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

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held IN view by the present administration and its
friends. The honorable Senator from Massachu sets
(Mr Webster discovered great soictude to know what
is to be the system Of policy Of the new administration
upon this subject have no means Of knowing, Mr..
President, which that gentleman does not equally pos
II is generally supposed however that the COM
ing administration will, III the MAN, conform its policy
to the eAempar OF the present. The inquiry Of the
honorable gentleman, then, may be satisfied, by showing
him what has been the policy Of the present admnista-
ton and that cannot be better stated than in the words
Of venerable and patriotic Chief Magistrate himself
beg the indulgence Of the Senate while read very
unequivoca and explicit passage this subject the
Presidents message OF the last year In that document
he says
" Ii has been that without the agency Of great
moneyed monopoly the can be collected and
venenily and safely applied to all the purposes Of the
public expenditure. is also asceraned that instead Of
being necessarily made promote the evils Of an
checked paper systea, the management of the
can DO made auxiliary TO the reform which the egsla
lures o several OF the states have already commenced
IN regard to the suppression Of small bills and which has
only 20 BE- ostered by proper regulations The part Of Con-
g's 10 secure practical return 10 the erte required for
The secaray Of the currency 10 The constitutional medium
Severed from the government political engines, and
not susceptible of dangerous extension and combination
the state banks will not be tempted will they have the
power WHICH have exercised to divert the public
funds from the legitimate purposes Of the Government
The collection and custody Of the being the
contrary source OF credit 10 them, viii increase the
provide falhlul execution OF
their trusts by multiplying the seyaes to wheh their
operations and accounts will be subjected. Thus dis
posed well from interest the obligations Of their
charters it cannot be doubted that such conditions as
Congress may fit adopt respecting the eposes in
these institutions with TO the gradual dsuse Of the
small bills, will be- cheerfully complied with and that we
shall gain, the place Of the Bank Of the United
States practical rcor in the whole paper system Of
the country II, by this policy, we ultimately wit
the suppression Of all bank bills boo e,ty dollars
it apparent that gold and silver will take their place.
and become the DrinclDlp nfnk in
business OF the farmers and mechanics of the
try. The attainment Of such result viii form an era in
the history OF country which will be dwelt upon with
delight by every friend of its liberty and ndepen.
dence. II will tighten the great tax which paper sys
ten has long collected from the earnings Of labor and
10 10 revive and perpetuac those habits Of econo
my and simplicity which congenal to the charac-
ter OF republicans than all the legislation which has yet
been attempted"
Here we have complete delinealon of the policy Of
the Administrations this great question of The currency
Neither the President, the body Of his friends have
proposed total suppression of bank paper or an
elusive metallic currency; but, to use his own words
they have desired to practical form the bank
ing system by the ultimate suppression Of all bank bills
below isccnfy dollars that gold and silver might
take their place, and become the principal circulating
medium in the coplmon business of the farmers and
chanics of the country" This he expressly declares
would be practical return 10 the extent required for
The security of the currency, TO the constitutional me-
dunn = and the attainment Of which, he adds, will
form IN the history Of country which will be
dwell upon with delight by every friend Of Its ber
" and independence" There nothing in the Treasu-
y Crcl inconsistent with this interpretation OF the
administration. That measure have already said
occasional and temporary act resorted TO under
apecuar emergency, till the power of Congress could
be ntcrposed 10 apply more systematic remedy, and
cannot be considered departure from settled and
general line OF policy On the contrary the Presid ent
in his message at the of the present ses-
expressly to- the suppression OF the lower
denominations OF bank notes by the concurrent legisla
ton OF the General and State Governments, forming
:" the true policy Of the country" by which only :"
larger portion Of the precious metals be infused in
TO our circulating medium" No other plan can be eff
fcctua for the accomplishment of such result and
until it shall be adopted all that may be said, however
glowing and fascinating Of the advantages OF metallic
circulation, VII prove bu, barren theory, and deusve
and unpryTlablc generality You may bring gold and
silver Mo the country and pile them mountains high in
your banks hut without the suppression OF the small
notes they will never circulate in the business OF socie
ty, and will always be exposed to be drawn of by the
absorbing currents of foreign trade Tbs object OF
rational policy is, to bring them into daisy and active
nvgoratng and sustaining the pursuits OF industry
and to have Them like the ancient household relics
described by the poet, wisely kept for show"
The question, then, is by what means in our power
this great object of the suppression OF the small notes
may be promoted or accomplished. II is through the
collection and management Of the public revenue only
that the agency of this Government can at present. be
useiuy lncrposcd. BY refusing to receive, In payment
Of the public dues, the notes Of all banks which shall
issue bills of the lower denominations as is proposed by
the resolution have had tie honor to submit, strong
induceinent Of interest will he held out to the leading
State banks to discontinue their smaller issues. The
consideration of the credit and more general currency
given 10 their paper, by recesabty payment OF the
revenue, would, doubtless, induce less Of them
conform to the standard which shall be established in
this respect by the legislation OF Congress But my re-
lance is much upon The operation OF the measure
per Sc, upon the moral influence it is calculated to
exert upon the policy Of the States They have the
complete power to prohibit by law the emission and
circulation OF the smaller notes and cannot doubt 1t,
If this Government shall hold up TO them standard
deemed indispensable to the Parhcation and reform
OF the currency, that that power WILL IN process OF time
he exercd so as to second aid render etectua the
cy of our legislation here. Have not every
couragemen,, what has already taken place. to hope
for such result 1t is only few years ago that but
three OF the States, according TO Mr. Gaatn Pennsy
wanna Maryland, and Vrgnia) had prohibited the Issue
Of under five dollars But, since that time II has
been the policy OF the General Government, in the col
lection and management of the public revenues to dis
countcnance bank notes under that denomination, And
what has been the result We have the States
by one sncccsslvely conforming to the example, till
majority Of them have prob ibited all bank notes
under the denomination Of five dollars The confidence
c, in the enlightened patriotism OF the State Govern
ments and in the popular intelligence ana virtue which
control them, gives every that appeal
to their operation in great and noble work will
not be IN VAN, especially when they shall have before
them sober and practicable exhibition of the probable
results of the policy in which their concurrence is IN
vcd.
Let US thea inquire wha, is likely to be the extent Of
the cfec, which will he produced the currency by
the prohibition Of al notes under five, ten
and twenty dollars respectively. Mr.. Gaatin, whose
skill in questions of tins universally admitted in
his able pamphlet the currency written IN 1890,
hmated the reduction IN the amount Of the paper clrcu
sion Of all notes under Eve dollars at SIR millions and
that likely 10 be produced by suppression Of the notes
under ten dollars, OF about Sertn millions making
aggregate of huircn i,oaS Of dollars, and equal to
one fifth ofthc whole paper circulation q the country