The Caledonian. [volume] (St. Johnsbury, Vt.) 1837-1867, 1837-09-12
Twemty-fifth Congress.
MESSAGE.
Fellow Citizens of the Senate
- uouuo IF REPRESENTATIVES,:

employment of State District and Territorial banks
for that purpose made it the duty Of the Sec etary
of the Treasury to discontinue inc use % SUI ;r
them as should at any time refuse TO redeem 'helf
notes in specie, and to substitute other panKs' pro-
vided sufficient number could be Obtained 10 re-
ceive tho public deposes upon the terms ana con-
ditons therein prescribed. The general and almost
Simultaneous suspension of specie pay ments by tne
banks in May last rendered the performance OF MS
duty imperative, in respect to those which iau oeen
selected under the acl; and maze lt' at the sa'io
time impracticable to employ the requisite NUMBER
of others, upon the prescribed conditions. me
specific regulations established by Congress Tor the
Opposite and safe keeping OF the public moneys,
having thus unexpectedly become imperative,
felt il to be my duty to afford you early oppor-
tunity for the exercise of your supervisory powers
the subject.
was also led to apprchend that the suspension of
specie payments, increasing the embarrassments be-
foro existing in the pecuniay affairs of tho country
would so far diminish the public revenue, That the
accruing receipts into tho Treasury, would not,wh
the reserved five millions, be sufficient to defray inc
unav oduble expenses of the Government, until the
usual period for the meeting of Congress; WIN the
authority 10 call upon the States, for portion OF
the sums deposited with them, was too restricted to
enable the Department to realize sufficient amount
from that source. These apprehensons have been
justified by subsequent results, which render 1t Ger,
tain that this deficiency will occur, If additional
means be not provided by Congress-
The difficulties experienced by the mercantile IN
terest, in meeting their engagements, induced them
to apply to me, previous TO the actual suspension OF
specie payments, for indulgence upon their bonds
for duties; and all the relief authorized by law was
promptly and checrfully granted. The dependence
of the Treasury upon the avals of these bonds, to
enable it to make the deposite with the States re-
CURED by law, led me in the outset to limit this in
diligence the first of September but 1t has since
been extended to the first Of October, that the mat
ter might be submitted to your further direction.
Questions were also expected to arise in the re-
cess in respect to the October instament of those
depositos requiring the interposition of Congress.
A provision of another act passed about the same
time, and intended to secure faithful compliance
with the obligation of the United States, to satisfy
all demands upon them in specie or It's equivalent
prohibited the offer of any bank note, not convera
Bile on tho spot into gold silver at the will of the
holder; and the ability of the Government, with
millions deposte, TO meet its engagements in the
manner thus required by law, rendered very
doubtful by the event to which have referred.
Sensible that adequate provisions for these unex-
pected exigencies could only be made by Congress;
convinced that some OF them would be indispensa-
bly, necessary the public service, before the rcgu-
lar period of your meeting; and DESTROYS also to
able you to exercise, at the earliest moment, your
full constitutional powers for the relief eff the coun
try, could not with propriety, avoid sub jectng
you to the Inconvenience of assembling at as early
a day the state of the popular representation
would permit. L am sure that done but justice to
your feelings in believing that this Inconvenience
will be cheerfully encountered, in the hope of
dorng your meeting conducive to the good of the
country.
which we have just passed, much acrimonious dis
clIssion and great diversity of opinion exist
ed to its real causes. This not surprising
The operations of credit are diversified, and the
influences which affect them are numerous, and
often so subtle, that impartial and well inform
ed persons seldom found TO agree in respect to
them. To inherent difficulties were also added
other tendencies, which were by no favora-
able to the discovery of the truth It was hardly
TO be expected that those who dsapproved the pol
icy of the Government, in relation to the currency
would, in the excited state of public feeling, pro-
81, E,,l A..
any extensive ombarrassments in the monetary al
fairs of the country. The matter thus became con-
nected with the passions and conflicts of party; o.
pinons were more or less affected by political con-
sideratons; and differences were prolonged which
might otherwise have been determined by an appeal
to facts, by the exercise of reason by mutual con-
cession. 1t is, however, cheering reflection, that
circumstances of this nature cannot prevent a COM
munity so intelligent as ours from ultimately arriv-
ing at correct CONCLUSIONS Encouraged by the firm
belief of this truth, proceed to state my views so
far as may be necessary to clear understanding of
the remedies which feel it my duty to propose.
and the reasons by which, have been led to recon.
mend them.
The history of trade in the United States for the
last three four years, affords the most conynciRp
evidence that present condition is chiefly to be
attributed TO over-action in all the departments of
business; an over-acon deriving, perhaps, its first
impulses from antecedent causes, but stimulated to
Its destructive consequences by excessive issues of
bank paper, and by other facilities for the acauis
ton and enlargement of credit. AT the CO nmence-
ment OF the year 1884, the banking capital of the
United States, including that of the national bank
then existing, amounted to about two hundred mill
ions OF dollars; the bank notes then in circulation
to about ninety-ive millions; and the loans and
discounts OF the banks to three hundred and twen-
ty-four millions. Between that time and the first
of January, 1886, being the latest period to which
accurate accounts have been received our BANKING
capital was increased to more than two hundred
and fiftyone millions; paper circulation to more
than one hundred and forty millions and the loans
and discounts to moro than four hundred and fiftv
seven millions. To this vast increase arc to be add
ed the many millions of credit, acquired by means
of foreign loans, contracted by the States and State
institutions and above ALL by the lavish accommo-
dations extended by foreign dealers to our mer-
chants.
The consequences of this redundancy of credit,
and Of the spirit Of reckless speculation engender
ed by it, were foreign debt contracted bv onr cit
zens, estimated In March last a, more than thirty
millions OF DOLLARS The extension to traders in the
interior of our country of credits for supplies great
ly beyond the wants of the people; the investment
of thirty mine and half millions of dollars in nm.
productive public lands, in the years 1885 and 1s36
whilst in the preceding year the sales amounted to
only four and half millions, the creation of debts
TO an almost countless amount for real estate in er