The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1837-10-14
Conclud d.

.- (C0ncluded) ..-
Having thus Mr.. Chairman, attempted to prove
the safety and capacity of the Stale Banks as fiscal
and commercial agents, shown their present solven-
cy, indicated the propricy and necessity of their
course in suspending specie payments and urged my
objections to The Sub Treasury schemc, will now
offer to the committee few brief remarks in sup
port of the proposition which, by the kind Indulgence
of the House have had the honor of laying before
The scheme which have presented is substantial
" the currency bill" which passed both Houses of
Congress at the late session of Congress, and which
was retained by the late President under the appre
hension that its construction might require the inter-
vention of the Judiciary, on account OF some sup
posed ambiguity in its language. The substantial
features OF this BILL requires the notes Of all specie
pairing banks to be received in payment OF the public
revenues, whether derived from foreign importa-
TONS public lands any other source and restricts
any distinction between different branches of the re-
venue hnd for the purpose of charging the specie
circulation of the country by such gradual process
as TO prevent any shock in the business and com
of the country II provides that the notes of
specie paying banks shall be received which shall
not Immediately discontinue the issue and crcua-
ton of all notes under five dollars and at given pc
RODS thereafter all notes under ten and twenty dol
lars Ii also provides for the continuance of such of
the present deposite banks sound and in good
credit, repositories of the public money. upon the
condition of atfording such coat raj security the
:
sound discretion, may prescribe This bill only pre-
sents the general features of scheme which may be
matured by amendments adapted to the present en-
barrasSed and emergent condition of the country.
This bill also proposes restriction OF the number
of State Banks 70 be continued as repositories of the
public money within such bounds as to make il their
interest adopt the measures Of reform in the cur
rency which experience has proved to be necessary
for its extension its credit and its soundness This
number will be the discretion of Congress This
plan had the countenance and was recommended by
the late administration well as by the present Sc
cretarv of the Treasury. II was earnestly and re-
peatedv urged, and many of the states have adapted
their legislation to its principles and that there is
now no Just cause for its abandonment-nor has the
present state OF things stripped it Of any of its adj
vanlages or benefits. l think have satisfactorily
proved unless il be necessary to the correctness OF
the system that banking institutions should be tndt
lbls and conducted by inailbie men, which is unat-
tainable
In presenting this scheme Ihave done it under the
impression which seems generally prevail thatthe
banking institutions of the country would not be
Abandoned and that their notes under those modiii-
cations and restrictions which experience might
from time to time prove to be necessary, would con-
sue material part of the currency Of the country.
If this impression be true, and notes of banks shall
continue TO constitute material part ot the currency
of the country regard il strictly proper and in
deed necessary that the Federal Government should
so regulate its actions in reference to the currency,
which the states in the exercise OF their sovereign
rights have thrown into circulation, as TO give TO
il as much credit and soundness possible because
by such course the intercourse between the states
will be more regular more uniform, more harrnonl-
GUS more convenient and more cordial But II IS
said by some that Congress has no constitutional
power 10 legamize bank notes so far as to compel
the Government 10 receive them Sir, this notion is
Of modern origin, and is opposed to the principles
upon which this Government has acted from almost
lis foundation. II is true this Government has no
power To emit paper money, II can make nothing but
metal money for that is the standard ot value OF
the world. But there is material distinction be-
tween eoiaiHg money and receiving public dues
do not any constitutional restriction upon the Go
yernmeni in receiving promise To pay IN banK
note or in a merchants bond | do not doubt the
power Of the Government 10 receive its dues IN any
thing may deem most expedient and such has been
lis constant and undertaking practice
The bill which have submitted, proposes also ~
enlarge the specie circulation oil The country, py
gradually retiring the notes of smaller denomination
and introducing in their stead, metallic clrcnia-
ton This, SIT, Propose step BY step TO DO, unui he
metallic circulation shall be enlarged as to con-
ine the material paper circulation TO their legitimate
sp4eyr commercial transactions And until the me
tallic basis shall such relation 10 the paper
circulation as 10 secure without difficulty, the con
ycriihility Of the paper into specie II is an admit
ted principle that NOES and coin OF the same demo
niHatiou will not circulate together. The superior
value Of the coin makes Il n subject OF commerce,
aud Il always seeks distant employment, when there
Is local and less valuable currency to supply IT'S
local circulation The plan which propose seeks
prevent this effect by restricting the circulation oil
NOES an amount above the denomination OF any
coin in circulation, so To that amount, To render
coin indispensable. and il by the operation OF this
plan il shall b. found expedient still farther to re-
strict bank notes, Il can b. done by the aid OF that
experience, which the progress of the plan WI I'M
fold, which will b. sure guide 10 truth In the
discussion of this subject shall not find 1t necessa
~ TO do much more than ref to the experience oil
two Of the most commercial nations Of the world,
Great Britain and France, and the opinions OF some