The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1837-08-19

nv,
give 6s millions or (for the sake Of roundnumbsrs.
and TO compensate liberal deductions made sboye) 10
miiioHs 81 gold and sper IN aeiipe eireuLaiion-not
damned up and sagnating in the Golfers Of the banks
but spread over the land, gatng, refreshing and fer
ullzng the whole country.
Such, Mr.. President, would be the sohd and practical
result OF the ultimate suppression Of oil bank bills under
the denomination Of twenty dollars. Il would give 10
the country nearly half OF It's whole circulation in
IN the precious metals, forming solid and uniaing fund
for tbs payment Of labor for the buying and selling Of
the necessares Of life for the great Of daily trans
actions including the and interests Of the farmer,
the mechanic, and the tradesman while the other hsh
would consist of an improved paper currency for tho
use and accommodation Of the merchant, aud for the
larger operations Of trade and business, would ask
gentlemen if such result is not consummaton de-
voutly to be wished" Would it not in the glowing
and patriotic language Of the President, form
IN the history Of the country which would be dweltupon
with delight by every true fead oil its liberty and IN
dependenceW And can we suppose that the enlghten-
ed Legislatures OF the States, in the view 81 such
suit, pregnant with consequences important to the
safety, the prosperity, and the morals of the whole
munity and especially the interests Of those
and industrious classes which form the basis and
support OF our republican system, could be deaf 70
the united call of patriotism and wisdom, not to lend
their cooperation in so great and salutary reform!
For myself, Mr. President, feel cheering confidence
that they viii give helping and efficient hand to this
great work. The legislature Of my own State is now
engaged in revising her banking system, and console
myself the belief that she will be among the foremost
to vindcate the wisdom and patriotism Of the State
councils from distrust by heartily sseondng in her le-
gislaton the sunject. efforts here establish
sound currency for the country.
But sir till by the suppression Of the small notes the
circulation Of the country has become better filled with
the precious metals do not think it would consist with
ust wse and patcrnal policy the part OF the Co.
vernment exact payment Of its dues in specie excu-
svely II could not be done without great hardship to
the public debtor and extensive distress and embar-
rasslnent to the whole community To demonstrate
this, nothing more is necessary than to compare the
amount OF specie IN circulation with the amount OF the
revenue for it is conceded now, that if payment Of one
branch Of The revenue be required by any permanent
regulation to be made in specie, all ought TO be paid IN
specie. According TO the estimate OF the Secretary Of
the Treasury (Which appears TO me very liberal one)
the whole amount OF specie III circulation does not ex-
coed twenty eight millions Of dollars. The revenue
during the last year amounted to foryseven millions;
and perhaps, with all efforts TO reduce it, 1t may still
not fan shor, of thirty millions. There weud then BIO
thirty millions of dollars to be paid to the Government,
out Of circulation Of twenty-eight millions To con-
front the tive is to show the temerity II not tho
impossibity, of the attempt. If the public debtors
should be thrown upon the banks for large Of
specie not to be had from the circulation of the
try, no be at loss TO perceive to what dis
the business relations and pecunay
of the whole community would be embarrassed
and deranged. Ard how much Of specie, permit me to
ask would remain for that immense Of payments
in private transactions, which, according to practical
estimate made by Mr. Gaatn, in reference to the reye
collected and the business DONE in the city New
York, exceeds more than fly times the payments to
the Government! Nothing, therefore, be clearer
than THAT attempt with present limited metallic
circulation to collect the public revenue IN specie alone,
would be distressing to the last degree, and could not
abide the test Of that public Judgment without whose
appreciation 10 system OF policy oaghtte stand.
The honorable Senator from Missouri, (Nfr. Benton,)
in the able speech made by him in the opening OF this
discussionv-a speech which does hun great credit not
only for the extent and variety Of the research displayed
by him. but for the force and ability with which he H.
Illustrated his views, (Y Of which it is my mis-
fortune to differ from hfn)-brough to the notice Of
the Senate from the evidence taken before the Com
mt,ee Of Secrecy OF the House Of Commons on tho
Bank of England charter in 1882 the of banker
at Manchester whe paid out in the Of the year,
about millions Of dollars in specie to the operatives
OF that place But this was done in, country which,
as have already shown, possesses actual circulating
metallic currency OF hundred and fifty millions Of
dollars, whereas metallic circulation is but twenty
eight millions! The examination Of Mr.. Samuel James
Lloyd (the banker referred 10Y this point, is in
sructive itself, and strkingly Illustrative of tho
arguments have advanced that beg leave read tho
whole of that portion Of it to the Senate, the form Of
question and answer in which 1t is reported:
"Question You are aware that great amount Of spe-
Gle required every week for the payment OF wages at
Manchester '
Anstce very large amount.
A. No, cannot but so far as regards the issue Of
house, should say that upon the average we pay
about $4,000 sorereigns week.
O. Is that fresh supply Of sovcregns in each week,
do you obtain ii from the circulation Of the place
We REQUIRE a continual fresh supply, but not To
tina, extent think the fresh supply requisite
rage something less than 10000 a week.
O. Before the abolition OF the II notes. were those
payments generally made in II notes !!
A. Entirely.
O. Was the amour, then about the same?
O. You say that about IS 600 week is What you arc
called upon altogether pay and that about $4,000
back into your hands hat do you appehend becomes
OF the remaining 10000 soveregnsi
4, When the II notes were in circulation, we could
pretty accurately, and believe the course to be
the with the sovercigns they are paid Principally
in wages The work people lay them out IN clothing
and provisions and those sovereigns pass to the prov
dealers and thence into the districts from which
the provisions supplied the soveregns then pass m
the hands of country bankers in those DISTRICTS who
either send up London return them 10 Machestsr, AZ
may be most convenient TO them.
O. 1t does follow, then, because you are obliged
10 have 600 soveeigns from the branch bank Chat
branch Of the Bank of England) that the amount OF the
circulation in Manchester continually increasing at the
rate OF 10000 week
A. No. do not apprehend it is increasing at all"
Now SIR let US see how these large payments in spe.
Gle in Manchester made. Mr.. Lloyd says express
w. that of the 25, 900 sovereigns week paid out by
him, ZOO Of them obtained from the circulation
Of the place. as, through that channel they regularly
come back his hands that he requires fresh sup
ply of about 900 soveregns week. from the bank;
but these ten thousand soveregns also constantly
returning the bank from the circulation Of the coun-
try They frs, paid by the work people to the pro-
vision dealers then, by the provision dealers to the
farmers Of whom they procure their supplies from
the farmers they pass into the hands Of the country
bankers who either return them TO the branch bank at
Manchester or, what is the same thing in effect, send
them up to the parent bank at London. Thus, the
whole amount Of these specie payments is supplied by
the actual circulating medium Of the conntry-a thing
easy and convenient enough, and perfectly NATURAL.
where the Of gold and silver in daily and active
circulation is $50 900, 900 Of dollars, To make largo