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

habtuay oyeates the influence Of the fiscal action of
the Government upon the currency regard TO the ex
panson contraction OF IT, and especially, If he be cor
rect in supposng that the income Of this Government
is reduced to economical standard, and that the
executive will sustain ITSELF only by wise patriotic and
moderate measures. He supposes that the Govern
ment has power to make inconvertibe paper money
circulation, which conceive to be beyond the power
OF any Government, and this idea seems in part to re-
suit from what consider misconception he has fallen
into to the credit which sustans bank notes He
supposes that this credit is conferred to great extent
by the Government making them receivable IN public
Dues which he illustrates by stating that if the Govern
ment would say that it would take in payment Of its
dues the notes Of any beggar the streets such notes
would be current | do not think they would be
rent unless the dues Of the Government unlimt-
cd or the notes Of the beggar limited. IT, as have
endeavorcd to show, Government cannot make its own
notes circulate at par, IL cannot make beggars. The
Of the beggar would be analogous TO that Of the
banks, II the Government said that II would take his
notes long he continued to pay specie which the
language Of the resolution Of 1916 to the banks The
endorsement Of the Government the bank notes
not receivable in public Dues" but receivable in
public dues as long specie can be got for it." The
efficacy Of such endorsement TO confer credit, is not
very perceptibe. The conyerblly Of the note makes
it good without the endorsement, nor does the with
drawal Of the endorsement njure It's credit. The pot
banks not in better credit than the rest OF the
banks, did the withdrawal OF the Government from
all bank paper whatsoever, strike down its credit
When the banks suspended, the Government withdrew
its countenance, and yet the notes maintained and still
maintain their credit, and this too when the Govern
ment has not only Withdrawn It's credit but wagDg
war Of determination sgainst the banks. The commu-
nifty believes in the ultimate convertibty Of the bank
notes. and therefore trust to them, and believing,
over, that the prospect Of that convertiblty
proved by the act which made the Government with
draw its credit from them, the general credit was
HANGED by it. Sir, let those who conceive that there
ia in thp tour IN tak
away credit, look to the recent history of the u s.
Bank, whose bills have been "every where at home,"
while the Government has been. wagng war against
them all the world amidst all the ruin which that
has occasioned, amidst the prosration Of much
wealth. and the loss Of much credit, with distressed
people and bankrupt Government the credit OF that
bank yet unanted and its successor under the wise
and honest management Of Mr. Biddle, is by general
consent ready to redeem you from your difficult
ties, and would be appealed to- but for that pride Of
opinion which prefers to suffer rather than to acknow
ledge error, especially when the suffering is that of
the public, and the error that Of the individual
Mr. President deprecate this mad and ferocious
warfare against any Of the institutions of the country
against the United States Bank formerly, against the
State Banks now, II does not appear to me that this
and branch policy, this tearing up things established,
to supply their places with new theories, however neat
ly constructed carefully elaborated, is the part of
prudence and wisdom My nature and habits Of thought
confirmed by the terrible experiment of the last four
years make me a Conservative. | hesitate at every
proposition to destroy, that you may build again. II
any Of our institutions have suffered damage, let US re-
pair them, if any portion OF the vast edlce OF our pros
perty has been injured let with cautious and re-
verend hand what has been lost strengthen what
remains adjust the proportions if you choose proceed
ing in all with sedate and steady purpose OF not weak
ening the deep foundations Let US not, sir, with
fantastic caprice tear down the sod and let me say
glorious fabric Of prosperity that we may try by as
futile device as the lamp Of Aladdin build up another
in one night, Of fairy marble, and gold, and gems.
II is the part of statesmen to deal with the circum-
stances around them In the closet OF philosopher,
in the desk Of professor speculation may discuss what
is best and genius indulge its aspirations for the "chef
good"-but the practical politician is fenced around by
memorable necessities. He has to deal with things not
with ideas. He must control, not create. lie must
govern himself by the circumstances amidst which he
finds himself the instruments that presented to
him, and be content with such results he can ATTAIN
without attempting such as he can imagine The &C.
MUS and temper Of Napoleon might aspire to different
destiny, but ours, thank God, is humber and safer
We administer limited Government for free and self
wlled States, whose bidding and whose business
do They have placed us their servants in the midst
of great banking system system OF credit surround
ing, pervading and penetrating the whole body polite
Mr. President, must conform to our condition, we
must work upon the platform prepared for u.s. we must
the materials furnished to our hands 1t is IN vain
to try 10 extrcate ourselves from the condition OF our
existence We have not the strength, (God forbid that
should have it. to dsconnect ourselves from the cir
cumstances in which the States place us. And if we
attempt to tear ourselves loose from them there may
be much suffering struggle, an agony but you will
have at length come back to your allegiance and con-
tent Yourself with reform instead Of revolution Let
them wisely and at once, begin to correct CONTROL regu-
late, modify, adjust, do any thing but destroy.
In 1884, Mr. President, entertained the same senti-
ments. found all the great interests Of the country
implicated completely with the bank system that to
tear them apart once would destroy every thing and
therefore, acauicsced in the proposao my distinguish
ed colleague, TO make a cautious experiment. to ascer-
tain the extent which the banking system could be
contracted modified as to reject as much evil and
secure as much good as it capable Of II then
proposed to use the United States Understanding
it for this purposes that instrument IS no longer within
our reach but here the State Banks STILL and why
not them for the purpose OF an experimental reform!
They the best condition imaginable Tor that pur-
pose If the fiscal connection of this Government with
the banks gives any portion of the control supposed 1t
may be used to induce the banks to limit their issues
and extend the specie bassn Short TO induce them to
do whatever proposed to be effected by the rechar
ter Of the United States Bank in 1884, My colleague
however, discrimnaes present condition from what
it was in 1894 by stating, that disconnect
cd from banking and were not then. cannot perceive
the accuracy of this distinction, either in law or fact
Ii is perfectly obvious that the States and the people, are
involved at this moment with the banks, than they
were in 1884 As to this Government, IN 1884, Its de-
posites were withdrawn from the United States Bank,
and as far law concerned, were no wtcre--the
language Of the day "that there Treasury
that the money was in the brooches pocket Of the Go
ycrnment There no law as there is, making
the banks repositories and fiscal agents AT this time
the banks have large Government deposcs their pos
session, which daily drawn upon, and the Rcsolu
ton Of 1916 being unrepealed the banks at any
moment compel the Treasurer to receive their notes by
resuming specie payment. Besides this, there are by
the Secretarys Report, six banks yet used as Govern
mcnt agents and repositories II appears therefore,
that both in law and in fact, the Government is less
disconnected from the banks than in 1884 And here
Mr. President permit say word on the subject
of the partial dsconnecon which has been effected by
the Secretary Of the Treasury But for the perverse
L