Consequently, in further pursuance of the same policy, you are hereby required after the 1st of May next not to pay the demands of any public officer or creditor in any bank notes of a less denomination than $5, and, except when it may be otherwise prescribed by law, after the 4th of July next not to receive or pay on account of the Government any bank notes of a less denomination than $10.
All the deposit banks are requested to supply themselves with such a quantity of American gold coin as to be able to pay, and when a public officer or creditor prefers it, and his demand does not exceed $500, to pay at least one-fifth of such demand in that coin. It is also requested that the deposit banks will not after the 4th of July next issue any notes of a less denomination than $5, and that after the 3d of March, 1837, they will not, unless the subject be otherwise regulated by Congress, issue any notes of a less denomination than $10. It is believed that the amount of gold which by that time shall be coined at the Mint will be sufficient to admit of the convenient substitution of it for small notes in a much greater extent than at present; and it is deemed reasonable that while the deposit banks have the use, without interest, of unusually large sums of the public money they should make some further temporary sacrifices to obtain and circulate gold and in other respects to enlarge the specie basis of our circulating medium.
From these considerations and from the liberal spirit evinced by most of the public depositories in a late correspondence with them on this subject, it is confidently expected that in this state of things they will cheerfully comply with the above requests and with all others which have been made by the Department with a view of improving the currency; nor will it, I trust, be considered unjust or impolitic, while the deposit banks shall continue to enjoy great privileges from the Treasury, to regard a neglect or refusal by any of them to comply with those requests as sufficient cause for discontinuing the employment of such banks as fiscal agents.
At a proper time it will be decided under what circumstances and at what periods these restrictions on the agents and officers of the Treasury shall be extended to notes of any denomination under $20.
This communication is made with the sanction of the President of the United States, and it is hoped that till otherwise prescribed by Congress or by this Department these requirements and requests will be faithfully complied with by all the fiscal agents of this Department and all the collecting and disbursing officers of the Government.
LEVI WOODBURY,
Secretary of the Treasury.
[From Senate Doc. No. 15, Twenty-fourth Congress, second session.]
CIRCULAR FROM THE SECRETARY OF THE TREASURY TO RECEIVERS OF PUBLIC MONEY AND TO THE DEPOSIT BANKS.
TREASURY DEPARTMENT, July 11, 1836.
In consequence of complaints which have been made of frauds, speculations, and monopolies in the purchase of the public lands, and the aid which is said to be given to effect these objects by excessive bank credits and dangerous, if not partial, facilities through bank drafts and bank deposits, and the general evil influence likely to result to the public interests, and especially the safety of the great amount of money in the Treasury, and the sound condition of the currency of the country from the further exchange of the national domain in this manner, and chiefly for bank credits and paper money, the President of the United States has given directions, and you are hereby instructed, after the 15th day of August next, to receive in payment of the public lands nothing except what is directed by the existing laws, viz, gold and silver, and in the proper cases Virginia land scrip: Provided, That till the 15th of December next the same indulgences heretofore extended as to the kind of money received may be continued for any quantity of land not exceeding 320 acres to each purchaser who is an actual settler or bona fide resident in the State where the sales are made.