The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1837-10-14


operation As re- changes proposed dsnof issr essen.
italy the specie syst adopted by the Execusise since
th suspension OF specie payments The postponement
would give Us little time 10 observe the work
ings Of the system and ascertain the wishes Of the pec
pie. lie glad TO the finances restored 10 Con-
gress, their lawful guardian almost any terms but
really they were Ia such worthless and ragged cond-
non, iiom Executive manipulation, that was difficult
TO say what disposition had better be made Of them
Mr. X. said he doubted whether he ought 10 detain
the Senate TO say any thing upon the OF the pre-
sent distress, which had called Congress together As
this subject had been dwelt upon, however by every
speaker who had preceded him, and was certainly Of
great Importance TO the county, perhaps the
duty OF every member TO give his views upon the sub
Ject The subject, SAID he is too important TO be tn
lied with. II to the doors aud dwellings, and
reaches The bread and business Of every citizen OF every
condition. aud shall give my views however unail-
lngy, unlnhuencedb by all personal friendships and party
associations Unless we ascertain the causes which
have strangely brought the country into present
distressed condition. IN tune Of profound peace, we
shall neither know how to apply present remedies
avoid similar evils in future
Mr. X then said he had not the slightest doubt that
our difficulties were owing entirely to the unfortunate
policy and violent measures Of the Executive in rea-
ton 10 the finances for several years past This was
the only cause, aud this abundanty sufficient Mr..
X. said he could prove this to any who would
shut his eyes to facts, and close his understanding
against correct information the subject He had felt
and expressed his asionshnent when he first read the
Presidents Message the statement Of the President
IN relation to these causes aud he had been equally
astonshed at hearing his friends from Connecticut and
North Carolina adopt these statements, and take them
as admitted truths The President was entirely misa,
ken in these statements, and to allow them to remain
uncorreeted would only continue to obscure and ysty
the subject .a@. u~a
For the better understanding Of the subject he would
read the passages alluded TO- Mr.. X then read the
passages which follow: "r
However unwilling any Of our citizens may hereto
fore have been to assign TO these the chief in
strumenaty in producing the present stsse Of things
the developments subsequently made and the actual
condition of other commercial countries, must it
seems to me, dspel all remaining doubts upon the sub
ect 1t has since appeared that evils, similar TO those
suffered by ourselves. have been experienced Great
Britain, on the Continent and indeed, throughout the
commercial world and that in other countries, well
as IN our own, they have been uniformly preceded by
an undue enlargement Of the boundaries OF trade,
prompted as with us, by unprecedented expansions OF
the system of credit. A reference to the amount Of
banking capital, and the issue of paper credits put in
circuatlonin Great Britain by banks and in other ways
during the years 1894, 1885, and 1885, will show an
augmentation of the paper currency there much dis
proporoned to the real wants Of trade in the United
States. With this redundancy Of the paper currency
there arose in that country also spirit Of adventurous
speculation, embracing the whole range Of human
prise. And was prousely given to projected improve
ments large Investments made in foreign stocks
and loans credits for goods granted, with I'M
bounded berality TO merchants in foreign countries
and all tho means OF acquiring and employing credit
were put in active operation and extended, in their e
fects, to every department Of business aud every
quarter Of the globe The reaction proportoncd in
It's violence to the extraordinary character OF the
which preceded it. The commercial community OF
Great Britain were subject to the greatest difficulties
and their debtors in this country not only sudden
y deprived Of accustomed and expected credits but
called nny TIA xyhi IN he pnstnr
Of things here could only be made through general
pressure, and at the most ruinous sacrifices. a...
- In view Of these facts, it would impossible
for sincere inquiries after truth to resist the conviction
that the causes of the revuson in both countries have
been subst antidlly the Two nations, the most
commercial in the world, enjoying but recently the high
est degree Of apparent prosperity and maintaining with
each other the closest relations, are suddenly in time
profound peace and without any great national disas-
ter arrested in their career, aud plunged into state Of
embarrassment and distress In both countries we have
witnessed the same redundancy Of paper money, and
other facilities OF credit; the spirit Of speculation
the same partial success; the difficulties and re-
and, at length nearly the same Overwhelming
catastrophe. The most material difference between
the results in the two countries has only BEEN that with
u.s. there has also occurred extensive arrangement
in the fiscal affairs Of the Federal and State Govern
Inen,s, occasloned by the suspension OF specie pay
mants by the banks"
Now that oycr-banking, over issuing, &C., as men
toned by the President have been operating causes is
only common belief But where did they originate,
and who produced them That is the first question
And here Mr. X, stated that the Presden. was mis-
taken IN cue,y fact assumed by him 10 ertulpate our
Government from The charge Of being the original
cause Of The mischief Other countries have been suf-
ering evils similar to those suffered by ourselves"
ercept those mhieh They hare suffered By ic connections
ruth and losses By And reference the amount
OF backing capital, and the issues Of paper credits put
in circulation in Great Britain &c, during the wears
nd .
Of the paper currency there, much disproportoned
the real wants of trade in the United States" Nor
has there been IN England any general rise of prices
nor do we witness liz both countries the redund
ancy OF paper money and other facilities OF credit"
the same spirit Of speculation These positions Of the
President are entirely erroneous and the facts he sup
poses have not shadow of existence.
lie SAID he did not OF course, make these contradc-
tons in offensive sense, in way disrespectfu to
the President He had been in favor of his election
and did not regret it. He moreover believed him to be
man OF patriotism and integrity, well intelligence,
and ne hoped to be able to support his Administration
But if he was (as he donbess) "sincere inquirer
after TRUTH" he would be glad be corrected in
calculated to deceive the people, and divert their minds
from the true agency by which they have been over
whelmed The Presidents @ difference" in fact, ought
to have shown him where the fault lay. He that
one nation has become bankrupt The other sustained
itself, and is now nearly recovered Why this differ
ence !" Why, simply because is the distress of
the DEBTOR unable to pay the debt; is the dis
tress OF the CREDITOR for want of the money due him
The creditor OF bankrupt is frequently much injured
Tor want OF his money but does not necessarily follow
that he also falls And in is he chargeabe with
the foles and ex,ravagancies that brought about the
disaster He may have been too confding, but there
his fault ends The inudlcious prodigal, with bad adj
Vsers, may contract debts, multiply obligations make
experiments, and become embarrassed and bankrupt
The confding neghbor who trusted him far may feel
sensiby the want of his debt, be Obliged cuail his
expenses, or otherwise economic for while but,
being the CREDITOR and therefore likely the richer
OF the two, he is not so likely to be ruined Here Mr.
X read an extract Of letter from gentleman of Liver