Vermont telegraph. [volume] (Brandon [Vt.]) 1828-1843, 1836-12-14
Dec. IA, 1896.


in the price ofproducts until those do not
sustain competition with similar ones in
other countries and thus both manufac-
,ured and agricultural productions cease
70 bear expectation fromthe country ofthe
spurious currency because, they cannot
be sold for cost. This is the process by
which specie is banish%d by the paper Of
the banks. Their vaults are soon ex-
hausled to pay for foreign commodities;
the next step Is a stoppage Of specie pay
ment: total degradation Of paper as a
currency; unusual depression OF prices
the ruin OF debtors, and the accumulation
of property in the hands Of creditors and
cautious capitalists.
II was IN view OF these evils, together
with the dangerous power welded BY the
Bank of the United States, and It's repug-
nance TO our constitution, that l was in
duced to exert the power conferred upon
me by the American people, to prevent
the continuance Of that institution. But,
although various dangers to our republic
IN institutions have been obviated by the
failure ofthat bank TO extort from the Gov
eminent renewal Of its charter, it Is OBJ
vious that little has been accomplished,
except asalutary change ofpublic opinion,
towards restoring to thecountry the sound
currency provided for in the constitution.
In the acts of several fthe States prohib-
ting the circulation Of small notes, and
the auxiliary enactmentS of Congress at
the last session forbidding their reception
or payment on public account, the true
policy Of the country has been advanced.
and larger portion OF the precious met
ais infused into our circulating medium.
These measures will probably be follow
ed up, in due time, by the enactment Of
State laws banishing from circulation
bank notes Of still higher denominations !;
and the object may be materially promot-
ed by further acts of Congress, forbidding
the employment, as fiscal agents, Of such
banks as continue TO issue notes of low de-
nominations. and throw impediments in the
way Of the circulation Of gold and silver.
The effects Of an extension Of bank
credit and over issues Of bank paper, have
been strikingly illustrated in the sales OF
the public lands. From the returns made
by the various Registers and Receivers
In the early part of last summer, it was
perceived that the receipts arising from
the sales Of the public lands were mcreas-
ing to an unprecedented amount. In eff
feet however, these recei pts amounted to
nothing more than credits in bank The
banks lent out their notes to spectators /:
they were paid to the Receivers and i'm
mediately returned to the banks, to be lent
our again and again, being mere instru
ments to transfer to spectators the most
valuable public land. and pay the Gov
ernment by a credit on the books OF the
banlssS Thass credits on the books OF
some ofthe western banks, usually called
deposites, were already greatly beyond
their immediate means Of payment, and
were rapidly increasing. Indeed each
speculation furnished means for another,
for no sooner had one individual or com,
pany paid in the notes, than they were i'm
mediately lent to another for like pur.
pose, and the banks were extending their
business and their issues so largely, as tC
alarm considerate men, and render
doubtful whether these bank credits. /
permitted to accumulate, would ultimatel
he OF the least value to the Government
The spirit of expansion and speculation
was not confined to the deposite banks
but pervaded the whole multitude of banks
throughout the Union, and was giving
rise to new institutions to aggravate TIT
evil.
The safety of the public funds, and IT,
interest of the people generally, requires
that these operations should be checked
and IL became the duty of every branch G
the General and State Governments l.
adopt all legitimate and proper means
produce that saIutary effect. Under thi
view Of my duty, directed the issuing c
the order which will be laid before 30
by the Secretary of the Treasury, requiI
ing payment for the public lands sold I
be made in specie, with an exception unit
the 18th Of the present month, IN favor {
actual settlers. This measure has pro
duced many salutary consequences.
checked the career of the western bank
and gave them additional strength in ant
cipation of the pressure which has sine
pervaded our eastern as vel as the E.
ropean commercial cities. BY proven
ing the extension of the credit system,
measurably cut off the means of specul
ton. and retarded its progress in monop
lizingthe most valuable ofthe public land
l. has tended to save the new States fro
nonresident proprietorship, one Of Il
greatest obstacles 10 the advancement of
new country and the prosperity of an o
one. II has tended 10 keep open the pu
lie lands for entry by emigranis at Go
eminent prices, instead oftheir being cor
PEELED to purchase ofspeculators al doub
or treble prices. And il is conveying j
TO the interior large sums in silver a,
gold, there to enter permanently into 4
currency Of the country, and place it on