The Caledonian. [volume] (St. Johnsbury, Vt.) 1837-1867, 1837-11-21
MIR WEBSTER'S SPEECH,

lectng and keeping the public money, delivered in
the Senate of the United States Sept. 29th, 1887.
Mn. PRESIDENT am opposed to the doctrines
OF the message, to the BILL and TO the amendment
of the member from South Carolina, mir. Cal
houn.l In all these see nothing for the relief
of the country; but do see, as think, qucs-
ton involved, the importance Of which trans
cends all the interest of the present occasion.
1t is my purpose to state that question; to pre-
sent it, as well to the country as TO the Senate;
to show the length and breadth of it, as qucs-
lion Impractical politics, and III its bearing on the
powers of the Governments to exhibit its impor-
lance, and to express my cwn opinions in regard
| to it.
short recital of events and occurrences will
show how this question: has arisen.
| The Government of the United States COM
pleted the tory-cihgIh yearo lis existence, under
! the present constitution, on the third day OF
March last. During this whole period, it has
felt itself bound to take proper care of the cur
rency of the country; and no administration has
admitted this obligation, more clearly or more
| frequently, than the last. For the tuIfilnent of
this acknow lodged duty,as well us TO accomplish
other useful purposes, national bank has been
maintained for forty out of these forty-eiglt years.
Two institutions of this kind have been created
by law; one, commencing i'll 1871, and liniIe'i
to twenty years, and expiring, therefore, in 1911;
tho either commencing in 1916, with n like term
of duration, and ending, therefore, in 1886. Both
these institutions each in It's lime, accomplished
| their purposes so far currency was concerned,
to the general satisfaction of the country But
before the last bank eXpired,it had the misfortune
10 become obnoxious to the last administration.
| need not ut present, speak of the causes of this
hostility. My purpose only requires Il statement
of that fact, rs an important one in the chtIn OF
occurrences. The late Presidents dissatisfaction
of the bank was minated in his first annual
message, that is to say, in 1929 Bur the bank
stood very well with lIie country, tue Presidents
known and growing hostility Notwithstanding;
and in 1882, tour years before lis charter To
expire, both Houses of Congress passed bill
for its continuance; there being in It's favor large
majority of the Senate, and large majority of
the House of Representatives. The bib, howev
CT, was ncgat;ved by the President. In 1888 by
an order of the President, the public moneys
were removed from the custody of the bank,
and were deposited with certain selected State
banks This removal was accompanied with
the most confident declarations rmI assurances,
put forth in every form by the President and the
| Secretary Of the Treasury, that these State banks
would not only prove safe Repositories of the
public money, but that they would also furnish
the country with as good currency ms it ever
had enjoyed, and probably better; and would
also accomplish all that could he wished in re-
gard to domestic exchanges. The substitution
of State banks iCr national institutions tor the
discharge of these duties, was that operation,
which has become known, and is likely to be
long remembered, as the "EXpcrimcnt."
e, For some years, all was said to 30 on extreme
~ wen, although IL seemed pam enough 10
great part of the community that the system was
radically virious that lis operations all in
convenient, clumsy, aud wholly inadequate to
:. the proposed ends; and thut sooner or er,there
must be an explosion. The administration. how
ever adhered TO It's experiment. The more il
was complained of,hc louder it was praised. lis
communication one of the standing topics
Of all official communications and in his last
message, in December, 1886, the late President
was more than usually emphatic upon the great
success of this attempts TO improve the currency,
and the happy results of the experiment upon
the important business of the exchange. But Il
reverse was ut hand The ripeniug glories of
tie experiment was soon to meet dreadful
bIighting In the early part of May last, these
banks all stopped payment This event, of course,
produced great distress in the coiluiry,and it pro-
duced also singular embuwassmens to the adj
ministrution.
The present administration was then only two
months old; but it had already become formally
pledged to maintain the policy Of that which
had gone before it. The President had uvowed
his purpose of treading in the footsteps of his
predecessor. Here then, YVES difficulty Here |
was political knot, TO he either united or cut.
The experiment had failed, and failed, as it Vas
thought, so utterly and hopelessly, that it could
not be tried again.
What them was to he done? Committed IL
ganst bank Of the United States in the strong
est manner, and the substitute, from which SO
much expected, having disappointed all
hopes, what was the administration to do! Two
distinct classes OF duties had been performed, iii
times past, by the Bank of The United States;
one more immediatly 10 the Government, the
other to the community. The first, was the safe
keeping and the transfer, when required, of the
public moneys; the other, the supplying OF a
sound and convenient paper currency, of equal
credit all over the country, and every where e.
Equivalent to specie, and the giving of most inn
portant facilities TO the operations OF exchange.
These objects were highly important, und Their
most perfect accomplishment by the experiment
had been promised, from the first. The State
banks, it was declared, could perform all these
duties, and should perform them, But the sex .
perirnent'came to dishonored end in the early
part OF May. The deposite banks, with the 9TH ,
ers, stopped payment. They could not render +,
back the deposi,es; and so far from being able to
furnish general currency,oT to assist exchanges