The issue of the Treasury order, known as the "Specie Circular," was one of the events which marked the foresight, the decision, and the invincible firmness of General Jackson. It was issued immediately after the adjournment of Congress, and would have been issued before the adjournment, except for the fear that Congress would counteract it by law. It was an order to all the land-offices to reject paper money, and receive nothing but gold and silver in payment of the public lands; and was issued under the authority of the resolution of the year 1816 which, in giving the Secretary of the Treasury discretionary authority to receive the notes of specie paying banks in revenue payments, gave him also the right to reject them. The number of these banks had now become so great, the quantity of notes issued so enormous, the facility of obtaining loans so universal, and the temptation to converting shadowy paper into real estate, so tempting, that the rising streams of paper from seven hundred and fifty banks took their course towards the new States, seat of the public domain—discharging in accumulated volume there collected torrents upon the different land-offices. The sales were running up to five millions a month, with the prospect of unbounded increase after the rise of Congress; and it was this increase from the land sales which made that surplus which the constitution had been burlesqued to divide among the States. And there was no limit to this conversion of public land into inconvertible paper. In the custom-house branch of the revenue there was a limit in the amount to be received—limited by the amount of duties to be paid: but in the land-office branch there was no limit. It was therefore at that point that the remedy was wanted; and, for that reason, the "Specie Circular" was limited in its application to the land-offices; and totally forbade the sale of the public lands for any thing but hard money. It was an order of incalculable value to the United States, and issued by President Jackson in known disregard of the will both of the majority of Congress and of his cabinet.

Before the adjournment of Congress, and in concert with the President, the author of this View had attempted to get an act of Congress to stop the evil; and in support of his motion to that effect gave his opinion of the evil itself, and of the benefits which would result from its suppression. He said:

"He was able to inform the Senate how it happened that the sales of the public lands had deceived all calculations, and run up from four millions a year to five millions a quarter; it was this: speculators went to banks, borrowed five, ten, twenty, fifty thousand dollars in paper, in small notes, usually under twenty dollars, and engaged to carry off these notes to a great distance, sometimes five hundred or a thousand miles; and there laid them out for public lands. Being land-office money, they would circulate in the country; many of these small notes would never return at all, and their loss would be a clear gain to the bank; others would not return for a long time; and the bank would draw interest on them for years before they had to redeem them. Thus speculators, loaded with paper, would outbid settlers and cultivators, who had no undue accommodations from banks, and who had nothing but specie to give for lands, or the notes which were its real equivalent. Mr. B. said that, living in a new State, it came within his knowledge that such accommodations as he had mentioned were the main cause of the excessive sales which had taken place in the public lands, and that the effect was equally injurious to every interest concerned—except the banks and the speculators: it was injurious to the treasury, which was filling up with paper; to the new States, which were flooded with paper; and to settlers and cultivators, who were outbid by speculators, loaded with this borrowed paper. A return to specie payments for lands is the remedy for all these evils."

Having exposed the evil, and that to the country generally as well as to the federal treasury, Mr. B. went on to give his opinion of the benefits of suppressing it; and said:

"It would put an end to every complaint now connected with the subject, and have a beneficial effect upon every public and private interest. Upon the federal government its effect would be to check the unnatural sale of the public lands to speculators for paper; it would throw the speculators out of market, limit the sales to settlers and cultivators, stop the swelling increases of paper surpluses in the treasury, put an end to all projects for disposing of surpluses; and relieve all anxiety for the fate of the public moneys in the deposit banks. Upon the new States, where the public lands are situated, its effects would be most auspicious. It would stop the flood of paper with which they are inundated, and bring in a steady stream of gold and silver in its place. It would give them a hard-money currency, and especially a share of the gold currency; for every emigrant could then carry gold to the country. Upon the settler and cultivator who wished to purchase land its effect would be peculiarly advantageous. He would be relieved from the competition of speculators; he would not have to contend with those who received undue accommodations at banks, and came to the land-offices loaded with bales of bank notes which they had borrowed upon condition of carrying them far away, and turning them loose where many would be lost, and never get back to the bank that issued them. All these and many other good effects would thus be produced, and no hardship or evil of any kind could accrue to the meritorious part of the country; for the settler and cultivator who wishes to buy land for use, or for a settlement for his children, or to increase his farm, would have no difficulty in getting hard money to make his purchase. He has no undue accommodations from banks. He has no paper but what is good; such as he can readily convert into specie. To him the exaction of specie payments from all purchasers would be a rule of equality, which would enable him to purchase what he needs without competition with fictitious and borrowed capital."

Mr. B. gave a view of the actual condition of the paper currency, which he described as hideous and appalling, doomed to a catastrophe; and he advised every prudent man, as well as the government, to fly from its embrace. His voice, and his warning, answered no purpose. He got no support for his motion. A few friends were willing to stand by him, but the opposition senators stood out in unbroken front against it, reinforced largely by the friends of the administration: but it is in vain to attribute the whole opposition to the measure merely to the mistaken opinions of friends, and the resentful policy of foes. There was another cause operating to the same effect; and the truth of history requires it to be told. There were many members of Congress engaged in these land speculations, upon loans of bank paper; and who were unwilling to see a sudden termination of so profitable a game. The rejection of the bill it was thought would be sufficient; and on the news of it the speculation redoubled its activity. But there was a remedy in reserve for the cure of the evil which they had not foreseen, and which was applied the moment that Congress was gone. Jackson was still President! and he had the nerve which the occasion required. He saw the public lands fleeting away—saw that Congress would not interfere—and knew the majority of his cabinet to be against his interference. He did as he had often done in councils of war—called the council together to hear a decision. He summoned his cabinet—laid the case before them—heard the majority of adverse opinions:—and directed the order to issue. His private Secretary, Mr. Donelson, was directed to prepare a draught of the order. The author of this View was all the while in the office of this private Secretary. Mr. Donelson came to him, with the President's decision, and requested him to draw up the order. It was done—the rough draught carried back to the council—put into official form—signed—issued. It was a second edition of the removal of the deposits scene, and made an immense sensation. The disappointed speculators raged. Congress was considered insulted, the cabinet defied, the banks disgraced. But the vindication of the measure soon came, in the discovery of the fact, that some tens of millions of this bank paper was on its way to the land-offices to be changed into land—when overtaken by this fatal "Specie Circular," and turned back to the sources from which it came.