Southern telegraph., 1836-12-20

Hoaeg uarsot Enggcd from day to dly
ia ilcif eseiu tolls, they DO not perceive
lHafa'.aeagh tleirwages are n1uinally tie
same, n even spmewhat higher, they are
gseat.F iadacedin ctby ihe rapid increase
" fl9as currency, which, as It appears
money abound, they are at first in
csNel i8 cuasiacf d blessing. Il is not so
'.:,. ..,c gpcc4.aior, by whom this operation
IS better undefsioid and IS made 10 con,ri-
ba.a % Bis advantage Il is not until the
prices 81 the HeceSsaEos Of life become So
dear that ihe iaLOring classes cann IT supply
ihoil wants out Of their wages, that;ho wa
ees rise and gradually reach a Justly pro
toned rase d that Of the products Of their
labor When hns hy The depreciatiun in
consequence Of the quantity ofpaper in cir
culalion, wages as well as prices become
exorbimnl, 4 Is soon found thAt tho whole
effect q tie adulteration is a tariff on our
home industry for the benefit of the coun-
tries where gold and silver circulate, and
mainiaia uniformity and moderation in pri-
ees. Thus, an increase Of prices of land
and labor PRODUCES a similar Increase in the
PRISE Of products, until these produc!s do
iiel a4ssiah compelition with similar ones
IN other counlreti and thus both nanuhc-
tured and agricultural productions cease to
bear eyp2rlation from the cohniry of the
spurlous currency, because they cannot be
sold for cesl. This is the process l,y which
specie IS hanished by the plper Of the banks
Their vaults arc soon exhausted to pay lor
1nreign comm pdities the next step a stop
page IT specie payment; a otnldegradltion
81 paper asa currency; unusull depression
PRICES; the ruin of debtors, and the ac-
apnlullon ofproperty i'll the hands of the
rfodliofs and cautious capitalists.
4 was in view Of these evils, together
wib The dangerous power welded by the
bank ofthe United States and lis repug-
nancet 70 our constitution, that was Undue
ID ioexert Ihepower conferred upon me by
the Aaacricon people, to prevent the con;in-
nancc u hat institution. But, although va
fious dangers y our republican institutions
have been obviate,1 by the failures Of that
Bagk % extoH from IT, government re-
neEal Of its charter, i, is obvious that little
has bccn accomplished, except a salutnry
change Of public opinion, toN"lrd7 restoring
% the country the sound cnrren, Y provided
flrin the constitution In the aC.s 1t sew
eralof the Siates prohibiting The Circuit lon
\ q small notes, and the auxiliary cnac'mcn.
MCmgress at The last session forbiddnr
lhcir reception or payment On public ac-
count, the true policy of the country has
lceR advanced and larger portion Of the
precious metals infused into cur cirCuntinI J
medium. These moasures will probably
be followed up, in due rimc, by the enact
ment OF State laws huishng from circula-
iin bank noes of still higher deEorlinn-
~-jins;Nnd The object may he materially
pro .oicd ty further acts of Congress, for
bidding the cmNl5ymen', as fiscal agents
orsneh banks as continue to issue notes oi
low denominations and throw impedimen's
III The way Of ihc circulation Of gold and
silver.
The effects Of an extension of bank cred.
Its aud over issucSof bank paper, have been
strlklngly illustrated in the sales of the pub
lie lands. FOrthc returns made by the va
Tt0us registers and receivers in the early
part Of las. Summer, it was perceived thai
the ereceipts arising irum tho sales Of tn,
public lands were increasing to an unprc-
cedcntcd amount. In effect, howcverthcSt
receipts amounted to nothing more h#I
rredis in bank. The banks lent ont lhci
notes to srecuaors; they were paid to the
receivers and immediately returned to tho
banks, to lo lent out again and again, b.
iRg mere instruments to transfer to spccu
lanrs hom,si valuable public land, and pa,
the Government by credit on the book.
OF the banks Th"sc credits on the book
oi some Of the western banks, usually call
ed dep)si!es, were aIrcad greatly bcyon.
their immediate means of payment, ant
were rapidly increasing indeed each spec
ulalion furnished means for anolrr; for u,
Sonncr had any individual or company pa
in thc notes, than thoy were immodiateI,
lent to another for like purpose, and tn
banks were extending thciT business an
their issues SO largely, as to alarm cousid
crate men, aRd render it doubtful whcthc
these bank crodits, II f.perpaittedio accumu
lnte, would ultimately be ofthc least vau
TO the Government. The spirit of expau
sion and speculation was not confined {
the deposite banks, but pcrvadcd The whol
multitude Of banks throughput tho Union
andw giving rise to now institutions I
aggraEatc The eyil. saGE. ,.a
The safety Of tho public funds, and tn
interest Of the people generally, require
that these operations should be checked
and i became the ddy of every branch
the General and state Governments to adoI
all legitimate and proper means to produc
atsalpiary effect. Under this view Of m
duty, directed the issuing of the ordc
which will be laid before You by the Seer,
~ Of the Treasury, requiring payment f
the public lands sold to be made in spec
with IN exception until the 10Th of the pre-
ent month, in favor Of actual settles, IN
measure has produced many sanitary col
seqcncos. !. checked the career ofthe we
eAvv RI koni,s onI oaya them addiiion,