Vermont watchman and State journal. [volume] (Montpelier, Vt.) 1836-1883, 1837-01-03

IaAien-tqld power OF mischief. This was
The Treasury order prohibiting the receipt
at the hnd Office Of any Thing but specie
an actwhiCh seems 10 me q most wanon
abuse Of power, irnot fragrant usurpa-
ton.
The whole pecuniary system Of this coun-
try, thatto which, next TO its freedom, il
owes its prosperity, is the system Of credit.
Our ancestors anne here with no money
but with far letter thngs-with courage 4
induslry-ant the want of capital was sup
piled by theirmutual confidence. This is
the basis OF our commercial and internal
industry. Tie Government received lis
duties on cretit, and sold its land on cred
it,. Wien lie sales of land on credit be-
came nconwnient from the complication
Of accouisfihe lands were sold for what
is termed c4sh. But this was only another
form OF credit, Tor the banks, by lending to
those who purchased lands, took the place
Of the Government as creditors-and the .
Government received their notes as equiv |
alent u specie, because always convertible |
into specie. This was the usage--lhis /
may be regarded as the law OF the country.
BY lie resolution IF Congress passed on the
30lh nj April, 1916, it was declared that
I "nu Mlies, lrXes, debts or sums of money,
accrling or becoming payable 10 the Uni
! ted Safes as aforesaid, ought 10 be collect
ed orrcceived otherwise than in ,he legal
currelcy Of the United States, or treasury
notes. or the bank of the United States, or
in notes OF banks which arc payable and
paid OF demand in the said legal currency
OF The j. States"
This resolution presents various allerna-
tives-he legal currency-or Treasury
notes %, notes Of The Bank Of the United
Sales-or notes of specie paying banks.-
A citizen had right to choose any one Of
these nodes of payment. He had as much
right ID pay for the land with the note of
specie paying bank as 10 pay it Tor duties
at the cuslon-hOuse. II this be denied,
certainly any of them might be accepted by
The Treasury-but to prescribe all but one
TO ,eluse every thing but The most diHi-
Gull thing--to do this without notice oil the
approaching change in the fundamental
system OF our deaing-is an act oil gratuit-
Gus oppression.
i Under the operation Of this resolution the
banks had gone on, fearing nothing, as they
had only TO provide for the usual specie calls
upon them-and saw the country full OF specie,
with no foreign demand 10 drain 1t from them
when, on a sudden, without any intmatIon
OIL inc coming snOthj all OiuSi "uo iSSpSu "
the Secretary, declal ing that their notes were
no longer receivable. aud oil course inviting all
who iIvid the not cs or had doposites in lncsr
banks TO convert them into specie. IL IN fact
made at once the whole amount OF their crc-
ularion and private deposites u specie demand
upon them. The first consequence was, that
The banks nearest the land offices ceased max :
ing loans The next was, that they strovu TO
iortily themselves by accommodating specie
IL al lust n This that the "a n ia
Tor transfers wsre put into their hands. The
combination oil the Two measures produced n
double result-hrst. TO require the banks gem
orally 10 increase their specie, and next TO give
them The power OF doing II, by drafts on the
/ deposit baaks. The commercial community
were thus taken BY surprise.
g The interior banks making no loans s con-
: verling their Atlantic funds into specie, the
Y debtors in the interior could make no remit
t tancCs to the merchants in the Atlantic cities,
who are thus thrown for support on the banks
r of those cities, al moment when they arc un'
able TO afford relief on account Of the very alb
stractlon Of their specie TO the West. The
8 creditor states not only receive no money, but
c their money is carried away 10 the debtor states
f who in turn cannot use IT, either TO pay old debts
n or 10 contract new BY this unnatural process:
= the specie Of New Y DIRK and the other CONNER
O clal cities is piled up 10 the w estern States
v not circulated, not used but held as deienc,
d against the Treasury-and while the west can
not use it, the eastis suffering for the want Of II
q The result is that the commercial intercourse
= between the west and the Atlantic, is almos
wholly suspended, and the few operations
s. which are made, are burdcned with the mos
y extra VACANT expense. In Nov. 1886, the int
g rest of money has risen TO "a per cent.-mer
l. chants are struggling 10 preserve their credl
| L.. ,finpS aud 4 Azi= H,,n