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

such state of things minister the slightest graiihca7
iion TO me No, sir, my heart dsowns The thought
So far from IT, the contrast would be but new fea-
ure added the Notifying and distressed condition
OF the country and casting reproach upon our insli
tuions which admitted such an unnatural and anti
republican inequality. II any thing could make your
Government calous and indifferent spectator OF the
sufferings of the people, refusing helping hand 10
their relief, and mockng when their fear cometh
on" II would b. 10 place 1t in position like this.
No. sir; whenever the people suffer embarrassment,
embarrassment should be felt by the Government,
that II may be stimulated through experience Of the
common suffering, to do all it can 10 prevent or re-
lieVe that suffering, am for holding the Govern
men in all things TO common Jate with the people,
SO that whatever touches the one, shall be imme-
diately fell by the other Let the condition OF the
Government answer to the condition Of the people,
that the conduct and policy OF the one may, with
equal fidelity reflect the interests and sentiments Of
the other
This, sir, is the principle which has always guided
my views in regard 10 the great question OF the cur
rency No one desires a sound reform ofthc curren-
CIV more than do /; but wish to improve II for the
benefit of the people as well as OF the Government
desire to large infusion Of the precious metals
into the general circulation and business OF the
country and not monopoly OF them by The Go
vernment. This great object can be effected only
by the suppression Of bank notes Of the lower de-
nominations, and not by demanding gold and silver
alone in payment of dues to the Government Let
all notes under twenty dollars be gradually sup
pressed and you will have an abundance OF gold
and silver in common circulation, passing from hand
to hand in the common business OF society. That
will be salutary and benefcent reform ennring TO
the advantage of the great body Of the people, as well
as of the Government; and when il shall have been
accomplished, when gold and silver shall thus have
become the common currency OF the country, You
may, without hardship or injustice, demand payment
of the public dues in the precious metals, But this
most desirable result the general circulation OF gold
and silver in the common business OF life, never can
be effected Gas think have fully shown on another
occason,) without previous suppression OF bank
notes Of the lower denominations. In every scheme
of reforming the currency which looks TO the bene
fit of the people as well as of the Government this Is
the great point 10 be aimed at. 1t was the leading
object Of the measure brought forward during the
last session of Congress- and which then received the
almost unanimous sanction of this House and the
assent of large majority of the other though from
causes TO which have already alluded, II failed to
become law The same measure, in all its essen
tia principles now again submit for the considera-
ton OF the Senate.
The President, sir, in his Message, tells us that
the requision of gold and silver in payment of the
public dues would have a direct tendency TO pro-
duce wider circulation of the precious metals, to
increase the safety Of bank paper and to improve the
general currency" desire to treat the opinions of
the President with all possible respecta respect felt
alike for the individual and the magistrae-but I'M
less have wholly misconceived the elementary
principles which belong to this subject, as well as
their obvious practical operation, it is impossible TO
the collection of the revenue in gold and silver tend
g to widen the circulation of the precious metals ~
II is a well known and invariable law of currency,
that bank notes and coins of the same denomination
cannot circulate together II is in vain, them to at
tempt to ridea the circulation of gold and silver by
any other means than by the suppression Of bank
notes of the lower denominations But, not now to
dwell this view of the subject (Which have fully
developed and enforced elsewhere maintain that
the collection Of the public revenue in gold and sill
ver while the common currency OF the country con-
ssts of bank paper, instead Of cideniag tie circaa-
ti0n of hose metals, would have the effect of taking
them out of general circulation altogether In the
remarks have already made, / think it has been
satisfactorily shown, that the necessary effect of this
policy would be to cause gold and silver to bear a
premium. Bearing PREMIUM they would not cir-
cuate currency at all, but would be at once, con-
verted into an article OF merchandise. The public
debor would bny them of the broker to pay his dues
to the government; and when paid out TO the public
creditor, he would go and sell them again to the
broker Instead of entering into circulation all OF
them that were seen would be restricted to this
row round of traffic, while the great mass of them
would be withdrawn from public view as well as
use. ..E r.. ..a. ,....
Then, sir, as to the tendency Of this policy to
increase the safety of bank paper" would You
increase the safety of bank paper by absracting
the fund for its redemption Yet such would be the
plain operation Of this policy. The Secretary Of
the Treasury has referred to the condition Of the
Treasury in 1884, as afording general average to
illustrate the operation of the financial system
he proposes In looking at the Treasury statement
for that year. find that the average amount of pub
lie moneys deposite in the city of New York, dur
ing that year, was about five millions while the
whole amount of specie in the banks of the city
was about two mil ions. Taking this as fair ave-
rage for that city, what would be the influence of
this new policy of collecting the public dues in gold
and silver, on the safety of bank paper there! Where
would you get the five millions of specie to meet
this demand for the public revenue? II is evident
the banks would be drained by it of their stock of
the precious metals and the community would thus
be deprived of the security on which they relied for
the soundness of the bank paper held by them The
improvement of the general currency" then, which
the President anticipates the result of the policy
he proposes, would unless the principles heretofore
received incontestibe truths on the subject of the
currency be utter failaceS amount to this that the
precious metals would no longer form part of the
general circulatonthat they would cease to be cur
rency and become mere articles of merchandise, to
be Obtained only at premium and that the specie
basis on which the soundneSs and safety Of bank
paper so mainly depend, would henceforward, to
great extent, be Withdrawn and m onopolized by the
Government .t..
But has been said, and regret to perceive that
the idea is countenanced by the high authority of
the President that the general currency of the coun
try is matter with which this Government has no
thing TO do-ihat its duties confined to the exer-
else of the coinage power and the collection of its
own revenues in gold and silver-and that the gene
raj circulating medium of the country must be en-
trey abandoned TO the separate and often conflicting
control of the individual states. Now, sir, as my
opinions differ alike from this view of the subject,
and from that urged few days ago, by the Senator
from Massachusetts, CHR. Webster,) | beg leave to
state briefly what they are. The whole history of
the formation of the constitution, well as the in
ternal evidence of its provisions prove beyond ques
ton, that the trainers of that instrument intended
that there should be currency for the Union
and not as many different currencies as there are
states" They, doubtless, believed that that
cy would consist almost entirely of gold and silver.
There were but two banks then in existence, whose
issues formed an exceedingly small part of the ge
neral circulation. They no more foresaw that i'm
mense multiplication Of banks, which has made
bank paper he actual currency Of the country, than
they foresaw the two great discoveries of the age
Steamboats, and ralroads-which have had so extra