The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1837-10-03
SPEECH OF MIR. RIvEs,
OF VIRGINIA,

public reUeHle and 10 0pPosttt0H 10 Ms oHO- iFe"-
surv SeAeas Deferred in che Ssaate Of he United
States i9A Sept, 1887
Ma PRESIDENT
rise in pursuance OF the notice gave yesterday,
To ask leave 10 bring in 81 Bill 70 designate the
funds receivable in payment Of the revenue OF the
United States" Ii will be borne in mind by the Sc
nate that among the most prominent, and certainly
not the least important objects presented both BY the
Presidents Message and the Report OF the Secreta-
nv OF the Treasury, for the immediate attention"
OF Congress at their present session. is the expedi
ency of some Legislative provision defining the cha
racler Of the funds To be received, in future, in dis
charge of the public dues. From the intimate con-
necton between the collection of the public revenue
and the general currency of the country, this ques-
on has, in my estimation, Ear essential bear
ings the great interests of the community man
any which the President has submitted for our de-
liberations. The Committee of Finance, however,
to whom the Message referred, have mol thought
il proper to make any report on thai portion OF ~
and we have been informed by the honorable Chair
man, that il is not their intention TO make any re-
port upon II at the present session II IS ms omis
sion the part of the Committee, that il is the OBJ
ject of my motion now to supply.
The President recommends that henceforward the
whole revenues of the United States shall be col
lected exclusively in gold and silNg. proposition
of SO marked character, emanaiing from source
of such high authority could not fail to excite deep
anxiety in the public mind; and II seemed to me
that all uncertainty in regard 10 the policy OF tie
Government, on SO vital subject, should be prompt
ly settled one way or the other by The action OF the
legislative department II is my misfortune to difer
with the President in his views of the expediency
of this proposition. am firmly convinced that, IN
the actual condition of our circulating medium, and
IN what is likely, for years to come, TO be ITS cond
tion the operation OF such measure would be dis
ressng TO the community injurious to every branch
OF industry and enterprise, and above all, would
postpone indefinitely that return to specie payments
BY the banks which is the great object OF the public
solicitude and ought be the end and aim of de-
liberaons here. Viewing the question in this light,
desired ii should be met with promptitude, cons-
dered with candor, and decided with wisdom.
Since gave notice yesterday, of my motion, two
gentlemen, the Senator from S. G, 4Mr. Calhoun)
and the Senator from Missouri, fdr. Benton) have
submitted propositions intendedlto carry out the
Presidents Recommendation, differing somewhat in
detail but both founded the principle OF rejecting
bank paper altogether in the operations OF the Go
vernment even though Immediately convertible into
specie, and issued by banks Of unquestonable soid
~ Both contemplate, as does the recommendation
OF the President thorough revolution in the policy
and practice of the Government. From the origin
of the Government 1t has been the practice of the
Treasury Department to treat the notes of specie
paying banks as equivalent to specie; and the Joint
resolution Of 1916, expressly placed bank notes con-
vertble into specie, on the same footing with specie
in the fiscal transactions of the Government Ii is
true that under the construction given TO that act by
the law-otfcer of the Government, the late Presi-
dent OF the United States caused an order to be issu
ed requiring payments for public lands to be made
in gold and silver alone, still leaving the other
branch OF the revenue he customs) To be collected
heretofore in the notes of or checks on specie
paying banks. That order understood, at the
time, to be issued for objects purely of temporary
nature, and as such, il may have been salutary
measure. But its continuance as part of the per-
manen policy of the Government, was almost una
nimousy repudated by the voice of the Representa-
lives OF the people and of the States .r..
You well remember, Mr.. President that the dis
cussions to which this subject gave RISE during the
last session of Congress- terminated in the passage
of a BILL by overwhelming malortieS Of both
Houses distinctly re-afirmng the principle of the
joint resolution of 1916 in relation to the receivable
lily Of the notes Of sPecie-paying banks, and con
tanning also the significant provision that, in future
no discrimination should be made between the diff
terent branches of the revenue, to the medium in
which they were to be paid. This bill received the
votes of nine-tenths of the members of this House
and three-fourths of the other Still it did not
become a law. The circumstances under which it
was arrested in the ordinary and regular course,
and which alone prevented it from being the
law of the land, are fresh in the recollection of the
country. will not speak of them, for it is my sin
wish to keep out of the present discussion ev-
cry thing which may awaken unpleasant feelings
But this will say, that act Of legislation was
ever the subject of more wachtul scrutiny, in the
various stages OF its progress-few, if any, have
ever met a fuller discussion, more deliberate
consideration-none, within my experience, has
ever received more unanimous and emphatic as
sent of the bodies by which it was passed. The
country too SO far as have been able TO learn and
have not been inattentive observer of the evil
dences of public sentiment the subject, has re-
Sponded, with general voice of appreciation, to the
decision of Congress, and warmly and cordially
sustained il. II is that measure, thus douby sane
toned, with some notifications suited to the change
of circumstances, that beg leave to present as
compliance with the call of the President on Con-
gress for further legislation believing ii to be adapt
ed to the exigencies of the occasion, well
fu and salutary in its general operation the cur
rency u..."~ WV.
The principles of that bill were these II declared
that the public dues should be collected specie or
in the notes OF specie paying banks, under certain
restrictions in regard to small notes, which were in
tended to operate the suppression, ultimately, but
gradually of all notes under twenty dollars and it
further provided, as / have already stated that in
future no discrimination should be made between the
different branches of the revenue to the funds in
which they were receivable. These principles are
incorporated in the bll | now ask leave to present
and in the very language in which they stood in the
bill of last session. The notifications of that bill
which have made, with reference to existing cir
cumStanceS, are these In contemplation of the con-
tingency, now, highly probable, of an issue of
Treasury notes. | have introduced an alternative
clause, declaring that in addition to specie and the
notes of specie-paying banks, the public dues may
be collected Sin any other medium speciality oatho-
risCd by laB" The other modification has relation
10 the great desderatum of early resumption of
specie payments by the banks and consists in pro-
viso that the notes OF no bank which fails, or
may hereafter fail to redeem its notes in specie shall
at any time be received in discharge Of the public
dues, unless such banks SHALL on or before given
day, have bona hde resumed payment in specie y
The object OF this proyiso is to designate fixed pc
Rod for the resumption of specie payments by the
banks which may serve as a rallyng point TO them
ALL and produce that concert and harmony of move
ment without which this most desirable end cannot
be accomplished. There will b, no difficulty |
think from the data already in our possession or ca
silly attanable, in fixing that period understandingly
and iudiciousy. The mere designation of day by
Congress WILL ITSELF be powerfully operative in ef
fecting the result we aim at You doubtless recol-
1ect Mr. President, what was the effect produced by
similar proceeding in lSl6-I7 BY the Joint reso-
luton of April l6, the Goth of February following
was fixed as the day the resumption OF specie pay
ments by the banks. The banks themselves deter
mined in a formal convention held for the nnrnnSe