The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1837-10-03

run with spurious or precarious substitutes for
ney, exposing every interest OF society 70 insecurity
and hazard-an insecurity and hazard involving
alike the wages of labor the value OF properly me
fulflment OF contracts, all the acquisitions OF The
past and all the hopes OF the future. NOW wha' u
the remedy for this extraordinary state oil the D1dy
politicl 1t is comprehended in single word Inc
restoration of confidence
thing TO be brought about, with view to The ameio-
ration Of The present condition OF things IS The re-
turn to specie payments by the banks. bul thai re-
turn cannot be effected without restoration oil con-
6dence; and confidence is TO be restored mainly by
the policy and example of the Government. With
It's aid in the establishment of confidence nothng
Is clearer than the ability OF the banks al an early
day 10 resume and maintain specie payments Lei
us for moment, look at the condition OF the coui
try and OF the banks in regard To those paruciiis
which form The leading elements Of this quesaoh,,-
And first as to the stock Of precious metals IN tne
country. The supply in the country Is most mum ,
dant for alho' a good deal has gone GU. Ieceh'iy
TO pay off our foreign debt equal, or nearly equai
quantity has come In It is shown by official returns
that the iinporialions and explorations Oh specie,
during The year, very nearly balance each oner--
The quantity in the country, at this moment, accoid
ing the estimates and statements We nave receiyeu
from the Treasury Department, is nearly three times
as great as Il was four years ago The means 10 en-
able the banks to resume and sustain specie pay
ments are, therefore, ample and unquesliohaDie, do
soon as confidence shall be restored Then, as 70
other important element OF this question: has
been In course OF constant and progressive fcduc-
ton for the last six MONTHS and with me ana Of me
new crop which Is now coming in and the great AZ
minuon of foreign imports, we shall soon see y en-
tirely extinguished At the same time the great
mass of the banks throughout the country have been
diligently preparing themselves for return to specie
payments by steady and judicious reduction Oh
their circulation, ~
Nothing then is wanting TO speedy accomplish
ment of that great object but the restoration OF conn
dence and il depends mainly on the action and poll
cy of the Government to supply that rcluisite ne
currency OF the country is, at this moment, IN inc
condition Of a human body in a state of suspended
anmation-the heart still beats-the principle OF
vitality is Observation-Disclosures the active functions
of life are suspended Let the Government but
breathe the breath of confidence into II, and II VIII
be at once resuscitaed II is the more necessary that
the Government should give its aid in this work OF
restoring confidence, because, whether justly or I'M
Justly il is from the Government that the greatest
danger of hostility is apprehended Let inns apPie-
hcnsion then, be quieed by some pledge OF security,
by some token of encouragement and commence
The Senator from South Carolina, Mr.. CALHOUN
asserted yesterday that the disease OF the country Is
de5t the only remedy is ime and that he relied much
more on the cotton and tobacco crops for relief than
upon any action of the Government.-Sir, the debt
OF the country, as have already remarked has
nearly reached It's extinguishmen either BY actual
payments or the bankruptcy Of unfortunate debtors.
But If this not So the cotton and tobacco crops,
though essential ingredients of relief do not super
sede the necessity of other and auxiliary remedies.
Examples not wanting in the financial history OF
this and other countries to show the magical effects
of confidence in periods of great public distress and
how that confluence depends on the conduct and poll
CIV of the government The year 1893 was period
Of the severest commercial distress in England
More than a hundred country banks became bank
rupt, and the whole country seemed destined to a
similar catastrophe; when single act of the go
vernment encouraging confluence, produced imme-
nfa md ralia L nj linda IN he m
by the British government In that crisis of suffering
and alarm TO lend solvent dealers five millions OF
pounds in Exchequer Bills. A considerable part of
the sum was not taken or even applied for but the
simple offer Of the credit of the government in restor
ing confidence between man and man, elected the
dormant resources of the country, and relieved at
once the general distress.
We have had similar and striking example in
our own country You well recollect, MIR. Presi-
dent, the memorable panic of 1884, which ensued on
the removal of the dcpostes from the Bank Of the
United States. The storm which was raised on that
occasion, was directed chiefly on the great CONNER
cial emporium of New York. The legislature of
that patriotic and powerful State, with a paternal
sensibity to the interests and suterngs of her cti
zens came forward and authorized the creation of
stock OF six millions of dollars to be lent to the banks,
for the purpose of sustaining them under the cxraor-
binary pressure to which they were exposed. What
was the effect Not solitary dollar was taken by
the banks, but the offer itself operated like charm.
1t restored coafaenee and reiiercd The pressure. These
examples may serye'to show gentlemen that there is
practical virtue in confidence and in the moral
power OF the government to promote and encourage
1t. What does the country ask at the hands of the
government, at the present moments is it loan of
six millions No. sir.-The only boon that is asked
the only aid that is wanted is, that the Government
should not discredi BY its act the great circulating
medium OF the country, in which ninety-nine hun
dredths of the transactions of society negotiated
and settled, when that medium shall be restored to
soundness, and brought back to the standard of con-
veribility into specie. "a@. NJ,
In connection with this subject | beg leave to call
the attention of the Senate to one remarkable con-
sideration. II is thisThe President in tracing the
causes of the present calamity, states that the same
embarraSSmentS and disresses have existed in En-
gland aS.in this country, arising from the gene
raj causes, with this only difference in the result
that here the banks have suspended specie payments
while in England no such catastrophe has occurred
This difference to my mind, comprehends every
thing. Ii is rendered the more remarkable by the
fact, that during the progress Of these difficulties
England was constantly losing her supply of the pre-
cious metals the stock of bullion in the banks having
been reduced from about eight millions to four mil
lions pounds sterling, Zone half of her ordinary
quantity while in this country, during the same pc
riod, the precious metals have been steadily flowing
in upon us, and accommodating in an Unprecedented
manner so that, at the time of the suspension of
specie payments we had three times the amount of
specie we ever possessed before According to these
circumstances the results in the two countries ought
to have been precisely reversed. We should have
continued to sustain specie payments here, while a
suspension of them in England would seem to have
been inevitable. Why4has il been otherwise How
has it happened that England, with her supply ofthe
precious metals reduced to one half her usual stock,
has continued specie payments, while we, with
three times the amount we ever had before have
been compelled to suspend specie payments The
solution must b, found mainly in the fact, that in
England in periods Of commercial distress, conf
dencs is always encouraged by government while
here nothing was done by the government to ami
mate and sustain confidence, do not mention this
as matter OF reproach to the Government II may
be- that the Government here believed it had no con
situional faculty to interpose, in any manner for
the support of confidence. But, unfortunately di-
rect and open attacks on the commercial credit and
institutions of The country, well calculated 10 dcaroy
confidence were made in quarter which, from the
relation il bore to the Government gave rise TO lively
lpnrehenSinns Of hostility from the Il