The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1837-11-07

citizens throughout the Union. III tho opera hon OF ths
State banks not produce this result the probable
operation Of national bank viii merit consideration;
and neither OF these cxpedents be deeod eiectua
may become necessary ascertain the terns upon
which the notes Of the Government (no longer required
as an instrument OF credt shall be issued upon motives
Of general policy. common medium Of circulation"
Here sir, Is the express recommendation TO Congress
TO provide /" National Currency" paper currcncy,a
uniform currency, for the of the community,
substitute for the precious metals, and medium OF
exchange. II devolyes Congress. says Mr. Madison
to provide such substitute shall engage the conf
dence and accommodate the wants, OF the citizens
throughout the Union and il the State banks can not
produce this result national bank will merit consider
alton Can language be more explcitI currency,
national currency, currency for exchange, currency
which shall accommodate all the people, is tho great
aud leading, and may add the sole and single object
OF the recommendation. et
Contrast, now, sir, this language, and these senti-
mcnts with those Of the Message before US Did Mr.
Madison conhne his recommendation TO such measures
Of relief might be useful Government merely DID
he look exclusively to tho Treasury Did he content
himself with suggesting proper medium Tor the receipt
OF revenue or proper deposite for its safe keeping
Far otherwise. His view was general, siatesmanllke,
and fitted to the cxigency Of the times The existing
evil was one which afflicted the whole country and the
remedy proposed by him was, il should have been,
commensurate with the whole evil And, s'r, what
shock it would have produced that time Mr. Madi-
son. seeing the PROSTATE state Of commerce and bust
ness all around him, had recommended TO Congress 10
do nothing in the world but 10 take care that the taxes
were collected. and those in the employment Of Co
| vernment well paid.
| WELL sir, what was done with this message! Why,
sir the House Of Representatives resolved that so
much Of the Presidents Message as related to uni
form national currency should be referred 10 select
committee" Such committee raised, and the
honorable member from South Carolina was placed at
its head, he well deserved be- from his standing IN
tho House, and his well known opinions this subject
] The honorable member thus at the head OF COM
mittec, appointed, the subject Of revenue cur
rcncy, currency for Government, but a UNIFORM
National currency and to effect the great object Of this
appointment, he brought in bill for the establishment
Of Bank Of the United States.
As had been the formerly, on this occasion,
the Secretary of the Treasury made report the
subject. And now hear sir, what he says OF the duty
OF Congress to provide national currency and OF the
objects which he proposes by the establishment OF
| national bank:
The constitutional and legal foundation Of the
monetary system OF the United States is thus distinctly
seen and the power Of the federal Government nst
tute and regulate IT, whether the circulating medium
consist Of coin or bills Of credit must in its general
policy, as well in the terms OF its investment DO
deemed an exclusive power. II Is true, that system
depending upon the agency of the precious metals will
be affected BY the various circumstances which diminish
their quantity deeriorate their quality The coin Of
State sometimes vanishes under the influence Of poll
teal alarms, sometimes IN consequence OF the expo-
sion Of mercantile speculations, and sometimes by the
drain OF unavorable course OF trade But, whenever
the emergency occurs that demands change Of system,
it necessarily follow that the authority which
was alone competent to establish the national CON,
alone competent to create national substitute. II has
happened, however that the coin Of the United States
has ceased to be the circulating medium Of exchange,
and that substitute has hitherto been provided by the
national authority During the last year, the principal
banks established south and west Of New England,
solved that they would longer issue coin in payment
Of their notes. of the drafts Of their customers for
money received upon deposte. In this act the Govern
ment Of the United States had participation and yet
the immediate effect Of the to supersede the
only legal currency Of the nation BY this act although
State constutionaly emit bills Of credit, corpo-
ratons erected by the several States have been enabled
to circulate paper medium, subject to many OF the
practical Inconvenience Of the prohibited bills OF
credit"
"Of the services rendered to the Government by
some OF the State banks during the late war; and OF the
liberaiy by which of them actuated in their
intercourse with the Treasury justice requires
plicit acknowledgement Ii is fact, however, ncon-
testably proved, that those institutions not this
time, be successfully employed to furnish uniform
national currency. The failure of one attempt TO
ciate them, with that view, has already been stated
Another attempt by their agency in circulating Trea-
sury notes, to overcome the inequalities OF the
changes, has only been partially successful And plan
recently proposed, with the design to curta the issues
Of bank notes, to fix the public confidence in the adj
mnistraton Of the affairs Of the banks and to give 10
each bank legitimate share in the circulation, not
likely to receive the general sanction Of the banks The
truth is that the charter restrictions Of Of the
banks the mutual relation and dependence Of the banks
OF the State and OF the banks OF the different
States and the duty which the directors Of each bank
conceive they to their immediate constituents, upon
points oil security or emolumcnt nterpose All insupera
bic obstacle to any voluntary arrangement, upon nation
al considerations alone, for the establishment Of
tiona medium through the agency Of the State banks
he est of n nntin hank ia riad
the best and perhaps the only adequate
eve the country aud the Government from the present
embarrassment, Authorized to issue notes which will
be received in all payments to the United States, the
circulation Of its issues will be co-extensive with the
Union and there will exist constant demand, bearing
just proportion to the annual Of the duties and
taxes to be collected independent Of the general crcu
lation for commercial and social purposes. national
bank will, therefore, possess the and the oppor
tunity Of supplying circulating medium Of equal use
and value in every State and in every district of every
State.
'Thc power of the Government 10 supply and main
tain paper medium Of exchange will not be question
cd but for the introduction Of that medium there must
be an adequate motive"
"Upon the whole, the state Of the national currency,
and other important considerations connected with the
operations OF the Treasury, render it duty respectfully
to propose
That national bank be established"
This language, thrust be admitted is explicit enough,
both in regard the power and the duty and the whole
report bears very little resemblance most certainly,
the official paper from the Treasury Department now
before us.
When the bill called up, the honorable member
from South Carolina explained its objects in an able
speech, He showed the absolute necessity Of ma
tona currency the power Of Congress such cur
rcncy, whether metallic paper andthe propricy and
expedency Of establishing bank as the best means Of
exercising these powers and fulfilling these duties. /
agreed then and agree now the general sentiments
expressed in that speech, heartily and entire would
refer to on this occasion, both an able argument
and high authority; and beg to adopt it, as setting
forth, in strong light the sentiments which am now