The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1837-10-12

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DE table, bui every other b for raising supplies at
the present moment But the case presented, and,
SO far as have been able 70 consider the matter
made oat by the Executive, is that without press
ing with most rigid and probably ruinous seye,
rity upon It's debtors, the Deposite Banks ana
the merchants without aggrayaling, beyond ex-
preston the calamitous condition Of the times, u
must resort TO you for temporary aid--for authority
10 anticipate the fruits of returning prosperity,
without formally laying the foundation Of rev ma
tional deb, and 10 create species OF loans, when
viii not only furnish you with the means you want,
but incidentally, relieve the embarrassnenis OF the
community, and especially, in the great and impor-
tant interest Of our domestic exchanges.
But says the gentlemen from Virginia before me,
(Mr. Wise) you are turning the government into
Bank--you are creating great political corporation
10 trade in money, at the very moment that you De,
eide il 10 be inexpedent 10 charter commercial
CORPORATION for the same purpose why, SIR, &C.
cordng this yer" rvel definition every ddor Is a
blnkerit Is the borrower, moi the lender iha' pe-
longs to that privileged class A laugb) II inns IS
trne, we are nation Thinkers e. Soyouare, IRON
Mr.. Wisel-" oyer-blnked" 10 use the common
phrase, with vengeance. But on what possible
ground can such proposition BE- advanced Inc
states 1t is sand are hidden 10 issue bills 81 credit
What are ills Of credit? Mr.. Madison, as appears
from one of The documents laid upon our tables IN
letter TO a gentleman of some distinction in Penn
sylvania afIirms, without hesitation, and as hing
quite settled that il is Of the very essence oil snch
papcrils distinctive characteristic, lis ecte dDer-
enc so 10 speak--ibat il b. made legal tender,
Mr. RoBEarsos of Virginia. 1t has been .decid-
NJ LEG.nr Where, wh9n, by whom7
Mr.. RonEaTsoN-by Judge Story, (cries OF 60 on,
go only Mr.. Legare continuing: Sir, will exa-
mine the correctness of that opinion presently IN
the mean time beg leave 10 state 10 the House mat
Mr. Madison only repeated in he letter alluded To- the
opinions which he had previously either expressly or
implicitly advanced not casually, loosely or incons-
deraely, bat in the most deliberate manner and on
the most momenous occasions. In his frs, mes
sage to Congress in the session Of 'l5-16 he goes
even further than in that letter-furher, as have
said, than as at present advised am quite willing
TO follow him. He dis;inc y presents in that state
paper the alternative OF National Bank, OF 20
vernment currency. Now sir, | feel that owe II
TO the House and TO truth, owe il TO my own sta
ton here and the candor which ever feel myself
obliged 10 practise in debate to state that Gen Hami-
ton in his celebrated Repor; upon the Bankin VI does
seem to treat such Government issues as the very
description Of Bills Of credit, 50 notorious under
the old order ofihings and therefore nerdcted for
ever to the legislation Of the States He admits in
deed that the intcrdict does not apply to us directly,
but he very reasonably thinks that it AT least hints
a rule for the conduct Of this Government which it
ought not lightly, TO neglect TO take up the mat
ter on principle il might well b. asked, what harm
is done By the Issue OF paper which no body is
obliged to receive, and every body may probably
use in payment Of public duesl But even ii you
allow, as will not undertake TO deny that a mere
issue Of currency saeh within the prohibit
tion-what do you mean by currency? Is it pre-
tended for example, that the States, with their vast
residuum of political power and public duty, can not
borrow money, and give TO their creditors the evil
dence of debt assignable or unassignables And II
these evidences Acknowledgements Of debt p2ss-as
pass in these times Of active they inevitably
wi-from hand to hand, do they become violations
of the Constitution for that Sir il is false, wild,
chimerical concept that such notion ever entered
into The heads Of the majority of the Convention in
90, or that kindred idea, often uttered OF late, that
all banking corporations in the different states, mere
private partnerships chartered by the legislatures,
fall virtually within the prohibitory clause. Il
seems to me nothing short Of monstrous TO imagine,
that the States charged they with all the high
obligations of civil sociey-of defence and protcc-
ton of police of education, of justce-with almost
every thing that relates to the order and well-bcng
of a community, could have thought, for moment,
of deprving themselves of resource without which,
in modern times, no free commonwealth can posi-
bly, manage its affairs without often falling into the
most pcrpexing and even perilous embarrasslnents
And what is the argument by which 1t Is attempted
to lay them under such disability? Why, that
Congress- having the power to coin money and re-
gulate the value .hereot-waS intended to have a
complete control over the currency! Now what is
currency, rather, what, in these times, is aot2-
Where will ynn-d draw any practical line between
acknowledgment of debt, one bill of credit, if you
please, and another when in all their effects, CONNER
cial and political they are evidently the samei Sir,
having bestowed much thought and research upon
this most difficult and important of all the subjects
that now challenge the attention Of public man,
with opportunities perhaps more favorable to the
discovery of truth and to the forming of correct con-
illusions for the conduct of affairs, than il has fallen
10 the lot of most persons TO enjoy, and finding, after
so many nights and days of patient inquiry the diff
culties which surround this sub eel alr.ost .s many
| and TO me) as formidable ever, have been fill
ed with wonder since came here at the confident
and dogmacal tone of many persons Con aH sdes)
whose conclusions have cost them far less pains and
been adopted without any such loss Of time
Among o.her things coolly taken for granted is the
| meaning of this word "currercy." Now, sir if
gentlemen will be at the trouble Of looking into the
Minutes Of Evidence taken before the Committee
of the House of Commons charged with the qucs-
ton of the renewal of the Bank charter in 49, they
will find that with the exception of small sums paid
away in wages the whole circulating medium Of
Lancashire, Warwickshire, the West Riding of
Yorkshire and other, if not all the great mannfdc-
turing districts of England consisted at no remote
period exclusively of bills Of exchange The
whole circulation, say in which the immense bu-
siness Of the most 1ouFishing manufacturing and
commercial empire in the world Is transaced-and
especially that part Of its trade which has done so
much to cnrichb 9TH this country and England--isa-
most entirely composed of common mercantile pa
per, with which Government according 10 the OPT
Mons Of people and the genius of our institutions
has by the confession of all men nothing whatever
10 do. Sir, shall have, trust, some future and
better opportunity of going more at large into that
subject which has, for some time past so deeply en-
gagged, and am sorry to have to add, agitatcd the
minds of men in all parts Of the United Ssa.es-l
mean the credit system, under which this nation has
grown up TO be what it is. But could not but take
this occasion to remark how very loosely with what
dangerous latitude both of phrase and opinion in
the habit of treating these matters, and involving they
do all the fundamental interests OF society," aud Of ex
employing tho remark in the Of one Of the most ia
mIar terms that in debates and declama-
tons. We talk Of bank paper as if all the harm done
by expansions Of currency owing to it alone
Why, sir bank notes. even in the times Of the most
tavagant issues, hut part, and very small
part Of the circulation set in motion by the operation Of
the credit system, at period Of great excitement, in
communities advanced in civilization, and having all
the facilities of extended commerce. They the
ctiorcscenccso TO express 1.-THE flower, the blossom
Of the currency of such country essential, admit to