Lynchburg Virginian. [volume] (Lynchburg [Va.]) 1829-185?, 1837-10-30

general conduct aud cfhcicncy. Have we not seen
the satisfactory manner winch they have dscharg-
I'd their duties fiscal agents OF tho Government,
year alter year made the subject OF the warmest en-.
lo,ss the annual messages Of the President, and
the reports ot the Secretary OF the Treasury. and
put in strihin. and advantageous contrast WIN the
| op 'rationS ot The Bank OF the United States In
the vers last message of the late President, lu DE
crmbrr as ia bca-in. his test,,nony 10 the promp-
ttule aud 20 ,ularity with which the transfers ri the
public money had been made by tliedcposlic banhshc
Shove thu the amonat ot these transfers during tue
prrcrlia. year (about forty millions oldollars) WAS
more than 10 uble the largest which had ever been
,r,nsfcrre during equal period by the Bink oil the
! Cnitrd States and all this had been effected wilh-
ont the SIN ,cs expense or cost 10 TIL Governments
! AZ the same time hc states that amount OF do'nes-
| tic exchanges had been negotiated by thu deposte
| banks ioi the Public, exceeding neic tim three
times the operations OF the Bank OF the ned States,
| in the san way, during an eqn,l pcriod o. time,
and generally al rates below those charged by that
| institution. What more could be expected or de
sired And what docs the Secretary of the Trras-
ury nolp tell to these dcpos,tc hsnAs That
their canl ton in regard Ia the great elements OF
soundnc,s never bette, tlian n pr.scnt that, IN
comparative vvw of theu mcaps and liabilities. both
niMsd ate and uina,c the proportion oi the former
to the latter is eons,lerabl, increased aud is no~
mach greater than has been ru't"in' with the
banks OF tina country with the u aux Of En-
gland iit. since the so'rsosion OF spec" pay nehts,
they have p id thr draft, aud account, of The Treas
twenty nillinn., in r''nn"r acceptable to tbs hold
crs tha, there rc;n,ns nov hut a comparativc.
smlll sum dur fram them 10 thr Government; and
that of thai sun hcte Is no reason 10 apprc,cad the
loss OF a sing dollar.
Ia the pre- ri ih.. facts. ~itli,aliat mopft,
can it be said 'hr the State bank drpositc system
has failed II Il tenporary suspension OF specie
payments, Uadrr most extraordinary clrcunsiances,
constitutes future nj system, then the national
bank >ysto II AMI the harl money ssstcm hdTr cqntl
! l., C,tla t1Ap Al blp. bpc1u,
the pcna >yIvtna Bun, nj the United States, (Which
all ku5w sitspeard specie payments NJ tie SANE
ii with tn deposit: an other Sntr II ,nks.l W.
have the auth my ei It's President Tor saving, pos
.essr all he SIRE 18th and veal advantages undaf lis
chaf,rr tfo II the State of Pcnnsy l,lna, that II did
under its charter from the United States ii II had
b.ea naiiunal in,ooI of State institutions. would
equal, hay. suspended specie payments, under the
extraordinary c'rcu Instances OF the cn'is. Aut has
! not tle hard money system, # We apply ia: sihc
nest ,lso failed Where. nnv il all thrt hoostd
abundance Of gold aad silver, which, we arc told WAS
! To ovcr,prrad ,nd rroicc the land DO YOU SEE
dollar it IA crc"''1on performing ITS true o"'ce
of rccng payments IN the business OF tho country
! No. sir IA, all has disappeared.
Il. thrn, the ,, ate bank depose system has tut
e lh. oth,r s>stcms, proposed by party ano-
ther Ia b. sub, ituitd or IT, equally demonstrate
ed 10 hive tliic l. But sii. this ssstcm has not fad
ed The banks have be,u embarrassed and mnHcn-
t,r,,v ohsruccd ~ sonc OF iacir iunctoUs by cir
cum,tancr, which have embarrassed aud der ,nged
the whole ronn.. rctl ~onl. II ihty have beni, ior
a time brarath ioruido which has s"rp, over tic
clob. II is only ia the, may rise gain, and resume
ther e.cc,ur,s aas,or. Wheu the fury oi tho storm
is 81 .u'.
But supelaId-d 10 tn SC general causes nj en-
5arra,sn mt. tl-ro have bocn peculiar and cst,aor
nary causes op rating hrtr (most oi lh.n ofiglnat
ny in the errors ri oat iubiic rocs,) which have
mainly contributed 10 the recent disaster, and which
bein: suc a, viii aot may he guarded A.
saln,t in future prove nothing AGAINST the sysen It
sell Some ot those anomalous aad disturbing caus-
Is wlii briefly .,rrl ts and first 10 that enormous
.lr ,lus revenue which We permitted II grow NJ. un
der uur .wn inpfusidcnt legislation. Forty millions
nf public n,onrv were thus thrown into the banks
upon which the, err not merely authorized, but III
ritrd 10 found new discount, and acconnmod uonst'
the Pahle. II I virtual al hi ~ OF mash to
tlr u'al. o. the ba As, by oi the Government
itself: which naturally led increase aAd dan
yerous expa,ls Of their business But, sir another
disturbing cause not less ,Rl,chievots III lts opera
has been the fictitious ,mpVtluJu If gold and
silver into the couulrv. daring the la three or tpaf
years. 1t is es'i!n,cd that the quantity of the pro-
cious meta III the coantry has been incr"as 81 III
that li,n" under the rnvoe it,vrs administer
ed in one way or another, nearly another sum oil for
" millions. TINS enormous augmentation Of the pre-
tous metals h IS been the subject III much lncoasde-
rate rxuitn,on but ia truth, sr II rs been Of
the mos, efficient causes OF tn" pr-Scd arrangement
| IN the currency What became Of all tins gold and
silver, as il WA brought into the c"nnry! 1t could
mi enter into circulation, because the channels Of cir
cul,tion WIRE already occupied by the smaller bank
! not s. which We have SEEN will rably excul,
cams OF the same denominations. 1t went. then, 10
enlarge the specie basi, oil thu banks, aud for every
hard dollar they thus acquired they put on. IL The
usual ratio Of their uldon To tcr specie, tle
| four paper doa''
! Gentlemen who have pa'ronzcd this artificial inn
por,alion OF gold and SILVER, witha view to enlarge tho
metallic crt uaiion aud rcsorc the " constitutional
currenc,,' have committed a great mistake. THY
began at the rrons end. They should have first pro-
vidcd for thu suppression Of small notes ani then
thu gold and silver. they came into the country,
would at once have catered intn circulation. Bun
broi 1ht the country AS they we're IN large qHln-
tt.s beiure any opening made for thor cicula-
| hon By tho previous suppression ui the small notes.
thew Accumulated III banks, wnc they turii he'd the
basis of new issues and discounts, and thus formed
one of r chief of that undue di,tcnsou fthc
p,rcr system which terminated in the recent catas-
rophc.
| have already alluded Mr.. President, to raca-
sure the pfo;raCtcd continuance Of which had, in
opinion. small agency producing the suspension
II Specie payments by the banks. mean the sIecIe
circular. II has been common TO assume the amount
of specie pad INTO the land offices the
| Of the operation OF that o,Gri. But this is very fall
iacious and inadequate view OF the subject What
IS called Lana tljice money, or moDey receivable in
pa, ,ncut for the public lands is the universal stand
ard of the currency in the West in all private pay
ncnts and transactions, tits the OF money that is
! REQUIRED. When therefore, by the specie circular,
convertible bank notes, however sound, were no lon
yer receivable III pay,nen, for public lands and gold
and silver were madr the only LrHd oiNce money.
every body wanted gold and silver This necessarily
gave rise to extensive demands upon the banks IN that