The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1837-12-05

longer, especially as things are Intending. The plan
suggested and most ably maintained In debate by
Mr. Riyrs OF Virginia, would, am confident, have
been successful least temporary measure, had
Il been frankly embraced by The administration and
committed for the execution of II, 10 the hands Of
such Secretary of the Treasury us MIR. DALLAS.
Unfortunately one of the most prominent--nay, the
most prominent, the most effective, and for com
peiey successful operation Of the system, In my
opinion the Indispensable Of all the State nsti
tuiions, was laborng under such weight OF preju-
aice ana uhpopuiarity asto put the employment OF It's
agency entirely Out of the question. The disiin-
guished Senator, just mentioned, seemed himself TO
partake OF this hostility and one of our own, adj
hitting, as understand him, that the instrumental
" OF that bank would be eectual TO reestablish the
dlsordered affairs OF the country Tecoed al the idea
oiglypg its presiding officer what he considered as
triumph over the government. This scheme being
mus frustrated, having indeed, been condemned bya
very decisive vote in both Houses il is unnecessary
70 enter into an examination Of its principal features
may be allowed, however, TO mention us provision
for excluding the paper Of all banks which should
mol be able TO resume specie payments on certain
day. TO be specified in the act and that for refusing to
receive In payment OF the public dues the paper Of
any bank that after reasonable period, should con-
tnue 10 issue any notes Of lower denomination than
ten dollars This is a specimen of the manner in
which the federal government, cooperating with the
State Legislatures, may even in It's present imper-
feet state Of its powers in regard 10 this important
subject exercise controlling influence over the
currency.
When speak OF the powers Oh the fedefal no
vernment imperfect allude not only the doubts
entertained by so many public men, (myself among
the rest of the constitulionaiy OF bank OF the
United States, constituted like the two former ones
but Also TO other measures that might be proposed
as substitutes for it, For instance the issuing GER
tain amount OF Treasury notes, not TO be cancelled
when once paid in to the Government, but TO crcu-
late permanently as subsidiary currency, and
means of exchange between the States am fuiiy
aware how very dangerous such power is, and
should not consent 10 exercise II, except IN an ex
treme case, even If had little doubt about us
being vested in Congress as Mr. MADISON repeated
ly expressed. mention il to show you how very
much the difficulties of this perplexing subject are
aggravated by the character Of our instituiions LOT
of the many schemes for improving the currency OF
England, which have been proposed OF late years.
two of the most plausible assume this power 70 exist
in the Government of course, II clearly does exist
in England. There can be do doubt, but that all the
wisdom and ability of the country will be fully task
ed for many years TO come in establishing our paper
issues upon a safe and efficient footing say paper
issues, because have no idea OF It's being pracuca-
BILE very materially to enlarge our metallic currency,
without such change in our State constitutions, In
our mode of doing business, and, indeed, IN inc
habits and character of our people, as are not 70 pc
looked for (nor will add, desired) under present
circumstances. As TO any forced and preeipltate
return rather recourse, (for we never YET have
had any thing that deserved the name OF metallic
currency,) TO gold and silver it would be accompa-
ned if il were possible to effect II suddenly, with
confscation of property and an amount Of misery,
despair, and ruin to which the atrocities OF Roman
prescription, in this respect were mere mercy.
And here will remark, that regarding the preci-
GUS metals as wholly out OF the question in the Unit
ed States for any other purpose or TO any other e3
tent than as test and standard TO prevent excess IN
our paper issues thinking only with alarm and nor.
ror OF any measure or any doctrine thal ihiSh' Sc
duce the popular mind into the adoption OF them as
the whole, or the bulk of the circulating medi-
UNI, cannot and will not consent to try any expert
ment from which such consequence may, oy any
possibility flow. friend OF mine, Tor example,
grave, an enlightened, and good man-asked me
the other day. on my stating to him some OF the pre-
cedng objections to the project of Mr.. WOODBURY.,
whether did not think that the people, II compelled
TO pay specie to the government when they coua get
none from the banks, would become al lenSth SO
much excited against those institutions, as to coerce
them into different course of policy or to destroy
them all. Why, were il not that our people are 100
moral discreet and intelligent to be driven easily 70
extreme courses and were not their interests, as
borrowers too much identified with those OF the
Banks, | should not be very much astonished nsome
such ebuition Of passion did happen to be the frut
of the declarations upon this subject aided py snc9
measures as the SubTreasury exactions And
should such an event occur, should deep-rooted
hostility and distrust in regard to the moneyed IN
stitutions OF the country take possession OF mems
minds il is easy TO see that the consequences would
Be most disastrous Every body at all versed in these
matters knows that few banks can stand, or are from
their very constitution expected to stand a panic,
though 1t be but commercial panic; but against
political panic there is confessedly, no adequate pro-
lection whatever.
But there is cry against corporations as monopo-
lies, at the very moment that our commerce through
the late convention, is crying out Tor Limited part
nershps, which are in effect The very same thing
am moi prepared to say whether is in either case
quite safe to depart altogether from the stern princi-
pie of the common law, which makes every partner
in such concern, responsible for the whole amount
of its transactions. Each stockholder Tor example,
might very well be rendered liable for double or ire
Bile the value of his sharesbut with some such imi-
tation Joint stock companies are altogether lnds-
pensabe to the Southern States, where there is so
little individual capital and enterprise. Even Mr.
HoRsEr.Y PALMER prejudiced as he is against those
companies admits that they are necessary, under
such circumstances. Suppose, then, that the result
ofthe measure question and the declamatior WIN
which il has been ushered in, should be me downai
of all existing banking institutions-what then Are
we prepared for the consequences Have we asked
ourselves what they would probably BET Have we
given the subject SO much as one serious thoughti
Would the precious metals immediately take inc
place Of bank notes? have already spoken 10 that
case tits, and must forever continue TO be, out OF
the question: as long as the Anglo American CONT
nues as he is.
II is much more probable that the vacuum would
at first be filled with paper of all sorts, issued by in
dviduals upon their private responsibility as is
now the fact in parts Of the country with re-
gard to small bills, and as was the case in England,
during the reign of WILLIAM Ill. to which have
already referred. DAvENANT states that the utter
ance of paper SO great (beorc the Bank of Eng
land had issued much or even any "that rents and
taxes were exclusively paid in il, and trade carried
on at home, almost without the show of money"
LOCKE says 'the same thing, and mentions single
goldsmith (for of such were the bankers of that day.
who became insovent having notes and other liabi-
lities out 10 the amount OF 81 ioOOOof
But third resource would be one thoroughly
tried and solemnly condemned by our fathers--blls
Of credit-continental currency Certainly none OF
these three expedents is to be preferred to our pre-
sent system of banking, with such Improvements as
modern experience suggests, and the actual condi-
ton Of society and Of commerce demands. These
improvements mast be made-but they can only be
made in the spirit of cautious and deliberate wisdom,
guided by sincere view TO the good 70 the county.
The concern is too fearfully important, too fanda-