The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1837-09-21
TwENTY-FIrTH CONGRESS,
EXTRA SESSION.
UNITED STATES SENATE.

UNITED STATES SENATE.
TUESDAY, September 10.
Mr. CLAY, Of Alabama, laid on the table resolu-
tion calling the Secretary Of the Treasury for certain
information concerning tho sales Of the public lands
The following bills were read third time and passed
A bill 10 authorize the issuing Of Treasury Notes;
bill to extend the time for the payment Of Revenue
Bonds; 49,
bill to adjust the remaining claims on the DePosite
Banks
Mr. RIVES, pursuant to notice, to ask leave to
introduce bill designate the character OF the funds
receivable for public This is measure which
had been recommended by the Executive, but was
omitted in the Report Of the Committee on Finance Ia
reference exclusive currency Of gold and silver no
denounced it mischevous and falucous, and calcu-
lated TO postpone tho resumption Of specie payments
The Senators from South Carolina, Mr.. Calhoun, and
Missouri (Mr. Bentonl had yesterday submitted pro-
positions which contemplated entire revolution in the
policy Of the country. The Treasury Order OF the late
Executive might have been wise at the lime 1t was
issued but the continuance OF which was repudated by
the whole country He referred 10 the bill which was
passed by the Houses arising out Of that order and
its fate He believed the voice Of the country had sane
toned the provisions Of that BILL which he desired now
renew, and reoer the Senate That bill authorized
the reception Of OF banks issuing Of no de-
nomination below that specified, and providing against
any discrimination He had modified his proposition IN
one or two particulars the most important OF which
the entire prohibition Of the recevabi.y OF the
notes Of any bank which had suspended or might sus-
pend specie payments and did them before
certain day He believed this measure would have
beneficial effect the country and would expedite the
resumption of specie payments. He took view Of the
parayzed condition Of our commerce. and the degraded
state OF the currency, which he compared TO human
body in state Of suspended animation the vital spark
being still there, and requiring only the particular RENE
dy to recall il into action The great object Of all should
be TO restore confidence he referred 70 Instances "
England, and one in New York; where single act OF
the Government was sufficient TO restore confidence,
before it was carried into practical operation lie
adverted the Message Of the President, where drew
parallel between the distress Of this country and that
OF Great Britain. There striking difference be-
tween the situation of the country and the other
In England the distress had led the suspension Of
specie payments, while here led that suspension.
Why this difference Il was because the credit Of
the British government invited confidence, while that
Of our Government repealed confidence. The bill which
he offered looked TO the resumption OF specie payments
He laid do Sn demonstrable, that the measures
which had been proposed, carried through, there
could be no resumption Of specie payments So long as
gold and silver at premium, the banks could not
resume specie PAYNE nts Such must be The result OF
the proposed by the Senator from South Caro-
lima The proposition Of the Senator from Missouri
imposed positive penalty for the resumption Of specie
payments He expatiated at length the tendency Of
the course which the Government is pursuing, not
merely separate the Government from the banks, but
to divorce the people from the Government He de-
clared be his determination to stand by the people,
and not to see description Of currency for the Co
vernment, and another, and spurious kind, for the
people He repudated the idea of the President that
the Government has nothing to do with the currency Of
the country He looked at the condition OF the country
in reference the multiplication Of banks one which
the trainers Of the constitution never contemplated He
considered that in consequence OF the change OF its
condition, the of the trainers Of the constitution
could be carried out by the mere force OF the Constr
tuition especially reference TO the regulation OF the
rency He described the evils which connected with
the banking system and took the ground that the banks
derived their greatest profits from small notes. and that
it srom the Of these small notes that all the
danger from the suspension Of specie payments must
He relied much more on public opinion than on
banks 10 reform the currency; and he believed that
pubic opinion would coerce the Government to a cor
rect course Of measures. He difficulty in cor
rcctng the currency by the fiscal agency Of the State
Banks Unless these agents could be successfully en-
poyed in controlling the currency the people Will not be
long satisfied without a National institution such as he
most feryenty deprecated He denied that the project
Of State Banks had failed. Il might well he said, on
the explosion Of steamboat that this great discovery Of
the age had turned out to be failure. He went INTO
history Of the experiment on the State Banks. tic
justified the removal Of the depostes from the Bank OF
the United States; and condemned the fathless and
ambitious Of that institution The conduct OF
the State Banks in this crisis he considered, as de-
serving Of all praise and all confidence. The Secretary
OF tho Treasury had shown IN his report That these
Banks could stI sustain themselves II the State Banks
had failed the United States Bank had failed, and
the hard money system had failed by the same test lilo
considered the fictitious and forced importation OF se-
Gle into the country, disturbing the level Of the curren
cy forced into tho banks because could not occupy
the channels which filed with small notes one Of
the causes Of the existing evil II induced these banks
to issue three dollars paper for every one thus forced
into its vaults in specie. The Treasury Circular was
also another Of the great Of the evil operating
most inuriously that became the permanent
policy Of the Government Its effect was, 10 create
the banks, displacng the precious metals, aud
thus having small agency producing the present
distress He defended the deposte act as one OF the
wscst efforts Of American legislation but thought that
there had been great in The administration Of the
law by which the currency Of the country had been DIS.
turbej As TO the surplus revenue, he believed we should
hear Of il. aud should consequently have no
dcposite acts. As to the Treasury Circular, 1t
was for Congress determine whether u should be the
settled policy Of The country. Wherever gentlemen
could show him republican authority os the Sub
Treasury scheme, he would show hundreds OF republic
authority IN favor Of State Banks and made some
quotations from Mr. jefferson to sustain hun. He in
fecd the nadequacy Of the Sub Treasury system from