Iowa news. [volume] (Dubuque, Upper Mississippi Lead Mines, Wisconsin Territory) 1837-1841, 1837-09-23


The act Of the 23d Of Jrae. 1886, reguls
ting the deposits Of the public money, and al
recting the employment of state, district, ant
territorial banks, for that purpose, made il tn
duty Of the secretary of the treasury 10 discon
,inue the use Of such oftcm as should at an,
-.i4aa- safase IL Eeleer.- specie
and to substitute other banks, provided sufIi
eient number could be obtained to receive tn
public deposits upon the terms ard conditions
therein prescribed. The general and almos
simultaneous suspension Of specie payment
blythe banks in May last, rendered the per
Yormance ofthis duty imperative, in respect I.
those which had been selected under tho act
and made it, at the same time, impracticable I,
employ the requisite number Of others upol
the prescribed conditions. The specific regulr
lions established by Congress for The deposi
md safe keeping Of public moneys, l,avin.
thus unexpectedly BIC ome imperative, Eel
it to be my duty tothe afford you an early op
portunity for the exercise Of your supervisor,
powers ever the subject.
i was also led TO apprehend that the sus
pension of specie payments, increasing tn,
efnbarrasstnents before existing in the pecuni
aIy affairs Of the country, would 90 far Gimin
ish the public revenDe that tho accrning re.
csspts into the treasury would not, with the re.
served 1--WE millions, be sufficient to defray the
unavoidable expenses Of the government, ur-
I'll the usual period for the meeting Of Congress;
whilst the authority tocsllUp the States, for
aportion Of the Sums deposited with then, was
ITO restricted to enable the department TO re-.
alise insufficient amount from that source.
Vhese apprehensions have been justified by
subsequent results, which render II certain
this deficiency will occur, if additional means
be moi provided by Congress.
The difficulties experienced BY che mercan-
tile interest, in meeting their engagements,
induced them TO apply 10 me. previously to
the actual suspension Of specie payments, for
indulgence upon their bonds for duties; and
all the relief authorized by law was promptly
and cheerfully granted. The dependence Of
the treasury upon the avails Of these bonds. to
enable it to make the deposits with the states
required by law, led me in the outset to limit
this indulgence 10 the first of September, but
II has since been extended to the first of Octo.
BEL, thatthe matter might be submitted to
your further direction.
Questions We're also expected to arise in the
re cess, in respect to the October ipstaIment of
those deposits, requiring the interposi,ion Of
Congress.
Aprovlsion Of another act, passed about tho
same time, and intended to secure faithful
compliance with the obligation Of the United
States, to satisfy all demands upon them in
specie OF its equivalent, prohibited the offer of
any bank note, not convertible on the spot in.
= gold or silver at the will Of the holder; and
the inability Of the Government, with millions
on deposit, to meet its engagements in the
manner Thus required by law, was rendered
very doubtful by the event to which have re.
fired.
Sensible that adequate provisions Tor these
unsxpected exigencies could only be made by
Congress; convinced that some Of them would
be indispensably necessary to the public ser
vice, before the regular period of your meet.
ing; and DESTROYS also 10 enable YOU 10 excr-
else, al the earliest moment, yolr full const-
'tutional powers for the relief Of the country.
could not with propriety, avoid@subje cting1
ven 70 The Inconvenience of assembling at as
carly day as the state of the popular repre-
sentation would permit. am snre that have
done but justice to your feelings, in believing
that this inconvenience will be checrfully en-
conatesed, 10 the hope Of rendering your meet
ing conducive to the good of the country.
During the earlier stages Of the Revision
through which we have just passed, much ac-
rimonious discussion arose, and great DIVERSE
~ Of opinion existed, as TO its real causes -
This was not surprising. The operations of
credit are SO diversified, and the influences
which affect them so numerous, and often so
subtle, that even impartial and well.informed
persons are seldom found to agree in respect to
them.-. -To inherent difficulties were also adj
ded other tendencies, which were by no means
favorable to the discovery Of truth. II was
hardly TO be expected. that those who disap-
proved the policy of the Government in rela-
ton TO the currency, would, in the excited
state Of public feeling produced by the occa-
sion, fail TO attribute to that policy any extern
sive embarrassment in the monetary affairs of
the country.---Tbe matter thus became connect
cd with the passions and conflicts Of party: o.
pinions were more or less affected by political
and differences were prolonp.
I'd which might otherwise have been determin-
ed BY an.appeal to facts, by the exercise Of
reason, or by mutual concession. II is howe
yer, cheering reflection, that circumstances
o. this nature cannot prevent community SO
Intelligent as ours from ultimately arriving at
correct conclusions. Encouraged Nv the firm
belief OF this truth, proceed to state nv views
10 Tar as may be necessary to clear UNDER
standing Of the remedies / feel it my duty to
propose, and Of the reasons by which have
been led To recommend them.
The history Of trade in the United States,
Tor the last 3 ORD years, affords the most con-
sincing evidence that our present condition is
chiefly obe attributed to over-action in all the T
departments Of business; an over.action, deri-
ring, perhaps, it's first impulses from antece.
lent canses, but stimulated to its destructive
by excessive issues of bank pa-
ger, and by other facilities for the acquisition
IND enlargement ofcredt. Al the commence
neat q the year 1884, the banking capital Of