The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1837-10-03

WIN draw suddenly the specie basis from all parts Of tho
Union 70 New ok and The adjoining points, where the
gres. mass OF Inc revenue will be locked up for time in
the Executive chest and in consequence the currency
Of the points thus drained be suddenly diminish
ed, and all the evils of decreasing currency produced
The like drain will take place from the commerce and
banks OF the points OF collection, and like injurious ef
iecls be produced on the currency Of those places
sudden aud great increase Of the currency first produ-
ces exhraton, then inioxication. and finally ruinous
miatnalon gradual increase OF the currency is al
ways an evil Mr. Hume, IN an essay the subject OF
money says, speaking Of decreasing currency
mere Is always an interval before matters be adj
Jnsted 70 tne new situation and this interval per-
clous 70 INDUSTRY when gold and silver decress-
ing as y advantageous when these metals are ncreas
ing The workmen has not the same employment from
inc shuactue. or merchant, though he pays the same
price Tor every thing IN the market The farmer cannot
dispose Of his corn and cattle, though he must paw the
same rent 70 his landlord, The poverty beppary and
soth which must ensue, easily foreseen" To these
ELECTS every year OF large mporatons every large
cumuIaton Of revenue must greater or less degree
SUBJECT the country Even the ordinary and inevitable
accunulatons Of revenue will produce these sudden
Pansohs and contraetons,these spasns, they may be
called, Of the currency We have the misfortune to
write wheFe u Is difficult TO ascertain facts and there
lore cannot state what of revenue may suddenly
accumulate at the principal points Of collection We
think II not improbable that five millions have been col
lected IN three months in New York alone and that
too at time when few disbursements OF it could
be made. Five millions of dollars (say win not fai)
drawn from the vaults Of the banks in so short tme
Will dersnge the currency II is quite deceptive view
OF the subject TO talk OF ten millions Of dollars spe-
chic fund Tor the purpose, which nevertheless would be-
the virtual sacrifice OF that Nothing can be
apart Tor the purpose nothing will be left undsturbed,
no time will limit or destroy the derangng cause which
shall leave the system undestroyed
Nor can we admit the justice of tho Presidents rea-
sonng as to the safety Of the deposites The question
Is not the relative strength Of the vaults of the banks and
the Government. The history OF the bank vaults in
Charleston, will furnish two celebrated instances in
which one twentieth Of temptation which ten millions Of
dollars will Afford made stone and locks and bars
strong as art could supply, of little avail Vital watch
iuness, not the strength Of NATTER is the only security
that IS to be relied upon The Of the Union
are drowsy race. The golden apples OF Juno were
guarded by Dragon with hundred heads that
slept we think agents Of the Government will be
watchiu, and yet the treasure rfed The
slant and steady eye of the banks is much greater
cunty than bolts and bars, and yet with all these united
they have often been plundered.
But we have not yet enqured, what the specific
objects Of the scheme of the message! They are lst
10 secure ten millions of gold and silver which shall be
received IN the collection Of the revenue and ID To
enable the Government to pay its particular creditors in
sound currency. The general interests Of the
muny; oil the merchant the manufacturer, the sgri-
culturst and the mechanic have part in it. This is
strange The first are minor matters compared with
the last and yet they have engrossed all the Of the
Executive.
LIST. The security proposed II is, of course to avert
some danger OF which have been admonlshed by past
experience What is the danger and what this
rty! The danger understand is the insecurity Of
banks in which the deposites OF government have been
hitherto made The security Is, the establishment of
Je,c government chests vaults, presume, the
principal cities and places Of trade Now what has the
government lost in any Of these few places in which
these repositories are TO be established We are not
that 1t has lost penny in these particular
places, and the argument must be confined TO the sphere
OF the proposed remedy fhere be any danger Of loss
within this sphere it is understood to be in the hands of
the creatures Of previous government scheme,-th
Safety Banks of the State Of New York If the govern
ment has lost by these banks which do yet be-
heve, let this failure of government schemes admonish
U.S. to beware OF like lnterPoson Let old established
modes and habits prevail until shall very clearly
that they ought to be abolished.
The annual expense is estimated at sixty thousand
dollars We think this sum is but an entering wedge,
and that it will be much the truth TO double it.
We do not think the government has lost, fifty years.
thousand dollars by the failure Of banks within the
tended sphere Of the proposed institutions But
hundred and twenty thousand dollars per annum, we
believe, 1--WE have no time make the caculation will,
with interest and compound interest, amount in that
time to twenty millions To put the Presidential bant-
ling for fifty years will therefore cost double the
sum 1t is worth. &... & .....
I'd. The next object is to enable the government to
pay its creditors IN good faith with sound money Now
there are but two occasions in the history of this GO
vernment, when this not done. The first occurred
during the late with Great Britain, and for some
time after the peace, and the last the late stoppage
by the banks. We the President has too per-
spicacous mind not Immediately to discover that his
Exchequer chests would not have prevented the first
The last was Think in part the result
of first example and in part the consequence of a
course of legislation which caused revenue to be
amased far beyond the wants OF the government
If the surplus revenue had never been permitted
to exceed the capacity Of the Presidents Exchequer
chests, we think it probable, notwithstanding the
over action in all the departments of business"
which we think with him, was the principal cause
of the present embarraSsments the Government
would not have failed to pay its creditors in sound
money. Can the President give us any security that
in no time 10 come the wise men OF the nation will
not be tempted to legislate again in like manner If
he can, we may become converts to his scheme
But what will be the effects of that scheme on the
peoples money! This we have in part considered,
but we must enter further into the question. The
bank circulation is the peoples money How is
that to be restored What will be the operation Of
the Presidents scheme on that measure Is it not
obvious that the proposed experiment of the Go
vernment must embarrasS it greatly? Suppose the
banks in New York, for example, to resume specie
payments, will not their vaults be Immediately
emptied even though the foreign exchanges were at
ease, to the extent of the duties to be paid in that
city, Ii the exchanges were against us, when dis
burscd by the Government, it would be shipped
abroad If not it would only return to the banks, in
the most hopeful view can take of it. TO be drawn
out again when heavy amount of duties should be
payable But could the banks under the pressure of
such demand and the incidental disparagement Of
their currency continue TO pay specie The paper
Of the banks trold be dercditcd By the Treasury en-
ample All money not equal in every respect with
the best parts of the circulation will necessarily and
inevitably be discredited The holders of the bank
paper as long it should continue TO be redeemed
would undoubtedly, without a moments delay, CON
vert il into the preferred money; some to provide,
racto fbp nj IL IN
the Government not yet due; some with the hope Of
profitable speculation and some to hoard it, If long
continued, there would not be bank note in circu-
lation. There would, however, be speedy limit to