Staunton spectator, and general advertiser. [volume] (Staunton, Va.) 183?-1849, 1836-12-15


other countries; and thus both manufactured
and agricultural productions cease 10 bear ex.
portation from the country of the spurious
CURRENCY because they capnot be sold for cost
This isthe process by which specie is Danish
ed by the paper of the bapks., Their vault,
are soon exhausted TO paWior.toreign commo-
dilies;;. lap next step is n stoppage of specie |
payment; total degradation of paper as y
currency; unusual depression of prices; the
ruin of debtors, and the accumulation of pro |
perty ,n.lhe hands Of creditors and cautious !
capitalists.
Ii was in view of these evils together with Il &c
DANGEROUS power welded by the Bank OF the Uni
ted States and its repugnancc TO our constitution
That was induced To exert the power conferred
upon me by the American people, TO prevent the
continuance of that institution But, although va
| rous dangers TO republican institutions have
been obviated by thetailurc OF that bank to extor
| from the Governments rapc-yal of its charter, ii
is obvious that little has been accomplished, cxccp,
a salu,arv change public opinion. towards re
storing 10 the countrywide sound currency provided
for in the constitution: In the acts of several Of
| the States prohibiting the CIRCULATION of small
notes, and the auxiliary enactpents oi Congress
at the last session forbiddiug theirreccpon pay
Inent on public account. the true policy of the
country has been advanced, and n larger portion
of the precious metals infused into our circulating
medium. These. measures will probably be fol-
lowed up in due time, by the enactment Of State
laws baniShing from circulation bank notes of still
higher denominations; md tile object NAV be
terially promoted by furthersctS of Congress for
bidding the employment, as fiscal agents, Of such
banks as continue to Issue notes of low dcnomina-
lions. ard throw impedmentS in the. way of the
circulation of gold and silver.
The effects of IN extension of bank credits and
over issues OF bank paper, have been Strikinglv
Illustrated in the sales Of the public lands, From
the returns made nv the various Registers and Re
ceivers in the early part of last summer il was
perceived that the receipts arising from the sales
Of the public lands were increasing to an UMPIRE
cedented amount. In effect, however these re-
ceipts amounted to nothing more than credits in
bank. The banks lent out their notes TO specula-
tors; they were paid to the Receivers, and imme-
diately returned 10 the banks, to be lent agan
and again. being mere instruments 10 transfer "a
spectators the most valuable public land and paw
the Government BY credit the books of the
banks. Those credits on the books of some of the
western banks, usually called depoStes, were al
5 ready greatly beyond their immediate means OF
Il payment, and rapidly increasing. Indeed
each speculation furnished means for another; for
! no sooner had one individual or. company paid in
= the notes, than they were immedaelp lenLto ano
: ther Tor like purpose, and the banks were OK
tending their business and their issues so largely
as TO- alarm cenSlderate men, and render il doubt,
Observation-Disclosures bank credits, If permitted 10 ac-
e cumulate, w'ould ultimately be o. the least value
10 the government The spirit of expansion and
was not confined to the depoSite banks
: but Pervadedthe whole multitude Of banks through
out the Union, and was giving rise 10 .ne ,u
l lions 10 agSravate the evil.
{ The safety Of tho public funds andthe interest
OF the people generally, required that these opera
:, ftiohS Should DC checked; and II became the duty
; OF every branch of the General aRd State Govern
a. nens TO adopt all legitimate and proper means &c
0 produce that sautary effect; Under this view oil
my duly, directed the issuing of the order which
Will be laid before you by the Secretary of The
treasury, requiring payment for the public land.
Sold 10 be made In specie, with an exception unit
the 18th of the present month, in favor of actual
settlers. This measure has produced many salu
tary consequences. II checked the career of the
\ western banks, and gave them additional strength
e IN anticipation OF the pressure which has since
Pcrvaded our eastern we'll as the European CON
meEcial cities. BY preventing the extension of the
credit system, IL meaSurably cut off the means OF
= speculation and retarded its progress in monopo
tllZlng the most valuable of-the, public lands II
has tended to save Ihe new States from non resi-
dent Proprletorship Of the greatest obstacles
4 10 the advancement OF q new country and the
Il prosperity of an old one: 1t has tended to keen
S open thepublc lands for entry By emigrants at
! Government prices, i:'sead of their being com
PEELED TO purchase of Speouacrs at double or ire.
Die prices. And ii is conveying into the interior
large sums IN silver and gold, there TO enter per
ImanentEY mtoIhc, currency OF the country and
[ tplaec 1t on q frmeT foundation. II is confidently
believed that the county will find in the motive.
which lndHced that oa9er, and .Ihe happy conse
quences which W III, have enSucd p1pch 10 com
al mend and nothing to condemn.
8 1t remains for ,CengreSP, II they approve the
policy which dictated this order 10 follow it up il
It's various bearings. Much good, in my Judgment
would be produced by prohibiting sales OF the pub
lie lands, except actual settlers at REASONABLE,
o reduction of prices and to limit thequan;itY WHICH
shall be sold TO thems Altheugh,it is believed tht
L5eDersl CIlycTnment never ought to receive any
thing but the constitutional currency in exchange
iordhe public lands that point would be of less i'm
portance If the lands sold for immediate set
tleneDt d'cutlvation, Indeed .tscra is scarcely
mischief .agsInsr cut Of oop presetI: land system
lnc!HdlnS the accommodating surplus OF revenue
winch would not be remedied at once by reStrIc
ton on land sales TO actual settlers and 1t proni
SeS otncr advantages to the country in general and
to the new States IN particular, which cannot fan
to receive the most profound Con
@ greSs.
Experience -ccntaBGes 10 aeziiZe the 4sxpecta
r tons entertained the capacity CT The State
" Banks TO perform the duties Of fiscal agents FOL
the Government at the time of the removal of the
depoSteS. II was alleged by the advocates of IN,
Bank OF the United States that the State banks
whatever might be the regulations of the Treasu
ry department, could not make The transfers re-
Z CURED by the Government, or negotiate the do.
mestlS exchanges Of the country Il is well ascer
tanned that the zeal domestic exchanges perform.
ed, through discounts by the; United States Bank
= and its twenty-five branches >Ne-e at least one
third less than those of the dcpoSIte banks for an
equal period of time and If a comparison he in.
Stltued between the amounts OF service rendered
by these institutions, the broader basis VIII ,h
, mas been used. by the ADVOCATES of. the United
States Bank fa estimating. yrattley consider the
D domestic exchanges transacted by 1t ,the~.r9suIt
viii be still more favorable to the depoSile banks
The whole amount of public money transferred
by ihE hank of the United States in 1872 was
St6iOGYncO. The amount transferred and aclu-
ally paid by the depusite banks IT, the wear ending
fret - H., m ~