The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1837-11-10
sPEEcH OF THE HON. JOHN rIPToN.
or INDIANA,
On The subject Of iAs Sab-ireasury system for collecting
and disb1rsing The public revenue

On the subject Of lhs Sabtreasury system for collecting
and disb1rsing The public repenas.
Mr. Upton rose. He said the question now un-
der consideration Of much importance TO the
People Of the State which he had in part the honor TO
represent here that he felt il TO be- his duty to claim the
indulgence Of the Senate short tme while he gave
MS views some Of the topics that al this time en-
gagged the public attention from one end 10 the other of
the country In time Of profound peace surrounded
rs we Thought by oil the elements Of prosperity we are
suddenly arrested in onward march by wide spread
desolaiion commerce crippled public credit injured
private fortunes ruined, and the public Treasury bank
rupt The late session Of Congress had but lust closed
the members had scarcely time return to their homes
when we were summoned 70 return to Washington to
eglslae the Government out Of its difficulties and we
mud ourselves here in September instead OF December
engaged IN delberson the mode and manner Of re-
liesing the distress Of our country.
Ihe inquiry naturally addresses itself TO every mind
why Is this so What has produced it, aud what is the
remedy 70 be adopted The honorable Senator from
South Csrolna. mr. Calhoun,) when no proposed his
amendment 10 the bill under consideration few days
ago. told US that this question should DO met boldly and
inanully 70 use his own WORDS let every (sad he)
show his hand (said Mr.. T. respond TO that noble
sentiment Of The honorable Senators the question should
be met boldly and fairly; this time OF deep anxiety
with our constituents; there should be no skukinp
among their public servants every one shonld speak
freely VI the causes which have produced the present
embarrassment, and act promptly such measures as
will relieve the People. $3.50 .3ttHA aa &t
II was his opinion that the putting down Of the Bank
OF the United States the first step to the present
embarrassment the transfer Of the pit lie deposes
from that Bank TO the local or State banks stimulated
these institutions to extravagant issues far beyond their
ability OF redemption; they discounted notes on the
publ deposltes, extending their lines OF discount be
yond the bounds OF prudence the people the neigh
borhoods o. the banks, finding that bank accommods-
tons could be had with facility entered largely in
specuations 10 public lands, lots aud other pro-
perry extravagance in living well as in dressing in
creased their Indebtedness in word, sir, the whole
country oyerraded, ceased to labor and contracted
debts beyond their ability to pay; specuations were
uppermost in the minds Of every one
Tho Executive Of the United States seeing the pub-
lie domain rapidly exchanging for credit on the books
OF the banks, determined TO check it, and issued his
Treasury order Of July H. 1885, directing that nothing
but gold and silver should be received in payen, for
the public lands Under the operations OF this order,
those engaged purchasing public lands had to procure
bank paper draw the specie from the banks and trans
port TO the land Offices no sooner paid into
the land Offices than the receivers of public moneys de-
posted again IN the banks the credit Of the Govern
ment thus the Indebtedness Of the banks was daily and
rapidly increasingly the bankers fearing that the public
deposites would DO called for in metal became alarmed
at their own condition. closed their doors and suspended
specie payments thereby putting out OF the power OF
this Government TO pay the public dues according
law, in specie or its equivalent
This, (said Mr. t. brief statement Of tho causes
distress that surround U.S. it unfortunate tam
perng with the currency and the public deposites by
the Executive Of the United States Our troubles have
come sooner but come lighter than they would have
done, had the Treasury order never existed. 4
Now for the remedy. The bill reported from the
Committee on Finance, imposing additional duties ON
public officers be understood intends to cut loose
the Government from all banks aud to authorize the
Treasury Department to keep and dsburse, well
collect the whole revenue Of the Government, dspen-
with han
he thought, might well be questioned; il would strike
portion Of the American people like shock Of cleo
trcy, Of the increased patronage and pow
il must confer on the Executive Of the Govern
ment. He would not declare in advance that he would
go for it, but he would be slow in yielding it his
support and he hoped that better remedy could be
found He had been advocate for using lit
ter OF State local banks fiscal agents Of the Co
vernment they contain within themselves antagonist
principles each possessing separate views, and looking
TO the interest OF their stockholders they
will together in transmitting discussing the
public money OF the United States and long they
used repositories of the public money, ebarass
ments and occasional losses may be expected,
Mr. L. said that he opposed to taking any
here that would have q tendency cripple break
down the State banks the people were encouraged to
establish State banks, TO keep down Bank Of the u
States; they had vested their capital to very large
amount in these institutions; many Of these banks
were perfectly solvent and safe more than the
Of Indiana waiting to see what Congress. the Ex
ecutive and other hanks could would do, intending,
at early day. 10 resume specie payment and honestly
redeem all their paper and he could give vote to
discourage or procrastlnate so desirable an object 1T
true that the banks had not acted well suspendng
specie payment and embarrassing the Government, but
we should deal mercifuly with them single breath
from the Executive, saying to the State banks we no
longer receive your paper IN payment for duties aud
sales Of the public lands, will strike fifty per cent of
tho e I'LL Tho IF ctodI
in these banks, indeed CT all the property Of every de-
scrplion and he not prepared to sanction such a
course. In the language Of the West, give land
Office money whatever will buy land is as good as
gods at par in all moneyed transactions in the West
ern States No matter however old or ragged paper
may be, if it contains words letters and figures enough
to be receivable for public lands it is good gold,
and it matters not what kind Of money it may be; if
not receivable in the land office, it is Of uncertain and
changeable value. 1t finds its way into the hands OF
the poorer class Of the community they are liable to be
imposed and shaved by the rich, in whose hands the
better currency always found This would be the
effect to the western people, if refuse to receive the
paper Of their banks IN payment for the public lands
and he left for Senators representing the interest OF
banks, east of the mointans say what would be its
effect the interests Of their constituents, should the
General Government refuse to receive their bank paper
in payment for revenue; above all things, Congress
should establish and maintai:, uniform currency
Have the gentlemen forgotten how orcbly the honora
BILE Senator from South Carolina, en- Calhoun) de-
scrbed the influence Of this Government on currency
the other day. when he said if the United States would
but endorse the note Of the beggar, viii pass at par
And will that Senator say to very large portion
Of the people Of this country, cannot the pa
per OF your banks for public Dues when by that single
act he will bankrupt thousands who have strong claims
both the justice and the clemency Of this Govern
mentl
Mr. T. said he would not detafn the Senate by at
tempt to show what effect the measures before it
.l.Gs a..
to ADLER hands He pretended only to take plain COM
mon sense view OF the mischcvous tendency on the
interest of his immediate constituents, and enter his
protest in their behalf against the runous consequences