The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1837-10-07


the South Sea bubble In this enlightened age, at this
late period of our history, afler what we have
OF the effects OF the credit system upon the country
with the evidence of our own senses and the tesii
mony OF all Europe in favor OF i, confess my
amazemenl al hearing such sentiments uttered on
this door have no. language, consistent with the
high respect which entertain for thai honorable
Senator lMr. Strangely 10 express my astonishmenl
and !, therefore, can only say,
"'Tis Strange lis passing Strange"
The tendency of this scheme is % bring the coun-
try virtually, 10 an exclusive metallic currency
Whatever gentlemen may say on this subject, this
wild and visionary theory is gaining ground with
certain portion Of our population II is propagated
b. reason Of the counienance which il Is supposed
receive from men in high places. Meetings have
been held in New York and elsewhere, al which an
exclusive metallic currency has been resolved ON as
the only true policy. All paper money of every de-
scripon has been repudiated, as contrary TO the
genius of Government and the spirit Of our insti-
tulions. In the same resolutions, men in elevated
stations have been applauded by some for maintain
ing the same doctrines. The proceedings Of such
meetings have been responded 10 in terms of appro-
baton, thereby tacy acquescing in all the prnci-
Piles set forth ia them and thus giving currency 10
them with the people. II is the belief that such prin-
ciples are recognized by those to whose approval
they are submitted that excies the alarm and appre-
henSion which pervades the rational and thinking
portion OF the community. Il is this, too, which
gives countenance the idea, that the Sub Treasury
tallic currency The suggestion of the Secretary Of
the Treasury may also go far TO confirm it He says:
" The people Of the whole United States do not in
sound State of business and prices, need over one
hundred and ten millions OF an active circulating
medium for all their currency This would be a
larger proportion of currency 10 our present popua
ton than the average has been from the adoption of
the Constitution and, il an erctaStte natalie cur
reney could be deemed desirable, would require only
about thirty millions more than the specie which is
SuDpOyed The
II is true the Secretary does not recommend This,
but under the present stale of things, thinks some
paper will probably, always be found convenienl for
commercial operations Sill il will be perceived
that il by this scheme, or any o'her, banks can be
dispensed with, then, in the opinion OF the Secretary
we should, with thirty millions more of specie be
able to transact the thousands of millions of business
OF this rapidly increasing and enterprising country
Those who make such estimates, seem to overlook
the fact that the notes of banks and specie together,
form but small part OF actual circulation for
in one sense domestic exchange is portion of the
circulation and very large portion, too-very far
exceeding the aggregate of blink notes and specie.
This kind Of circulation is essentially promoted by
blnk facilities and bank credits. So that by dis
penSing with banks, although you should have the
hundred and ten millions OF specie, You would cur
TAIL TO most destructive extent, the domestic ex-
change, which, after all forms the principal circu-
lation.
But, whether an exclusive metallic currency be
intended or not, this scheme will if adopted vir-
tuallY accomplish that uD,ect. VIII take the cly
of New York for example. My remarks will ar-
ply, in the ratio of business, with equal force ID
every other portion Of the Union. New York col.
lects about wo-itths Of the whole revenues of the
government accruing from customs. They have
amounted in some years from fifteen to eighteen
millions of dollars. But, let assume the year
1884 which the Secretary takes the criterion for
future years In that year the receipts at New
York for customs amounted to some twelve mil
lions of dollars Now, ask how is it possible for
merchants I in
Gle In what way can they command it Even if
they could procure it, il would be by Withdrawing
il from circulation from other parts of the country,
or by taking from the banks where il is the basis
of circulation, as well as the basis of confidence 10
depoSiterS. Ii this amount of specie to be dis
bursed Immediately after its receipt that would in
measure, obviac the difficulty SO far as New York
is concerned. But, it is not SO disbursed We all
know, as general rule that of The appropriations
for the year, there remains sometimes one-haf of
the amount in the shape of unexpended balances
at the close Of the year. OF course there must re-
main large amount of the money which is re-
ccivcd into this Sub Treasury, unexpended This
amount therefore, is taken out of circulation
from the banks, and does not again go into circua-
ton, nor into the banks. The receipts are much
greater and more rapid than the disbursements So
that there must remain large sum on hand which
cannot be disbursed. Let no one then be dellded
with the idea that this is 10 be constant round OF
receipt and disbursement. II is no such thing
have examined the statements OF the amount stand
ing to the credit of the government in the deposte
banks in 1884 / find the permanent average ba-
lances to be about five millions of dollaIs, when at
the same time there was not half that amount d spe-
Gle in the vaults of al the banks in the city Here
then five millions of dollars, in the shpe of
permanent average balances, beyond all dislurSe-
menis, sailed down" in this Sub Treasury tault,
OF no more use TO the government nor to the people,
than If ii was cast . into the bottom of the deep
where fathom line has never reached the ground"
Sir, it is impossible that this system be carried
into effect in the city of New York. The merchants
cannot command the specie; and if they coald, il
would be drawing it from distant parts Of the coun
try and the vaults of The banks BY which the whole
course of business would b. disturbed and deanged
from New York TO the remoteSt points of the Union.
have said that about five millions Of dollars would
remain as permanent average balance in opposite
beyond the disbursements OF the government Of
the amount of twelve millions collected at New
York, according TO the above estimate, about seven
millions would b. dSbursed But, even this dis
barsement is not made where the money is collected
In 1881, in the whole state of New York only 81 650
600 was disbursed within its limits. We here have
the astounding fact, that while the city of New
York pays $l2,000,000 and 81 DOC, 900 Of that sum
is disbursed, only 81 $4,000 is paid out within the
state. | am not complaining that larger sum is
not expended therefor those expenditures must be
made whore the interests of the country require
them--but, | am complaining of the proposed sys-
tenn by which you require this enormous amount TO
BE- paid in specie when SO small portion OF il is
paid out where it is collected But il is better that
il be dSbursed elsewhere than not disburSed al all
And We have already seen that about IS OO0, 900
must remain in permanent depoSile, beyond The
amount diSburSed, and thus be buried, like the ia
lent of the improbable servant, where il is Of no
use 10 the government nor to the people, but of detr-
ment to bo.h. But once adopt this burial system,
and where win you find the resurrectionary power
that can call back 10 life the hourly increasing de
posiies in this fiscal charne house.
Ii is said, however, by gentlemen, that this money
belongs TO the Government and that the people have
no right TO the use of it, Is this not an additional
evidence Of the attempt TO separate the Government
from the people Is this not the money of the peo-
plea How does II bccome the money of the Go
vernment, as contra-disngu ished from the people
The Government or the officers of Government are
the agents and servants of the people. They are
mere trustees TO execute certain powers committed
L. L. L. i