The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1837-10-07

tions when they gravely compare the influence 10
be exercised over institutions like these made indie
pendent TOO, by The very terms OF the law (Which
does no. permit them 10 be discontinued when once
selected as repositories except for special reasons
TO be laid before Congress- with that which would
exist over an army Of fiscal officers subject 10 The
unrestrained orders and removable at the absolute
will of the President.
of this Sub Treasury scheme still remains TO be con-
sidered To my view il has a squirting an lawful
squirting" towards Treasury Baak-a bank un-
der the sovereign and exclusive control of Executive
agents II appears from the repori of the Secretary
OF the Treasury that the contemplated fiscal agen-
cies are TO furnish paper medium" for the com
munity by issniag certificates and drafts payable
in specie to bearer or order, and made receivable
for all public dues" Ater descanting on the ad-
vantages of "this kind OF paper he says " Ii the
demand for seh paper increased, public and private
convenience might be promoted and an equal guam
tity of specie, al the same time, preserved in the
country by receiving Tor this purpose, from any
eaHlHLatioa in the Treasury a sufficient sum- and
placing al feac important and eoarenie,t points
To render greater number Of certificates redeem
able there with the very coin, whose representative
they intended, and honestly ought to be-" These
views of the Secretary are referred TO- and implied
w sanctioned, by the President in his message
Now sir Is not this apparatus TO all ntenis and
purposes, Government Bank. The fundamental
idea Of bank is an institution which issues and
circluates paper credit, founded on deposite of
swer the purposes OF money! This project fulfs
every feature of the definition The officers of the
government are To issue paper credit In the form
OF certificates and drafts, founded on deposite of
specie in the Treasury and Sub Treasures which
paper credit is TO answer the purposes of money
general " circulating medium II Is a remarkable
coincidence that this scheme is the precise embody
ing Of the outline given By Gen, Hamilton in 1871,
of what he describes and avows to be a baRk-a 90
rerRment Bank Such, / believe, is the tendency
and virtual operation of the Sub Treasury scheme.
ask gentlemen, then, if they are willing 10 or
ganse great moneyed machine like this, and put
IT, for all future time in the hands of the Executive
if they willing in the form of fiscal agency to
create Treasury Bank, with its ramifcationS pene-
trating every part OF the Union, TO be managed, di
reced and controlled exclusively BY Executive agents.
To my mind II presents fearful conluncon--re-
aliSing that union between the moneyed and poiti-
cal power Of the country, which rejecting men have
hitherto considered the most fatal of all devices TO
the liberties OF the people. ! have revoved the
subject deeply and anxiously, and can see but two
possible issues to the scheme proposed Il will either
terminate in great Treasury Bank, such as | have
described afording fatal accommodation TO the
moneyed concerns of the country at the expense of
its Liberties, or Otherwise falling in any degree, to
relieve the actual arrangement of the currency-on
the contrary abandoning that currency TO wild dis
order and confusion--,he people, finding the ncon-
veniences of such state OF things no longer tolera
bic, will with voice exored by their snherings,
call for national regulator in the shape of an in
corporated National Bank Either alternative is, TO
my mind, fearful and alarming; but believing one
the other to be the destined result of the scheme
proposed, entreat gentlemen to pause and consider
well the consequences of their decision. MA.
| recur now MIR President, to the question more
particularly involved in the bill ask leave to intro
duce. think have shown sir, that the exaction
of the public dues in gold and silver, while the
great mass of the circulation shall consist of bank
paper, would BE- oppressive in practice-that il is
antrepublican in principle, as drawing an invidious
line of demarcation between the Government and
peope-and, especially, that in the present circum-
stances of the country, would indefinitely reard II
not render impossible that resumption Of specie pay
ments by the banks, which is the great and urgent
object of the public solcitude In considering the
propositions which the occasion has brought forth,
have been stongly reminded of the words of great
man-of one born to serve and instruct mankind.
Speaking Of the province and duties of practical
statesman that great oracle Of political wisdom says,
" A statesman differs from professor in an univer-
sity The latter has only the general view of socie
ty-the former (the statesman) has a number of
circumstances 10 combine with those general ideas,
and to take into consideration. Circumstances are
infinite, and infinitely combined variable and tram
silent; and he who does not take them into considera
ton is not erroneous but mad ,acaphysiedtfy mad.
statesman, never losing sight of principles is to
be guided by circumstances; and Judging contrary
10 The erigeaeies of The moment may ruin has eoantry
for erer." ! ask, sir, is this the moment when The
counhry is weak and suffering, to subject it to the
action of SO violent remedy, Gf remedy it can be
caed) that involved in the proposition to collect
the revenues in gold and silver. Does it show
wise regard to circumstances, at such moment,
when that credit system, under which the country
has grown up to power and greatness, and with
which, for the present at least its most vital interests
are identihed-ata moment when that credit system,
thus incorporated with the country has already sus-
tanned one of the severest shocks to which it has
ever been exposed, is it wise and prudent, say, to
introduce innovation in the fiscal policy of the
Government which aims a fatal blow at that system,
and all the widespread and diversified interests con-
nIal nttn of ion nj he
present moment must BE- as have already shown to
fix upon the country for indefinite period of time,
the of an rredeemable and depreciating paper
currency, Otherwise to force, violently and prema-
turely, an crclSrc metallic circulation, by compelling
the banks once wind up their concerns. But what
would be the consequence of thus compelling the
Banks precipitatelyto wind up their atfars3 They
have vastly more deb:s due to them than they owe.
Compel them, then, 10 wind up, and you turn them
loose or rather drive Them in necessary setdefence,
upon the community. According to the most recent
and authentic statements upon the subject the aggrc-
gate amount of debts due TO the banks is between
four and five hundred millions of dollars. Force
them by your policy to collect this vast sum from the
community, and what wide spread scene Of deSola-
ton, embracing every class of the community, must
ensue! The banks will press upon the importing
merchant, the importing merchant upon the retail
dealer and the latter upon his customers; the aborer,
the mechanic, and the farmer II the result OF this
desolang process should not be, in the language OF
Burke, "the ruin Of the country forever, il would
BE- at least to inict upon it, causelcssly and heed
leSSy, blow, from which recovery could be effected
only through long years of suffering and distress.
stand here, Mr.. President, as no advocate of the
banking system | have been the constant enemy of
its abuses, the correction Of which, by saluary and
progressive reforms, have steadily pursued, with
out aiming however, at the destruction of the system
itself which the country has chosen 10 adopt, and
under which il has hitherto attained prosperity I'M
paralleled in any age or quarter OF the world. The
measure now offer to the consideration of the Sc
nate is, in my humble Judgment one Of the most
effective reform. | have no interest whatever in
banks. | do not own, never have owned, and never
expect to own single share of stock in any bank,
nor do owe debt, even of the smallest amount, 10
q hlnk mention these thinpS. moi because cOnld