osits, were already greatly beyond
their immediate means of payment, and were rapidly increasing. Indeed,
each speculation furnished means for another; for no sooner had one
individual or company paid in the notes than they were immediately
lent to another for a like purpose, and the banks were extending their
business and their issues so largely as to alarm considerate men and
render it doubtful whether these bank credits if permitted to accumulate
would ultimately be of the least value to the Government. The spirit of
expansion and speculation was not confined to the deposit banks, but
pervaded the whole multitude of banks throughout the Union and was
giving rise to new institutions to aggravate the evil.

The safety of the public funds and the interest of the people generally
required that these operations should be checked; and it became the duty
of every branch of the General and State Governments to adopt all
legitimate and proper means to produce that salutary effect. Under this
view of my duty I directed the issuing of the order which will be laid
before you by the Secretary of the Treasury, requiring payment for the
public lands sold to be made in specie, with an exception until the
15th of the present month in favor of actual settlers. This measure
has produced many salutary consequences. It checked the career of the
Western banks and gave them additional strength in anticipation of the
pressure which has since pervaded our Eastern as well as the European
commercial cities. By preventing the extension of the credit system it
measurably cut off the means of speculation and retarded its progress
in monopolizing the most valuable of the public lands. It has tended
to save the new States from a nonresident proprietorship, one of
the greatest obstacles to the advancement of a new country and the
prosperity of an old one. It has tended to keep open the public lands
for entry by emigrants at Government prices instead of their being
compelled to purchase of speculators at double or triple prices. And
it is conveying into the interior large sums in silver and gold, there
to enter permanently into the currency of the country and place it on a
firmer foundation. It is confidently believed that the country will find
in the motives which induced that order and the happy consequences which
will have ensued much to commend and nothing to condemn.

It remains for Congress if they approve the policy which dictated
this order