The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1837-11-03
sPEEoH or MN. wEnsTEn,
or MASSACHUSETTS,,

or MASSACHUSETTS,,
IN Ssaate, September %, ls37-The Senate having
resumed the consideration Of the bill imposing
additional duties repositories in certain cases,
on public officers" with the amendment offered
thereto by Mr. CALHOUN
Mr. WEBSTER addressed the Senate as follows:
Ma. PaEsipENT; am opposed to the doctrines OF
the message, 10 the bill and TO the amendment OF the
member from South Carolina Mr. Calhoun.) In
all these see nothing for the relief of the country;
but do see, as Think, question involved, the inn
portance OF which transcends all the interests OF the
present occasion.
Il is my purpose to state that question; to present
II as well TO the country to the Senate; To show
the length and breadth of L. as question Of practi
cal politics, and in its bearing the powers of the
Government; To exhibit its importance, and to ex-
press my own opinions in regard to it,
A short recital OF events and occurrences viii
show how this question has arisen.
The Government Of the United States completed
the foryeighh year of It's existence under the pre-
sent Constitution ON the Sd day of March last During
this whole period 1t has felt itself bound TO take pro-
per care OF the currency OF the country; and no
administration has admitted this obligation more
clearly or more frequently than the last For the
fulflment of this acknowledged duty, as well 10
accomplish other useful purposes, a National Bank
has been maintained for forty Of these oryeight
years. Two institutions Of this kind have been
created by law: one commencing in 1871 and limi-
ted to twenty years, and expiring therefore, in 1871
the other commencing in 1916, with like term of
duration, and ending, therefore, in 1886 Both of
these institutions, each in its time accomplished
their purposes 50 far as currency was concerned to
the general satisfaction Of the country. But before
the last bank expired, ii had the misfortune TO be-
come obnoxious TO the late administration. ! need
not at present speak of the causes ofthis hostility
My purpose only requires statement of that fact,
as an important one in the chain of occurrences.
The late Presidents dissatisfaction of the bank
was intimated in his first annual message, that is to
say in 1929 But the bank stood very well with the
country, the Presidents known and growing hosti-
lily notwithstanding; and in 1892 four years before
It's charter was to expire, both Houses Of Congress
passed bill for its continuance there being in its
favor large majority Of the Senate, and larger
majority Of the House of Representatives. The BILL
however, was negatived by the President. In 1888
BY an order of the President, the public moneys
were removed from the custody Of the bank, and
were deposited with certain selected State banks
This removal was accompanied with the most conf
dent declarations and assurances, put forth in
every form, by the President and Secretary of the
Treasury, that these State banks would not only
prove safe repositories Of the public money but that
they would also furnish the country with as good
a currency as 1t ever had enjoyed, and probably a
better and would accomplish all that could be wish
ed in regard to domestic exchanges. The substitu-
ton of State banks for National institution for the
discharge of these duties was that operation which
has become known and is likely 10 be long remem-
bered as the experiment"
For some wears all was said to go on extremely
WE'LL although it seemed plain enough 10 a great
part of the community that the system rad-
cally vicious that its operations were all incon-
venient, clumsy, and wholly inadequate to the pro-
posed ends; and that, sooner or later, there must
be an explosion The administration, however
adhered 70 its experiment The more il was COM
planned of the louder il was praised. Its common
daion was one of the standing topics Of all official
communications; and in his last message, in De-
cember, 1885, the late President was more than
usually emphatic upon the great success of his at
tempts to improve the currency, and the happy re-
suits of the experiment upon the important business
of exchange. But reverse was at hand. The
rpening glories of the experimentwer TO meet
dread ul blighting. In the early part Of May last
these banks all stopped payment This event, OF
course produced great distress in the country and it
produced also similar embarrassment to the admins
traton. r
The present administration then only two
months old; but it had already become formally
pledged to maintain the policy of that which had
gone before it, The President had avowed his pur-
pose Of treadng in the footsteps of his predecessor.
Here, then, was difficulty. Here was a political
knot, TO b. either united or cut. The experiment
had failed and failed, as il was thought, so utterly
and hopeessly, that il could not be tried again.
What, then, was to be donel Committed against
Bank of the United States in the strongest manner
and the substitute, from which so much was expect
ed having disappointed all hopes, what was the ad
ministraon to do Two distinct classes Of duties
had been performed in times past by the Bank of the
United States; one more Immediately TO the Govern
ment, the other to the community. The first was
the safekeepng and the transfer, when required OF
the public moneys; the other the supplying of a
sound and convenient paper currency of equal Gre
dit all over the country and every where equivalent
to specie and the giving the most important facili-
ties to the operations OF exchange. These objects
were highly important, and their most perfect ac-
compIishment BY the experiment had been promised
from the first The State banks il was declared
could perform all these duties and should perform
them But the experiment" came to dishonored
end in the early part of May. The deposite banks
AZ ~ thnrc
render back the deposiIes; and, SO far from being
able to furnish general currency or 10 assist ex
changes, purposes, indeed which they never had
fulfilled with any success their paper became inn
mediaely deprecated, even in its local circulation
What course, then, was the administration now to
adop7 Why, sir, il is plain that il had but one al
Tentative II must either return to the former prac
tce of the Government, take the currency into its
own hands, and maintain ii, as well as provide for
the safe-keeping of the public money by some inst-
tuition of its own; or else, adopting some new mode
Of merely keeping the public money, it must aban-
don all further care over currency and exchange.
One of these courses became inevitable The adj
minisiration had no choice. The State banks could
be tried no more, with the opinion which the adm-
nstration now entertained Of them; and how else
could any thing be done to maintain the curren-
cyl limo way but by the establishment of Nation
al institution.
There was no escape from the dilemma. One
course was to go back to that which the party had
so much condemned; the other, to give up the whole
duty, and leave the currency to its fate. Between
these two the administration found itself absolutely
obliged to decide; and it has decided, and decided
boldly II was decided to surrender the duty, and
abandon the constitution. That decision is before
us, in the message, and in the measures now under
consideration. The choice has been made and that
choice, in my opinion, raises question of the Ut
most Importance to the people Of this country both
for the present and all future time. That question
is icAecr Congress has, ought TO hare any duty 10
psytorm Ia relation 10 Tie currency Of the country,
BEYOND he regulation Of te gold and sirer coin
Mr. President, the honorable member from South
Carolina remarked, the other day. with great frank
ness and good humor that in the political classfca
ton of the times he desired to be considered as