The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1837-09-12

oPcciai uePosles--ln ne message admits, that
the selected Banks performed with fidelity,
and without any embarrassment to themselves
or 10 the community, their engagements TO the
Government, and the system promised 10 be
permanently useful. What then occasioned
it To fail THE forty millions Of surplus re-
venue, and its re-deposites under the act Of
June, 1886. Tho first is never likely to
occur to any thing like the same extent--and
as to the measure of re-deposites, is II certain
that II was administered in the wisest and
most successful manner
The Message insists upon it, that the fiscal
employment Of the Banks, was from the
beginning, more measure Of emergency,
than of sound policy"-and that we have no
longer any such emergencies. But, it is sin
gIlar enough that at every great epoch of our
finances, when the National Bank has not
been adopted, the State institutions have been
recognized as the proper agents. The Sub
treasury system has never been sanctioned by
the Republican party. In 81, Mr.. Madison
argued against the necessity Of National
Bank, by urging the employment of the State
Banks. The same argument was pressed by
Mr.. Burwell in 1911, against its re-charter.
Ii was again called into requisition in the at
tempts TO charter, and then to continue the
second United States Bank. In fact, the State
Banks have been adopted at every crisis
and not the Sub-agencies until in 1884,
when Mr.. Gordon and some thirty-three
Wings voted for it in the House Of Repre-.
sentatives.
But, if the Sub-treasury system had every
thing to recommend it, which the Message
claims for it, we consider that NOW is not the
time to make the innovation. The President
adopts as an essential part of his proposition,
the exclusive use OF specie in the receipt and
disbursement of the funds. He disclaims the
employment of bank notes for a single day.
Is not the transition too sudden? the revolu-
ton too great? Congress must consult the
circumstances of the country. From twenty
to thirty millions of the coin are locked up in
the vaults of the banks. The Message itself
tells us, that our paper circulation was more
than one hundred and forty millions; the
specie afoat was eighty millions--but, though
the paper currency has been since eurtailed,
the facilities of the specie circulation have
been reduced in much greater proportion.
The Message itself tells us, that in the month
Of May last, the precious metals disap-
peared from circulation" and that " with each
succeeding day the metallic currency de-
has ceased to become currency and is only
an article of traffic 1t bears premium of 10
or IL per cent. Whilst so much coin is
locked up in the banks; whilst so.much is in
the act Of expectation and whilst the State
Banks are in want of it to replenish their
vaults, and prepare for resumption, what
would be the consequence of an immediate
requisition of specie for all the public dues?
Il IT,. -, vol, hon unptIh
be compelled to buy it, in order to pay his
custom-house bonds. He would lay it on, as
he does his duties, in the price Of his goods
the consumers, the community at large,
would thus be taxed from 10 to Is per cent,
to swell the salaries of the officers OF the
Government. There would thus be two spe-
cies of currency in the country-the baser
currency for the people, and the better for its
officers The Message is very ingenious in
its attempts to 0bviate the effects OF this Sun
just discrimination" But the fact is, "the
measure would be (both) one of restriction"
and of "fauor." 1t would be restriction on
the tax-gatherer, not to take any thing but
specie-but it would be faror to the sala-
ried officer, to receive nothing else but
better currency than the people receive. 1t
is in vain for the Message to contend, that
'the constitution prohibits the States from
making anything but gold and silver a tender
in the payment of debts, and thus secures to
every citizen right to demand payment in
the legal currency. TO provide by law that
the Government will only receive its dues in
gold and silver, is not to confer on 1t any
peculiar privilege but merely to place it on
an equality with the citizen, by reserving to
it right secured to him by the constitution"
The fact is, that the States haze so far multi
piled paper currency, that her citizens cannot
now readily obtain speoie-that it does oper-
ate as peculiar privilege for the officer to.
receive it at all events and that 1t does de-
stroy all equality with the citizen"
Will such discrimination operate now for
the benefit of the Citizen! The Message
contends, that rcquisitionfor the public dues
saves the coin from neutrality-suspicious. a
demand for it, increases the safety Of Bank
paper and improves the general currency.
But it cannot have the effect of relieving the
people at the present time. 1t only creates
such a demand for it as to make 1t dearer to
the people, throws it more out of the general
circulation worse than all, it contributes
to throw more discredit upon Bank notes,
widens the difference Of value between coin
and paper, makes it more difficult for the
Banks to obtain it-and retards the great OBJ
ject we ought all to have in view-the return
of the Banks 10 specie payments. They are
to furnish the people with a large portion of
their currency-the Sub-Treasuries will not
do it. Their resumption is the first great OBJ
ject we ought all to have in view. 1t is prin-
cipally to relieve our mbanassments-and to
tranquilize discontinued people. The Sub
Treasures and the specie may benefit the Of
fcers of the Government, but cannot give re-
lief to the community at large-Have we not