Constantine republican. [volume] (Constantine, Mich.) 1836-1838, 1836-12-28

until the prices Of the necossarles OF life
become so dear that the laborlng classes
cannot supply their wants out of their wages,
hat the wages rise, and gradually reach a
Justly proportioncd rate TO that OF the pro-
ducts of their labor. When thus by the
in consequence of the quantity |
of paper in circulation, wages as well as |
prices become exorbitant, it is soon found |
that the whole effect of the adultcraton is |
tariff on our home industry for the benefit !
of the countries where gold and silver CIR
cuate, and maintain uniformity an5 II. odera-
ton in prices. II is thcn r. ceiyed that the
enhancement OF the price of land ard la
eor produce corresponding increase in the
price OF products, until these products do
not sustain competition with similar ones
in other countries and thus both manufac-
tured and agricultural productions cease to
ber. expectation from the country OF the
spurious currency, because they cannot be
sold for cost. This is the process by which
specie is banished by the paper the banks.
Their vaults are soon exhausted to pay
for foreign commodities; the next step is q
stoppage of specie payment; total de-
graduation Of paper as 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 its re.
pugnahce to our constitution, that | was in
duced TO exert the power conferred upon
me by the American people, to prevent the
Continuance of that institution. But, al
though various dangers to our republican
Institutions have been obviated by the failure
of that bank to extort from the Government
a renewal of its charter, it is obvious that
little has been accomplished, except salu-
tary change of public opinion, towards res
toring to the country the sound currency
provided for in tho constitution. In the
acts of several of the States prohibiting 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 coun-
try has been advanced, and larger por-
ton of the precious metals infused into our
circulating medium, These measures will
probably be followed up, in due time, by the
enactment of state laws banishing from Cir
cula.ion bank notes Of still higher denomi-
nations and the object may be materially
promoted by further acts of Congress, for.
bidding the employment, as fiscal agents, Of
such banks as continue to issue notes oflow
denominations, and throw impeiiments in
the way of the circulation of gold and silver.
The effects of an extension of bank cre-
dts and over issues of bank paper, have
been strikingly illustrated in the sales ofthe
public lands. From the returns made by
the various Registers and Receivers in the
early part of last summer, it was perceiv-
cd that the receipts arising from the sales
of the public lands were increasing to an
unprecedented amount. In effect, howev-
or, these receipts amounted to nothing
more than credits in bank. The banks lent
out their notes TO spectators /; they were
paid TO the receivers, and Immediately re-
turned to the banks, to be lent out again,
and again, being mere instruments to trans
fer to SPECTATORS the most valuable public
lands, and pay the Government by q credit
on the books of the banks. Those credits
on the books of some Of the western banks,
usually called deposites, were already great
Ely beyond their immediate means of pay
ment, and were rapidly increasing. Indeed,
each speculation furnished means for ano.
ther; for no sooner had one individual or
company paid in the notes, than they were
Immediately lent to another for like pur-
pose, and the banks were extending their
business and their issues so largely as to
alarm considerate men, and render it doubt
full whether these bank credits, if permit
ted to accumulate, would ultimately be 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 aggrayate the
evil.
The safety Of the public funds, and the
interest of the people generally, required
these operations should be checked and i,
be came the duty of every branch of the
general and state governments 70 adopt all
Legitimate and proper means TO produce
that salutary effect. Under this view of
my duty, l directed the issuing of the or.
der which will be laid before you by the
secretary of the Treasury, requiring pay.
ment for the public lands sold to be made in
specie, with an exception until the 18th oil
the present month, in favor Of actual set.
tiers. This measure has produced many
salutary consequences. 1t checked the
career of the western banks, and gave
them additional strength in anticipation oil
the pressure which since pervaded our cas-.
tern as well as the European commercial
cities. By preventing the extension of the
credit system, it measurably cut off the
means of speculation, and retarded its pro.
gross in monopolizing the most valuable OF
the public lands. 1t has tended to save the
new states from tho nonresident proprie.
torship, one of the greatest obstacles to the
advancement of new country and the
prosperity of an old one. 1t has tended to
keep open the public lands for entry by
emigrants at government prices, instead oil
their being compelled to purchase of spec.
ulators at double or treble prices. And il
is conveying into the interior large sums Of
silver and gold, there to enter permanently
into the currency of the country, and place
1t on firmer foundation. 1t is confident.
ly believed that the country will find in the
motives which induced that order, and the
happy consequences which will have ensu.
ed, much 10 commend aud nothing 10 con.
denim.