To check this madness of speculation, was one reason why an act of Congress was passed, obliging all purchasers of government lands to pay in specie. Nevertheless, government received nine or ten millions in specie after the bill passed. Now, when it is considered what a large portion of the capital drawn from England was applied to these wild speculations--sums which, when they were required, could not be realised, as, when the crisis occurred, property thus purchased immediately fell to about one-tenth of what was paid for it--it will be clearly seen that, from this unfortunate mania, a great portion of the present distress must have arisen.
The attempt of General Jackson and his successors, to introduce a specie currency into a country which exists upon credit, was an act of folly, and has ended in complete failure. [See note 1.] A few weeks after he had issued from the Mint a large coinage of gold, there was hardly an eagle to be seen, and the metal might almost as well have remained in the mine from whence it had been extracted. It was still in the country, but had all been absorbed by the agriculturists; and such will ever be the case in a widely extended agricultural country. The farmers, principally Dutch, live upon a portion of their produce and sell the rest. Formerly they were content with bank bills or Mexican dollars, which they laid by for a rainy day, and they remained locked up for years before they were required. When the gold was issued, it was eagerly collected by these people, as more convenient, and laid by, by the farmers' wives, in the foot of an old worsted stocking, where the major part of it will remain. And thus has the famous gold-currency bill been upset by the hoarding propensities of a parcel of old women. [See note 2.]
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Note 1. One single proof may be given of the ruinous policy of the Jackson administration in temporising with the credit of the country. To check the export of bullion from our country, the Bank of England had but one remedy, that of rendering money scarce: they contracted their issues, and it became so. The consequence was, that the price of cotton fell forty dollars per bale. The crop of cotton amounted to 1,600,000 bales, which, at forty dollars per bale, was a loss to the southern planters of 64,000,000 of dollars.