The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1837-10-10

Tn addition 10 these strong views OF mr.
Dallas which apply with irresis,'ole n've ~
the present state Of things, ada NOSE ~ 'no
able, the patriotic and praciicea s's'esn n.
William III. Crawford, who suceeeuea MN
in the Office of Secretary oil me ifeas"ry.-
In a letter dated Nov. 20, 1916 addressed
10 VIM. Jones, then President OF The Bank OF
the United States, he says:
Ex,r.e, az letter Of William II, Crawford, TO VIII
liam Iones President Of the Bank Of the United States
dated Nov 20, 1916:
!. From ,his view Of the subject, well as from a
General knowledge of the with which the Bank
s,he United States will have TO commence It's opera
tons and Of the difficulties which Il VIII have 10 sur
oount If the State Banks do not make simultaneous
effort. il is manifest that, without their cooperation
national currency equal TO the indispensable demands
of the community cannot be obtained by the 2oth o.
February next from the efforts OF the bank ana irea
slry under the existing legal provisions
Again--In the same letter he says:
n. i, however most ardenty desired by the Govern
ments that the necessity of resortng to the issue OF 10
yernmen paper may be avoided, by the resumption Oh
snecie paymens by the State Banks on or before the
.oh If February next As an inducement 10 this mea-
sure the Government can oply aid their operations BY
,bho,ing from circulation much OF their paper now
IN the Treasury OF which may hereafter bereceed as tho
demands upon the Treasury during The ensuing year
will the sum WHICH ~ WIN 10 III ths Fo"Sf
nj the Government to retain IN the Treasury, VIII be
considerable il may present sufficient mdncement to
b,n.e Their determination not resume specie pay
ments before the lst day OF july next
Again, he says
aHo,c far hle disredihag Of their paper, by refas-
ing toreeeice ia discharge 81 dues and dIes c,H m
Rnenre their conduct, only Be aseeratned by ne
EXPERIMENT
These views Of these two able and distin-
quished men, expressed in the midst OF
pressure more severe and infinitely more
alarming than the present, are entitled to the
greatest weight 1t was then, SO 1t may
now be truly said, that this bill will not le
gisiate com currency into ea,steace, nor put
gold and silper into the pockets 81 the people
Its only effect will be to prolong the resumP-
ton of specie payments; reduce and depre-
ciate the already reduced currency Of the
country, and ruin and Cypress the people
Sir, if YOU would secure the resumption OF spe-
Gle payments within short time, instead OF
crippling YOU must encourage and support the
banks in their exertiOns to resume, which we
have good reason to believe they are honest
" exerting themselves to do. They now only
need little further reduction the foreign debt
(which presses on them so severely, but which
is rapidly being reduccd,) and the restoration
ofthe confidence OF the Government, TO resume
specie payments. This do not doubt they
will be able to do by the lst Of April. Let
us only initiate the examples, and practise
the lessons of Crawford and Dallas, and all
will be well; confidence will be restored and
commerce resume its usual activity. Even
if the scheme proposed by the committee Of
Ways and Means were wise and practical
BILE, it cannot be carried into execution at this
time, without ruin to the whole mercantile
community Until the vaults Of the banks
are unlocked by the resumption of specie pay
ments, specie in sufficient quantities cannot
be procured. The attempt to enforce this
law in the present state of the metallic cur
rency, would produce unparalleled distress.
The maximum exchanges Of the United
States Bank in 1882, amounted to $254,000,-
600; that Of the Scatc Banks in ] $50 to 1924
millions which proves the capacity ofthe State
Banks, to conduct the exchanges of the coun-
try, beyond doubt. From the foregoing con-
sderations conclude that there is no rea-
son for disseminating the State Banks as fs-
cal agents Of the Government, that did not
equally exist against their employment.
Ito be eontinued)