' sing. In
rus deed, such speculation fu!n.shed means 10
of another; for no sooner had one Individual @
on company paid in tho notes, than they wer
VI immediately lent 10 another for like purpose
OF aud the banks werc extending their bushes
sed and their issues 20 largely, us 10 alarm cor
ted eiderate men, and render il doubtful whe,he
these bank credits, If permitted to accumulat,
vas would ultimately be Of the least value 10 I'll
nix, Goyernment The epirit Of EXPANSION an
The speculation was not confined 10 the deposit
the banks, but pervaded the whole mulutude
ing banks throughout the Union, and was gvin
Gu rice to new institutions 10 aggravate the evj
ght m, 49,,
es, Of the people generally, required that the'
:, operations should be checked; and il BEGAN
I'D the duty OF every branch Of the general an
nh state governments to adopt all Legitimate az
a, proper means to produce that salutary efiec
nv Under this view Of my duty, directed the i
III. suing Of the order which will be laid bcio
en' you by the Secretary OF the Treasury, requi
,ad ing payment for the public lands sold 10
ose made in specie, with an exception until q
no 5th Of the present month in favor OF aciu
The settlers. This measure has produced mar
sautary consequences. 1t checked the ca
NM eer OF the western banks, and gave them q
fi- dluonai s'rensh IN an''clpa,loh OF me pre-
sive SURF VIM nae s''ee pe''aueu v"' sa'''"
preventing the extension Of the credit svste
lac. il measurably cut off the means OF specu alto
> az and retarded lis progress in monopolizing I
,ro' most valuable oil the public lands. II has te
a Of ded to save the ne~ States from nom reside
onr proprietorship, one Of the greatest obstacles
,on. the advancement Of a new country and
mis- prosperity ., a" o,u one mas 'o"u'u
a,. keep open the public lands for entry by er
on, grants at government prices, instead OF tb
,,lt. being compelled TO purchase of speculators
nate uoupic OF "'P'e Pi'ees' anu convey
ntly in'o Tue INFERIOR 'arge sums w sh's' a"u 5"
,,ry there TO enter permanently into the curreT
luse Of the country. and place il on a hrmer toui