The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1837-09-19

could not ieei himself authorised 10 rccomincnd loan
upon the credit Of the nation Cor such purpose lie be-
cyed he spoke the sentiments Of those u hs colleagues
upon the committee, when he said that thcse were the
views which had actus,ed hun and them IN eoasentng
TO report this bill.
Mr. W. said he owed il TO himself 10 say that be had
felt most sesby tho remarks oi the honorable Senator
from Massachusetts,, mir Websierl q. 10 the inconse-
nienccs and disappontmen,s which must grow out Of
withholding the transfer Of this instamen to the States
With much less knowledge fhe varied business and
peclniary affairs Of our extended country than tina; ds
tnguished Senator he had no, been nsensbe 10 these
considerations The course pursued by his State,
in the disposition Of this money. had compelled hun 10
be awake to them The law Of his State Tor the invest
ment OF its portion Of this noaey had placed the matter
beyond its CONTROL aud had compelled rs CHIEF MS
cal officer, long since, 10 announce 10 It's citizens that
this nstalment would be paid from ihe Treasury OF the
State, whatever might be the action OF Congress uPon
the subject This would beyond doubt, be done, and
those who sent him here, and whom il his duty and
desire faithfully represent should this bill pass would
be mpelled indemnify from their own public funds,
the individuals interested borrowers OF these moneys
against disappointment damage or loss from the action
Of Congress- Yet, under these delicate and difficult
circumstances he had been able TO convince himself
that he could properly do otherwise than support the
bill He owed high duty TO those constituents, but
he owed in his estimation, higher TO the nation and to
the Constitution Of his country. He could not think
that the power granted to Congress TO borrow money
exercised for the purpose Of raising money to be
safely kept and this he must consider the simple ques-
ton presented He might be mistaken in this view Of
the matter but such was the deliberate conclusion Of his
mind upon the reflection, aud that conclu
sion govern his action upon the BILL II had done
his action member of the Committee WHICH report
ed it.
Having said thus much, Mr., w. said, he would only
correct three Of fact into which the homo
rable Senator who had just resumed his seat, (Mr Web
ster seemed TO him TO have fallen, and he would dealn
the Senate no longer
The honorable Senator seemed to suppose that the
to make this transfer to the States in the
Treasury, and that the only difficulty, separate from the
other demands upon it, grew OF the present unavaa
BILE character of those The statements he had
already made, had shown the Of this hypothesis
He had already shown that the whole means IN the
Treasury, even when the Secretary Of the Treasury
made his report, at the commencement OF our present
session. Of whatever character, whether available or not
less, by than million OF dollars, than the IN
stancn required I've transferred to the States under
the depesite law. He had further shown that those
MEANS such they were, before the first OF DC
tober when that transfer required to be made to
be still further diminished by the whole expenses OF the
government for the month"; ascertaned and es
mated to amount two and half millions of dollars.
Hence it would follow, that the whole means in the
Treasury the first day Of October next, be from
three and half to four millions less than the transfer
required 1t in vain, therefore, Mr.. w. said, to
escape from the conclusion that If Congress should IN
sst upon this transfer, it must authorize loan Of money
upon the public credit to enable the Treasury to make
it in other words, that it must authorize a loan of
money upon the credit Of the United States that that
money when loaned, may be deposited with the States
for safe keeping
Another error of the honorable Senator (Mr, Web
ster) which he felt bound correct, in his strc
lures upon the recommendations Of the Secretary Of the
Treasury, to the manner Of issuing Treasury notes
The honorable Senator had criticised this part Of the
port of the Secretary Of the Treasury with sevor
ty, and held him up to the Senate and the country
striking out path for the supply Of the Treasury
recommending the issue Of paper money Of a de-
scrption OF paper similar to that which know by the
denomination Of continental money" and Of doing
this for the FIRST time since the organization of the CO.
vernnent under the Constitution The fault complained
OF consisted recommendation, merely discretionary
and alternative TO issue Treasury notes bearing
teres and payable the bearer the public ere
dltors should be found willing to receive such notes in
payment. Of their demands against the government at
par otherwise, to give the such an interest as
would bring them TO par.
Mr., w said the committee, in the bill they had
reported, had not followed this recommendation of the
Secretary. it would be seen that no question was de-
pending before the Senate, either in the bill under
discussion any other, which rendered this point
material but he was sure his object would be fully
understood and appreciated in making thrs correction
II was simply TO defend this public officer against mis-
taken ACCUSATION. IL NOT necessary him TO
tend al this te the soundness OF the recommendation,
but protect the Secretary against the charge of being
the author OF principle now supposed to he new
and dangerous To do this, it was only necessary
for him to read the third section Of the of the oath
February, 1915 authorisng emission Of Treasury
notes, IN which all these dangers would be found to be
embraced, adopted and made imperative, part of
the laws of the land
(Mr w here read the section of the act as follows i
Section 3. And belt further enacted That the said
Treasury notes shall be prepared Of such denominations
the Secretary Of the Treasury, with the appreciation
Of the President of the United States, SHALL from time
time, Direct and such of tho said notes shall be
Of denomination less than hundred dollars shall
be payable TO bearer, and be transferable By dcipery
alone, and shall bear interest; and such of the said
notes shall be Of the denomination of one hundred
dollars upwards, may be made payable to order and
transferable by delivery and assignment, endorsed
the same, and bearing interest from the day
which they shall be issued at the rate Of five and two
hiihs per centum per annum or they may be made
payable TO bearer aud transferable by deiiUery alone
and bearing interest, the Secretary of the Trea-
sry with the appreciation Of The President OF the United
States, shall direct"
What now, Mr.. w. asked, the condition and
the fault of the Secretary He had found the public
treasury in want Of means to pay the public creditors
The exigency had grown out of in trade and
business sudden and universal the ohe credit of
the Government, IN some form, seemed to him lndspen
sable. II became his duty suggest Congress the
aud the mode Of supplying the Treasury. He
examined the legislative history Of the Government in
former Of embarrassment at the Treasury, and
found, among other expedens, that emissions OF Trea-
sury notes paying interest, payable to bearer trans
errabe by delivery alone aud without any restriction
to the denomination Of the notes to he issued had
been authorised. Among variety of plans to meet
the present wants, he suggested this, recommending
that 10 should be issued for less amount than
$50 Had he attempted to introduce any new princ-
pie! Certainly not. Was his conduct, in making this
suggestion in conformity with the previous practice OF
Congress itself, deserving of the high which
has been bestowed upon it lie, Mr.. W., thought
not.
single other reply to the honorable Senator. That
gentleman had supposed the President most inconsist
ent aud contradictory with himself, in rcmarkng gene