The Rhode-Island Republican. [volume] (Newport, R.I.) 1809-1841, 1836-12-14


notes of low denominations, aud throw
iinpediments in the way Of the circulation
OF gold and silver.
The effects of extension Of bank cred-
IT'S aud over issues of bank paper have
be-n sirihingiy illustrated in the sales Of
The public lands. From The returns made
ny the various Registers and Receivers in
The early part Of last summer, il was per-
ceiVcd that the receipts arising from the
sales of the public lands were increasing
10 an unprecedented amount. In effect,
""weVer, these rebeipts ainounted TO
h"'',ihg more than credits in bank. The
baiiRs lent out their notes To speculators:
iEey were paid TO the Receivers. and inn
mrdiat"ly returned to the hanks. To he
lent ont again and again, being mere in
strumeuis TO transfer to spectators the
must valuable public land, and paw the
Government bv IA credit on the books of
the banks. Those credits on the books
OF some of The western banks, usually
called deposites, were already greatly be-
yond their Immediate means of payment,
and were rapidly increasing. Indeed
each speculation furnished means for an
other; for no sooner had one individual
/ or company paid in the noies, than they
were Immediately lent To another for n
like purpose, and lie banks were EXTEND
ing their business and their issues so
largely, as to alarm consderate men, and
render 1t doubtful whether these bank
credits. if permitted 10 accumulate, would
ultimately be of the least value to the
( Government The spirit of expansion
and speculation was not cUufined to the
depositS bank, but peryaded the whole
multitude of banks throug hou; the Union,
! aid was giving rise 10 new institutions to
| aggruvate the evil.
The safety of the public funds, and the
interest of the people generally, required
/ that these operations should be checked;
/ and it became the duty of every branch
of The General and State Governments to
| adont all legitimate and proper means to
| produce that sautnry effect. Under this
view of my duty, directed the issuing of
| the order which will be laid before you by
the Secretary of the Treasury, requiring
payment for the public lands sold 20 bs
made liz specie, with the exception until
The 10Th of the .resent month, IN favor of
actual settlers. This measure has pro-
duced many salutary consequences. 1t
checked the career Of the western banks,
aud gave them additional strength in an
ticipa:ion Of the pressure which has
since pervaded our eastern as well as the
| Europesn comtirrcial cities BY pre-!
venting the extension of the credit system,
il mensurably cut off The means of specu-
la;ion and retarded its progress in mo-
nopoizing the most valuable of the pub
lie lands. 1t has tended to save the new
States from Il non-resident propriesorship.
one of the greatest obstacles tt the ad-
vancement of a new country. and the
prosperity of an old one. Ii has greatly
tended to keep open the public lands for
entry by emigrants at the Government
prices, instead of their being compelled
To purchase of spectators at double or
treble prices. And il is conveying into
the interior large sums and silver and gold,
there to enter permanently into the cur
reucy of the country, and place it on II
tirmcr foundation. 1t is confidently be-
lieved that The country will find in the
motives which induced that order, aud
the happy consequences which will have
ensued, much to commend aud nothing
tu condemn.
IL remains for Congress, if they ap-
prove the policy which dictated this order,
To follow it ul in It's various bearings.
Much good, in my Judgment, would be
produced by prohibiting sales Of the pub-
lie lands, except to actual settlers, AT
reasonable reductinn of price, aud 10 lin
it the quantity which shall be sold To
( them. Although it is believed the GEN
eral Government never ought tn receive
! any thing but the constitutional corrency
in exchange for the public lands, that
point would be of less importance If the
lands were sold for immediate settlement
| and cultivation. Indeed there is scarcely
Il mischief arising ont of our present land
system including the accumulatng sur
plus revenue, which would not be reme-
( died ut once by restriction on land
sales to actual settlers; and it promises
other advantages to the country IN eener-
al, and To the new STATES IN particular,
which cannot fail To receive the most pro-
found consideration of Congress.
Experience continues 20 realise the ex-
pcc,n,ious entertained as To the capacity
of the State Banks to perform the remov-
al of the deposites. 1t was alleged 10y the
advocates of the Bank of the United
States. that the State banks, whatever
nigh, be the regulations of the Treasury
Department, could not make the trans
(ers required BY The Government, or ne
yotiatc the domestic exchanges of the
country. Ii is now well ascertained that
the real domestic exchanges performed
through discounts, by the United States
Bank and it's twenty-five branches, were
nt least one third less than those OF the
deposite banks for AN equal period OF
time; aud if comparison be instituted
between the amounts of service rendered
! L.. aLnsn Il, LII tutinns ON the Lrnader basIS