Vermont phÅ“nix. [volume] (Brattleboro, Vt.) 1834-1955, 1836-12-30

I oiehuing these operations so insensibIy with
the business Of the country as to be unfelt
except in their benefits
But what has the Secretary done2 In.
stead Of gradual preparations to provide
funds at the distant points, the whole science
OF the Treasury seems to have consisted in
drawing warrants, in taking up the columns
Of the returns ard directing drafts from the
Banks throughout the United States without
necessity, without reference TO the wants or
the business Of the different sections of the
Union, the season of the year, or the course
oil trade, and thus making the whole reven-
ne OF the country work against the whole
industry Of the country.
His secrets thus revealed in the letter TO
Messrs Griswold g. Swan
IL have therefore, in cases where the pub.
lie money had accumulated in any Banks in
any one State, and new Banks could be sea.
sonaby obtained in other States tchere onlv
a htffe public money already erisfed, made
but one transfer TO accomplish both objects,
and by single operation have reduced the
excess in certain Banks in certain States,
and placed il in the States rhere IL tconld be
needed merit year, aud where they before had
no, an equal portion Of the ps5iie money"
We thus perceive, wha, on less authority
would be incredible, the extraordinary man
ner in which the public revenue has been
scattered. The Secretary sees an accumula-
ton OF public revenue in any one State
tie sees another place in another State
where only little public money already
existed, '-whereupon he resolves, without
the least authority from Congress, to bestow
upon that place IAN equal portion Of the
public money; and as he will have twelve
months hence, to pay some money in that
State, he makes IA single operation" of il,
and accordingly he confesses that he has
actually transferred public moneys into
States which cannot receive them for year
afterwards, depriving the very community
which raised the money, Of the use of i, du.
ring that whole period.
Such measure was Of itself sufficient to
disorganise the currency. Blu, il was ac-
companied by another which armed with
ienfold power Of mischief This was the
Treasury order prohibiting the receipt at
the Land Office Of any thing but specie
an act which seems 10 me a most wanion
abuse Of power. if not fragrant usurpa-,
lion.
The whole pecuniary system ofthis coun-
try, that TO which. next TO IFS freedom, il owes
its prosperity is the system of credit Our
ancestors came here with no money, but with
far better things-with courage and industry;
and the want Of capital was supplied by their
mutual confidence. This is the basis OF our
whole commercial and internel industry
The Government received its duties on cred.
it and sold its lands on credit. When the
sales Of land on credit became inconvenient
from the complication of accounts. the lands
were sold for what is termed cash. But this
was only another form OF credit; for the
banks, by lending 10 those who purchased
lands, took the place of the Government as
creditors. and the Government received their
notes as equivalent TO specie, because always
convertible into specie. This was the usag &c
this may be regarded as the law Of the
country. BY the resolution of Congress
passed on the 30th Of April. 1916. it was de-
clared that mo duties taxes, debts, or sums
Of money accruing or becoming payable to
the United States as aforesaid, ought TO be
collected or received otherwise than in the
legal currency the United States or Treas.
p<y notes. or notes of the Bank OF the Uni |
ten States, or in notes of banks which are
payable and paid on demand in the said le-
gal currency OF the United States"
This resolution presents various alter
natives II the legal currency, or Treasu-
ry notes, or notes of the Bank OF the United
States, or notes of specie-paying banks. A
citizen had right to choose any of these
modes Of payment. He had as much RICH, |
to pay for land with the notes of specie
paying bank as to pay it for duties at the
custom-house. II this be denied, certainly
any one Of them might be accepted by the
Treasury; but to prescribe all but one-to
refuse every thing butthe most difficultthing
Ito do this without notice of the approach.
ing change in the fundamental system of our
dealings-is an act Of gratuitous oppression.
Under the operation of this resolution, the
banks had gone on, fearing nothing, as they
had only TO provide for the usual specie calls
upon them-apd saw the country full of spe.
Gle, with no foreign demands to drain it from
them; when. on sudden, without any init
nation Of the coming shock, an order was is
sued by the Secretary. declaring that their
course, inviting all who held the notes. or
has deposites in these banks, to convert them
into specie. Ii in fact made at once the
whole amount OF their circulation and pri-
vaie deposits specie demand upon them.-
The first consequence was that the banks
nearest the land offices ceased making loans.
The next was, that they strove to fortify
themselves by accommodating specie. II was
just at this moment that the warrants for
transfers were put into their hands The
combination of the two measures produced
double result--irst. to require the banks