The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1837-11-03

from the broker TO the Custom house.
liz il be true then that Government cannot
! command the precious metals through its re-
venue, until they return back TO circulation;
the inquiry remains 10 be answered, how that
| end is 10 be attained | would answer FIRST
il will be attained even before very long
| time, if matters are allowed to remain, as far
as Government is concerned, precisely where
they now are.
| Lei us keep our hands off, and the banks
will resume as speedily as reyiving trade will
alow-within what period will not profess
| TO answer. but their course OF dealing since
| the suspension. evinces the strongest purpose
10 do so, at the earliest practicable day. The
Secretary of the Treasury tells us in his re-
mort. that since the suspension Of payment
!. The policy pursued By most Of them, has been
| favorable 10 an early discharge u their engage
ments to the Treasury and % a resumption 81
specie payments.' And again in proof OF that
position he says, speaking OF the deposte
| banks that " since the LIST OF May their dis
counts as whole have been reduced about
$50 3SS,776 their circulation $4.99l,79l;
and their public dcposites $l5,607,3l while
their specie has diminished less than So
600. 600" Such is the encouraging account
which the Secretary himself gives us, Of these
institutions We have already seen the great
reduction in exchange since our session be-
gan, evidencing the rapid extinguishment OF
the foreign debt; and the effects manifested
1 BY the approaching market for the Southern
staples. Even the presentation Of the bill
1 for an issue Of Treasury paper had an effect,
in bringing down exchange. Putting all
these things together, we may safely argue,
that the evil day is passing by; and all that
| urge upon you is to keep hands of, and let
very well alone.
The resolution OF 1876, now in full force
I had the effect at that day, of bringing about a
general resumption Of payment by the banks.
| II will do so again, if its operation be unaf-
fected have shown you already the pro-
mise under it. But the bill proposes to re.
peal that resolution as the first step in the
policy Of the new law. Then, the attitude
of Government towards these institutions
was one Of encouragement and confidence.
/ 1t offered inducements to them to resume,
and invited back the confidence of the COM
munity. The wisdom of that policy was mani
/ tested by The result Now the very reverse
is to be attempted, in lieu of confidence we
present discredit-for encouragement, me-
naced destruction | need not add, that the
same end, cannot be obtained by such OPP
posite means.
But again, sir, there is in this bill an en-
tire departure, from the great and leading
principles of the late administration on the
subject OF the currency. 1t looks no farther,
than to supply of specie for the Govern
ment and It's dependents. There is no ac-
count taken Of the more important object, of
infusing specie into circulation for the CON-
mon use of the people, Then the great ef-
fort was. to enlarge the specie basis, by the
suppression of small notes. The Government
as the greatest creditor Of the banks, sought
to effect this by the control incident to its
large deposi,e. The banks were encouraged
in every way to co-operate-and the States
were appealed to for their aid, in the common
duty Of a reform in the currency.
| Many of them, where there was a bank IS
sue under FIVE dollars, met the appeal at once,
by direct prohibition to that extent.
| But the state OF Virginia went farther. She
| had long since realized the benefits of spe-
Gle circulation below FIVE dollars, by prohi
biton Of all paper under that amount; and on
the very first occasion when the charters of
her banks would be reached; SO recently as
during the last winter, the prohibition was
extended to ten dollars, and to take effect at
an early day.
| These were the measures then contemplat-
ed for the improvement of the currency, and
begun 10 be carried ont by the powerful aid
of State legislation. Why are they to be
abandoned now! 1t was admitted then, and
it is beyond all question true, that specie either
in gold or silver, will not circulate by the side
of paper. If experience of This were want
ing, it is abundant in Virginia in reference to
small notes; as soon as they were expelled
by her law, silver took their place. And there
is no doubt that if her policy could be carried
out, by the expulsion of all paper under twenty
dollars. that gold would flow at once, into the
vacant channels. All this can yet be done,
by simple adherence to the original plan.
But your policy is in utter disregard OF all
such intent.
| The great forcing process now in contem-
plation will work the very reverse, Of what
was then SO strenuously urged. 1t will put
all our golden dreams to flight, of the hal
cyon days Of hard money; and the States
will be compelled from sheer necessity. to
licence once more the very lowest issue of
bank paper. Seeing these things as | clearly
do in prospect, under the operation of the
proposed law, | can have no choice but to
raise my voice against it.
As to so much of The bill as constitutes the
collectors Of the revenue, with the mint and
its branches, repositories Of the public money,
have but little to say. 1t is certainly sub
ject TO very strong objections, not the least Of
which is, the very great increase Of patronage
to which it must give rise-and a patronage of
the most dangerous influence, as being SO inn
medately connected with the public money.
Neither is this objection at all answered when
it is said, that the patronage will be less than
] that exercisel In the intercourse hetween the