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Treasury Circular.

(Dec. 29, 1856.

know how strenuously that law was opposed by those lands, and give our votes accordingly on the resolution who are said to court and to enjoy an acquaintance with and the amendment. the most intimate sentiments and feelings, both of the re In deciding upon the policy and the lawfulness of this tiring and the approaching Executive. It was denounc-order, the reasons as-igned for it demand our consideraed in terms the force of which they did not stop to tion. I have already alluded to them, so far as to show measure, and we were warned, in various modes, up to that they are not temporary in their nature; and if they the time when the amendment was offered in the House are the true reasons, the order, in its full force, is as ne. of Representatives, that the power of the veto would be cessary now as it was at the moment when it was issued. applied to it. The Presideni declares to us that he gave But some of them call for further remark. it his “reluctant approval,” and an official organ has an One of them is, in substance, to repress frauds, specnounced that it would have been refused, if the veto ulations, and monopolies, in the purchase of the public would have prevented its passage. I leave it to his ad-lands, to preserve them for the actual settler," at a vocates to defend that political morality and independ moderate price, and insure the more rapid settlement of ence which fails to discharge a high official duty, upon the territory. It is doubisul whether the more rapid set. the ground that he may be found in a constitutional mi: tlement of the country can promote its essential and pernority. It comports litile with the boasted energy and manent interests, and whether the speculations com. firmness of which the nation has heard so much, and by plained of do injuriously, if at all, impede its substantial which many have been deluded. And may I not suggest to progress in population and prosperily. But, I ask, what his defenders on this floor, whether it does become the dig- ) is meant by these frauds? And who have the legitimate nity and respect for the laws which appertain to the first power to apply the remedy for them? Who is a specuoffice of the country, by such a device, to defeat the full lator, and what authority, under our system of Governoperation of a statute which has been passed by the votes ment, can limit his acquisition? Can the Executive deof so large a majority of the Legislature, and to which termine what number of acres makes a man a speculator, the approval of the Executive, even though reluctantly, and who shall be prohibited therefore from buying? He has been affixed? It was perfectly well known that the might as well decide liow much grain a citizen should effect of the order would be to diminish the sums which raise, buy, sell, or transfer in the market, or the number would be received by the several States; less lands would of yards of broadcloth that he shoukl manufacture or imbe sold, less money would come into the Treasury, a lessport and dispose of. If there be any authority to conamount would be divided.

trol such mailers, it is not executive, but legislative, and And, sir, notwithstanding the report of the Secretary, the Executive wanders from his proper sphere when lae I cannot but suspect that the failure to receive a part, at attempts to interfere with them. least, of the money from the Bank of the United States, It is true, as the Senator from Missouri tells us, that while it has still further diminished the amount to be the word “speculator" is not to be found in the const idivided, may have been induced by similar views. The tution; and is any other description or denomination of Executive had no desire that that money also should acts to be found there? Is his favorite “actual settler" come into distribution,

there? But, sir, there is a more important inquiry? But, be this as it may, the effect upon this bill was Does the Senator mean to infer, because the speculator foreseen by the President and Secretary. Was it also is not named, therefore his rights are not protected by desired by ihem? And was this a controlling motive for the constitution, and the President may make any reguissuing the order? The law was passed on the 230 June, lation in regard to him which he may please? If the ar. Congress adjourned on the 4th July, and on the 11thi, gument does not mean this, I can perceive neither its while some of the members were yet on their way to force nor application. If it do mean this, it is a bold their homes, an act is performed which is calculated to claim for the extension of executive power. It proclaims defeat, at least to weaken, the operation of the most im- that whoever and wbatever is not named in and protectportant measure which bad resulted from their joint de. ed by the constitution, may be dealt with, regulated, liberations. Is it the appropriate business of the Exec- trampled upon, at executive pleasure. The Senator inutive thus to counteract the decision of the Legislature, structed us about the divine right of Kings; he bad bet. to deprive the people of the States of the large sums of ter turn his attention to the divine right of Presidents, money which would have been received from the sales of wbo, by such a principle, may do, not what they are authe public lands, and put at defiance not only the will of thorized by the constitution to do, but every thing that Congress, but of a large majority of the Union? How is not forbidden. far the people may be disposed to bear it, without mur Another reason assigned for the order is, to check muring, I know not; but as a representative from one of bank issues, which had been made to a ruinous extent. the States which approves the law, and has been de. That there has been a large extension of bank capital prived of her full measure of benefit under it by this act and paper currency since the financial notions of the of the Executive, it is my duty to express my disappro- present administration have had operation, is not to be bation and her disapprobation; and no servility to pow. doubted. That exlension was the natural result of thie er, no devotion to a name or a party, shall kecp me course adopted by those who have had control on this from it.

subject, and has been principally effected by them. Mr. President, this order may have had temporary ob. While they have talked about specie, and denounced jects, which may have been accomplished, but it had the United States Bank and paper money, they have, in also permanent objects, which are yet to be accomplish- several of the States, occupied themselves in greatly ined. It may have relieved favorites, and it may have creasing their bank capital and paper currency. Tlie weakened an obnoxious measure, and lessened the causes and effects of this circulation have been clearly amount which will be in the Treasury on the 1st of Jan. exhibited by the Senator from Massachusetts, (Mr. WEBuary, and which the States are to receive; but the Ex STER,) and I will not detain the Senate by repetitions less ecutive cannot, at this moment, repeal it. It would be satisfactory than the original exposition. I beg, howan open avowal of motives which there is too much cun ever, to say that, in forming my opinions, I do not rely ning and too lille courage openly and on the public rec on the calculations and estimates of the Secretary of the ords to proclaim. The order must be continued, unless amount of actual currency, and especially of gold and the power of Congress is brought to bear on its repeal. silver; nor do I creclit the estimate which he has given We must consider it as permanently operating upon the of the amount necesary for the convenience and interest currency of the country and the disposition of the public of the country. The quantity of gold and silver manu.

Dec. 29, 1836. ]

Treasury Circular.


factured in the nation, for articles of use and luxury, is But, Mr. President, while I dissent from the views of the immense. Our own mines do not furnish more than Executive on these points, I do not wish to be misunder. enough of gold to meet this demand for annual consump stood as the advocate of an extension of our paper curtion; and much of the silver which comes from abroad rency, nor as maintaining that it is in a sound and safe shares the same fate. They are converted, not by pounds, condition. Our whole currency is in imminent danger. but by hundreds of pounds; and it is doubtful whether There are no salutary checks and control. Banks are all of both metals, taken from the mines of the world, created often without reference to the necessities of the increase, 10 any great extent, the specie in actual circu- country, and sometimes made the rewards of partisan and lation among civilized nations. I feel quite sure that the party exertions. Issues, ton, have not unfrequently been actual circulation of specie here is below 25 instead of regulated by the wants and wishes of favorites.' The 28 millions of dollars. But if we rely on the estimate of constitutional control has been thrown aside, and ignothe Secretary of the paper and specie, and place it at rance and empiricism are meddling with matters which 148 millions, it is not much greater, in proportion to the eney do not understand. There is Janger ahead of us, demand, than it was in 1833 at 84 millions. The actual, and we shall be forlunate if we escape without a con. population and property of the country have grown in a vulsion in the currency which will agonize the country. ratio never before known in the history of nations. Its It is time that this subject was under wiser management. enterprise has been without parallel; its great staples But even this will be insufficient. Admit that our circu. alune have required 30 per cent. addition. Take an ex lation is too great-that there is danger of over-issues by emple. The cotton of about one million one hundred the banks—ihat gol:i and silver ought to be our only cure thousand bales, at the price in 1833, was worth about 52 | rency--and that it is the duty of the Governmnnt to look millions of dollars; in 1836, the one million six hundred well to all these; yet the question seems, who has the thousand bales, at 17 cents, are worth about 86 millions. authority to direci, regulate, and control them! The

The five or six transfers which are made of them, from interference of the Executive, without the sanction and the grower to the consumer, were to be met by some command of Congress, is usurpation of power. His kind of circulation-specie, notes, or bills of exchange. right to legislate is not to be found in the constitution. And the derangement of the exchanges threw the de. I pass to the effects which have been produced by mand with additional violence upon the paper currency. this Treasury order. The President believes “ that the The same lacts are true as to bread-stuffs, beef, pork, country will find in the motives which induced that &c. Your bread-stuffs in 1833, at about $4 per barrel, order, and the happy consequences which will have en. required not more than 50 millions. In 1836, at $8 or $9, sued, much to commend, and nothing to condcmn." Let they called for about 110 millions. Your beef and pork, us examine these consequences, award all the praise al $6 50 in 1833, wanted less than 80 inillions; in 1836, which ihey merit. at from $12 to $14, demanded nearly 200 millions; and The President says: “It checked the career of the all these, in the two or three transfers froin the produ Western banks, and gave them additional strength in cer to the consumer, swelled enormously the circulation anticipation of the pressure which has since pervaded which was required. Pursue the calculation through our Eastern as well as the European commercial cities." all the elements which constitute the materials for an The Senator from North Carolina also admits that there estimate, and it will be found that the currency at $6 50 is a severe and grinding pressure. The Senator from for each individual in 1833, would have afforded accom Mississippi does not seem to credit it; he regards it as modation to the business and wants of the people of the another panic cry. I shall not attempt to settle the conUnion equal to !he $10 at which the Secretary states it troversy between them, nor waste time in proving by in 1836; and when to this we add the obstructions to ex. facts and arguments that a pressure has prevailed. The change, it is not to be doubted that some inconvenience man who doubts must labor under strange ignorance of would have been felt. Yet it is in such a condilion of the condition of the country—an ignorance very similar our interests that the Secretary sets himself to work to to that which could assert ihat our exchanges are in a shut up as much specie as he can, in about one tenth of the better state than for several years past. His opinions banks; to curtail the power of accommodation in all the will not be likely to mislead. But this order was given rest; and we are called upon to wonder at the pressure. “in anticipation of the pressure.” It certainly could

But, Mr. President, it is not necessary, on this ques. have anticipated it but a very few hours, for the pressure t'on, to settle the amount of circulation which the inte. commenced at the very moment that the existence of the rests of the country require. The pretence is, that we order was known in the cities and in the country. They are to bave that circulation confined chiefly to gold and were as contemporaneous as cau.e and effect could be. silver. Is it practicable and are those who talk of it In proof of the assertion that the order checked the ca. sincere and well advised? To accomplish it, you must reer of the Western banks, and gave them strength, the abstract from the circulation of other countries from fif. Senator from Missouri (Mr. Benton) a tempis to prove ty to seventy millions of specie. You could not coin it that it has greatly increased the specie in the banks and at your mints with sufficient rapidity to keep pace with the accommodation to the public. He seems to think the demand. You cannot buy and retain it in the coun. that he has quite overwhelmed all opposition, and de. try, unless your commerce will enable you to do it. stroyed all resistance to his conclusions, by “the logic Commerce will bring, and commerce will take it away. of figures,” and his " appeal to the exact sciences." It Why do not those who are the advocates of an exclusive is not the first time that this logic has satisfied that Sen. specie currency tell us how we may accomplish the ob-'| ator without convincing others. It proved very conclu. ject! Let thein give us a scheme; inform us where we sively to his mind during the last session that there would shall procure it; low retain it; and how the business and be and could be no surplus to be divided among the employments of the country can be reduced to the point Slales. The Secretary, however, has f und about thirtywhich such a currency would require. Until they do seven millions for this purpose, and that is far below this, the intelligence of the people will be apl to suspect what it ought to have been. The Senator, however, that there is more of pretence than sincerity on this has a reason for the error of his conclusion from “ the point. It is by visionary and impracticable schemes like logic of figures." It is in substance this: If Congress these that the real obstacles are thrown in the way of wise would have made all the appropria:ions asked for, and and prudent regulations; and we can never hope for made them in an early day in the session, the logic sound legislation until they shall be removed from the would have come out right. I do not doubt it, sir. If, countenance and support of those who are in power. in the early part of the session, we could have permitted

Vol. XIII.-12

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ourselves to be charged, both by the President and Sen. dations in proportion to its amount than the lesser capi. ator, with utier disregard of our duty, and wilfully, for tal in June did in proportion to its amount, it will be disc party purposes, permitting the country to be uncovered ficult to persuade us that the banks have been strengthwhile ihe clouds of war were gathering over her, and re ened, the currency benefiled, or the public more ac. mained silent, the long and excited debate upon the three commodated. A few statements will show how this is. million appropriation would have been avoided, and the Throwing away the fractions, we may call the capital in time spareil, and the appropriations reached at an earlier | June forty-six and a half millions, in November sevenslay. If we will suffer the imputations against our patriotisin ty-seven and a half millions. and fidelity to the public, from all quarters, to go unanswer. In June the deposite banks had $10,450,415 13 ed and unnoticed, and simply become the registers of In November

15,520,202 42 the thousand efforts for squandering money which lias been su profusely made, time will be saved, and there will be


5,069,787 29 no 'surplus. The Senator is correct in his defence of the But if forty-six and a half millions gave ten and a half, accuracy of his logic, if you leave him and an extravagant then seventy-seven and a half ought in bave given sevenadministration in unin'errupted possession of the means teen and a hall-two millions more than they had in No. of verifying it. The appropriations last year amounted vember. The deposite banks, in proportion to their to about thirty-four millions of dollars, and we were capital, were not as strong in specie by two millions as urged to add many millions more. This would have they were in June before the order. A few of them, swept the surplus pretty effectually, and left litile, if any doubtless, had more, because the operation of the order · thing, to divide. But I thought that thirty-four millions was unequal; but while some were strengthened, accord. was quite enough to be expended in one year by an ing to the ideas of the Senator, others were weakened. economical and reforming administration; and the more so The same result will be found in their accommoda. as it was but eight years since that the administration, of tions, consisting of loans, discounts, and exchanges. which I was an unimportant member, was denounced and In June they amounted to

$108,498,037 74 discarded from public confidence, because it had expendo | In November to

163,972,830 24 ed about thirteen millions. There is some difference between thirteen and thirty-four millions in a single year.

The increase being 55,474,792, 50 But times, sir, have changed; a new logic is in vogue: But if the capital of forty-six and a half millions gave what was guilt then is viriue now.

about one hundred and eight and a half, the capital of sev. But, Mr. President, let us see how the Senator ap- enty-seven and a half ought to have given one hundred plies this logic of figures. He takes the deposite banks and eighty millions of accommodation, being sixteen milalone, reads the amount of specie, and the accommoda- lions more than they did give. Why should there have tions before the Treasury orderand after it-I believe he been this reduction? And if it were produced by this took the months of June and November last as his guides, order, have we not found one cause of the acknowleged and finding more specie in the latter than the former pe- pressure? riod, in these banks, and more accommodations also, he Their circulation lias been alluded to. not only attributes it to the order, but infers that the In June it was

$27,967,152 40 currency is more sound because there is more specie in In November

41,482,897 82 the country. Non sequiturs do not belong to figures. But in proportion to their capital, it ought, in NovemThe premises and the conclusion do not hold together. ber, to have been about forty-six and a half millions, If there be more specie in the country, upon what prin- and was therefore about five millions less than it should ciple shall we assign it to the Treasury order, in prefer- have been. ence the state of our foreign commerce and foreign The Senator considers this a strong argument in their exchanges? These may, and necessarily would, for the favor; but does he not perceive, that while they were cur. time, bring and keep specie here. But how the order tailing their circulation and discounts, they were pres. could have had the slightest effect, it is difficult for oth- sing the community severely? Nor am I satisfied that it ers to see, and ought to be explained.

was not their duty to the public, at least to continue, if Again: there is manisest error in lovking only to the not to enlarge, their accommodations. Their deposites had deposite banks. The operation of the order would in the mean time increased nearly nineteen millions, seem to be to bring specie into them, and take it away from about fifty-seven to about seventy-six millions, from the others; strengthen them, in this respect, while almost iwo thirds of the capital which had been added to it weakened all the rest. To prove that they have them, and not far from one fourth of their whole united more specie and more power to accommodate, is only to capital. They had been placed in a condition of eminent establish the charge against the order for its une qual op. control-they bad it in their power to relieve the business eration, unless it be also proved that more specie has of the country--their deposiies were greatly increased-been brought by it into the country and into the other why did they not do it? The answeris, the Treasury order banks also, so that the whole amount of the currency bas prevented. Take every species of accommodation which been strengthened. These deposite banks are, I think, they afforded, and the result will make a strange exhibit. in number, with some branches. There are In June, loans, discounts, exchanges, and circulations, in the nation more than nine hundred banks. You do amounted to

$136,465,190 14 lille for our paper currency, if you strengthen eighty In November to

205,455,728 06 one to the injury of eight hundred--benefit a few to the destruction of the rest.


68,990,537 92 But I do not understand the matter as the Senator But if the capital in June gave one hundred and thirdoes, even as to the deposite banksthemselves. In June last ty-six million, that of November ought to have given there were thirty-three of them. After the passage of two hundred and twenty-seven; twenty-two millions more the deposite act, they were increased to eighty-one. In than it did afforil, and ibis with the increase of deposites. June the thirty.three had a capital of $33,418,092 83. In We have often been amused, if we have not been edified, November the eighty-one had a capital of $77,576,449 67. by lengthy lectures (I hope the Senate will excuse the

To judge of their condition as to specie and accommo- word) about the curtailments of the Bank of the United dations, we must take their capital at the two periods, States, and most patriotic indignation was exhibited and compare the one with the oiher; and if the capital against it, for this cause. It is to be regretted that some in November did not afiord more of specie and accommo of the denunciations could not now be directed to anoth.

Dec. 29, 1836.)

Treasury Circular.


er quarter-lo banks disciplined into worse conduct by perceive that the receipts of the four months, including illegal orilers of the Secretary.

August and November, were only about $1,800,000. Bui, Mr. President, wbile this operation was going Can it be true, sir, that this was the whole amount reon, and these banks withholding the aid which they ceived in those four most productive months? Were ought to have given, they were acquiring relations with the sales diminished to such an extent, and by a mere other banks, which threw ubstacles in their way, and executive order! If it be sn, ihe device to diminish the were calculated to make them do the same thing. I have gums lo be received by the States under the deposite law not all the means necessary to exhibit the actual conduct has been eminently successsul. How far its fairness and of the other banks; but if they did not curtail, it was no justice will be approved by the people of the Union, refault of the Treasury order or of the deposite banks. A mains for them to decide. severe check was held over them. In June there was due By that report it appears that there was received for to the deposite banks from other banks $17,867,869 49 the sales of public lands in these four months, $1,802,939 And they held their notes for

10,982,790 42 In August, during one half of which pay.

ments were made in bank notes as well as specie $307,456 In all. $28,850,659 91 In September

584,693 In October .

691,915 In November, due $26,662,669 70 In November

318,875 Notes

16,412,324 57 Thus it appears that in all our land offices $11,419

were received under the operation of the order in NoA difference of $14,224,354 36 in the hands of the de

vember more than in August, during half of which it

was not in operation. Was it wortli while to derange posite banks, which they might demand at a moment, the currency and produce distress and confusion for such and for which their debtors were obliged to prepare, by a result? withholding their accommodations.

It is apparent, I think, from this amount, that there Nor, while these effects were produced, does it ap. has not been fair dealing in relation to these payments; pear, so far as specie alone, the panacea of the Senator, and whenever we shall receive an account of 'tlie sales, is concerned, that the circulation of these banks was any I do not believe it will appear that less than two millions more safe. They had in June ten and a half millions of worth of the land was sold within that period. specie, to less than twenty-eight millions of circulation. The deposite banks in those three States gave accomIn November, fifteen and a half to and a half modation, by loans, discounts, exchanges, and circulaof circulation--very nearly the same proportion.

tion, But, should it be objected that it is not a fair test to In June, to

- $7,519,037 91 apply such calculations to all the deposite banks, scatter. In November

9,212,679 78 ed so widely, and so various in their conditions, I answer that this is a question of currency; that which affects a Difference

1,693,641 87 part, affects all, in a greater or less degree; and the Thus it appears that while their capital was increased merit or the demerit of the Treasury movement must al. $77,445 82, more than one third, their accommodation ways be tested by its results upon the whole, and not on was increased $186,117 60, less than one fourth. How a part. Could it be proved that it had benefited the does the Senator propose to answer and explain this fact? Western banks, which received the proceeds of the sales Will be not see in it another cause for the pressure? At of the land, while it had injured the rest of the Union, the same time their relations with other banks stood in it would be a conclusive argument against it.

this condition: In June they held debts and notes amount. But let us inquire what its effects have been there, ing to $3,356,149 30; in November, to $4,045,755 52; and take the banks in Indiana, Illinois, and Michigan, a sufficient increase to be wielded with great power. In which will test the value of this experiment as well as the meanwhile, also, their deposites had increased nearly any others.

$700,000. These in June last had a capital of $1,928,121 88 In the review of these statements, it seems to me that In November, of

2,648,275 00 The “logic of figures" proves little ihat the Senator from

Missouri (Mr. Bexton) attempts to establish. It shows, Increase

$720,153 12 on the contrary, that neither the specie in the deposite An addition of about $77,445, more than one third of banks, nor their accommodations, have increased in proits amount.

portion to their capital, and, instead of benefiting the In June they had of specie

$1,028,581 39 operation of the Treasury, has injured the business and In November

1,536,836 74 facilities of the country.

But, Mr. President, this is not the worst aspect of the Being an increase of

*508,255 35 | order. When it was issued, the community and all the Now, this increase is only about $114,000 more than banks in the Union perceived that the desire to purchase they ought to have had, without the forcing process public lands would create a strong effort to obtain specie, which was resorted to. It is a small sum, and at ordina- to be used for that purpose; and that whatever could be ry times might bave been acquired in four months by a procured would be sent in that direction, and deposited, capital of two and a half millions, without aların or dis. and shut up in a few banks in the new States. Individutress. It was manifestly rather the means adopted than als who possessed it retained it, in the confident hope the result, which agitated the currency. It is to be re that its value would appreciate. The banks retained it, gretted that we hare not before been favored with the because they could not tell what drafts would be made actual receipts of specie in the land offices, that we might upon them for it, and whether a large amount of their compare them with former years, and learn two things: ordinary circulation would not be thrown back upon 1. What increase of specie there has been in the re. them; and they feared to extend, but rather felt it necesceipts over former years, in proportion to the whole sary to contract their accommodations. All classes felt amounts received on the sales. Anc, 2. What was the that it must derange the ordinary course of business and diminution in the sales created by this order. These commerce, and, as a matter of necessity, not choice, they points would furnish salutary guides in forming our judge withheld the means from the use of others. ments on this topic. By the ieport of the Secretary, re The Senator from Connecticut (Mr. NILES) seems ceived a few moments before I rose to address you, I | quite indignant that the terms "tampering with the cur



Treasury Circular.

(Dec. 29, 1836.



rency" should be applied to orders and effects like tliese. Į pale the mode in which it would be done. The Secre. What is it, sir, but tampering, when orders are issued iary bas told us that it will amount to about thirty-seven without warning, without authority, affecting every dul millions. Then the law simply required the Secretary lar of money in the Union, and changing the course of 10 place about nine millions of money in twenty-six business? There is an intimate, sensitive relation be. Stales, or in places where those States would be willing tween the course of business and the currency. You to receive it, by the 1st of January. The law passed on cannot touch one part of it witbout affecting the rest. the 230 of June, and the Secretary had six months to Diminish the specie or raise its price in New Orleans, perform the operation. He had in the Treasury in June and it is instan:ly felt in New York and Boston. And more than this amount, which was not needed for the when the cause which touches it is the simple order of immediate wants of the Government, and the revenue the Executive, the sensation is the more deep and ap. was constantly coming in, to supply the place of any sum palling. They who feel it do not know, and cannot an the position of which might be changed. There was ticipate, what will come nex', nor how soon it will come; then no obstacle to a transfer and deposite of the shares distrust, fear, apprehension, guards, are the consequeno, of the States. And what amount of transfers were re.

It is far less so when the change is produced by quired? There were deposite banks in all the States, I the legislative power. Its action is more open, de lib. believe, except four-New Jersey, Delaware, Illinois, erate, less changeable, less dependent on local causes and Arkansas. These deposite banks being in the and the will of one or a few. This order did change the States, chartered by them, and having their confidence, course of business. It required specie to be carried were the places where the States would bave been wil. from the creditor to the debtor portions of the country; ling to receive their money; and the Secretary had only from the seats of business and wealth, where it was to leave or place it there until it was put under the con. wanted, and in constant action, to points where it was trol and disposition of the State authoritie. Now, of not wanted, and could not be used, and, under express the twenty.six States, there were, as appears by the puborders, was to be shut up.

lic documents, fourtcen or fifteen which already ball in It necessarily produced serious evil to the poor, while their banks their full share, and of course no transfers it operated less upon the wealthy. The man in moderale were necessary as to them. All the others (except the circumstances could not obtain his specie to buy his four mentioned before) had a greater or smaller proporsmall tracı, but by going to a bank to procure it, adding tion of the amount, and the balance only was to be trans. greatly to his trouble and expense. The rich man could ferred. And, with respect to several of these, the Sec. obtain his thousands, and make his purchases. He could retary knew, or ought io have known, that they would turn over and over again what he had, by paying a small prefer to receive their money exuctly where it was when sum to the broker, who was near by: He could make the law passed, because drafts on it there were at an ad. his $500 buy a tract; when deposited, he could borrow

There was not more than three and a half mil. the same $500 again, at a business transaction premium, licns which it was necessary to move at all. And yet buy another traci, and repeat the operation until he was this is the operation which is charged with a derange. satisfied. A better device to oppress the poor, and sub. ment of the currency. Every dollar of it might have serve speculation, never was made. And there is no been made to fall in with the business of the country, hazard in saying that less land has been bought by the and to give facilities to it. None, at least none to any poor and the actual settler, in proportion, than under amount, required actual manual transfer. The Senate the laws as before administered. The same effect has knows how the Secretary has dealt with it. He has been felt wherever the order has reached. The wealthy given transfer warrants to the bank which was to receive have suffered little. Their money has been worth to the money, and thus placed it in their power to call for them from two to five per cent. per month. It is an ex. it when and in what currency (hey pleased. The pay. cellently good specimen of the value of those pretences ing banks, of course, have been obliged to draw in their which have misled popular opinion, temporarily. They means, to be prepared for the payment. The result bave all terminated, sir, in making “the rich richer and was inevitable.' if, on the other hand, the Secretary the poor poorer”—which is one of the despicable phrases bad simply given notice to the paying banks that they which disingenuous fraud so ofien uses in our country must, by a given day, say 20th of December, place the

There is no occasion for surprise at the state of the sums required in the banks to which they were to be money market, and that perfecily solvent paper should paid, it could have been done without difficully or de. sell for from 11 to 5 per cent. per month.

rangement. Take an example: New York had to place But we are assured that the evils which the country | $100,000 in North Carolina; the bank in New York has experienced resulied, not from the Treasury order would purchase drafts on North Carolina, and by other and executive interference, but from the deposite act of means obtain a credit on funds there in the ordinary last session. I admil, Mr. President, that it was a com course of its operations. The drafts paid in the bank bination of the order and the execution of the deposite there would have deposited the money ibere at a profit, bill, with other causes, which produced it; but i deny perhaps, to the paying bank, and to the benefit of the that the slightest inconvenience ought to have resulted commercial and other relations between the two places. from the execution of the latter. It was an offensive law A simple notice that they would purchase drafts might to the Executive, and received a reluctant approval; and have accomplished it And, once placed in the banks it has been so treated ag, if possible, to mike it unpopu. of the States, the states themselves, in their use of it, Jar with the country, and, as one of its friends, I owe no would have been buund, both by inclination and intes: thanks to the Department for the blundering and mis- est, so to have drawn it out and disposed of it as not to chievous manner of ils execution.

injure or embarrass their own institutions and heir own What was that law, and what did it require the Secre. citizens. The same process would have been sufficient tary to do? It provided that the surplus which should for the subsequent quarterly payments. be in the Treasury on the 1st of January, 1837, should Why, then, shoulī this deposite act be charged with be divided among the States according io their number any derangement of the currency, with any part of the of electoral votes, and that one fourin of it should be pressure?" If it has occasioned any, it has arisen froin paid on the 1st of January, one fourth on the 1st of April, The mismanagement or perverseness of the Secretary. one Scurth on the 1st of July, and one fourth on the 1sé He has made this law the means of playing a game of of October. I was opposed to so great elelay in the paybattledoor and shuttlecock with the currency of the men', but was overruled; but I certainly did not antici. I country, and, during the process, he has added his

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