The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1837-10-07

YIN ~ ePeSie, Whlch according 10 MS means, rend
erea y oppteSsige ID him. say then sir, that this
order did MOI answer single purpose for which II
was issued, but, on the contrary was productive az
great and incalculable mischief speak not now
of the hardship to Individuals allide 10 the gene
raj arrangement produced by il 10 me moniea CON
Germs OF the country. The withdrawal az specie
from the Atlantic cities where il was wanted tothe
Western and Southwestern states where il was no,
wanted was the cause of general distrust and
alarm II was ordering il TO move against the cur |
rent. II was commanding il 10 flow mp stream II
was deranging all the concerns of the business com
muniiy az the East without producing any cores
ponding benefits at the West II was in fact iniu-
rous 10 the West Any effort to force gold and Sill
yer from part Of the country 10 another contra
ry 10 the regular Of business and the laws of
trade Is ever productive OF injury Gold and sill
yer, like water, will always find their level. They
win go where trade and commerce cali them--and
if impeded in their regular channel like cataract
which has been obStructed instead of irrigating and
fertiliZing the lands through which Il naturally
flows It will carry deSoation and destruction 10 the
whole country from the accumulated force and pres
| sure which il has acquired. There was scarcely a
bank in city country in the Northern and Eastern
states but what felt this constant drain. Ii thus be-
came the source OF alarm, and the lack Of conf
dence thus manifested by the Government became
the fruitful source of disrust in the community at
large
This Specie Circular became the subject of poll
tical discussion at the elections which took place
tina, season. The public mind was agitatrd-Con-
gress assembled, and Immediately took measures to
rescind this order, which had been issued against
the clear and almost unanimous expression Of the I
Senate al the previous session The currency bill
introduced by my friend from Virginia Mr. RivesD !
was intended to reScind it, Sir il is not necessary |
for me 10 recapitulate the circumstances attending
the progress Of that bill. They familiar to most
of US. Suffice it TO say that il passed the Senate /
with only four dissenting votes, and in about the |
same ratio in the House. This bill was retained by
the late Executive in the manner and for the reasons
which have heretofore been given TO the country.
" mot mi LlnTp 'harp iS ind
pleasure in the contemplation Of them. could wish
that the whole transaction were blotted from my
mory. only aude 10 il, for the purpose of show
ing its effect the public mind in reference to pub
lie confidence and for other purpose ] deSireto
speak Of il in no other light The attention of the |
whole country was turned 10 Congress, and was |
Watching the progress OF this bill; and when il |
passed both Houses by such powerful vote, new
light seemed TO beam upon those who were looking /
to il the source of relief in maintaining and re-
storing confidence which had been So much impair
ed by the issuing and continuance of the original
order. But those who expected this relief were
doomed once to disappointment They had
seen that the object was one which peculiarly be-
longed 10 Congress-that the only power the Execu-
tive had over il was derived from the Joint resolu
ion Of lSl6-and whenever Congress saw fit 10 re- |
sumo tina, power, in whole or in part they anticipated
no obstruction from the Executive branch of the Go
vemmen They had read the constitution as il was
understood by its original trainers They had heard
Executive power defined as one "glriRg eject 10 he
behcas Of ether pocrs chch hare a rightt cOmmaad
They supposed that the will of Congress, on sub
ect peculiarly belonging TO the Legislative powers OF
the Government, would have Prevailed-and that
the country would have been relieved from the en-
barrassment of measure about which, whatever
difference Of opinion might have existed as to its
inception, there was none as TO its continuance. In
this, repeat they were grievousiy disappolnsed-
They, nevertheless, chung to the only hope that re-
NAMED The citizens of New York, who felt the
most intense interest in this matter knew that on the
fourth Of March their favoritc son was to assume
the rens of Government; and they believed that in
this eventful crisis he would not be unmndful of his
native state whose fate was suspended by the brittle
thread of confidence which remained although at
tenuated b. the adverse action OF the Chief Magis-
trate who had Just retired Sir, after the adjourn
ment of Congress, and when my way home
reached the city of New York, found expectation
stood on tip-toe." Enquiries, as frequent as they
were anxious were made of Inc to the probable
action of the President in reference TO this order
assured them, from what deemed satisfactory au-
thority that it would be rescinded, or would be mo-
difed in a way equivalent to resembling it. Joy and
satisfaction beamed every countenance. Life and
animation were restored Confidence was revived, |
and the whole business population Of the city were
ready To exclaim
Now is the winter of our discomfort
Made glorious summer by this sun of York"
Sir whilst thus clated with the prospect of relief,
the cup Of confidence was again dashed from their
lips. The President declined TO interfere with the
order which had been handed down By his prcde- |
cessor as legacy to him, and left an anxious com
munity in that condition, where "hope never comes
that comes to all" Far be il from me to blame the
President for the course taken by him: He, doubt
less had reasons satisfactory 10 himself and It is not
for me 10 cenSure where acts according TO his |
own judgment, and the dictates of his own con-
science.
Sir would not be understood as supposing, that
the resembling Of the Specie Circular would have
been poadcea for all the evils which then afflicted
The community ! know that there were many
other causes operating produce the pccunaly EN-,
barrassments under which the country then laborcd
and believe if public confidence had been main
taincd the country would have borne even great
er pressure without the necessity of suspension OF
specie payments by the banks. Is this not evident
from what the Secretary OF the treasury states IN
his report He says,
LAS whole their specie, compared with their
circulation continued TO BE- almost as large in May
as in November Ii averaged more than one TO
three, or much more than has been customary win
the banks in this country, and was over double the
relative quantity held by all The banks in England at
the same period and was in proportion one fourth
larger than that in the Bank of England ITSELF
Their Immediate means compared with their i'm
mediate liabilities, were somewhat stronger in No
vcmber Than in May but at both periods nearly
to , IL or greater than the usual ratio in the best
times, of most banks which have large amount OF
dcpositeS in possession.
Where then was the necessity of suspension but
from want Of public confdence2 With all the ee-
ments ofprosperity around us with more than eighty
millions Of dollars in specie, il is difficult to con
ceiye notwithstanding any over action in trade or in
other branches of business, how such a necessity
should exist Confidence may be destroyed or Sus-
tanned by imaginary as well as real causes. II was
not material therefore, whether the resembling Of
the specie circular would in itself have produced the
beneficial effects which were anticipated from i. II
Is sufficient that il looked to source of conf
dcnce, and as long il answered that purpose, II
was Of no consequence whether it was a real or an
imaginary cause Of the confidence which it created
and sustained ..,.
Sir, | might illustrate my idea BY what is gene
rally termed the panic session oil 1884 II is now
conceded that the of the pressure at that time
were imagnary--hat the removal ola few millions
If, Mace ia could of il