Morning herald. [volume] (New York [N.Y.]) 1837-1840, 1837-09-06


the part OF the Executive May il not be hoped that
aprudent fear of public jealousy and dlsapproDallon
in a matter so peculiarly exposed 70 tneAi, WI ue-
ter him from any such interference, even nieher mo-
DIVES be found imperative May not congress so re-
guate bv law the duty of those officers and subject
il TO such supervision and publicity, as 70 prevent the
possibility of any serious abuse on the part "a the
Executive? and is there equal room LOT sucn super
vision and pubIicty ia connection win banks, act
INC under the shield corporate immunes, and con-
Quoted by persons responsible TO the government
and the peoyle? tits believed that consderate and
candid investigation Of these questions Will result In
thu conviction that the proposed plan is far less La
bic TO objection on the score OF Executive patronage
and control, than aay bank agency that has been, or
can be- devised.
cessary to regulate, in the present emergency the
safe keepag and transfer of the public moneys. In
the performance OF constitutional duty, have stated
10 them without reserve, the nlt of my own rcf1ec-
tons The subject - Of great Importance; ana one
on which we can scarcely expect TO be as united Ia
sentiment "a we are in interest. 1t deserves full
add free discussion, and cannot idil 10 De oenensu
by dspass onate comparison OF Opinions. wen a.
myself Of The duly OF reciprocai concession a.
mong the coordinate branches of the government,
can promise asonabe spirit OF cooperation, SO
far il can be INDUCED in without the surrender OF
con institutional objections, which bellevc 10 De well
founded. Any system that may oe Adopted snoula %
nong 70 the Fix acnlye but what is necessary TO the
discharge Of the duties imposed on him; and what
aver plan may be ultimately established, my part
shall be discharged as 10 give 10 II far trial. and
fhe best prospect OF success
The character OF the funds to be received and dis
5uysed in the transaction OF the government likewise
demands your most careful consideration.
There can be no dolbt that those who framed and
adopted the constitution, having in immediate view
the depe cated Currency of the confederacyof which
FIVE hundred dollars in paper were, at times, emily
equal TO one dollar in coin-lntended to prevent the
recurrence similar evils far at least as related 10
st.o ION nf Tho mr.
the congress express powers 10 coin mon"y and TO
regulate the value thereof aad OF foreign com; they
refused to give powerto establish coporatioDsthe
agents then, as now, chiefly employed 10 create
paper currency; they prohibited the States from
making any thing but gold and silver legal tender IN
payment of debis; and the first congress dlreced by
positive law that tie should be received in
nothing but gold and silver.
Public exirencv al the outset of the Government,
without direct legislative authority, led to the use OF
banks as fiscal aids to ne Treasury In admitted de-
Walton from the law at the same PERIOD and under
the same exgency, the Secretary of the Treasury re-
ceved their notes in payment OF duties The sole
ground on which the practice, thus commenced, was
then; or has since baen justified, IS the certain, mme
date and convenient exchange of such notes for spc
Gle. The Government did indeed receive the lncon-
vertibIe notes of State banks during the difficulties of
war; and the community submitted without muir
muir to the unequal taxation and multiplied evils OF
which such course was productive. With the war,
this indulgence ceased, and the banks were obliged
again to redeem their notes in gold and silver. The
Treasury, in accordance with previous practice, con-
tinued to dispense with the currency required by the
act of 1789 and took the notes Of banks in full conf
dence of their being paid in specie on desnand and
Congress 10 guard against the slightest violation Of
this principle have declared, by law, that notes
paid in the sactons of the Government must be
under such circumstances as 10 enable the holder to
convert them into specie without depreciation or
delay. sN. 4fE
Ofmy own duties under the existing laws when
tn BANKS suspended specie payments, | could not
doubt. Directions were Immediately given to pre-
the reception into the Treasury OF any thing but
gold and silver or its oquvaent and every pracii-
cable arrangement was made 10 preserve the public
faith, by similar or equivalent payments 10 the pub
lie creditors. The revenue from lands had been for
some time substantially collected, under the order
issued by the directions Of my predecessor The Of
fects of that order had been sautary and its FORE
cast regard 10 the ncreas ne insecurity Of bank pa
per had become so apparent, that even before the
tastropic had resolved not 10 interfere with its ope
ration. Congress is now to decide whether the reve
nue. shall continue 10 be so collected or not.
The receipts into the Treasury, Ut bank notes. not
redeemed in specie on demand, will not, presume be
saacu med. Ii would destroy, without the excuse OF
war or public Distress that equality Of imports, and
identity Of commercial regulation, which lie al the
foundation of our confedrracy, and would offer to
each state direct temptation TO increase its for ign
trade, by depreciatng the currency received for du-
ties in its ports. Such proceeding would also, in
great degree ustrate the policy so highly cherished
OF infusng into circulation larger proportion
the precious metals; a policy the wisdom of which
aone can doubt though there may be different opn-
IONS as to the extent to which il should be carried.
Its results have been already too auspcious and its
success 10 too closely interviewer with the future
prosperity Of the country, 10 permit us for moment
10 contemplate its Abandonment We have seen, un-
der its influence, specie augmented beyond egh y
millions; our coinage increased so to make that
of gold amount, between August, 1884, and Decem-
Der, 1886, 10 ten millions of dollars; exceeding the
whole coinage at the mint dvriag the thirty one pre-.
he nf fbav fyx,0r
coatinaed without abatement, until the moment OF
the suspension of specie pay ments.
This policy has now indeed been suddenly check
ed, but is still far from being overthrown. Amids,
all conflicting lhtories position is undenisbIe
the precious metals will invariably disappear when
there ceases to be necessity for their circu
iating medium II WAS in 81 let accordance with thin
truth, that whilst, in the monih of May last, theJ
every where seen, and current for all ord
nary purposes, they dsappea cd from circulation thu
moment the payment Of specie was refused by thu
sanks and the community tacity agreed to dispense
with its employment. Their place was supplied by
currency exclusively Of paper and IN many cases, Of
the worst description. Already are the bank notes
now in circulation greatly deprecated and they huc-
tnate ~ value between place and another thus
diminishing and making uncertain the worth OF pro-
perry and the price Of labor and failing 10 subserve
except at heavy oss the purposes of business. With
each succeeding day the metallic currency decreases
Ny some u - boarded in the natural fear that once
parted with II cannot be replaced while BY others il
diverted from Us legitimate uses for the sake
OF gain Should Congress sanction this condition OF
things, by making rredeemabe paper money receivs
bic 10 payment OF public dues temporary check to