The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1837-08-19
SPEECH OF MR.. RIVES,
or VIRGINIA,

On the eurreneyef The " States, and The collection 81
Me Pubic Repenue,-Deiivered IN The Senate U. s.
| January 10, 1887.
| The following resolution was submitted by Mr. RIVES,
substitute for the resolution Of Mr. Ewing OF Ohio,
proposing to escind the Treasury Order Of July ii,
1886
Resolved That hereafter all sums OF money accruing
or becoming payable to the United States, whether from
customs public lands, taxes, debts otherwise shall be
collected and paid only the legal currency OF the United
States in the Of banks which are payable and
paid demand in the said legal currency under the fol-
lowing restrictions and conditions regard TO such
that is from and after the passage OF this rcsou-
lion, the Of bank which shall issue bills notes
Of less denomination than five dollars, shall be received
in payment of the public dues; from and after the first
day OF July, 1885, the of no bank which shall issue
bills notes of less denomination than ten dollars,
shall be receivable; and from and after the first day OF
july lsfl the like prohibition shall be extended TO the
notes OF all banks issuing bills Of less denomi-
nation than twenty dollars; Propded, horepe That
notes shall be taken IN payment by the collectors or
cevers which the banks which they to he deposit
ed shall not under the supervision and control OF the
Secretary of the Treasury agree to pass to the credit Of
| the United States as cash.
The question being on the adoption Of his subs,i-
| tute-
Mr. RIvEs said that in asking the indulgence Of the
Senate 1t not his design to abuse their patience by
reargung the questions which had already been so fully
and ably discussed in relation to the legality the
policy OF the Treasury Circular Ii was his wish only
to state, somewhat at large than he had yet had
opportunity Of doing, the views under the influence
| Of which he had offered the proposition which now
| pending before the Senate an amendment TO the
resolution OF the Senator from Ohio, (Mr Ewing) In
reference the most important objects OF the Treasury
Circular, he regarded that measure having done its
office and the interests Of the country much
more concerned in the provision shall make for the
future, than in any decision we may pronounce upon
the past. When had the honor, days ago, said
Mr.. r., Embarrassing few remarks to the Senate on
this subject, said what take great pleasure in
repeating, that in whatever different lights the operation
OF the Treasury Circular may have been viewed of
one thing was thoroughly persuaded-that the mo-
tives which had induced the high functonarv at the
head OF the Government to direct the issuing Of it.
in perfect with that elevated and patriotic
| spirit which had consplcuously marked the whole
course Of his public life; and that defect Of legality,
IN estimation, had been shown in the authority
der which it issued. added also, that the
properly to be viewed temporary one, to
continue in operation until the action OF Congress
the whole subject could be obtained and that the Pre-
sident himself shown by the evidence of his mes
sage the commencement of the session. attached no
Importance to its adoption as permanent rule of
policy.
One Of the leading objects Of the Treasury Circular
at the time it was issued to check that tendency
to eStravagant bank issues and bank credits which has
signay marked the history of the last twelve or
eighteen months. But, far that object is concern
ed, the effect will now be produced in manner
not less certain, though by process more gradual
and therefore easier and safer to the community by the
operation Of the depose act No can doubt, Mr.
President that of the chief Of the recent
overacton of the banking system IN this country, is to
be found IN the immense gums OF moneys left IN the
dcposi,e banks and which have been used and traded
| upon by them addition of so much TO their
banking capitals This is a state of things which has
| been eminently pernicous in all its bearings. The
correction of great an'evl formed in my mind
Of the strongest considerations for giving the cordial
| n tot Tho nf tho l,ct
a measure which, however much msconceved or mis-
represented in regard to its true character has in my
opinion conferred upon the country double benefac-
ton of the highest value first in putting out Of the
way of the Government the temptation, whose power
ful influence already beginning to feel, 10
less, eytravagan and anti-repubcan expenditure and
secondly in taking from the deposite banks that gratu
ous and artificial increment Of their capitals, which has
| been main Of the unnatural dlstension of
paper currency and of that nordnae spirit Of specula-
ton, which has prevailed through the country In gra
dually Withdrawing, we doing by the act of
the last session, these large amounts Of the public trea
from the possession Of the depositc banks, and
avoiding, as, trust by wise and provdent legislation
shall do the accumulation of any idle surplus f
ure, the Government will take away the stimulus which
itself has given to the excessive issues and credits of
the banks; and may then hope that under the sau-
ary control Of the laws Of trade they will return with
in those safe, proper and natural limits which the bust
| ness Of the community requires.
While on this branch of the subject, MIR President
| will make ono other observation However neccssa-
~ desirable the contraction Of paper circulation
may be- (f it be indeed, the large which sup
posed by many) it must be borne in mind that there is
no operation more delicate than the reduction OF the
currency OF country decreasing circulating medi-
um agreed alike by the theoretical writers and by
enlightened practical men, is precisely that condition III
the moned affairs OF the community which is the most
critical and distressing 1t transition from high to
| low prices from certain and liberal reward of labor
/ ,LnI
active and prospecting ndusryto general anguor and de-
| preston III all the operations OF business. 1t is a
change 10 which society always adjusts itself slowly and
painfully and under the most favorable circumstances
must be attended with dlsress--otten with extensive
rum. Great caution, therefore, necessary, lest it he
unduy precpa,ed in its progress harshy aggravated
| III its effects We have in the history of our own
country, at period not too remote for the recollection
OF most Of us, memorable example of the distressing
effects OF rapid reduction OF the circulating medium
1t is strkpgly exhibited in all its details in the able
port OF Mr. Crawford then Secretary of the Treasury,
on the currency, in 1920. 1t is there shown that the
circulation Of the country, in three years from 1916 10
1919 had been brought down from 10 millions in the
former to IS millions in the latter making the enor-
nous reduction of SIS millions within that short period
The scene OF widespread ruin and distress, which en-
sued, Is fresh IN the memories of all who witnessed It,
II nculcatcs, at least the necessity Of caution the
ton Of Government, this subject 1t is our duty to
withdraw from the banking operations of the country
that ARTIFICIAL stimnlant which the Government Itself has
administered but that being done, Just policy, in PC
neral requires that the concerns Of trade should be left
TO regulate themselves by their natural remedial
! laws.
Regarding, then, the Treasury Circular as having
mainly done its Office, called upon to
tahlsh some permanent and equal rule for the collection
Of the public 1t is a duty which we cannot
evsde, If we would, In the Join, power which The Con-
stltution invests IN Congress, to clay and collect
our duty is read TO us in terms too significant to be mis-
taken II is much part of the legislative authority
to say in what manner and by what rule the collection Of