The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1837-11-03
SPEECH or NIX. WEBSTER,
or MAssAcHUsETrl

on public officers" with the amendment offered
thereto by Mr.. CALHOUN
Mr. WEBSTER addresscd,he Senate as follows:
Ma. PaEsipENr; am opposed to the doctrines Of
the message TO the BILL and to the amendment of the
member from South Carolina, Mr.. Calhoun) In
all these see nothing for the relief of the country;
but do see, as Think, question involved the inn
portance Of which ranscends all the interests of the
present occasion.
II is my purpose to state that questions to present
i as well to the country as TO the Senate; 10 show
the length and breadth of It. question Of practi-
cal politics, and in It's bearing the powers Of the
Government; 10 exhibit its importance and to ex-
press my own opinions in regard to ii.
| short recital of events and occurrences will
show how this question has arisen.
The Government of the United States completed
the f0rtyeighth year of its existence under the pre-
sent Constitution the Sd day of March last During
this whole period II has felt itself bound TO take pro-
| per care OF the currency of the country and no
| administration has admitted this obligation more
clearly or more frequently than the last. For the
fulflment of this acknowledged duty, as well as to
accomplish other useful purposes, National Bank
has been maintained for forty Of these forty-eght
years. Two institutions Of this kind have. been
created by law: one commencing in 1871, and limi-
ted to twenty years and expiring, therefore, in 1911
the other commencing in 1916, with like term of
duration, and ending, therefore, in 1886. Both of
these institutions, each in its time, accomplished
their purposes SO far as currency was concerned TO
the general satisfaction of the country But before
the last bank expired, it had the misfortune to be-
come obnoxious TO the late administration need
not at present speak of the ofthis hostility.
My purpose only requires statement of that fact,
as an important one in the chain of occurrences.
The late Presidents dissatisfaction of the bank
was intimated in his first annual message that is to
say in 1929 But the bank stood very we'll with the
country, the Presidents known and growing hosti-
lily notwithstanding; and in 1882 four years before
its charter was TO expire, both Houses of Congress
passed bill for its continuance; there being in its
favor large majority Of the Senate, and larger
majority of the House of Representatives. The bill,
however was negatived by the President. In 1888
BY an order of the President, the public moneys
were removed from the custody Of the bank and
were deposited with certain selected State banks
This removal was accompanied with the most conf
dent declarations and assurances, put forth in
every form, by the President and Secretary of the
Treasury, that these State banks would not only
prove safe repositories Of the public money but that
they would also furnish the country with as good
a currency as il ever had enioyed and probably
better; and would accomplish all that could be wish
ed in regard to domestic exchanges The substitu-
ton of State banks for National institution, for the
discharge of these duties that operation, which
has become known, and is likely 10 be long remem-
bered, as the experiment"
For some years all was said to go on extremely
well, although it seemed plain enough TO great
part of the community that the system radi-
cally vicious; that its operations were all incon-
venient, clumsy, and wholly inadequate TO the pro-
posed ends and that, sooner or later, there must
be an explosion. The administration, however,
adhered to its experiment. The more it was COM
planned of the louder it was praised Its common
dation was one of the standing topics Of all official
communications and in his last message, in De-
cember, 1886, the late President was more than
usually emphatic upon the great success of his at
tempts to improve the currency, and the happy re-
suits OF the experiment upon the important business
Of exchange But reverse was at hand. The
ripenng glories of the experiment were soon TO meet
dreadful blighting. In The early part of May last,
these banks all stopped payment: This event, of
in fha.
produced also similar embarrassment to the admins
tration .:..#
The present administration was then only two
months old; but it had already become formally
pledged to maintain the policy of that which had
gone before it. The President had avowed his pur-
pose of reading in the footsteps of his predecessor
Here, then, was difficulty. Here was political
knot to be either united or cut. The experiment
had failed and failed as il thought, utterly
and hopelessly, that il could not be tried again
What then, was to be donel Committed against
Bank of the United States in the strongest manner
and the substitute, from which SO much was expect
ed, having disappointed all hopes, what was the ad-
mnstration to do Two distinct classes of duties
had been performed in times past by the Bank of the
United States; one more Immediately to the Govern
ment, the other TO the community. The first was
the saekeepng and the transfer, when required, of
the public moneys; the other the supplying of a
sound and convenient paper currency, of equal Gre
dit all over the country, and every where equivalent
to specie, and the giving the most important fac-
were highly important and their most perfect ac
compIishment by the experiment had been promised
from the first. The State banks, il was declared,
could perform all these duties, and should perform
them. But the experiment came to dshonored
end in the early part of May. The deposite banks,
with the others, stopped payment They could not
render back the deposites; and, so far from being
able to furnish general currency, or 10 assist
changes, purposes, indeed, which they never had
fulfilled with any success their paper became inn
mediatey deprecated, in its local circulation.
What course, then, was the administration now to
adopt2 Why, sir, il is plain that had but one al
tentative. II must either return to the former prac-
tice of the Government, take the currency into its
own hands, and maintain it, as well as provide for
the safe-keeping of the public money by some nst-
tuition of It's own; or else, adopting some new mode
of merely keeping the public money, il must aban-
don all further care over currency and exchange,
| One of these courses became inevitable. The adj
| minisraion had no choice. The State banks could
be tried no more, with the opinion which the admi-
| nistraton now entertained Of them; and how else
could any thing be done to maintain the curren-
cy2 limo way but by the establishment of Nation
| al institution.
There was no escape from the dilemma. One
| course was, to go back to that which the party had
so much condemned; the other to give up The whole
duty and leave the currency to its fate. Between
these two the administration found itself absolutely
obliged to decide; and it has decided and decided
boldly. II was decided to surrender the duty and
abandon the constitution. That decision is before
us, in the message, and in the measures now under
consideration The choice has been made and that
choice in my opinion raises question Of the Ut
most importance to the people of this country, both
for the present and all future time. That question
is cActcr Congress has ought TO hare any day 10
peffoym in relation 10 Tie currency If The country,
beyond Tie mere regulation Of The gold and silrer coin
Mr.. President the honorable member from South
Carolina remarked, the other day. with grea, frank
ness and good humor that, in the political classified
ton of the tines he desired to be considered as
nothing but an honest nullier. That, he said, was
his character believe, sir, the country will readily
concede that character to the honorable gentleman.
For one certainly am willing to say that believe
him to be very honest and very sincere nullifer
using the term in the sense in which he used it