The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1837-11-21

ney and so on in the order OF their greater or less
commercial intercourse with Most truly was SAID
by the Senator from Georgia that the recent enpais
ments Of Europe the embellishments Of creditor,
from whom payment withheld BY the debtor, aud
from whom the precious metals have been unnecessary
" withdrawn by the policy Of the same debtor
Siacc the intensity Of suffering, aud the disastrous
state Of things in this country, have far transcribed any
thing that has occurred in Europe VIC must look here
for some peculiar and more potent causes than any
which have been in operation there They are 10 DC
found in that series Of measures TO which have al
ready adverted.
Ist The veto OF the Bank
end The removal Of the deposites, with The urgent
injunction Of Secretary fancy upon the banks 10 Gu
large their accommodations.
Sd The gold bill, and the demand OF gold Tor the
foreign ACCOMMODATIONS,
4th The clumsy execution OF the deposite law;
and
5th The Treasury order Of July, 1886.
There Mr. Clay went into an examination oil these
measures to show that the inflated condition OF the
country the wild speculaons which had risen to their
height when they began be checked by the prepare
tons of local banks necessary to meet the depose
law of June 1886, the final suspension oil specie pay
ments and the consequent disorders in the currency,
commerce, and general business Of the country were
all 10 be traced 10 the influence Of the measures emu
merated. AL these operated immediately d.
recty, and powerfully upon and their effects were
indirectly felt in Europe
The Message impues TO the deposile law an agency
in producing the existing embarassnents. This is
charge frequently made by the friends OF the admins
uaton against that law Il is true, that the banks ha-
wing increased their accommodations, in conformity
with the orders Of Secretary fancy, 1t might have not
been convenient 10 recall and pay them over for pub
lie use 1t is true also that the IN which The
law was executed by the Treasury department, trans
errDg large from creditor to debtor portions OF
the country without regard the or bust
ness or the country, migh have aggravated the IN
convenience. But what do those who object to the
law think ought have been done with the surplus
ses which had accumulated and were daily augment
ing to such enormous amount IN the hands OF Inc
deposIte banks Were they TO lie incorporated WIN
their capitals and remain there for the beneht oil the
stockholders Was il not proper and Just that they
should be applied the Of the people from whom
they were collected And whenever and however Ia
ken from the deposte banks, would not Inconvenience
necessarily happen
The Message asserts that the Bank. Of the United
States chartered by Pennsylvania, has not been able
to save ITSELF or check other institutions, notwth-
standing the still greater strength it has been said to
possess under its present charter" That bank IS now
state institution. Why is II referred to- more
than the Bank Of Virginia any other local lnstitu-
ton The exalted station which the President hills
forbds the indulgence OF the supposton that the allu
sion has been made enable the administration to
profit by the preudces which have been excited against
1t. Was it the duty Of that Bank, more than any
other State bank, to check the local institutions Was
it under less obligation to do so than the de-
yernment!
But how could the message venture to assert that it
has greater strength than the late Bank Of the United
States possessed Whatever may be the lberay Of the
conditions Of lis charter, is impossible that any single
State could confer upon faculties equal to those granted
the late Bank Of the United StatesfIst IN making
the sole depository Of the Of the United States
and secondly in making its notes receivable IN the pay
ments Of all public dues If Bank OF the United
States had existed, would have had ample notice of
ntinnn f l,r he
and by timely measures OF precaution, 1t could have
prevented the speculative 10 which they were APP
Piled Such an institution would have been bound, BY It's
relations TO the Government observe its appropriations
and financial arrangements and wants. aud to hold Itself
always ready promptly to meet them, It would have
drawn together gradually, but certainly the public mo-
neys however dispersed. Responsibility would have
been concentrated upon alone, instead OF being weak
ened or lost by diffusion among some eighty ninety
local banks, dispersed throughout the country and act
ing without any effective concert
subordinate but not unImporant cause of the evils
which at present encompass has been the course Of
the late administration toward the compromise act
The great principle of that act respect TO domes
tic industry, its stability. 1t was intended and
hoped that by Withdrawing the tariff from those annual
discussions in Congress- Of which it had been the fruit
full topic, manufactures would have certainty, for a.
long PERIOD to the OF protection extended 10
them By its provisions which would compensate any
reduction in the contained in prior acts. For
year or two alter It adopted the late administration
manifested disposition to respect 1t, an arrangement
which to be nvolable But, for some time past, 1t
has been constantly threatened from that quarter and
settled purpose has been displayed to disregard its
ditions. Those who had an agency IN bringing 1t for
ward, and carrying through Congress, have been held
up to admadverslon 1t has been declared by members,
high in the confidence Of the administration IN both
Houses, possess obligatory force beyond any
binary act OF legislation, and adjustments OF the
tariff have been proposed in both Houses in direct
prevention Of the principles of the compromise; and, at
the last session. of them actually passed the Senate,
against the most earnest entreaty and rGmonstrance
portion Of the South has not united in these attacks
upon the compromise and take pleasure in saying
that the two Senators from South Carolina especially,
have uniformly exhibited resolution TO adhere to 1t
with perfect honor and fidelity.
The effect OF these constant threats and attacks,
ing from those high in power, has been injurious.
They have shown TO the manufacturing interest that no
certain reliance to be placed upon the seadmess Of
the policy OF the Government 10 matter under what
solemn circumstances II was adopted That interest has
taken alarm new enterprises have been arrested old
curtailed and at this moment is the pros
Of all the interests in the country, One half in
amount, have been informed Of the manufacturers
throughout the country, have actually suspended opera
tons, and those who have not, chiefly conne them
selves to working up their stocks on hand
The consequence has been, that we have made too
little at home, and purchased too much abroad This
has augmented that foreign debt. the existence Of
which powerfully contributed the suspension, and
yet forms an obstacle 10 the resumption OF specie pay
ments.
The Senator from South Carolina (Mr Calhoun,) at.
tributcd the creation Of the surplus tho tariff
policy, and especially the of 1924 and 1928 do
perceive any advantage the present OCCASION in
revivng abiding the former dlsscntons whichpre
vailed on the subJec, Of thar policy They all set
tied and Quoted by the great healing measure he
promise) to which have referred BY that act have
been willing and ready to ABIDE. And have desired
only that should be observed and executed in spirit
OF good faith and fidelity, similar TO that by which have
been ever actuaed toward it.
The act of 1928 was Of the friends Of the
manufacturers. Its passage forced BY coalition
between their aud open opponents But the sys.