Morning herald. [volume] (New York [N.Y.]) 1837-1840, 1837-09-06
VOLUME III.
MESSAGE
rnox THE

PRESIDENT OF THE UI>lAH
To tho ROO Houses Of Congrsss a. s ~
-anent ofHse. first session o. Sse 0''''s ~
Fellow Citizens Of the Senate
and House of Representative
The act Of the 23d of June, 1885, regulating the de-
posites Of the public money, ana oilecung 'hc eni
plawn,snt If Slate District end Territorial baaEs for
H., nrnose madcit the duty of the Secretary OF the
Tass,rr ~ discontinue the use OF such OF them as
should at any refuse to redeem their notes 10 spe
Gle and 10 substitute other BANKS, PROVIDED suinci-
eni nnber could be obtained TO receive the public de-
nos;t.s mon the terms and conditions therein pre-
Tba General and almost Simultaneous suspension
of specie payments blythe banks IN May last rendered
the performance of this duty imperative IN respect 70
those which had been selected under the act; anu
made it. at the same time, inlPracticablc to employ
the requisite number of others, upon the prescnoeu
conditions. The specific regulations estapnsheu ny
Congress for the depose and safe keeping OF the pup
lie moneys, having thus unexpectedly become nope
rative felt to be my duty to afford you an early OPP
porluny or the exercise Of your saps ss0.y powers
was also led to apprehend that the suspension OF
specie payments increasing the embarrassments be-
fore existing in the pecnnary affairs OF tne country
would 50 far diminish the public revenue nat tne az
crunp receipts into the Treasury, would NOT, win
the reserved five Millions be sufficient 10 defiay the
unavoidable expenses of the Government until the
usual period for the meeting OF Congress WHIST inc
authority call upon the States Ior poruoii Vi 'he
sums deposited with them, was too restricted 70 ena-
BILE the Department to realize sufficient amount
from thar source These apprehsnsions have been
justified by subsequent results, which render It GER
tain that this deficiency VIII occur aaaiuona l'ea'S
be not provided by Congress 81 :
The difficulties experienced by the mercanuie IN
terest in meeting their engagements INDUCED them "
apply TO me- previously TO the actual SUSPENSION OF
specie payments, for indulgence upon their bonds ior
duties and all the relief authorized by law was
promptly and cheerfully granted. The dependence
of the Treasury upon the avalls OF these Donds 10 en-
able it to make the deposes with the states required
AZ tnl INIT
the first of September but it has since been extended
to the first of October that the matter might be sub
mirted 10 your further direction.
Questions were also expected TO arse IN TINS recess,
ia respect to the October nstanent OF nose oepo-
sites recurring thc interposition Of Congress.
A provision of another act, passed about the same
time, and intended to secure faithful compliance
with the obligations OF the United States, 10 sasiy
all demands upon them in specie or Its equlvaenf,
prohibited the offer of any bank note not convertible
on the spot into gold or silver at the will of the holder
and the ability of the government with millions on
deposite to NEE; its engagements IN inc manner mus
required by law was rendered very doubtful py the
event to which have referred.
Sensible that adequate provisions for these unex-
pected exigencies could only be made by Congress
convinced that some ofthom would be lndlspensably
necessary to the public service before the regular pc
Rod of your meeting; and desrous also TO enable
you to exercise at the earliest moment your full con-
sitaonal powers for the relief OF the country,
could not with preprety AVOID suolsIung you 20 Inc
state ST the popular Representations would permit
am sure that have done but justice to your feelings
in believing that this improvements will be cheerful
ly encountered, in the hope OF rendering your meet
ing conducive to the good of the country.
During the earlier stages OF the revusion through
which we have Just passed, much ACRIMONIOUS dis
cussion arose. and great diversity OF opinion existed
as 10 its real causes. This was not surprising The
operations of credit are SO diversified, and the inhu-
ences which affect them so numerous, and often SO
subtle, that even impartial and well informed persons
are seldom found 10 agree IN respect 10 tlem 10 IN
herent difficulties were also added other tendencies,
which were by no means favorable to the discovery
of truth Ii was hardly TO be expected that .hose
who dsapproved the policy OF the government In re-
lation to the currency, would IN the excitcd state
OF public feeling produced by the occasion, IAN 10 At
tribute TO that policy any extensive embarrassment
in the monetary affairs of the country The matter
thus became connected with the passions ana con-
hIcts of party-epinIons were more or less affected
by political considerations, and differences were pro-
longei which might other wise have been determined
by appeal to facts by the exercise OF reason orby
mutual concession 1t is however, cheering re-
Fiction that circumstances OF this nature cannot pre-
vent community 80 intelligent as ours from ultimate
ly arriving at correct conclusions. Encouraged by
the firm bcliefo this truth, proceed 10 state my
views, 80 far may be necessary TO a clear under
standing of the remedies feel 1t my duty 70 propose,
and of the by which have been led to recon-
mend them.
The history OF trade in the UaIted States Tor the
last three or four years, affords the most convincing
evidence present condition IN cnleuy
trbuted to over acon in all the departments OF busi
ness; an ovsraction deriving, perhaps, It's first I'M
pulses from antecedent causes, but stimulated 70 ITS
destructive consequences by excessive issues OF bank
paper, and by other facucs for the acquisition and
enlargement Of credit AT the commencement OF the /
year 1884, the banking capital Of the United States
including that Of the national bank then existing, |
amounted to about two hundred millions OF dollars
the bank notes then in circulation to about ninety hve
millions; and the loans and discounts Of the banks to
three hundred and twcnty-our millions. Between |
that time and the first Of January 1886 being the la
test period TO which accurate accounts have heen re-
ceived, banking capital was increased to more |
than two hundred and fty-onc millions our paper |
circulation 20 more than hundred and forty mil |
lions and the loans and discounts to more ihas four
hundred and fifiy-sevcn millions. To this vast in |
crease are be added the many millions Of credit ac-
CURED by means Of foreign loans, contracted by the
States and State institutions, and, above all by the
LAVISH accommodations extended by foreign dealers
TO our merchants.
The consequences Of this redundancy Of credit and OF
the spirit of reckless specula ton eogendcred BY IT,
were foreign debt contracted by our citizens est-
mated in March last al more than thirty millions Of
delars the extension rsGers in the interior Of our
country Of credits for supplies, greatly beyond the
wants OF the people; the investment OF thirty nine
and half millions Of dollars in unproductve public
lands in the years 1885 and 1886, whilst IN the pre-
cedng year the sales amounted TO only four and a
half millions; the creation Of debts 10 an almost
countless amount for real estate in existing antic