He shows to equally great advantage compared to them in the part taken by him in reference to Jackson's so-called specie circulars. The craze for speculation had affected the sales of public lands, which were increasing at an extraordinary rate, nearly twenty-five million dollars' worth being sold in 1836. As a rule, the payments were made in the notes of irresponsible banks, gotten up in many cases by the land speculators themselves. The sales were running up to five millions a month, with prospect of a boundless increase, so that all the public land bade fair to be converted into inconvertible paper. Benton had foreseen the evil results attending such a change, and, though well aware that he was opposing powerful interests in his own section of the country, had already tried to put a stop to it by law. In his speech he had stated that the unprecedented increase in the sale of public lands was due to the accommodations received by speculators from worthless banks, whose notes in small denominations would be taken to some distant part of the country, whence it would be a long time before they were returned and presented for payment. The speculators, with paper of which the real value was much below par, could outbid settlers and cultivators who could only offer specie, or notes that were its equivalent. He went on to say 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 was the remedy for all these evils."
Benton's reasoning was perfectly sound. The effects on settlers, on the new states, and on the government itself were precisely such as he described, and the proposed remedy was the right one. But his bill failed; for the Whigs, including even Webster, had by this time worked themselves up until they were fairly crazy at the mere mention of paper-money banks.
Jackson, however, not daunted by the fate of the bill, got Benton to draw up a treasury order, and had it issued. This served the same purpose, as it forbade the land-offices to receive anything but gold and silver in payment for land. It was not issued until Congress had adjourned, for fear that body might counteract it by a law; and this was precisely what was attempted at the next session, when a joint resolution was passed rescinding the order, and practically endeavoring to impose the worthless paper currency of the states upon the federal government. Benton stood almost alone in the fight he made against this resolution, although the right of the matter was so plainly on his side. In his speech he foretold clearly the coming of the great financial crisis that was then near at hand. The resolution, however, amounted to nothing, as it turned out, for it was passed so late in the session that the president, by simply withholding his signature from it, was enabled to prevent it from having effect.