Southern Argus. [volume] (Columbus, Miss.) 1834-1842, 1837-01-17


and placed il in the States where it
would be needed next year, and here
they before had not an equal portion Of
the public money!
We thus perceive-what on less au-
thority would be incredibIe-the ex-
traordinary manner in which the pub
lie revenue has been scattered. The
secretary sees an accumulation of pub.
nc revenue in any one state. He sees
another place In another state. "where
only little public money already ex.
isted;" whereupon he resolves, without
the least authority from Congress, to
bestow upon that place Aan equal por-
ton of the public money and he will
have, twelve months hence to pay
some. money in that state, he makes
"a single operation" of it, and accord
mgly he confesses that he has actually
transferred the public. moneys into
States winch cannot receive them Tor
year afterwards, depriVing the verv
community which raised the money Of
the use of it during that whole period.
Such measure was of Itself suffi-
cient to disorganize the currency. But
1t was accompanied by another. which
armed Il with tenfold power of mis-
chief. This was the treasury order Of
prohibiting the receipt at the land off
ces OF any thing but specie, en- act which
seems to me. most Want0n abuse Of
power, II not fragrant usurpation.
The whole pecuniary system Of tbs
country, that to which, neztto freedom,
it owes its prosperity, is the system Of
credit. Our ancestors came here with
no money, but with far better things
with courage and industry; and the
want of capital was supplied BIZ Their
mutual confidence. This is the basis
OF our whole commercial and internal
industry. The government received
It's duties on credit, and sold It's lands
on credit. When me sales of land on
credit became inconyenient, from the
complication of accounts, the lands
were sold for what is termed cash.
But this was only another form Of credit;
for the banks, BY lending to those who
purchased lapds, took the place of the
governmeng'as creditors, and tIP<3I5iv-
ernment received their nns5Travs con
alent to, specie, bee~ III 80 the
yerlihs into sfzoCic' =
,,,..s.s zS-fl,;s- may be regarded as tac
I 80 sse.tiIe country. By the resolution
! &c congress passedon the 30th OF APrtl,
1I8I6. It was declared. that "no duties,
taxes. debts 1.s,IH4s-eyf III 1aey aecr13ng;
lar becoming payable to the u. States,
as aforesaid, ought to be collected or
received otherwise than in the legal
currency of the United States,or trea-
surv notes, or in notes Of the Bank Of
the United States, or In notes Of banks
which are payable and paid on demand.
III the said legal currency Of the United
States.
This resolution presents various al
ternatives; the legal currency, or trea-
/, sUry notes, or netes of the Bank of the
Unltsd States, or notes Of specie paving
! banks. 4 citizen had a right to choose
any one of these modes OF payment.
: He had as much right to pay for land
with the note of a specle-paying bank
, as to pay it for duties at the custom
= house. Ii this be denied, certainly any
a one of them might be q 9eepted by the
), treasury; but to prescribe all but one,
g to refuse every thing but the most dif-
9 ficult thing; to do this without notice
Of the approaching change IN the fun
: damental system of our dealings, is an
ofI act of gratuitous oppression.
; Under the operation Of this resolution
e the banks had gone on, fearing nothing
o as they had only to provide forthe usua
s, specie calls upon them, and saw thC
d country full OF specie, with no-loreigI
e demand to drain It from them; when
q on a sudden, without any intimation 3
y the coming shock, an order was issuec
ID by the Secretary, declaring that theii
u notes were no loIfger receivable, and
of course, inviting all who held the note
al or had deposites IN these banks, to con
en- vert them into specie. 1t in fact mad
&C. at once the whole amount of then Gil
ms culation and also Of private deposites
he specie demand upon them. The frs
7T consequence was, that the banks near
est the land offices ceased maxim
. loans. The next was, they stroye
,o- fortify themselves by aecumulating spe
he Gle. 1t was Just at this moment ths
ms the warrants for transfers were put int
its, their hands. The combination of tn
ms two measures produced double r.
ks suit: first, to require the banks genel
out ally to increase their specie, and ne
ess to give them the means of doing It, !
on, drafts on the deposite banks. Al
rse commercial community were thus
ole ken BY surprise. The interior ban
INST making no loans, and converting the
Atlantic funds into specie, the debto
the IN the interior could make no remitta
an: ces to the merchants in the Attain
ere cities, who are thrown for support
/ in the banks of those cities at a Inomg
Jew when they are unable to afford rel
/ IN On account of the very abstraction
bic taeir specie to the West. The ere
one tor States not only receive no mon
81 but their money is carried away to