kingly
exhibited during the operations of the late deposit system, and
especially in the purchases of public lands. The order which ultimately
directed the payment of gold and silver in such purchases greatly
checked, but could not altogether prevent, the evil. Specie was indeed
more difficult to be procured than the notes which the banks could
themselves create at pleasure; but still, being obtained from them as a
loan and returned as a deposit, which they were again at liberty to use,
it only passed round the circle with diminished speed. This operation
could not have been performed had the funds of the Government gone into
the Treasury to be regularly disbursed, and not into banks to be loaned
out for their own profit while they were permitted to substitute for it
a credit in account.

In expressing these sentiments I desire not to undervalue the benefits
of a salutary credit to any branch of enterprise. The credit bestowed
on probity and industry is the just reward of merit and an honorable
incentive to further acquisition. None oppose it who love their country
and understand its welfare. But when it is unduly encouraged; when it
is made to inflame the public mind with the temptations of sudden and
unsubstantial wealth; when it turns industry into paths that lead sooner
or later to disappointment and distress, it becomes liable to censure
and needs correction. Far from helping probity and industry, the ruin to
which it leads falls most severely on the great laboring classes, who
are thrown suddenly out of employment, and by the failure of magnificent
schemes never intended to enrich them are deprived in a moment of their
only resource. Abuses of credit and excesses in speculation will happen
in despite of the most salutary laws; no government, perhaps, can
altogether prevent them, but surely every government can refrain from
contributing the stimulus that calls them into life.

Since, therefore, experience has shown that to lend the public money
to the local banks is hazardous to the operations of the Government, at
least of doubtful benefit to the institutions themselves, and productive
of disastrous derangement in the business and currency of the country,
is it the part of wisdom again to renew the connection?

It is true that such an agency is in many respects convenient to the
Treasury, but it is not indispensable. A limitation of the expenses
of the Government to its actual wants, and of the revenue to those