The Massachusetts spy. [volume] (Worcester [Mass.]) 1831-1858, 1832-10-10
SP.E ECEK
BARRIER. WEBS TIER
IN THE SENATE OF THE U. STATES,
On the Presidents Veto of the Bank Bill,
July IL, 1882.

July IL, 1892.
Mr.. PRESIDENT,
No one will deny the high importance Of the
subject now before lis, Congress, after full delib-
Grafton and discussion has passed a Bill lOr ex-
tending the duration Of the Bank Of the United
States, by decisive malorilles, IN both Houses. 1t
has adopted this measure not until its attention had
been called to the subject in three successive an.
nua mess lges of the President. The bill having
been thus passed by both iiouses, aud having been
duly presented to the Presdcnt,-instead ct sign
ing and approving it, he has returned 1t with
objections. These objections go against the whole
substance OF the law, originally creating the Bank.
They deny in effect, that the Bank is constitution
al they deny that cxpedient, they deny that it is
necessary for the public service.
1t is not to lie douhted that the Constitution
gives the President the power, which he has now
exercised but while the power is admitted, the
grounds upon which it has been eXerted become
tit subjects of examination. The Constitution
makes 1t the duty Of Congress. in cases like this,
to reconsider the measure. which they have pass
ed to weigh the force of the Presidents obiec-
tions to that measure, and 10 take new vote upon
the question
Before tire Senate proceeds to this second vote,
I propose 10 make some remarks upon those OBJ
iections. And in the first place, it is to be observ
ed that they such 20 extlngnish all hope,
that the present Bank any Bank at all re-
sembling it, resembling any known similar in
sttution, can receive his appreciation He
states no TERMS no qualifications, conditions,
nc notifications, which can reconcile him to the
essential provisions of the existing charter He is
against the Bank, and against any bank constituted
in a manner known either to this, or any other
country One advantage, therefore, is certainiy
obtained by presenting him the bill. 1t has cans
ed his sentiments to be made known. There is
no longer any mystery, no longer a contest between
hope and fear, or between those prophets who pre-
dcted Veto and those who ioretold an approval.
The bill is negatved the President has assumed the
responsibility fputting an end tothe Bank and the
country must prepare itself to meet that change In
its concerns, which the expiration OF the charter
will produce Mr. President, will not conceal my
opinion that the affairs of this country ap-
preaching an important and dangerous crisis. At
the very inoment of almost unparalleled general
prosperity, there appears an unaccountaoe dispo-
siton to destroy the most useful and most approx
ed institutions of the government Indeed, it
seems to be in the mids; of all this national happ-
ness, that some are found openly 10 QUESTION the
advantages of the Constitution itself and many
more ready to embarrass the exercise of its Just
power, weaken its authority. and undermine its
foundations. How far these notions may be car
RED il is impossible yet to say. We have before
us the practical result of one Of them. The Bank
has fallen, or is TO ia!.
1t is now certain that without charge in our
public councils this Bank will not be continued.
nor will any other be established, which according
10 the general sense and language of mankind, can
he entitled to the name. When three wears and
nine months from the present moment, the charter
of the Bank expires within that period, therefore,
il must wind up its concerns. 1t must call in its
debts withdraw its bills from circulation, and cease
from all its ordinary operations All this is TO be
done in three years and nine months because, al
though there is provision in the charter, rendering
it lawful to use the corporate name for years a
ter the expiration fthe charter, yet this is allowed
only for the purpose of suits and for the sale OF the
estate belonging to the Bank, and for no other pur
nose whateVer-The whole active business Of the
Bank its custody OF public deposits its transfers of
public MONEYS its dealing in exchange all its loans
and discounts and all its ISSUES of bills for circula
ton must cease and determine, on or before tho
third day of March, 1886; and within the same
period its debts must be collected, as no new con-
tract can be made with 1t, as corporation Tor the
renewal of loans or discount OF notes o: bills, af
ter that time.
The President is of opinion, that this time is
long enough to close the concerns OF the InstItu-
ton without inconvenience. His language is,
the time allowed the Bank to close its concerns
is ample, and if it has been well managed, its
pressure will be light, and heavy only in case its
management has been bad, If, therefore, it shall
produce distress, the fault will be its own" Sir,
this is all no more than general statement, with
out fact or argument to support 1t. we know
what the management OF the Bank mas been, and
we know the present state of its affairs. we can
Judge therefore whether it be probable, that its
capital can be all called in; and the circulation of
its bills withdrawn in three years and nine MONTHS
nv any discretion prudence in management,
without producing distress The Bank has dis
counted literally, in compliance with the wants OF
the community. The amount due to 1t, on loans
and discounts, in certain large divisions of the
country is great; so great, that do not perceive
how any man can believe, that it can be paid,
within the time now limited without distress
Let US look at known facts. Thirty millions OF
the capital of the Bank are now out. on loans and
discounts in the States OF the Mississippi and its
waters ten of these millions on the dIscoun. Of
bills of exchange foreign and domestic, and TWEEN
~ millions loaned on promlssory notes Now, sir,
how is it possible, that this vast amount can be
collected in short period, without suffering,
by anp management whatever Wea'e to remem-
her that when the collection OF this debt begins,
al that same time, the existing medium Of pay
aent that is, the circulation of the bills Of the
Bank will begin also to be restrained, and with
drawn and thus the means of payment must he
limited, lust when the necessity Of making pay
ment becomes pressing. The whole debt is to be
paid and within the same time the whole circula-
tOn Withdrawn.
The local banks where there are such, will be
able to afford little assistance because they them
selves will feel n full share of the pressure. They
will not be in condition TO extend their discounts
but, in all probability obliged to curtai! them.-
Whence, then, are the meals to come Tor paying
this debt, and in what medium is payment 10 be
made 2 II all this may be done, with but slight
pressure on the community, what course OF CON
duct is to accomplish it? How is it to be done
What other thirty millions are to supply the place
of these thirty millions now to be calied What
other circulation, or medium of payment. Is to be
adopted, in the place of the bills Of the Bank
The message, following a singular strain OF argu
ment, which had been used in this House, has
loud lamcntaton upon the suffering of the West
ern States. on account Of their being obliged tt
pay even interest ON this d'.t. This payment o
interest is, ITSELF represented as exhausling the
means and runous {. their prosperity. But if The
interes, cannot be paid without pressure, can hoIi
interest and principal be paid in four years, with
out prcssure1 The truth is, the interest mas beef
pad, is paid, and may continue to be paid, withou
any pressure at all because the money borrowed I
profably employed by those who borrow it, and The
rate Of interest, which they pay, is at least two
Ger cent lower than the actual value Of money il
that part of the country. But TO pay the whole
principal IN less than four years, losing, at thu
came time, the existing and accustomed means AM
facilities Of payment created by the Bank itself
and TO do this without extreme embarrassment