The Caledonian. [volume] (St. Johnsbury, Vt.) 1837-1867, 1837-10-10

cannot exist.
He adverted to the projects of the adulinisra-
ton. They were to come back to the constitu-
tional currency and to restrict the Federal Gov
eminent to the use of the precious metals. To
effect this policy, it was necessary to provide q
a system of sub-treasuries, bankrupt law for
the state banks, similar law to apply to the
banks in the district and suspension Of the
fourth instalment to the states. Why were not
these things all embraced in one bill He should
take them together as essential TO each other
existence, and to the success of the new policy.
The real purpose of the administration was to
kill all banks blythe sub-treasury scheme and the
bankrupt law. To the operation Of the lat
ter, look at that proposed for the district of Co.
lumbia. a bankrupt law Mr. Clay deemed I'M
constitutional. The passage of the postpone
ment dcposite bill would place all the south-wes-
tern banks at the mercy of the Secretary of the
Treasury He then traced advantages that would
accrue TO those banks and the people, sby fulfill
ling The law of 1886, Eand the disadvantages that
would ensue by breaking it.
In very forcible manner he showed the in
justice of coming back, If it were possible to u
metallic currency. Putting the debt by the PEG.
pie to the banks on the passage of the bill now
before the Senate, at 600 millions the effect of il
would he to compel the people to pay 1900 mh.
lions. No man is so ignorant as not to know that
value would sink at least two thirds with specie
currency Of so millions in the place of one of 22O
millions.
The impracticability of metallic medium, he
pointed out very forcibly. The amount of pay,
ments in one Bank in New York for one single
day was two millions, Even in the ratio of de-
crease numerically, it would be impossible to get
through such business with specie. Therefore
trade must go down. We must go back to orig
inal elements.
AS to the argument of Mr. Calhoun upon the
unhtness OF convertible paper for medium,
Mr. Clay showed its fallacy by proving that the
expansion and contraction of bank paper varied
with the expectation and importation OF the met
ais, and that return to specie currency would
not let us escape from the expansion and con-
traction. He proved too, that an inconvertible
paper must depreciate from the very reason that
we could never tell q priorl how much to issue
SO as to meet the absorbing power of the reve-
nues. He drought up the fate of Kentucky
commonwealth paper tor the instruction of gen
tlemen.
The Carolina paper praised by Mr. Calhoun,
Mr. Clay showed never at par. This troc
was tair instance OF what we might expect I'M
der the new policy ofthe adminisration-at least
that part of them that went for paper curren-
cy. 1t was never worth more than 81 2 for l
OF specie.
Looking at the power of the states to erect
banks, it was fair subject of doubt. But they
had the power, and it was recognised by the iu-
dcial authorities of the country. How werethey
organized? 1t was well known that they were
in the possession of at least three fourths of the
people of the Union When you war on the
State Bank you war then on the people. You
have no right tosseparaie banks from the gov
ernment. Your legislation should suit the pres
ent emergencies and habits of the nation Talk
OF separation Why now separate the general
government from the States? You might as
well talk of breathing different air. The peo-
PIES wants are the same as those of the govern
ment.
Again, by breaking up mixed currency, and
changing our policy, you attack the habits Of the
people. In every age, the habits of nation
change very slowly. Try it, and you'll find it
81 Al.
attempted in these enlightened days. The stone
will roll back upon you. That the banking ill.,
stitution has been productive OF evil, there is no
doubt; but look at its benefits. The attempt to
break up banking and substitute any other cur
rency than that we have been used to- will end
in revolution in civil war. 1t takes no profit to
see this.
As to the system ofsub treasures he only went
to Kentucky Tor its fair and certain trial. They
had subsisted in that State for forty years, and
three different treasurers had proved delinquent
besides a host of collectors, sheriffs, &c. The
bill itself showed by its provisions great distrist
N men rs Keepers of the public treasure. The
system of exchanges, too, under this bill, would
ea@ to favoritism, and then to individual ruin.
Frauds of all kinds would go undeected.
He had heard. with surprise, that Mr. Calhoun
'ad no more dread of theaExecutive. Tim pas
sage of this bill would increase his patronage
earthly. MIR Clay spoke on this head most ell
oqnenlly. He appealed to Mr. Calhoun, VINO had
abored with him to oppose Executive usurpa-
ion, in strain that made the blood chill in the
veins. The picture he drew true to the very
etter. One man governs this Union--is trtism
hat none can doubt now.
He next alluded to the doctrine that the gov
,rnment had nothing to do with the exchanges
We asked no provision for exchanges. All we
wanted was u currency. He showed up the
latch argument about European bankers doing
he Exchange business Of the old world. There
we're your Barings, your Rothchilds, yonr Hol.
inguers, your Hopes SC. houses that time and
Millions had built up. War and peace was in
heir hands Even Russia was dependent on
hem for the sinews of war. Would Mr. Van
Buren, have such SYSTEM Give me the good
change, not your proud and tyrannical Europe
IN bankers. The business of TIC government is
o supply us with currency for twenty-six in
dependent sovereignties-a uniform currency.