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SENATE.]

Treasury Circular.

[Dec. 19, 1836.

a

prove its general prosperity; he referred to the high stock, and under circumstances which exposed the moprices paid for every thing to prove that money was not tives of some of those who participated in the passage of scarce, except to those whose engagemnets compelled the act to distrust. them to repair to the banks; he referred to the rates of “ The facts that the value of the stock was greatly en. exchanges in the South and West to prove that the ex- hanced by the creation of the bank; that it was well unchanges of the country were good wherever they were derstood that such would be the case, and that some of beyond the reach of the Bank of the United States; and the advocates of the measure were largely benefited by he stated the contents of letters in his possession from it, belong to the history of the times, and are well calcupresidents and cashiers of banks in Ohio, Mississippi, ated to diminish the respect which might otherwise have and Louisiana, to show that there was but one objection been due to the action of the Congress which created the to the Treasury order, and that was, that it had not institution. been issued early enough!

“On the establishment of a nalional bank, it became Having vindicated the Treasury order from the charges the interest of the creditors that gold should be superse. of illegality and unconstitutionality, and shown that it had ded by the paper of the bank as a general currency. A not been ruinous to the country, Mr. B. said he would value was soon attached to the gold coins, which made proceed to show the reasons for which it had issued, and their exportation to foreign countries, as a mercantile the benefits which had resulted from it. President Jack. commodity, more profitable than their retention and use son, it was known, in the exercise of his high constitu- at home as money. It followed as a matter of course, if tional duty to see the laws of the country faithfully exe. not designed by those who established the bank, that the cuted, had directed the issuing of this order. He stood bank became, in effect, a substitute for the mint of the before the country as its responsible author. As such he United States. had been denounced. As such he was charged with vio. " Such was the orgin of a national bank currency, lating the laws and constitution, and destroying the pros and such the beginning of those difficulties which now perity of the country. As such he is calumniated in the appear in the excessive issues of the banks incorporated Philadelphia letter, which calls this order “the revenge by the various States." of the President upon Congress for passing the distribu- " The effects of an extension of bank credits and tion bill." As such, another condemnation, for the grati- over-issues of bank paper have been strikingly illustrafication of discomfited politicians and a dethroned nation. ted in the sales of the public lands. From the returns al bank president-another victory in the Senate cham. made by the various registers and receivers in the early ber for those who have been defeated at the polls—is part of last summer, it was perceived that the receipts now sought against him in this attempt to rescind that arising from the sales of the pubiic lands were inorder. Under such circumstances, it is not only right creasing to an unprecedented amount. In effect, howthat he should find defenders, but that he should be heard ever, these receipts amounted to nothing more than also in his own defence. Mr. B. would therefore refer credit: in anks. The banks lent out their notes to to the annual message delivered at the opening of this speculators; they were paid to the receivers, and immedisession of Congress, and point the attention of ihe Sen. ately returned to the banks, to be lent out again and ate and the country to the whole of that profoundly wise, again, being mere instruments to transfer to speculators transcendently patriotic, and paternally beneficent, part the most valuable public land, and pay the Government of the message which relates io the general currency and by a credit on the books of the banks. Those credits to the national domain.

on the books of some of the Western banks, usually Extracts from the President's Message.

called deposites, were already greatly beyond their im

mediate means of payment, and were rapidly increasing. “I beg leave to call your attention to another subject | Indeed, each speculation furnished means for another; intimately associated with the preceding one-the cur- for no sooner had one individual or company paid in their rency of the country.

notes, than they were immediately leri to another for a " It is apparent, from the whole context of the consti- like purpose, and the banks were extending their busitution as well as the history of the times which gave birth ness and their issues so largely as to alarm considerate to it, that it was the purpose of the convention to estab. men, and reuder it doubiful whether bank credits, if lish a currency consisting of the precious metals. These, permitted to accumulate, would ultimately be of the from their peculiar properties, which rendered them the least value to the Government. The spirit of expansion standard of value in all other countries, were adopted in and speculation was not confined to the deposite banks, this, as well to establish its commercial standard, 'in res- but pervaded the whole multitude of banks throughout erence to foreign countries, by a permanent rule, as to the Union, and was giving rise to new institutions to ag. exclude the use of a mutable medium of exchange, such | gravate the evil. as of certain agricultural commodities, recognised by the “ The safety of the public funds, and the interests of statutes of some States as a tender for debts, or the still the people, generally, required that these operations more pernicious expedient of a paper currency. The should be checked, and it became the duty of every last, from the experience of the evils of the issues of pa- branch of the General and State Government to adopt all per during the Revolution, bad become so justly obnoxious legitimate and proper means to procure that salutary as not only to suggest the clause in the constitution for effect. Under this view of my duty, I directed the bidding the emission of bills of credit by the States, but issuing of the order which will be laid before you by the also to produce that vote in the convention which nega- Secretary of the Treasury, requiring payment for the tived the proposition to grant power to Congress to char. public lands sold to be made in specie, with an excepter corporations; a proposition well understood at the tion until the fifteenth of the present month in favor of time as intended to authorize the establishment of a na. actual settlers. This measure has produced many salutional bank, which was to issue a currency of bank notes, tary consequences. It checked the career of the Weston a capital to be created to some extent out of Govern- ern banks, and gave them additional strength in anticiment stocks. Although this proposition was refused by pation of the pressure which has since pervaded our a direct vote of the convention, the object was afterwards Eastern as well as the European commercial cities. By in effect obtained by its ingenious advocates, through a preventing the extension of the credit system, it measstrained construction of the constitution. The debts of urably cut off the means of speculation, and retarded the Revolution were funded, at prices which formed no its progress in monopolizing ihe most valuable of the equivalent compared with the nominal amount of the public lands. It has tended to save the new States Dec. 19, 1836.)

Treasury Circular.

(SENATE.

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from a non-resident proprietorship, one of the greatest the most fallacious hope of an easier payment of debts obstacles to the advancement of a new country, and the and a lighter burden of taxation. It is easy for a portion prosperity of an old one. It has tended to keep open of the people to imagine that Government may properly ihe public lands for entry by emigrants, at Government continue to receive depreciated paper because they have prices, instead of their being compelled to purchase of received it, and because it is more convenient to obtain speculators at double or triple prices, and it is convey. tban other paper or specie. But on these subing into the interior large sums of silver and gold, there jects it is that Government ought to exercise its own to enter permanently into the currency of the country, peculiar wisdom and caution. It is supposed to possess, and place it on a firmer foundation. It is confidently on subjects of this nature, somewhat more of foresight believed that the country will find in the motives which than has fallen to the lot of individuals. It is bound to induced that order, and ihe happy consequences which | foresee the evil before every man feels it, and to take all will bave ensued, much 10 commend and nothing to measures to guard against it, although they may be condemn."

measures attended with some difficulty, and not without Mr. B. said it would be observed by the Senate that some temporary inconvenience. The only power which the reasons for issuing the Treasury order are introduced the Government possesses of restraining the issues of the by the President under the head of "currency,” and State banks is to refuse their notes in the receipts of the not under the head of "public lands;" and that, in his Treasury. This power it can exercise now, or at least whole manner of treating it, the currency is the object, can provide now for exercising it in reasonable time, beand the lands the incident. The regulation of the cur. cause the currency of some parts of the country is yet rency is the great object; and as the lands, and not the sound, and the evil is not yet universal. But I have excustom-house, was the exciting cause of the swollen, pressed my belief on more than one occasion, and I now bloated, and diseased state of the currency, the remedy repeat the opinion, that it was the duty of the Secretary was directed to the lands, and not to the customs. All of the Treasury, on the return of peace, to have returned this is visible in the passages read. It is also visible in to the legal and proper mode of collecting the revenue. the original Treasury' order itself, where the discourage. This Government has a right, in all cases, to protect its ment of the ruinous extension of bank issues, the pre- own revenues, and to guard them against bad and deservation of the soundness of the currency, and the safety preciated paper. As to the opinion advanced by some of the Federal revenue, are distinctly and prominently that the object of the resolution cannot in any way be set forth among the high inducements to its issue. Very | answered; ihat the revenues cannot be collected otherrightly, then, did the Senator from Massachusetts (Mr. wise than they now are, in the paper of any and every WEBSTER] express himself on Thursday last, in the few banking association that chooses to issue paper, it cannot remarks wbich he then made; very rightly did be de. for a moment be admitted. The thing then is to be done; clare this to be a currency question, and not a land ques. at any rate it is to be attempted. That it will be action! a financial measure of the greatest moment and ex- complished by the Treasury Department, without the lent, affecting every interest and the whole Union! and interference of Congress, I have no belief.' It from that rightly did he claim for it that bigh consideration which source no reformation came when reformation was easy, is due to a measure, not of sectional, but of national con- it is not now to be expected. The great object is that cern. The gentleman is right. The Treasury order is our legal currency is to be preserved, and that we are a regulation of the national currency, issued under the not to embark on the ocean of paper money. I cannot constituzional obligation of the President to preserve and say, indeed, that this resolution will certainly effect the protect the currency of the Federal Government, and desired end. It may fail. Its success, as is obvious, exercised according to the manner pointed out by the must essentially depend on the course pursued by the author of the joint resolution of 1816, and according to Treasury Department.” the manner, though not to the same degree, that the Mr. B. would add nothing by commentary to the powregulation of the currency was effected by the Bank of er or appositeness of these quotations. They were up the United States during the whole period of its exist to the exigencies of the present occasion, fitted it as if ence. The constitution recognises nothing for money made to order, and superseded the necessity of argubul gold and silver. The President is the sworn pro- ment or illustration. One thing ought to be well ob. tector, defender, and preserver of that constitution. To served, that this speech, going the whole length, not onpermit any part of its guarantees to be subverted and de. ly of justifying the present Treasury order, but blaming stroyed, is a dereliction of duty, or a defect of vigilance ihe Treasury Department in 1816 for not having done in bim. The joint resolution of 1816 does not grant, but the like, and expressing the fear that it might not do it recognises and enforces, his constitutional duties and in time to come, was delivered on the 26th day of April, powers over the preservation of the constitutional cur. rency. The author of that resolution, in the speech from 1816, four days before the passage of the joint

resolution or

that year! consequently, and as the whole speech proves, which I have read extracts-a speech abounding with all the powers and duties claimed in that speech for the just sentiments--recognises all this authority, and pro- Treasury Department, and the Executive Government, claims all this duty of the President as attributes of the

over the regulation of the currency, the restoration of Executive Government, existing anteriorly to his resolu- the constitutional money, and the exclusion of State bank tion; a measure only rendered necessary because these paper from revenue payments, were independent of that powers and duties had been neglected. Listen to him: resolution! were founded-Ist, upon the constitution; * There are some political evils which are seen as soon

2d, the act of 1789, that the customs should be paid in as they are dangerous, and which alarm at once as well gold and silver coin only; 3d, the act of May 10th, 1800the people as the Government. Wars and invasions, the fundamental act for the general sale of the public therefore, are not always the most certain destroyers of lands—and directing that all purchasers should make paynational prosperity. They come in no questionable ment for the same in specie, or in evidences of the pub. shape. They announce their own approach, and the lic debt of the United States! These were the foundageneral safety is preserved by the general alarm. Not tions of the gentleman's argument; these the laws the 80 with the evils of a debased coin, a depreciated paper violation of which he had in bis eye; these the ground currency, and a depressed and falling public credit. Not of his complaint against the existing administration; these so with the plausible and insidious mischiefs of a paper the future ark of his financial bope. These are the laws, money system. These insinuate themselves in the shape faithful expositors of the constitution, in aid of whicb, of facilities, accommodation, and relief. They hold out and to compel the speedy execution of which, the joint

SENATE.)

Treasury Circular.

(Dec. 19, 1836.

resolution of 1816 was conceived and passed. The au- Government but specie; and yet no regard was paid to thor of the resolution said at the time that the success of the imperative injunctions of the law in this respect. the resolution depended upon the Treasury Department, The whole strength of the Government, he was of opinand expressed his fear that it might fail of its objection, ought to be put forth to compel the payment of the through the fault of that Department—a fear in which du:ies and taxes to the Government in the legal currency the gentleman's misgivings were prophetic, until the

of the country: splendid and beneficent administration of General Jack- Now (said Mr. B.) the Senate will doubtless be willing son rose upon the political horizon, to bless and exalt his to hear what was said by the friends of the administration country; to command the admiration of the world, civi- in 1816, to those powerful appeals from the genuleman lized and barbarian, and to realize the gentleman's own who so strenuously plead the cause of the laws, the con. cherished and adored vision of 1816--the constitutional stitution, and hard money. He had looked over the currency restored, and the bloated and pestilential car- speeches of that day, and found the whole of their ancases of the paper system expelled from the doors of the swers compressed into a short paragraph by Mr. Sharpe, Federal Treasury.

of Kentucky, a gentleman of genius and ability, and Mr. B. repeated the date of the speech from which he whose tragical death had since allracied so much public had read an extract; it was the 26th of April, 1816, four notice and commiseration. days before the passage of the joint resolution of that "In reply to the argument of Mr. Webster, that the year. He now had another extract from another speech remedy for the evil was in the power of the Secretary of the same gentleman, also delivered before that joint of the Treasury, by requiring payment of the dues to resolution was passed, and clearly indicative of his inten- the Government in specie, Mr. s. said the genileman tion in bringing forward that measure, to compel, as had not demonstrated that there was specie enough in soon as possible, the complete re-establishment of the the country for the purposes of the payment of the revcurrency of the constitution as the sole and exclusive

enue to the Treasury, nor that the banks bare not the currency of the Federal Government. It was a speech means ultimately to force the Government to take their delivered in February, on the passage of the charter of paper in payments to the Treasury. The disposition the Bank of the United States, and in wbich the speaker was not wanting in the officer at the head of that Detook the great and true ground that the law and Treasu-partment to apply the remedy, if it was in his power:", ry Department, and not the bank, ought to be the true This was the answer! a deplorable confession of the regulator of currency. Mr. B. only read the parts which condition to which the Federal Treasury had been reduwere applicable to the point in debate, namely, the legalced by receiving State bank paper in payment of the currency of the United States, and the speedy and com- federal revenues! That policy had begun under Generpulsory payment of the whole revenue in that currency. al Hamilton, and been folowed up by other Secretaries, Extract from Mr. Webster's speech on the Bank of the in violation of the laws and constitution, until nothing but

inconvertible United States Charler Bill, February, 1816.

paper remained in the Treasury, and

lille else in the country. All their fine plirases about “No nation had a better currency than the United specie-paying banks, and paper equivalent to specie, and States. There was no nation which had guarded its cur

no paper but what the collectors and depositories of the rency with more care; for the framers of the constitution, revenue would receive as cash-all these holiday phrases and those who enacted the early stalutes on this subject bad ended, as such schemes must forever end, in the were hard money men; they had felt, and therefore duly eventual general use of paper, the eventual general banappreciated, the evils of a paper medium; they, there ishment of specie, and the eventual general stoppage of fore, sedulously guarded the currency of the United banks, and universal depreciation of paper money: This States from debasement. The legal currency of the Uni- was the only answer which could be given in 1816, and ted States was gold and silver coin; this was a subject in the only one that could be given until President Jacko regard lo which Congress had run into no folly. son's measures for restoring the constitutional currency Mr. W. declined occupying the time of the House to shall have raised that currency to seventy-five millions of prove that there was a depreciation of the paper in cir- dollars. There is now specie enough in the country to culation; the legal stands rd of value was gold and silver; make all revenue payments in gold and silver; and the the relation of paper to it proved its state, and the rate purchasers of the public land, speculators and bank borof its depreciation. Gold and silver currency, he said, rowers excepted, have found no difficulty in getting spewas the law of the land at home, and the law of the world cie to make ibeir payınents. Land office returns prove abroad; there could, in the present state of the world, be this. The sum of $1,463,656 was paid into the land of no other currency. In consequence of the immense pa-fices, in gold and silver, from the 15th of August, when per issues baving banished specie from circulation, the the order took effect, down to the middle of November, Government had been obliged, in direct violation of ex- to which the returns were made up. This was a million isting slatutes, to receive ihe amount of their taxes in and a half for three months, being at the rate of about six something which was not recognised by law as the mon- millions per annum. This would buy near five millions ey of the country, and which was, in fact, greatly de- of acres of land at the present minimum price; and five preciated.

millions of acres of public lands, in addition to other “ As to the evils of the present state of things, Mr. sources of supply, is double as much as the progressive W. admitted it in its fullest extent. If he was not mis- settlement of the country has ever required. Does the taken, there were some millions in the Treasury of pa- demand for this small sum--a sum which does not go out per which were nearly worthless, and were now wholly of the country, but enters immediately into general ciruseless to the Government, by wbich an actual loss of culation through the Government payments-cannot such considerable amount must certainly be sustained by the a demand be supplied out of the seventy-five millions in Treasury. This was an evil which ought to be met at the country, especially when four and a half millions once, because it would grow greater by indulgence. were exported to foreign parts this very year, not to rethe end, the taxes must be paid in the legal money of turn again? of the seventy-five millions of specie in the the country, and the sooner ihat was brought about the country, the banks alune were computed by the Secrebetter.

If Congress were to tary of the Treasury to have forty-five millions in their pass forty statutes on the subject, he said they would not vaults. Can they not spare a few millions for the ser. make the law more conclusive than it now was, that vice of the country, especially when the measures of nothing should be received in payment of duties to the President Jackson's administration have increased their

In

Dec. 19, 1896.)

Treasury Circular.

(SENATE.

supplies of the precious metals from twenty-five to forty. the constitutional currency of our America: 1. Twentyfive millions in three years? Mr. B. would subjoin from five thousand sovereigns paid weekly by one bankingthe Treasury report the statement of specie in all the house, for wages to working people. 2. This amount banks in the United States, as far as obtained at the formerly paid in one pound notes. 3. No local bank is. Treasury Department, first premising that the report suing paper now in Lancashire. was not complete. The number of banks in the United Confining his remarks to one only of these statements States and their branches is near one thousand! Their-the amount of weekly payments in gold-Mr. B. said names occupy twelve columns in Bicknell's Counterfeit the annual amount was one million three hundred thouDetector, with nearly eighty names in each column! sand sovereigns, equal to six millions and a half of dollars!

I a The Treasury report does not include them all, but the This was paid by a single banking house; and are we to main part, and their specie is reported thus:

believe that the 1,000 banks in the United States cannot

furnish the same amount for the purchase of the public October, 1833,

$25,000,000 January, 1834,

lands? And are we, after attempting to make them do 27,000,000

it, to be clamored down by a combined cry from specu-' January, 1835,

43,000,000 January, 1836,

40,000,000

lators, a part of the banks, and politicians, that the counDecember, 1836,

45,000,000

try was paralyzed and desolated by the experiment, and

that all further attempt must instantly cease? Here is an increase of specie in their vaults, said Mr. Mr. B. would make a short issue with all these com. B., of twenty millions in three years, and of five millions plaining banks; they either have, or have not, their pro. of dollars during the very year of the Treasury order's portion of the forty-five millions of specie which they reexistence-a fact which, of itself, exposes and puts to port is in their vaults. If they have it, there is no difshame the whole story of their distress and ruin, and in. ficulty in furnishing specie for the land offices; if they ability to aid the community on account of this order, or have it not, then their returns are deceptive-their peto furnish ibe specie which it requires. The fact is con- riodical exhibitions of specie are nothing but show moclusive: it stamps the whole contrivance on the part of ney; and the sooner the people find out their hollowness the banks which have engaged in it, as a shameful and and emptiness, the better for the whole community. fraudulent imposition upon the public. It is enough of But, (continued Mr. B.,) let the amount of specie be itself; but the custom-house books show that these banks what it may in the banks, the fact is, that there is about would in reality have increased their specie to ten mil. seventyfive millions in the country, and a goodly part of lions this year, had it not been for the sums exported to that is in the hands of the community: In October, 1833, foreign countries. The exports of specie, up to near the when the deposites were removed, the whole amount of end of November, were $4,435,815; of which $312,811 specie in the banks was returned at about twenty-five was in gold. But this is nothing, according to the Phil-millions, and that in the hands of the community was adelphia letter. It is nothing; while the one third of computed at only four millions. The community is now that 'sum going into our land offices, and thence through computed to have twenty-eight millions, and the annual Government payments to the people, is to create intense increase is thus reported by the Secretary of the Treasdistress, derange the exchanges deprive the banks which ury: affect to be injured by the Treasury order of all capacity

Specie in active circulation. to make loans to business men, and justify them in throw

$4,000,000 ing borrowers into the hands of usurers, to be fined at the

October, 1833

12,000,000 rate of 3 per cent. per month discount (equal to 4 per

1st January, 1834,

18,000,000 cent. interest) for the use of money.

1st January, 1835, But Mr. B. had another test to apply to the capacity

1st January, 1836,

23,000,000 of those banks to furnish the small amount of five millions

1st December, 1836,

28,000,000 of dollars per annum for the purchase of public lands. Here, then, is a sum in the hands of the community, It was in the contrast exhibited by the one thousand sufficient to supply the public land demand, on account banks of the United States with what is done by a single of actual settlers, four times over. The rapidity with banker in the English county—he might almost say which gold and silver has increased since the comkingdom instead of county-for Lancashire, in point of mencement of the operations to restore the constiluwealth, is equal to the second rate kingdoms of Europe tional currency, should banish all doubt on the practica-in the English county of Lancashire, and where there bility of doing it. See what has been done in four years are no local paper-issuing banks or bankers. Ile would against the powerful opposition, the systematic resist. give the sworn words of Samuel Jones Lloyd, Esq., a ance, and the scoffings and jeerings of a great political banker, examined before the committee of thirty.one and moneyed party. Four years more may be equally members of the House of Commons in 1832; a committee successful, if these resolutions can be defeated, and, inof which Lord Althorpe was chairman, and such men as stead of seventy-five millions, one hundred and twenty Sir Robert Peel, Lord John Russell, Mr. Goulburn, Sir millions, and nearly forty millions of it gold, may be in Henry Parnell, Mr. Baring, and more than two dozen the country. But nobody expects this amount to come scarcely their inferiors, were members, and on which into the country, or what is in it now to remain, unless such men as the Governor of the Bank of England, Mr. the Federal Government can continue its onward course N. M. Rothschild, and a hundred distinguished bankers in the reformation of the currency. If it relapses into a and merchants were witnesses. Mr. Lloyd, among other paper money currency, the whole community must re. things, testified to the quantity of gold paid weekly by lapse into it also; and the result must be, what it has a single banking establishment, (his own,) for wages to been heretofore, liniversal banishment of the precious working people in the city of Manchester, one out of inetals, the eventual stoppage of all the State banks, and the many great cities which Lancashire contains. This a call for the re-establislıment of the Bank of the United is the part of his evidence relating to this point:

States, as the only sałe regulator of the State cur. "A great amount in gold is paid at Manchester, in rencies. wages. Witness's house issues about 25,000 sovereigns The increase of banks and paper money, and the neweekly. That issue was formerly in one pound notes.cessity of restraining the issues of these corporations, as There is no local issue in Lancashire."

alleged in the President's message, was next adverted Here are three statements (said Mr. B.) which ought to by Mr. B. He referred to the report of the Secre. to bę sterotyped on the head and heart of every friend to 1 tary of the Treasury, which showed ihese results:

Dates.

SENATE.]

Treasury Circular.

(Dec. 19, 1836.

Dates.
Paper in active circulation. sketched in that part of President Jackson's message

which relates to the currency. He says: Near 1st October, 1833,

$80,000,000 1st January, 1834,

76,000,000

" The progress of an expansion, or rather a depre.

ciation of the currency, by excessive bank issues, is al. 1st January, 1835, 82,000,000

This 1st January, 1836,

108,000,000

ways attended by a loss to the laboring classes. 1st December, 1836,

120,000,000

portion of the community bas neither tim nor opportu.

nity to watch the ebbs and Aows of the money market. Here is an increase of about forty millions of paper Engaged from day to day in their useful toils, they do money in two years. But it is not the whole increase in no: perceive that, although their wages are nominally that time. The computation is principally made from the same, or even somewhat higher, they are greatly the returns of the old banks; while one hundred and six reduced, in fact, by the rapid increase of a spurious cur. new ones, with capitals of sixty millions, had been cre- rency, which, as it appears to make money abound, they ated; and twelve millions and three quarters of increased are at first inclined to consider a blessing. It is not so capital to the old banks had been granted during the with the speculator, by whom this operation is better past winter; so that fifty millions of increase of paper understood, and is made to contribute to his advantage. was probably the amount when the Treasury order was It is not until the prices of the necessaries of life become issued, and the increase going on with a deplorable ra. so dear that the laboring classes cannot supply their pidity. The national domain was the object that was wants out of their wages, that the wages rise, and grad. attracting it. The temptation was irresistible. A quire ually reach a justly proportioned rate to that of the proof paper, speckled over with figures, would transmute ducis of their labor. When thus, by the depreciatior., into 100,000 acres of land; a ream of paper into a mil. in consequence of the quantity of paper in circulation, lion of acres. One thousand engines were at work, wages as well as prices become exorbitant, it is soon striking this paper; hosts of speculators, loaded with found that the whole effect of the adulteration is a tariff bales of it, were on their way to all the new States. It on our home industry for the benefit of the countries was evident the national domain was becoming a fund where gold and silver circulate and maintain uniformity for the redemption of all this paper. It was all receiva- and moderation in prices. It is then perceived that the ble in exchange for lands; and the holders of these bills enhancement of the price of land and labor produces a seem to consider them as assignats, like those of the corresponding increase in the price of products, until French national convention, convertible into the terri. | these products do not sustain a competition with similar tory of the republic at the will of the possessor, and the ones in other countries, and thus both manufacturing and faster the better. This was the state of things on the agricultural productions cease to bear exportation from rise of Congress, and the two balls of that body bad the country of this spurious currency, because they can. resounded with the denunciation of the ruinous aspect not be sold for cost. This is the process by which speof this exchange of land for paper, four months before cie is banished by the paper of the banks. Their vaults the adjournment took place. The President, acting are soon exhausted to pay for foreign commodities: the under ihe constitution and laws of the country, applied next step is a stoppage of specie payment-a total deg. the remedy which the crisis required, and which the radation of paper as a currency; unusual depression of Jaws and constitution authorized. He saved the national prices, the ruin of debtors, and the accumulation of domain; he checked the expansion of the paper system; property in the hands of creditors and cautious capital. he saved the Treasury from a frightful accumulation of ists.”. "unavailable funds;" and he prevented that catastro. This (said Mr. B.) is the progress and effect of a dephe in the State banks to which the Bank of the United preciated paper currency. The imprudence and the States is anxiously looking, systematically promoting criminality of banks of issue are equally the sources of and impatiently awaiting that catastrophe in the local this depreciation; and the community is equally the vicbanks which would again disgrace and discredit them, tim of their misconduct, whether it results from accident, and bring forth the whole United States Bank party lo folly, or design. It is established in England that a sudexclaim, We told you so! we told you this would be the den increase of one million sterling, by Bank of England consequence of not renewing our charter! and now you issues, will, in many states of the moneyed system, pro. all see it! and we demand ihe re-establishment of ihe duce a depreciation in the value of money which will be national bank as the only means of regulating the State sensibly felt in the kingdom. Wha', then, is to be the banks! President Jackson has prevented all this; and effect of an increase of fifty millions of paper dollars, in has shown that the constitutional currency can regulate two years, in this country? It must be what every per. the State banks; and for this he has drawn upon him. son sees and feels it to be-a depreciation of at least one self the denunciations of disappointed speculaiors, dis- third of the value of paper money! so that all persons appointed politicians, and disappointed bankers. He living on salaries, fixed incomes, and wages, are in the has prevented many and great evils, and, among others, condition of baving suffered a diminution of one third of the further depreciation of the currency. Fifty millions their income. Living is becoming as dear in our young of additional paper, put out in two years, has enabled and prolific America as in the aged and crowded coun.. the banks to imprison forty.five millions of specie, and tries of Europe. Let no one delude himself with ibe the whole one hundred and thirty millions of paper mo. belief that there is no depreciation while bank notes ney afloat during the summer has depreciated the gen. continue to be convertible into gold and silver; this eral currency; which is seen by the importation of wheat would be a great error; for it is of the very nature of de. from Germany and the Black sea, by ihe importation of preciating paper to carry down gold and silver with it, beef and pork from Ireland, hay from Scollanıl, and until things reach that point when prudent men begin to many other necessaries of life from Europe; wbich is

exact payments in hard money, or, which is the same seen in the rise of price in every article which depends thing, to carry home in silver at night the amount of for sale on its depreciated currency; for articles u hose

every note received during the day. When things have price depends upon foreign markets, where the notes of

reached that point, and about the time when all prudent our one thousand banks are not taken for money, as to- men have taken care of themselves, the public mind be. bacco and cotton have not risen. The progress and the gins to get uneasy. Some cause, no matter what, starts evils of this depreciation, which commenced before the

an alarm; and in a few weeks the explosion is universal. Treasury order, which that order bas checked, but Such was the point to which we were rapidly tending in which must recommerce with its recision, is powerfuly 1 July last. President Jackson has arrested this depreci

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