The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1895-10-20

to bank upon. The banks were ready
to accommodate them and were tempted
to go beyond the line of prudence in the
issue of their bills, which were recel-
vable by the government, for the public
lands. Capitalists, at the same time
availed of this state of things, to buy
bonds on speculation.
The tide of immigration from Europe
at the same time, was rising; and this
tide bore westwardly from the northern
| seaoorts, where it reached our shores.
| The sale of the public lands
measures the rapid development of the
West at that period. For some years
the sales had been increasing, until the
climax was reached, in 1886, when more
than twenty millions of acres were sold,
and when the land revenue exceeded
that from customs.
The specie circular was issued, as has
been stated, July 18th, 1886, by Mr..
Woodbury., the Secretary of the Treas
ury. But that amiable functionary had
little more to do with it than his chief
clerk. Mr.. Benton gives the credit OF
| the measure to President Jackson, With
out so much as naming the Secretary in
connection with it, but he incidentally
tells of his own connection with the
transaction. He says that 'The issue of
the Treating Order" known as the
'tSpecie Circular" was one of the events
which marked the foresight, the decis-
ion, and the invincible firmness of Gen
eral Jackson. 1t was issued Immediately
after the adjournment of Congress, and
would have been issued before the ad
iournment except for the fear that
Congress would counteract it by law.
1t was an order to all the land
office to reject paper money, and receive
nothing but gold and silver in payment
of the public lands; and was issued I'M
der the authority of the resolution of the
year 1916, which, in giving the Secretary
of the Treasury discretionary authority
to receive the notes of specie paying
banks In revenue payments, gave him
also the right to reject them. The num-
Der of these banks had now become so
great, the quantity of notes issued so
enormous, the facility of obtaining loans
so universal and the temptation TO con-
verting shadowy paper into real estate,
so tempting, that the rising streams of
paper from seven hundred and fifty
banks took their course towards the new
States, seat of the public domain"
Hitherto the sales OF the public lands
had never exceeded five million of dol
lars, annually; and that amount had
never been reached but in one year.
They now began to be equal, monthly, to
the yearly sales of preceding times. This
system of converting what Mr.. Benton
characterizas as "shadowy paper" into
real estate, was arrested near the middle
of the year 1886, by the specie circular.
If it had been permitted to go on to the
end of the year the sales would have
amounted doubtless to forty millions in
stead of twenty two or twentythrea mil
lions, and the treasury would have been
flooded, submerged, with irred3emable
bank notes. As it was, the amount Of
these notes received was so enormous as
to alarm the administration. It is diff
cult to understand how any thoughtful
man could have blamed the President for
this timely measure. And yet he was
blamed.
Mr.. Benton states that before the ad-
iournment of Congress he was able to
inform the Senate how the sales of the
public lands had run up from four mil
lions year to five millions month.
Spectators, he said, went to the banks,
borrowed five, ten, twenty, fifty thou
sand dollars in paper, in small notes,
usually under twenty dollars, and en-
gagged TO carry off these notes to great
distance, sometimes five hundred or a
thousand miles, and there lay them out
for lands. Being receivable at the land
offices, they would circulate as money
among the people, and never return
at all, and their loss would be clean
gain to the banks Congress refused to
listen to his appeals. But there was a
remedy at hand which Congress had n 1t
thought OF. Jackson was President He
summoned his cabinet-laid the case be.
fore them heard the majority of ad
verse opinions; and directed the order
to issue. His priv tie secretary, Mr..
Donelson, was directed to prepare draft
of the order. The author of this view
was all the while in the Office of this
private secretary. Mr.. Donelson came to
him, with the Presidents decision, and
requested him to draw up the order. 1t
was done the rough draft carried back
I'D Jue cOuucu put luto olncidI AoLm -
signed Issued"
Mr.. Woodbury. seems not to have been
thought of in the preparation of the
order. 1t reads as follows:
I'm consequence of complaints which
have been made OF frauds, speculations
and monopolies, in the parchase Of the
public lands, and the aid which is said
to be given to effect these objects by ex
cessive bank credits, and dangerous, if
not partial, facilities through bank
drafts and bank deposits and the
general evil influence like to result
to the public interests, and especially the
safety of the great amount of money in
the Treasury, and the sound condition
of the currency Of the country from the
further exchange of the nations domain
in this manner, and chiefly for bank
credits and paper money, the President
of the United States has given directions,
and you are hereby instructed, after the
10Th day of August next, to receive in
payment of the public lands nothing ex
ce It what is directed by the existing