The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1837-10-03
SENATE.


SENATE.
MONDAY, October ?.
Several petitions were presented by Mr.. MoK-
RlS and Mr.. ALLEN demonstrating against the
admission Of Texas.
suB-TREAsURY SYSTEM
The Senate resumed the consideration of the bill
imposing additional duties repositories in certain
cases on public officers
Mr. PRESTON gave notice that, at the proper
time he should move amendment to the bill, TO
make the State Banks the special repositories OF the
public revenue.
Mr.. BAYARD adverted to the great importance
of the crisis and the various measures proposed 10
meet it, He looked at these measures as made
ouate to supply remedy The idea OF pure me-
tallic currency he regarded as too visionary to be
entertained by any Senator; and the only difference
of upinion was as to the ratio Of its adm1xture with
paper currency The practical effect of Danish
ing all notes under ten dollars would Danish one
half of the paper circulation and the Punishment OF
all notes under twenty dollars would extinguish two
thirds of the paper circulation He sustained these
statements by reference to official expoSitlons
which had been made The circulation OF this
country is l20 millions in paper and AZ millions in
specie. Gold and silver is the standard OF value
the world, and paper in proportion to its nu-
lnerica amount, in mixed currency will expel the
coin unless restricted, because certain amount OF
silver alone is necessary for the purposes and wants
of society. He quoted some portions of Mr.. Bent
ons speeches sustaining and enforcing this seni-
ment The coin emanates from the Government,
and the Banks furnish the paper. How then can
the Government divorce itself from the banks, when
the reductve power of the government is absolutely
necessary to restrict the paper circulation and pre-
vent it from expelling the coin. In reference to
our present condition he said il was apparent that
there is an nconvertble paper currency for"the
people, while the Government is attempting to es
tabliSh metallic currency for itself. He asserted
that it is the duty of Government to furnish sound
IF raip nd 10 nare IN he
pie. Government acting under trust powers is
bound to furnish this coin and convertible paper
not for ITSELF but for the whole people and this can
only be done by regulating and restraining the banks
which issue the paper. How is this to be done if
we divorce ourselves from, and Danish the banks.
The proposition of Mr. Rves was good as to its OBJ
ject but defective as TO the means by which II
proposes to accomplish the object The most ef-
fectua mode of restricting the paper was by
bank of the u States and in the absence of such an
institution the effectual mode would be by di-
rect taSation-by affixing stamp duty to bank
notes. There could be no dispute as to the power
of Congress to do this. II being the first duty OF
Government to produce and maintain sound cur
rency the power of taxing in order TO kcarry into
effect that greater power must be conceded
He remarked that commercial distress was caused
by speculation and overtrading. The present din
cultes originated in New Orleans, where great
loans had been made to planters to enable them to
purchase land. The cause of the hostility to the
banks he found in the desire to throw out some food
Emperor Napoleon something new must be done
every three months; if you stand still you are I'm
done. He quoted from speech OF Mr.. Calhoun, 10
show that that Senator had not always entertained
the same opinions on this subject as those ne had now
expressed to show the practical effect OF the new
scheme, he turned TO the Executive Documents oil
last session. and reminded the Senate of the case of
the receiver of the Land Office al Fort Wayne who
instead of holding only thirty thousand, had hve
hundred and forty thousand dollars of public money
in his possession. He read the reasons which were
given to excuse this officer for not having deposited
single dollar of the public money from March to
June. Examination was made into the causes OF
this neglect and il was explained that the press OF
business and the difficulty of transporting silver,
had prevented the officer from making deposites.
But It appeared that there had prevailed practice
of shaving money, current money was received and
uncurrent money exchanged, the profits being for
the officer himself This fact shows that the suppo
Son of the President that control would be exer-
ciSed these officers, and the funds in their Gus
todv, is without foundation. The security OF the
funds in the hands of these officers is not therefore
SO great as its security in the banks He desir
cd to draw the attention of the Senate to the polit
cal influence which may be exerted in this way. In
the letter of the Commissioners who was appointed
to examine the matter, 1t is stated that the reno
val of this officer might cause some excitement,
therefore it was better to let ii be- Mr. Woodbury. S
letter in repy saws that the reasons of this officer
would probably be- satisfactory. Among the reasons
of this officer this that his democratic friends
IL
for President coming The money in his
hands might probably be useful in promoting the
suit of that election which was desired.
He then referred TO the balances in the hands of
poStmaSters. He particularly referred to the case of
F. P. Blair, Of the securities Of postmaster at
Frankfort This person was editor OF the Globe
and there is note in which the department gravely
tells us that in December 1885 that the parties could
moi be found; although il about that time this
Mr. Blair was daily in the habit Of being at the de-
partment and was printer TO the other House vet
the official eye of the department could not see him
He quoted this merely to show the abuses to which
the ub-Treasury system would be subjected
Mr. CALHOUN made explanation to free him
self from the charge of inconsistency.
On the suggestion of Mr. GRUMPY the bill was
then informally passed over, while bill to limit the
fees be taken in the extension of merchants bonds
was read a second time.
After some short explanation from Mr.. GRUN-
DY '.. ..s.".
Mr.. WEBSTER said this bill did not reach the
evil There was some process by which the aitor-
nev las he had been informed, and as he bclievcd)
made a greater income than the law allowed to the
President of the Unied States and that clerks made
annually what would pay the salary of the Chiei
Justice three times over. He hoped some Just limit
would be imposed.
Mr.. GUNDY said the bill contained all that the
resolution authorized, although he believed the sub
Jcct required a close examination.
Mr., WEBSTER moved an amendment allowing
twenty days 10 the merchant to file his bond with
out any additional cost above five dollars
On motion OF MIR. BUCHANAN, the further