The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1837-12-01

on as every other individual in tho community con-
tent 10 do they would have received their quarter sala
ries usual and the disbursements OF the Government
would have been made usual but he thought proper
TO issue sort Of circular to Office holders, he had
formerly done 10 receivers, virtually enloining them 10
receive nothing but specie, and putting them plan
by which they might enhance their salaries, by traffic
in dishonored Government paper. IL was in lhls way
that preiext was obtained for this second removal Of
the depositcs and for declaration Of against tho
State Banks, formerly against the United States
Bank But for this ingenious device, this stroke OF
financial diplomacy sir, in all probability should not
have been here and by the regular meeting Of Congress-
renewed prosperity returning confidence, and the GER
talniy oil an early resumption Of specie payments might
have spared Us the anxious deliberations which now OPP
press u.s. The country conscious OF its own immense
resources and con6ding own vast energies would
have now been looking for the natural dawn Of
day, but that the Government nteposed its huge and
darkening bulk, not only giving no light itself, but in
erceptng that which otherwise would have been cheer
ing US now. Itw competent to the administration to
have sustained and kept alive the wounded confidence
OF the country by the easiest method in the world If its
purpose had not been other than the counis good. II
the President had recalled the Treasury order in
pliance with the wish Of Congress- he had said word
Of kindness towards the banks if he had disayowed his
imputed hostility to credit and commerce, aud chartered
rights, If above ALL he had forbome urge the wild and
impaclcabe theories of his Message the natural springs
of prosperity would before have begun to de-
yeope their recovered elasticity and believe sir that
even now, if we would adjourn to day, and go home,
having done nothing, shall assemble at the consu
tona tme under auspices much better than the pre-
sent that very few will be disposed to TO the des-
perate surgery recommended in the message.
Let me, MIR. President, put a not improbable case
suppose we assemble here, and find the banks paying
specie, upon the Of doing sowill any then
propose repeal the Joint resolution Of 1885, for the
purpose Of rejecting bills Of specepayng banks and
receiving gold and sverl speak Of nothing now but
the divorce OF the Government from convertible bills,
which the great divorce insisted upon-the question
Of the deposites being another and different affair.
What ask, is whether any will propose IN the
midst Of solvent banks and convertible paper to insist
upon specie! To what end, if paper and specie be Of
equal value they by the terms Of The propositions
and SO, regard 70 any other kind oil money may
be in contemplation to create. Is your continental mo-
ney be equal to the money Of the people, then 1t is
useless it better then it is tax upon the people
buy its it worse! then it is to the country
ard a disgrace the Government. But for the sus-
pension OF specie payments, which, contend, was IN
ITSELF wise and proper measure, and inl oil salutay
results, there would be pretence for the indulgence
Of this rabid passion for experimentthe fiscal opera
tions OF the Government would have gone on--ts
duced revenue would have been found to be TO great
extent ACKNOWLEDGEMENTS would have pointed out
and effected restraints upon the tendency TO excess OF
the banking system, and the adminstraon-weak from
the in which it came in-weak from the load Of
msdeeds which it inherited, and has added to-and
weak from incompetency would have been compelled
to permit the passage Of laws, to guard against mis-
chievous of the But the present occasion
is seized upon, to drive into new experiments and
made the pretex for revolution in the monetary system
of the country by force of single sudden and sweep
ing Of legislation. Nor, Mr.. President, Is the vo-
lence Of the measure Objectionable than its deu-
siveness 1t purpors to be hard money project while
in truth is the merest paper PROJECT that has ever been
dreamed Of since the continental CongIess-an neon
vertibe paper which, if it crcuates at all, must expel
specie exactly to the extent Of its circulation.
But there one point of view in which as Southern
Senator this resolution Of the whole money OF the coun-
try into government paper SYSTEM strikes me with ap-
pang terror II is that 1t establishes centralza0n
of the moned transactions of the Government and the
country in New York. which will enhance the wealth.
commerce. and political power OF that already too pow
eru city, to such extent as to make the other states
of the Union provincial dependencies upon It, Already
by the operation OF permanent causes and the action OF
this Government, there is great ascendancy acquired
by that city II cannot be otherwise, perhaps all sys-
TENS must have centre In every community or asso-
citation of communities there is centripcta tendency
Of the moneyed and commercial transactions This is
Of the nature of things law Of society. New York,
therefore, is by necessity the commercial emporium OF
the United States long we are the United States,
but nothing can be unwse or proposterous, no..
thing be unjust TO the southern states especial
IT, than for this Federal Government to increase by its
policy, this absorbing centrazaton Already the re-
cepts and disbursements Of the government are in one
section and we Of the South have felt the disastrous
effects of it, but when New York is made the point up
on which the circulation of the whole country turns,
what will be condition 1t is said that the banking
system has tendency Capitalization, but II has also
centripetal tendency. South Carolina has her banks,
with their at Charleston, abolish them, give US
the Government money (and 1t matters not whether 1t
be specie continental papeD and South Carolina has
nothing Of her own, she is consolidated upon New
York. which is necessarily the centre OF the General
Government money transactions The result Is inevlta-
bic and will be utterly ruinous In whatever aspect
regard this project whether consider the political con-
soldaton which results from the power OF manuiactur-
ing money by this Government or the financial and COM
mcrcia consolidation which results from the fact that
New York must be the centre OF the system, or the ma
ture of the currency which is to be created is IN my
Judgment liable to insuperable objections. am there
fore distinctly of opinion, Mr. President that the Co
vernment should receive in payment OF It's dues, the
notes of specie paying banks
The rejection in the receipt Of the revenue OF the
notes of specie paying banks, is the great revolution
proposed by the present this is intended as the
vital stab the banks it is to be standing discredit
to those institutions. and the for the government
to issue paper OF its TO suporcede theirs. he
Sub treasury system is less decisive and far reaching
The currency established by law since 1916 was that
of the bills specie paying banksbu the State banks
have been used as repositories much shorter time
until recently the u States Bank had custody OF the
public funds-aer that the State banks and the States,
by the deposite actand at present, they are IN the
hands oil Government agents Inc Poiies PioPoeSo y
the hill under discussion, is, that when the revenue Is
received in specie in such paper as by law may be
directed (yz Government psper) 1t shall be retained
in the custody of Government agents throughout the
country.
1t is this new mode Of custody by individuals instead
Of by banks, and corollay from IT, the disburse-
by individuals, which constitute What IS called the
Sub-reasury scheme Hitherto it has been the policy
Of the Government to keep distinct as possible the
business of collecting, keeping and disbursng the pub
lie money for the obvious purpose OF multiplying res
possibilities and imposing checks This sure and long
established policy OF separating these functions now