Herald of the times. [volume] (Newport, R.I.) 1830-1846, 1837-09-14


mrncement efihe rrtra session ofhe Ticeniy
i OM Congress.
FsiioW Citizens Of He S,nofe
and House Of Representatives.
4 The act Of the 23d of June, 1896, rcgulat.
ing the deposites of the public money, and
directing The employment of State, District
and Territorial banks for that purpose, ma de
IT the duty Of the Secretary Of the Treasury
TO discontinue the use of such of them as
should ut any time refuse to redeem their
notes in specie.and to substitute other banks,
provided "a sufficient number could be obtain
ed to receive the public depositcs upon the
terms and conditions therein prescribed
The general and almost simultaneous sus-
pension of specie payments by the banks in
May last. rendered the performance of his
duty imperative, in respect to those which
had been selected under the act; and made
It, at the same time, impracticable TO employ
the requisite number Of others, upon the pre-
scribed conditions. The specific regulations
established by Congress for the deposite and
safe keeping Of the public moneys, having
thus unexpectedly become imperative, | felt
it to be my duty 10 afford you on early oppor-
tunity for the exercise of your supervisory
powers over the subject.
pension Of specie payments, increasing the
embarrassments before existing in the pecu-
mary affairs Of the country, would so far di-
ininish the public revenue, that the accruing
receipts into the Treasury, would not, with
the reserved FIVE millions, be sufficient to de-
fray the unavoidable expenses of the Govern
ment, until the usual period for the meeting
of Congress; whilst the sums deposited with
them, was too restricted to enable the De-
partment to realize Sufficient amount from
that source. These apprehcnsions have been
justified by subsequent results, which render
It certain that this deficiency will occur, if ad.
ditional means be not provided by Congress.
The difficulties experienced by the ner.
camille interest, in meeting their engagement
induced them TO apply TO me, previously to
the actual suspension Of specie payne nts, for
indulgence upon their bonds for duties and
all the relief authorized by law was promptly
and chcerfnlly granted. The dependence Of
the Treasury upon the avails OF these bonds,
to enable it to make the deposites with lhe
States required by law, led me in the outset
to limit this indulgence to the first Of Sep
tember, but II has since been extended to the
\ first Of October, that the matter might be sub
mited to your further direction.
Questions were also expected to arise in
the recess IN respect to the October install
ment of those deposites, requiring tho inter
position of Congress.
A provision OF another act,passed about the
same time, and intended to secure a faithful
compliance with the obligation Of the United
States, to satisfy demands npon them in spe-
Gle or its equivalent prohibited the offer Of
any bank note not convertible on the spot in
to gold or silver at the will of the holder I;
and the ability of The Government, with mil
lions on dcposite, to meet its engagements in
the manner thus required by law,w was render
ed very doubtful by the event to which have
referred.
| Sensible that adequate provisions for these
unexpected exigences could only be made by
Congress-convinced that some of them
would be indispensably necessary to the pub
lie service, before the regular period of your
meeting and desircus alsc to enable you to
exercise, at the earliest moment, your full
Constitutional powers for the relief of the
country, ] could not with propriety, avoid
subjecting you to the Inconvenience Of as
sembling at as early day us the state Of the
popular representation would permit. am
sure that have done but justice to your feel
ings in believing that this Inconvenience will
be cheerfnlly encountered,In the hope ofren-
dering your meeting conducive to the good
Of the country.
During the earlier stages of the revulsion
through which we have just passed, much ac-
rimonious discussion arose, and great diver
sity of opinion existed as to its real causes.
This was not surprising. The operations Of
credit are so diversified, and the influences
which affect them so numerous, and often so
subtle, that even impartial and well informed
al
to them. TO inherent difficulties were also
added other tendencies, which were by no
means favorable to the discovery Of the truth.
1t was hardly to be expected that those who
disappIoved the policy Of the Government, IN
relation to the currency, would, in the cxcit-
ed state of public feeling. produced by the
occasion, fail to attribute to that policy any
extensive embarrassments in the monetary
affairs Of the country. The matter thus be-
came connec:ed with the passions and con-
flicts of party; opinions werc more or less
affected by political considerations and diff
fercnces were prolonged which might other.
wise have been determined by an appeal to
facts, by the exercise oi reason or by mutual
concessions. 1t is however, a cheering re.
Election, that circumstances Of this nature
cannot prevent u community so intelligent rs
ours from ultimately arriving st correct con-
clusions. Encouraged by the firm belief OF
this truth, ] proceed to state my views, so far
as may be necessary to a clear understanding
Of the remedies feel it my duty to propose,
and OF the reasons by which have been led
to recommend them.
The history Of trade in the United States
for the last three or four years, affords the
most convincing evidence that our present
condition is chiefly to be attributed to over
action in oil the departments Of business; an