The Hawk-eye and Iowa patriot. (Burlington, Iowa) 1839-1843, 1840-03-12
lBI5ls3ltl GEWN s
THURSDAY, MARCH 10, ls40.
THE CURRENCY.

THE CURRENCY.
There was a time when the People had !
IA currency which was acceptable 70 all
classes of the community currency
which was acknowledged to be coed and
taken at its par value and sometimes COM
manded a premium even in the Chinese
empire. But a war was waged against
that currency by the very Government
which should have been proud 10 have
sustained it. Seven years elapsed before
this war was ended. The People were
made to believe that it was an enemy to
the government and that the influence it
exerted was injurious TO the country. Not
until after its foundations had beer COM
Ipletely sapped and its objects grossly mis-
Represented did surrender take place -
but surrender, under such circumstances
with all the patronage and influence Of
government against it, could not be avoid
led.
In breaking down the u S. Bank the
Government derang red and almost destroy
ed the currency of the Country. 1t is
said that over banking, over trading and
speculation have produced the present
'4hard times So did the sword Of Bru-
tus produce the death of Cesar. What
encouraged and gave momentum 10 this
over banking, over trading and specula-
zion? We answer, the Government. AS
plainly the Government, as that Brutus
was the moving cause which produced
the death of Cesar. The Deposites were
first removed, unlawfully, from the Bank
of the U. s., where they were safe, and
placed in Banks, many Of which to the wo-
ful and acknowledged experience of Gov
eminent have proved unsafe repositories
lof the Public moneys, These banks be-
gan Immediately, according to the rlstruc-
tons Of the Secretary of the Treasury, to
extend their accommodations to the ut
most of their ability. This was not all.
The prospect Of the downfall of the U.
IS. Bank, and the hope of obtaining share
Of the Deposites, induced the State Gov
,ernments TO grant charters to an unlimited
number Of banking institutions. These
banks in their turn extended their accom-
modations and issues to such an extent,
that money, in the shape of bank bills,
was very abundant. In this state of
things, when money could be so easily
obtained, retail merchants, even, began to
calculate on large profits by becoming
their own importers, and accordingly they
sent their orders to Europe, without once
thinking of the difficulty Of obtaining bills
of exchange on London for the Bank pa
per then at their command.
This extraordinary extension Of bank
ing accommodations not only induced the
merchants to order goods from Europe
and thus make the balance Of trade against
us, but it also induced many who obtain
ed like accommodations from the banks to
lay out their fictitious capital in lands and
town lots. Such demand was made for
every eligible spot Of land that this spe
cies Of property rose in apparent value in
the same proportion as money or these
bank representatives of money became
more and more plenty. But reverse was
soon realized.
About this period the "Specie Circu-
lar" was issued by the Secretary Of the
Treasury, demanding all payments for
Public Lands TO be made in gold or silver.
! A large premium was Immediately offer
ed in the Western States for this kind of
money. The eastern cities were drained
Of their specie, which was very soon
boarded in the Land Offices or in the
vaults of the Deposite Banks. The far
mer could not buy the lands lie wanted
without paying a large premium, while
debts to the government iii eastern cities
could be liquidated by the payment of
current bank bills. This unequal op.
Grafton, occasioned by the issuing of the
Specie Circlliar by the Secretary Of the
Treasury without any authority from
Congress, produced considerable oppose
ton. but it was nevertheless persisted in
and still to all intents and purposes re-
mains in force, to the woful experience Of
many an honest settler, who finds it al
most impossible to obtain such money as
will now be taken at the lund Office at any
price.
In the mean time the European manu-
facturers and merchants sent their bills
over the water for cole ction. The rep
resentatives of money issued by these
mushroom banks would no be received