Du Buque visitor. [volume] (Dubuque, Lead Mines, Wisconsin Territory) 1836-1837, 1837-01-04
DU BUQUE VISITOR.

an be expanded or contracted without regard i,
o the principles that regulate the value Of
hose metals as standard in the general trade
II the world. With us bank issues cohsti-
ute such a currency, and must ever do so un- +
Ill they are made dependent on those just pro- /
portions Of gold and silver, as circulating
mediurA, which experience has proved to be |
necessary, not only in this, but in all other /
countries. Where these proper
tons are not infused into the circulation, and
do not control it, II is manifest that prices
must vary according to the tide of bank is
sues, and the value, and stability of property
must stand exposed to all the uncertainty
which attends the administration of institu-
tons that are constantly liable tor the tempt
lalion of an interest distinct from that Of the
community in which they are established.
The progress of an expansion, or rather a
( depreciation Of the urrency, by excessive
bank issues, is always attended by a less to
the laboring classes. This portion Of the com-
munity have neither time nor opportunity to
watch the GIBBS and flows Of the money
market Engaged from day to day in their
useful tolls, they do not perceive that although
,hoir wages are nominally the same, or even
somewhat higher. they ere greatly reduced
in fact by the rapid increase of spurious
currency, which as it appears to make money
abound, they are at FIRST inclined to consid-
or blessing. II il not SO with the specu-4
latoY, by whom this operation is better UNDER
stood, and is made TO contribute TO h.. a.
VANTAGE =. is not until the ,,..::ces g inc ne.
cees s-..r. OF lie become SO dear that the la
boring classes cannot supply their wants out
} Of their wages, that the wages rise. and grad
ually reach ajustiy prcport,onco rae 70 NAV
, of the products Of their labor. "hen mus
by the depreciation in consequence 81 me :,
quantity CT paper in circulation. wages as weii
as prices become exofbitant, it is soon found
that the whole effect of the adul,eration is a,
tariff on our home industry for the benefit of
the countries where gold and silver circulate,
and maintain uniformity and moderation in pri-
!. ces tits then perceived that the enhancement
of the price of land and labor produces cor
responding increase in the price of products,
until these products do not sustain competi.
, iion with similar ones in other countries; and
. thus both manufactured and agricultural pro-
auctions cease to bear 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 of
the banks. Their vaults are soon exhausted
to pay for foreign commodities; the next step
is stoppage of specie payment; total de-
graduation of paper as currency; unusual de-
preston Of prices; the ruin Of debtors, and the
: accumulation Of property in the hands Of cred
itors and cautious capitalists.
1t was in view of these evils, together with
the dangerous power welded by the bank Of
the United States, and its repugnance TO our
constitution, that was induced to exert the
power conferred upon me by the American pee
pie, to prevent the continuance Of that institu-
ton. But. although various dangers to our re-
publican institutions have been obviated by
the failure of that bank TO extort from the go
!. vcrnment renewal Of its charter, it is obvi-
GUS tina, little has been accomplished, except
a salutary change Of public opinion, towards
restoring to the country the sound currency
provided for in tho constitution. In tho acts
several of the states prohibiting the clrcula-
ton Of small notes, and the auxiliary enact
ments ofcongrcss at the last session forbidding
their reception or payment on public account,
the true policy of tho country has been sdvan-
j ced, and larger portion of the precious me.
tails infused into our circulating medium. These
measures will probably be followed up, in due
time by the enactment of state laws banish-
ing from circul ation bank notes Of still high
er denominations; and the object may DO ma.
terially promoted by further acts Of congress,
. forbidding the employment, as fiscal agents,
of such banks as continue to issue notes oflow
,, denominations, ana throw i,npcdiments in the
way Of the circulation Of gold and silver.
t Tho effects Of an extension Of bank credits
E and over issues of bank paper, have been stri.
. kingly illustrated in the sales of the public
lands. From the returns made by the various
registers and receivers in the early part of las,
summer, It was perceived that the receipts arl.
s sing from the sales Of the public lands were
: increasing to an unprecedented amount. In
effect, however, these receipts amounted IA
nothing more than credits in bank. The banks
lent out their notes 10 spectators; they were
paid to tho receivers, and Immediately return
a cd to the banks, to be lent out again and again
: being mere instruments TO transfer to specula
o tors the most valuable public land, and pay
: the government by credi, on the books oftht
y banks. Those credits on the books Of some
0 OF the western banks, usually called deposi.es
: were already greatly beyond their immediate
e means OF payment, and were rapidly increas
ing. Indeed each speculation furnished mean.
), for another; for no sooner had one individual
- or company paid in tho notes, than they wcr.
6 Immediately lent to another for like purpose
If and the banks were extending their business
J. and their issues SO largely, as TO alarm consid
crate men. and render it doubtful whether thes,
bank credits, if permitted to accumulate, woul,
y ultimately be ot.thc least value 10 tho govern
y ment. Tho spirit Of expansion and sDecula
h ton was not confined to the deposite banks, bu
= pcryaded tho whole multitude of banks thro'
!. out the Union, aud was giving rise 10 new 10
- situations 70 aggravate the evil.
y The safety Of the public funds, and the in
IF terest Of the people generally, required tia
t. these operations should be checked, and it be
ID came the duty Of every branch Of tho genera
3 and state governments TO adept all leeitimr,
: and proper means to produce lha. salutary q
~ feet; Under this view Of my duty, directe
al the Issuing Of tho order which will be laid be
j. fore you by the secretary Of tho treasury, re
as curing payment for the public lands sold 10 b