Columbus Democrat. [volume] (Columbus, Miss.) 18??-18??, 1837-01-21

cember, 1917, should be reserved for making
public roads aud canals: three ifihs Of which to
be applied to these within the State, under the
direction Of the Legislature; and the remaining
two hfths to the making Of road or roads lead
ing To the State, under the direction of Congress.
The two 6tthS of this fund placed under the
direction Of Congress, was evidently intended,
and had mainly for its object, the benefit OF the
State; but 1t has not been applied, and consequent
ly hes imperative and useless III the Treasury Of
the United States, as to the purposes contem-
plated.
From this fact am induced TO behave, that by
proper application the part OF the State, Con-
greSs WITH not hesitate to TelmquISh the DISPOSE
ton of the amount arising from tins two per cent,
SO that the whole Of the five per cent fund may
be applied under the direction of the Legislature
to such objects of internal Improvement as may
be deemed proper. Should the control OF this
sum be yielded to the State, of which see no
reason to doubt, it WILL in addition 10 the amount
TO accrue to the State, as an equivalent tor the
nett proceeds of the lands sold, and hereafter to
be sold, ceded by the Chickasaws, to which the
State 'was entitled: and our probable proportion of
the surplus revenue, create fund, which, It pro-
perry applied, may render timely and efficient
and in iurthering such measures of internal I'M
provement as you may select
BANKS AND THE TREASURY CIRCULAR.
Encouraged by the liberal policy manifested by
your acts previous TO adjournment, charterlng
some fifteen millions of banking capital our citi-
zens tondly anticipated large increase, instead
of a curtament in their DISCOUNTS and to this
circumstance, IN some degree, may be attributed
their over trading and present embarrassment
1t has been objected to the Banks that they have
unnecessarily curtailed their discounts, hut such
all idea Is strained and unnatural The danger
hes IN the other extreme. As the profits are
made upon the amount in circulation, it would be
idle to ascrlbe ITS suppression TO their voluntary
action. Ii must therefore be sought for i'll some
thing OF different character, and the tnancier
will nave little difficulty in tracing it to the COM
pulsory process Of the Treasury Circular.
The unexpected call for specie payments in
the land offices, has produced shock in the
money market, very senslbly felt; and il the sys-
tenn is persisted in, must become excessively OPP
presslve to our clliZens.
That an accession to the metallic circulating
currency, would give greater solldity to that OF
paper, may be admitted, but ii is equally certain
that such measure should be very gradual in its
operations, and taken with great precantion, in or.
der to avoid the Ill effects resulting from gen
eral arrangement.
No well founded reason, it is believed existed
either OF policy, Of justice. or Of equity, requir-
ny this act oil the Executive interpositiOn: nor
could the time have been worse chosen for this
community. The trade of the country Tor years
has been adjusting itself, as well as the value OF
property, to the mixed currency in circulation,
based perhaps upon an undue proportion Of pa
per. But the effects of this addition to the cur
rency by the issue of paper money, has been to
lessen the lue of the circulating medium, COM
pared with that of property for which it is ex-
changed, and to widen the facilities Of borrow
mg-tending directly to enlarge the general pros
perity OF the State by rapid increase of popuIa-
ton and wealth. The immediate advantage to
the laborer is experienced in his increased wages:
to the settler in the aid afforded him in the pur-
chase al home for himself and family; and to
the community generally, by the impulse given to
business. The Banks were supposed to be per.
iectly solvent; no loss had been sustained or APP
pretended: and it was fairly to be inferred that
they had in their Golfers value fully equivalent
to the amount of their notes in circulation, either
IN specie or securities bearing interest; and this
confidence in their ability will be sustained, and
large addition made to the circulating medium
so long as their issues possess the credit It. cir
culate as specie; by reducing the amount Of coin
that must otherwise necessarily remain locked
and imperative in their vaults, yielding neither
interest to the stockholders, nor benefit to the
community A season Of prosperity begets mu-
tual conference.-the Banks grant accommoda.
tons freely, and long loans are made, by which
the planter is relieved and benefited. But an,
measure suddenly interrupting such a state o.
things by checking the circulation of their issues
occasions an immediate reflux Of their notes; ane
the Banks are constrained, in providing for then
redemption, to curtail their discounts, by which
large amount is withdrawn from Circulation, ant
to confine their operations to bills of exchange OF
New Orleans .r elsewhere, at short notice, TO bt
converted into specie. This produces pressure
that becomes onerous, and one that falls with pc
culIar force at this time on large portion Of hi.
cOinmunIty-al those who have incurred debts
and have money to borrow or pay. The odou,
feature that dscriminates between the actual set
tier and the nonresident, encroaches on the broat
principle of equal rights and privileges, so clearl,
recognized and guaranteed-the poor emigran
IN search Of home among us, should receive al
the facilities extended to the citizen. Under lh'
impression that the objects contemplated by thu
President are not likely to be attained by Thu
Treasury Circular, sugges, the propne,y Of sucl
all expression as you may think proper, with
view TO its RECESSION.
Under the existing state of things, your attention
will be called to some remedial measure. The estab
isllment of Union Bank to supply the actual o
supposed deficit Of banking capital and for the re
lief OF the general embarrassment under the pres
sure OF the times, am aware is greatly relied upon
But as IT would be difficult TO impose a restrain
either upon the Banks or individuals, as to the sp
phcatlon OF the loans they may grant or receive,
the exclusion of further tion. am aDDreheD