Martinsburg gazette. [volume] (Martinsburg, Va. [W. Va.]) 1833-1855, 1836-12-14

In effect, however, these receipts a.
mounted to nothing more than credits
in bank. The banks lent out their
notes 10 spectators /; they were paid
TO the receivers, and immediately lent
out again and again, being mere in
struments to transfer to spectators
the most valuable public land, and paw
the Government by a credit on the
books ofthe banks. Those credits on
the books ofthe western banks, usually
called deposltes, were already greatly
beyond their immediate means of paw.
ment, and were rapidly increasing. In
deco each speculation furnished means
for another for no sooner had one in.
divldual or company paid in the notes
than they were Immediately lent to an
other for a like purpose, and the banks
were extending their business and their
issues SO largely, as to alarm conside-
rate men, and render it doubtful wbeth.
or these bank credits, if permitted to
accumulate, would ultimately be Of the
least service 10 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
the evil.
The safety of the public funds, and
the interests Of the people generally,
required that these operations should
be checked and it became the duty Of
every branch of the Federal and State
Governmental adopt all legitimate and
proper means to produce that salutary
effect. Under this view of my duty, |
directed the issuing of the order which
will be laid before you by the Secreta-
ry ofthe Treasury, requiring payment
for the public lands sold to he made in
specie, with an exception until the I5Ih
of the present month, in favor of ac-
tual settlers. This measure has pros
duced many salutary consequences
1t checked the career Of the western
banks, d gave them additionalstrength
in anticipation Of tine pressure which
has since pervaded u eastern as well
the European commercial cities. By
preventing the extension of the credit
system, 1t m~easurably euto the means
Depreciation and retarded its progress
in m%onopollzing the most valuable of
the public lands. 1t has tended to save
the new States from a non. resident
proprietorship, one of the greatest OBJ.
stacles to the advancement of q new
country and the prosperity of an old
one. 1t has tended to keep open the
public lands for entry at Government
prices, instead of being compelled to
purchase of spectators at double or
treble prices. And it is conveying in
to the interior large sums of silver and
gold, there to enter permanently into
the currency OF the country, and place
1t on a firmer foundation. 1t is conf
IDENTIFY believed that the country will
find in the motives which induced that
order, and the happy consequences
which have ensued, much to commend
and nothing to condemn.
1t remains for Congress if they APP
prove the policy which dictated this or
der, to follow it up in its various bear
ings. Much good in my judgment,
would be produced by prohibiting the
sales of public lands, except to actual
settlers, at a reasonable reduction of
price, and to limit the quantity which
shall be sold to them. Although it is
believed the general government never
ought to receive anything but the con
stltutlonal currency in exchange for
the public lands, that point would be of
less Importance if the lands were sold
Tor immediate settlement and cultiva.
ton. Indeed, there is scarcely a mis-
chief arising out of our present land
system. including the accommodating sur
plus revenue, which would not be re.
NEEDED at once by a restriction on land
sales to actual settlers and it promis.
es other advantages to the country in
general, and TO the new States in mar.
tIcular, which cannot fail to receive the
most profound considerations of Con.
gress.
Experience continues to realize the
expectations entertained as TO the ca.
paclty OF the State Banks to perform
the duties offscal agents for the Cow
eminent, at the time OF the removal of
the deposItes. 1t was alleged by the
advocates of the Bank Of the United
States that the State Banks, whatever
might be the regulations of the Trea.
sury Department, could no make the
transfers required by the government,
or negotiate the exchanges of the coun.
try. 1t is now well ascertained that
the real domestic exchanges performed
through discounts, by the United States
Bank and its twenty-five branches,
were at least one third less than those
OF the deposlte banks for an equal peri.
cd Of time, and if comparisor he in