The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1837-11-24

people and OF the States favor OF such institution
II there be wanted. and uneqnsoca manifesto
ton be made of the popular will that IL is desired a
bank will he established. The Presidents opposition
TO il founded principally upon the presumed opposition
OF the people Let them demonstrate that lie mista-
ken and he win not separate himself from them He Is
100 good democrat, and the tenor OF his whole life
shows that whatever other divorces he may recommend
the last that he would desire would be between him aud
the people Should this not prove to be the case, aud
il majority should exist sufficiently large TO pass
bank charter in spite Of tho veto, the ul,imste remedy
will remain to the people to change their rulers if their
rulers will not change their opinions,
But during this debate, IL has been commended that
the establishment Of new Bank Of the United States
would aggravae existing disresses and that the specie
necessary put into operation could not be obtained
without prejudice 10 the local banks.
What is the relief for which all hearts are
anxiously throbbngl istto put The banks again IN
motion to restore exchanges and revive the dropping
business OF the country Aud what the obstacles
They arc FIRST the foreign debt, aud, secondly want
Of confidence. If the banks were to reopen their
vaults il is unprecedented that the specie would mmedi-
aiely be exported Europe TO discharge the foreign
debt Now il Bank Of the United States were esta-
bshed with suitable capital the stock OF that bank
itself would form Of the best subjects Of remittance
and an amount Of it, equal TO what remains Of the TO-
reign debt, would probably BIO RENTED, retaining at
home or drawing from abroad the equivalent in specie.
great If not the greatest existing evil Is the want OF
confidence not merely in the government but in distant
banks and between the banks themselves There is no
tie OF connexon binding them together and they are Of
ten suspicious Of each other To this want OF confidence
among the banks themselves be ascrbed that extra
ordinary arrangement in the exchanges OF the country
How otherwise account for the fact that the pa
per OF the hanks OF Mississippi cannot now he cschang
ed against the paper OF the banks OF louisiana without
discount in the former OF ten or fifteen per cent; nor
that Of the banks Of Nashville, without discount Of
10 per cent against the paper Of the banks OF The adj
joining State Of Kentucky II is manifest that whatc
may be the medium Of circulation, whether IL be in-
convertible paper convertible paper and specie sup
posing confidence to exist the rates Of exchange IN both
ought to he nearly the But in times like
these bank will allow its funds to accumulate by the
operation of exchange al points where no present use
can be made Of them.
Now il a Bank Of the United States establish
ed, with proper capital and it made the sole de-
postory Of the public moneys and its notes were re-
ceivabe in all government Dues il might commence
operations forthwith with small amount Of specie, per-
haps than two millions. That sum would
probably be drawn from the community, where is now
boarded and dormant if it taken even from the
local banks, they would be than compensated in
the security which they would enjoy, by the remittance
Of the stock to Europe, substitute for their
specie.
Such new bank commencing business, would
form ralyng point; confidence would revive, exchan-
ges be again regulated, and the business and prosperity
Of the country be speedily restored And it IS BY no
the banking capital Of the country for It'll highly proba-
Bile that the aggregate amount Of unsound banks which
can never resume specie payments, would be quite equal
TO that OF the bank.
An auxiliary resolution might be adopted with saluta
effect, similar to that which adopted IN 1916, Of
ferng TO the State banks. to specie
payments that their paper should be received for the
public dues or, their number has since that period
greatly increased, to make the motive more operative,
the offer might be confined TO two banks IN each
lat II Ia,
Of the United States commence specie payments, and
all the other sound banks would be constrained by the
united force Of public opinion and the law to follow the
example,
II, in contrasting the two periods OF 1917 and 1887
advantages for the resumption Of specie payments
existed the former epoch others which distinguish the
present greatly prepouderae. At the first there were
except the existence OF public debt and small
Ter number Of banks. But then exhaustng war had
wasted Now have infinitely greater
wealth, vastly more developed and In
creased, population nearly doubled, our knowledge
Of the disease much better and, what OF the utmost
Importance, remedy, if applied now, would be admin
istered in much earlier stage ofthe disorder
general currency of sound and uniform value IS
necessary the well being Of all parts Of the Confcde-
racy but it is indispensable to the interior States The
board States have each Of them anks whose paper
freely ccuates within their respective limits and serves
all the purposes Of their business and commerce Ut their
capitals, and throughout their whole extent The var-
those States from commercial metropolis to another,
not ordinarily very great. Bot how VIC Of the
interior to the Atlantic cities purchase
supplies Of foreign and domestic commodities, without
general medium The paper Of our own banks will
be received but at ruinous discount. We want
general currency which will serve home. and enable
carry on accustomed trade with our brethren
the Atlantic States And such currency we have
right to expect.
do arrogate to mysefa right to speak for and in
Ii al.
from one OF them am entitled to DO heard. This
Union formed to certain general, but highly
important Objects Of which the common defence, com
merce, and uniform currency were the leading ones.
To the interior States, is Of more Importance than
that Of the currency Nowhere the attachment to the
Union ardent than in those States but, if this GO
vornment should neglect to perform its duty, the value
of the Union will become impaired, and its very exist
ence, in process OF tme may become endangered do
believe that between sound general currency, and the
peser, alton of the Union ITSELF in full vgor ard perfect
safety, there is the most intimate connection
If Mr. President the remedies have suggested were
successful at former period of history there is
ry to hope that they would again prove cfcaci
but let me suppose that they should not and that
unknown cause, which could not them should now,
thwart their operation, should have any event. the
consolation Of knowing that had endcavored to pro-
fit by the lessons Of experience, and, If they failed
should stand acquitted in the judgment Of the people.
They are heartily tired OF visionary schemes and wild
experiments They wish to get out Of the woods, into
which they have been conducted, back to the plain,
beaten, wide road, which they had before trodden.
How, and when, without such measures as | have sug-
gestcd, the State banks to specie payments!
They never resume without concert; aud concert
springs from confidence and confidence from know
ledge. But what knowledge eight hundred banks,
scattered vast territory, have Of the actual con-
don Of each other 1t is in vain that statements of it
be periodically published. II depends, last, mainly
upon the sovency Of the debtors to the bank and how,
whenever their not known, that be
tanned
Instead Of coming TO the aid Of these PROSTATE nst-
tutions and assisting them by mild and parental
else Of your power, in mode sanctioned apd approved
by experience, you propose abandon them aud the