The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1837-12-01
SPEECH OF MR.. PRESTON.
(coneludsd.)


bic into seciethus specie made better than the best
note and run is created upon the banks to the extent
of the difference.
I'd, The Government dues are almost million and
half month the demand for this much specie must
necessarily threaten the banks with disastrous run
upon them the moment their doors are opened.
Sd. The prospect of such a state OF things will
make 1t necessary for the banks TO press their debt
ors for the purpose of certifying themselves and
thus the two great creditors Of the country the Go
vernment and the banks, will be pressing the peo-
pie al the same time; the Government compelling
the banks TO this course for the purpose Of trying an
experiment. IL is obvious that, under such circunf
stances, the banks will postpone the resumption If
specie payments, and at length perhaps be driven
to 1t through their and the ruin of the commr
nifty. These are necessary results from the attl
tude OF hostility in which the measures before us
would, II adopted, place the Government and the
banks In such contest, where the Government
from the beginning has been in the wrong and
where its success can be achieved only by wide
spread desolaiion OF the property and prostraon Of
the energies OF the country, cannot wish success
to the Government doubt whether this Govern
ment Is worth TO my constituents what il will cost
them TO make this experiment
II is to be continually borne In mind Mr.. Presi-
dent that the proposed dU0Tce not only contemplates
rejection Of the banks Government agents for the
receipt, custody, or disbursement of public moneys,
but what is OF much more consequence the rejection
Of all State bank paper in the receipt of Government
dues. This last Is the aspect in which have been
considering the proposition; and have shown,
useessly perhaps, how futile pernicous would be
the attempt to substitute specie. say uselessly, per-
haps; because, though specie appears in the BILL and
although hard money-constitution currency-go
and silver are camored through the country, am not
inclined to believe that there half dozen men in
Congress who seriously entertain thoughts ofactually
adopting this absurd policy. 1t is a pretence-a
matter to cant and electioneer upon-in short sir
humbug. No Senator has been able TO get through
speech without suggestion Of paper money Of
some kind or other. To this complexion must we
come at last. Even the Senator from Missouri, the
great propositus of the hard money family, admits
the necessity OF dischargng Government dues by
bills of exchange, drawn from one Subtreasury on
another; which, while they are in transitu between
the place drawn upon, must serve, to certain ex-
tent, circulating medium The actual condition
OF our affairs will show the operation Of this system
AT this moment the largest disbursements Of the Go
vernment are in the Southwest and West-for the
Florida war and for the protection of the Western
frontier the next largest disbursement is for forth
fcations and harbors in the North. Now and at all
times New York is the great point for the collec-
ton of the revenue, there being about as much col
lected there as in the whole OF the United States be-
sides. These heavy disbursements therefore, are TO
be made by bills of exchange upon New York. The
workmen in the North and soldiers in the South will
be paid off by an exchequer bill upon New York,
and this bill circulates until il is presented for pay
ment Until that time il is paper money, and in the
mean time the Government has locked up the spe-
Gle which it represents. The Government receives
its debts in gold and silver and pays its debts in bills
of credit. The gold and silver are buried, and the
bill is in circulation; and this is called the hard
money currency. | shall have occasion BY and by
TO show that this is in truth and in fact banking
system; but my present purpose is merely to show
that il is paper currency convertible into specie in
the city Of New York. The supporters of this
scheme rely upon what they consider a profound
feeling in the community of hostility to bank paper
Think they are mistaken in regard to this feeling.
The practice of this Government and of the States
indicates no suchprejudice. There has been Uni
ted States Bank during eight tenths of the existence
of the Government and there have been State banks
during the whole period; and although the system
has occasionally during times of pressure, been as
sailed by few ardent minds, yet the great onward
current of public opinion has set directly in favor OF
it, There is, however, deep-seated and wise pub
lie opinion, inherited from our ancestors, against
Government paper. We have hardly more vivid
recollection OF the gores of the Revolution than of
the disasters of the Continental money. The heavi-
est penalties of the laws the utmost tension of pub
lie spirit, the devotion which submitted to the en-
campment of Valley Forge and the campaign of the
Jerseys, all put together could not keep up the Go
vernment paper. No Government has been found
strong enough for this purpose The revolutionary
government of France the reign ofterror ITSELF was
not strong enough to create that vital spirit that sub
tile and ethereal essence of all currency, condeace
and for the want of it the assgnats sunk to nothing
although sustained all round by penal statutes. 1t
is because we have not forgotten continental money
because we have not forgotten the assignats that
there is settled hostility in the public mind against
Government paper. But if ii were new matter, in
regard to which we were deprived of that intense
light of experience which, fortunately we possess, a
single view of the proposition would at once con-
denim il forever. It is proposed 10 make this Go
vernment the creator, centre and controller OF the
circulating medium Of the country; to give to il the
power of regulating the price OF every mans pro-
perry, and Of deciding, according to its caprice or
the exigency of party affairs, whether those who
money shall pay it according TO the contract, or
doubled or divided; for the power OF deciding upon
a. 80. .a11 tho
dexterity of debate might retort upon us, is pos
sessed by banks, if they be permitted to exist
But we have the guarantee of their owe inte-
rest that they will be careful how that power is ex
ercsed-their successful operation depending upon
the prosperity of the people, whereas the interest of
party, the desire for spoils and place, have been
found to control the politics the country So deep
y fetis the danger of combining the politics and the
money in the same hands, that all parties have by
turns objected to the measures of their opponents by
stigmatizing them as having this tendency. The
danger ii is Sad of the United States Bank is that
the Government may get control of the money pow
er. The danger OF the pet bank system is, that the
Government may get control of the money power:
and avoid these dangers il is proposed TO give to
the Government at once the whole power TO create
and control the whole money of the country, and this
without the salutary check which all ages have
found to reside exclusively in the convertbiliy Of
paper into specie. This is the great check in the
banking system; check which, to be sure, like all
human restraints, may occasionally prove inopera-
tive, when fraud is stimulated by temptation, or
crime urged by necessity. But have we found an
gels in the shape of Government agents.
We, all know, sir, by what indirect, crooked
means the present administration came into power,
and what prodigious agency the usurped and ilegi-
innate control over the currency had in electng it,
Confer upon il the power of issuing paper money
let Congress assume the power of making it. and do
you believe sir that the country will ever be strong
enough to stand up against lit Will not its present
waning power,-wil not its reeling and rickety
maiorities be revived and increased, and its igno
minious reign, now just about to be closed by the
sentence Of an indignant people be perpetuated until
our institutions perish with the vampires that feed
| upon them2 Let those who look with favor upon
the project of endowing this government with new
/ ~ 80 4 -