The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1837-10-17

city You propose that the Government shall do that
with the people which people dare not do with each
other Look u the conduct Of ie people towards the
banks ever since they have stopped payment and specie
Is at large premium do they assert their rights
though they have every lnducement TO do so will
refer my Stale strong argument TO dsslpale
theoretical beauties hy practical consequences There
the banks BY law compelled to pay IL per cent
refusal 10 pay specie. They are good, and every
bEholder could get his principal and his Is per cent
in specie, If he demand and insist on It No
man Of capital could make good investment to
get large sum IN Augusta bank bills, make demand
and bold them I'LL the bank resumes specie payments.
Yet nobody does this and why Because they all
friendly TO banks Not at all, sir IL is because they
frightened at view OF the consequences and yield
their own to the interests Of the community. They
know that n specie is forced from the banks, the banks
will have 10 force il from the MERCHANTS, and the mer
chants from the planters and the great mass Of
SINNERS and before the matter wound up its effects
would be equal to the conscaton OF one-tblrd Of the
property OF the country The abonous and Industrious
classes constitute the debtor class which much the
most numerous, aud much the most needy. On this
class the sacrifice would ultimately fall, The benefits
would be confined few creditors, capitalists, and
mouev.lenders And the measure you propose (said
Mr. will operate precisely IN the manner have de.
scrbed, though perhaps not 10 the same extent, IL
will do to talk about and speak about here, and
people may think well Of it, whilst they think il is ouly
gong 10 put the put NllCn
they find from experience, that the merchants only
their factors and the operation falls them they viii
be prepared for practical view OF the subject
Mr.. X said he was, 10 be sure, opposed to the
banking system, particularly lis abuses. But the
people had established it, become accustomed TO it,
and it now seemed necessary TO theirbuSness and
prosperity He saw no reason expediency in
taking away the discretion of the Secretary Of the
Treasury receive the notes of speciepaying banks
when they resume, disburse them Tor Government
Dnrp al he w llgrtpI nd pa1 ,lp
the banks for balances, when necessary for trans
tcrs of the Government funds from the points where
collected, 10 the points where needed.
Mr.. *. here commented upon the estimates which
the Senators from Missouri and North Carolina had
put upon current bank bills. and the losses which
the bill-holderS had sustained By the suspension of
specie payments. They seemed to estimate the &C.
tual value of a bank bill by the proportion which
the specie in the vaults OF the banks bore TO the ag-
gregaie of circulation and depoSitcS; as though the
banks had no other means TO pay their liabilities
but specie In this way the Senators make out the
loss of the people by the banks 10 BE- immense
Could there be any advantage in propagang errors
SO papable As practical question, so far from
the bill-holders having lost, they had generally
gained by the suspension, Mr. *. here discussed
the nature and purposes of money. Money said he
represents commodities Its uses are to command
them at pleasure, and circulate them with conve-
nience Whatever answers this purpose, answers
the purposes Of money It's value depends on the
quantity of commodities il will command, and this
again depends on the relation Whlch the quantity of
money bears 10 the quantity of commodities.
The active circulating medium has been greatly
reduced in quantity since the suspension not only
by Withdrawing specie from circulation, which has
become commodity but by reduction of bank
paper, and hence it is that current bank paper is
now much more valuable than gold and silver was
before the suspension, whilst the whole currency
both paper and specie, was deprecated BY its redun-
dant quantity. Are the passions and preIudceS of
men 10 be wrought upon when their senses NAV di-
rpcff her No Npp NOT knnu ms adj cd F,a
that current bank bills are more valuable now than
before the sHspenSion2 Let me ask one of these
suffering bill-hoders what he wishes do with his
money which he held at the time of the suspension
Does he owe debt If so, his creditor will be
glad TO receive ii, and expects nothing else Does
he wish 10 buy provisions for his family If so
he gets them cheaper than he could before the Sls-
pension OF specie payments. Does he wish to buy
real estate or stocks If so, he can get them from 80
to 80 per cent cheaper than he could before the sus
pension of specie payments. In short there is no
purpose for which money is used for which bills
are not now more valuable TO the holder than bsfore
the suspension, whilst the whole currency was de-
preciated by lis quantity except for the payment of
foreign debt. Those, then, who clamor most about
their losses have lost nothing, but generally gained
The merchants sustain the whole loss that is s,ls-
tanned, for they receive it from their debtors al par
and have To pay premium for specie to pay their
foreign creditors 49,
Strictly and logically speaking Mr. X said paper
was now deprecated, when compared now with sil-
Fer Dy the amount OF premium on specie, becalSe
we had no other legal standard to 20 by Nj he
meant to say was, that paper was more valuable
now than specie was before the suspension, and,
therefore, the holder had lost nothing So glaring
was the taacy Of estimating the loss OF the commu-
nifty by the difference between the amount of specie
in their vaults and the Liabilities of the banks that
the community owed the banks more than the banks
owed the community. Each has right to claim
specie; and with little time for adjustment the
banks could settle every dollar against them without
a dollar in Snprip He did moi wish ~, ,ior
stood as advocating or even apologizing for an ire
deenable bank paper; it was too precariouS and
subject to fluctuatiOn. But, as practical Legislators
we should view things as they are and he could see
no expedicncy in endeavorng to impose such talla-
cieS on an already excited community
Mr. *. concluded By saying that he had no wish
TO postpone discussion, and, therefore, was inditer-
ent as 10 the present fate of his motion But as he
did not like either project as presented, and wished
time to digest better he could not consistently
make any Other motion, and therefore, moved the
poSponemen ofthc whole subject to the first Monday
in December next