The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1837-10-10

engaged
severe and dubious conflict with the Bank of
the United States, which it had determined 10
overthrow. To do this, il was necessary SO
70 conduct Its operations, that the commerce
ana business OF the country might not be ma.
'eriaiiy shocked, and the senslbilities of the
people excited To effect this, it sought the
aid' and procured the operation, of the late
Deposlte Banks. without whose aid and CO.
operation, have no hesitation in believing
the Bank of the United States would have
trinmphed. Yes, Sir, believe that il would
have successfully resisted even Andrew Jack
son, with all his popularity, his acknowledged
hrmness and courage. The State Banks came
10 The aid of The Government, and the Gopern.
ment triumphed. For this they incurred the
mdying hostility Of the Bank of the United
States, which still pursues them. They in.
Cured the denunciations and prophecies of
evils of the Opposition, who opened upon
them all their batteries This thew with.
stood but in the hour of victory, which thew
so signally contributed to achieve, in the very
first hour of their difficulties and perils. the
psry frieads whom they rescued from defeat,
have taken possession of the batteries of the
enemy, and non pour thick pollies upon their
devoted heads Is this generous Is ii
magnanimous Is it liberal leave YOU,
sir, to give the answer. leave you to deter
mine whether, for causes which makes the
act not only excusable, but justitiable These
institutions are to be utterly annihilated for
their late suspension Of specie payments,
when they have, upon trying occasions, af-
fordcd seasonable relief to the country, and
are entirely solvent
That the State Banks are susceptible of
such regulations as viii secure to the country
sound currency, do not doubt for this is
clearly proved by experience; and tina, the
revenue Of this Government may be so en-
ployed as to be most potent engine in the
accomplishment of such desirable object,
| by the force with which either their hopes or
their fears may be addressed, cannot be rea-
sonably doubted In 1916, when specie paw
ments were suspended, and the evils of
redundant and deranged currency afflicted the
country much more severely than now, Mr.
| Webster, in speech delivered in this House
on 30th April, 1916, expressed himself thus
THAT if these banks, (meaning the State
Banks what engine, he asked, was Congress
to use for remedying the existing evil Their
only legitimate power, he said, was to inter.
dict the paper of such banks as do not pay
specie from being received at the custom
house. With receipt Of forty millions year,
he said, if the Government were faithful 10
itself and the interests Of the people, they
could control the evil, and it was their duty to
make the effort. They should have made j.
long ago, and they ought now TO make it the
evil grows worse by indulgence. II Congress
did not now make stand, and stop the cur
rent whilst they might, would they when the
current grew stronger and stronger, hereafter
do it If this Congress should adjourn with
out attempting remedy, he said, ii would
desert its duty"
| If then, how much more potently could
Congress now operate with the enlarged re.
venues Of the Government Yet Mr. Webster
did not hold over the heads of the banks the
tcrrors of final and eternal separation. Mr..
Biddle, the President Of the Bank Of the
Unhed States in his triennial report to the
stockholders, in 1881, says: "And they 1.-THE
Bank of the United States and branches,)
received freely the notes of solvent State
Banks, with whom periodical and convenient
but certain, settlements of accounts were
made
BY receiving freely the notes Of the State
Banks, within convenient reach Of the bank
and its branches, and by frequent settlements
with them, these institutions are kept in the
habitual presence Of an accountability, which
naturally induces them SO to apportion their
issues to their means as to secure the sound
ness Of the currency"
do not doubt the soundness of an opinion,
SO thoroughly demonstrated by the practice
which fell under the observation Of him who
expressed it; and do not doubt that the Co.
vernment in the employment of its revenues,
and the observance of the same rules, may
through the instrumentality of the state instl
tutions, preserve a sound currency, with much
more success than the United States Bank
did. Frequent periodical, and certain settle
ments are the efficient instruments by which
excessive issues may be avoided, and sound
currency preserved.
Mr.. Chairman, if existing laws, whichpr
hibit the continuance of any deposite bank as
a fiscal agent Of the Government, and the re-
fnsal of their notes in payment Of the public
revenue, had not sufficient terror to prevent
the suspension Of specie payment, how much
more ef1icacious do you suppose the adoption
Of this measure as the permanent law Of the
land, will be in restoring specie payments
so much to be desired, and SO necessary to
the prosperity and tranquility Of the country :!
Sir, it will not only not hasten, but greatly
prolong that important event. During the
suspension Of 1916, Mr.. Dallas, then Secre-
tary oc the Treasury, in his annual report to
Congress Of the Sd Of December, 1916, ex-
pressing his opinion upon this identical sub
ject, and the propriety Of exercising the pow
er Of such restriction, said The successive
attempts made by this department 10 relieve
the administration Of the finances from its
embarrassmenis, have been Intellectual. There
was no magic in mere Treasury instruction
to the collectors Of the revenue, which could