The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1837-10-12

| 1
been presented by my friend from Virginia rear me (Mr
ltobertson) He maintained that the Constitution
ioFbids any thing but gold and silver TO be made legal
tender by the States il implicitly requires that should
pay the debts Of this Government ony 10 specie or in
what is equivalent it, And yet, in almost the same
breath, the gentlemen proceeded 10 denounce the Ex
ccuNe for not being satisfied with the bank Of the
States which he maintained really mol all deprcciat
Cd Sir on this last head agree with him entirely, at
eas, so lar as regards the state OF paper currency
in the southern States. ] maintained when first came
here what has been since demonstrated in mastery ar
gument ia another part Of this building and is strik-
lngy coboboated by the recent fall in exchanges that
the price Of bullion had been raised by an extraordinary
foreign demand, and proof whatever Of the re-
dundancy Of the circulation, which has been very much
reduced within the last months and is probably
inadequate TO the necessary exchanges Of the
try, in the usual course Of business But il this is true
have no doubt II 49, then the right OF creditor I'M
der the Constitution TO demand specie for his debt be-
comes that Jus which all the world over is
samma iljura. And # this is the between IN
dyiduals, why should rule very different be applied
to the transactions OF Government Nay, the news
brought from New York this morning that while
gold only at per cent premium treasury drafts are
a4 for you must remark sir that the letter Of Prime,
Ward d Co, received just now, is dated at least
fortnight ago, and since that time most decided
change has taken place in the specie market well
in foreign bills. think then am perfectly safe in az
hrmng that there danger nhateyer OF the eoDen
plated treasury falling below what by the comics
sion OF the gentleman himself ought satisfy any
not bent upon enforcing contract according TO the Ut
most rgor Of the law, manner inconsistent with
| equity aud good conscience. We shall pay our
ditors in what is per cent above those bank notes
which are there acknowledged to be at their full value
in reference TO all other commodities but gold and sill
| YER
Here Mr. Robertson said nothing was at par, which
not equivalent to gold and silver, something
| that effect
| Mr., Legarc. Then why find so much fault with the
Government for demanding gold and silver Of its debt
orsl The gentleman is plainly in dilemma, from
which it is not easy for him TO ex,ricate himself
| [Mr ROBERTSON said. with the permission OF the
gentleman from South Carolina, he would make brief
explanation. lie had not al all discussed the question
of depreciation. He could not admit, however, that
paper money was deprecated. On the contrary,
he insisted that it must always be regarded in legal
sense, deprecated when below the LEGAL standard
god and silver without regard the causes, whether
be foreign demand or any other whchmay have occa-
stoned hediercnce Still be denied the polio, JUS
tice OF cxactng gold and silver ut this time payment
Of the public dues; when it could not be procured but
at high premium, and when indeed there scarcely
any other currency the command Of the people than
deprecated paper He thought il was oppressive in
this Government 10 exact this sacnhce-,o reject that
which the State Governments content to receive
and what in the ordinary transactions between and
man, it would be deemed immoral and dishonorabe to
4 refuse y. Il.
Sir, | am charmed to hear the gentleman say so
Then why should the public creditor call upon the Co.
vernmsnt 10 do, for his benefit immoral and dishon
orable thing; and why should he think himself wronged
If we offer him what is ut this moment four per bet
ter than the paper which, according to the geneans
own showing ought TO satisfy every equitable and
entous man! But tho truth is, apprehend no diff
Guilty at all from those to whom shall have payments
to make, and through whose hands these notes will
almost, without exception, make their way into crcula-
ton They will receive them cheerfully, and without
hesitation; and although perfectly appreciate the de
licate and honorable scrupcs which some gentlemen
seem TO feel about offering in satisfaction Of the public
dues paper little inferior to the only legal ten
der recognised in the constitution, yet cannot, my
SELF left, after ALL entirely 10 the free will Of
the party cannot consent to sacrifice substantial justice
and the public good, to what must consider super
stous adherence to the letter Of the law Nobody
at all versed in these Subjects regards The precious
metals any thing but anapproximaton, and often very
imperfect approximation TO correct measure OF valn.
They have been adopted from the necessity OF the
thing as the two great " commodities Of commerce
furnishing ready medium Of exchange for all others,
and on the WHOLE the best practical means OF compar
ing them; but they still, like the rest commo-
dIies subject to very great fuctuaton in value,
cording to the common principles which govern prices
The present state Of things furnishes IN my opinion,
striking example Of this important truth and now,
ask whether any really just man ought to complain
oil US, u we offer him these notes, with the most perfect
liberty to refuse them at his own discretion and treat
US as debtors on his unsettled account; If in making
that offer hold to him the frank manly, and
bic language dictated by the truth OF the case, and
the actual situation Of the countryif say 10 him
gold ard silver, which is in strict law, though not
IN good conscience, your DUE wei have none. by un-
foresecn and terrible reyuson, by contingencies beyond
any human CONTROL debtors have been and are still
unabiy to meet their engagements with in the usual
way he country is in deep embarrassment and dis
tress, and we cannot, disposed to do So
press them TO literal compliance with their contracts
without involving our whole people, or less in the
fearful consequences of the bankruptcy that would pro-
badly cnsue. We give you, however, acknowledge
mcnt OF your claims against u.s. which will be every
where nearly as good, in parts of the country,
probably better than the precious me,als-whch at all
events at PREMIUM in reference to what yon wonld
not hesitate 10 receive from private debtor and
PUTT to your patriotism and your Of justice to
decide whether we have not to oil substantial purposes,
complied with our engagements" Sir, depend upon it,
such an appeal to the good and the generosity Of
our fellow citizens, will not be made in vain.
The right of the Government therefore, in every
aspect OF the case, being as conceive, fully esta-
biished, the only remaining question is, in what form
will these notes be most beneficial to the public :
Whether is better 10 issue them bearing an interest
OF not more than per cent, or bearing either in
ercst at all, or very pall one to be ascertanedby
the House And this brings me to the difference be-
tween me and the Chairman Of the Committee of
Ways and Means, or to express it more accurately,
perhaps, between the Senate and the Committee OF
this House Sir, admit that these notes AT a high
er rate OIL interest than approve would serve an ex
cellent purpose as remittances to Europe-but ex-
changes as we have seen, are elready fallen nearly
5oper cent. within a very few days, and there IS
every reason TO believe that as soon as the coming
crop shall be brought to market they will be down
AT par But the prospect Of an improvement in our
domestic exchanges is unfortunately not SO good An
immense debt is due from the West and the South
west TO the great commercial capitals on the Allan
tic to the payment of which, notes bearing high
rate OF interest will contribute no aid whatever
They will You may rely upon it, sir, be instantly
bought up BY capitalists for investment. They will
disappear entirely gold and silver havedisappear
cd. In consequence Of the shock given to all credit
by the late revusion there are immense deposiies in
all your banks waiting for some safe npnnriuniiy 10