The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1837-09-28

require A due proportion OF the precious metals Is
cessary for the nsactng Of the affairs OF every
mercla manufacturing and agricultural nation Of every
quarter Of the glcbe and any attempt TO abstract from
them and maInaii than our proportion s alike
just and mpolitic The truth is the precious metss
should be left fne 70 follow the balance Of trade in
whosesoeyer faysr that may be, and any attempt 10
.'hedge in the cuckoo will not ony DO upavaling but
will be attended with injurious effects. Was gold and
silver like paper currency capable OF being increased
pleasure a continued demand would be met by con-
hnucd supply bot there is limit 10 the extent Of the
precious metals and in corresponding ratio to their
scarcity and their enhanced value, in consequence OF
the depreciation Of the paper currency, will be their de-
mand. This demand will not be the means Of keeping
them in circulation but the contrary, before shown
will tend to their withdrawal. eatat. . III
II these yews are correct It follows that the ends de-
sired cannot be attained by the adoption Of the proposed
measure Ca
Having thus gone over the most prominent Of the
guments in favor OF the measure, and underworld to
show that they are alike nntensbe, will now adduce
lew reasons against its adoption.
That the convenience Of the public is to be regarded
in every measure Of government is proposition which
will not be denied. The message admits it. That it
will be convenient for the government debtors to
pay their dues in the notes Of specie paying banks in
good credit than gold and silver, 10 equally true. The
difficulty experienced in obtaining the small amount Of
specie required for the payment Of postage shows
the truth Of this position the clearest possible light
The message tells that there is between seventy and
eighty millions Of specie IN the country at this time
this 10 not all in the possession Of the banks large
portion Of is left TO circulate among IL then, diff
kculty is experienced now obtaining sufficient specie
for postage, will not the difficulty be increased many
hundred fold when all the dues Of government 10 be
paid in that currency America has the time,
not in her most prosperous days. when the government
debtor could meet his engagements with specie
venently with the notes Of specie paying banks in
good credit 4 ta
Will not the government be as secure, and will it not
be more convenient receive the notes Of specie pay
ing banks in good credit will waive the advantages
Of receiving and dsbursng notes Of large amount over
gold silver, and examine the question in its inn
portan bearings It will be observed that if the govern
men receive nothing but specie, it will be compelled TO
dsburse specie only. As greater portion OF the
revenue will pe collected at the city Of New York than
at any othcr place. will follow that the demand in that
city will continual drain upon the country for
specie present Let suppose then, that the GO
yernment TO pay the Of Ave, ten, twenty thou
sand dollars in distant part Of the Union "a daily trans
action previous to the suspension Of specie
how 10 this specie 70 be conveyed to the point desired
Not through the agency OF the banks most certainly,
even could they be prevailed upon to undertake task SO
onerous for all connexion with them is discarded The
only alternative then that il be conveyed there
BY tho government This has hitherto been done with
entire satisfaction 70 all parties by the banks free Of ex-
pense TO the government But this difficulty is proposed
be obvated in measure, by the issuing OF treasury
drafts which will be received in payment Of government
dues This system will work to admiration il, at the
very nick of time when this payment is to be made,
there should be at the point to which the specie IS to be
conveyed government debtor who had specie on hand
10 the amount Of the draft In such all would 60
well but need not be said that the possibility OF such
happy conspration Of circumstances extremely Fro
blematca Suppose that the Secretary OF the Iressu-
y should issue such draft, and from many Of the ten
ha
ed is the government creditor to be ufed with, and
must he wait until the government shall be enabled to
convey the specie to him The truth is, the treasury
draft system, principle of extended action will as
often fail perform its functions with success 1t will
be injurious If nous TO the creditor, and embar-
rassng TO the operations Of the treasury These evils
would in great be corrected, ii not entirely
avoided, by calling the aid Of the banks As the fiscal
agents Of the they could transact ,a hes y,
themselves and without expense to the government
am not advocating an Union OF bank and state
only endeavorng to show that Is for the interest
Of the government to call in the aid OF the banks upon
occasions like those above alluded to- refusal to
cep OF pay aught but gold silver, will forbid the
government to participate in these benefits.
Blu, consideration Of paramount importance to any
hthero alluded to- that the interest Of the people
connected with the banks orbids its adoption have
before own the effect the operation of this system will
have upon the banks it will deprecate their paper draw
their specie from their vaults or to save themselves and
guard against ruin, they will be compelled to curta
their issues to the amount OF specie they command
or resort to the only alternatives suspension OF specie
payme,ts No bank, no matter how well conducted,
unless It's resources are lmlabe, could hope TO with
stand tie operation Of the system The importance OF
banks to every interest Of the country is so generally
admitted that shall present no argument in their favor
"To dispense with them entirely an idea which seems
to have no advocate, except with few radical SPIRITS
who w,ud ride into wealth and power on the ruins Of
the dearest interests Of their country This proposition
has been hailed by them with triumph it is emphatcal-
" her measure in its adoption they the prospec-
tive postraion OF every banking institution in the land
Shall they be gratfed! Shall "untried experiment"
be adopted viewed its most favorable light of doubt
fu ex,ediency and problenatic success! The country
is not in condition to try experiments Every energy
Of the government and the people should be put forward
to rcsore that confidence which has been destroyed and
to reannate those energies which have been parayzed
K continuance of the system hitherto adopted OF re-
ccying the bills Of specie paying banks in good repue,
in payment Of the revenue, will tend more than any
other plan to the urherance Of this great and absorbing
object II will add new motive to the many which
conspre to render it the object Of the banks to resume
specie payments at the first practical moment while an
opposite course will have opposite tendency Let US
pause then and reflect before give our sanction to
measure which may be attended with lasting evils.
III" MARSHALL.
Albany, Sept. Is, 1887