Vermont watchman and State journal. [volume] (Montpelier, Vt.) 1836-1883, 1837-10-09
Sgopsyess,
The Currency.
MR.. CALHOUN.
IN Monday, Sept. ls.

government ADu DdUkS HHu stphTdtui diu
every consideration was in opposition to y
reunion. The Government and Banks are
separated by the operation oi law, and can
not be reunited while that law remains in
force. Suppose that difficulty overcome,
where would you find The advocate OF re-
union! Not among the opposition, who
predicted the evils which have resulted
from the union; nor among those who re-
lied on it.. Reason and experience have
decided that il there must be such union, a
| U. S. Bank is Indispensable. Not only so,
but il we treat bank nOlcs as gold and sill
yer, we are bound TO create such bank
| Whatever we make money, will be money,
and we are bound to make it uniform
! There is no other alternative but total dis
connection, or The erection oil U. ). Bank.
A difficulty exists against this last alierna-
tive, in The constitutional objections Of a
large party in this country, entitled TO res-
pect, and another in the number s. power
Of the rival Institutions which have sprung
! up. There would be necessity that such
bank should have capital OF eighty or a
hundred millions, with due proportieH Of
metallic capital. The collection Of this a.
mount OF specie would produce anolEer re-
vulson equal to that which we have just
experienced. lie adverted to the condi-
ton Of the Bank in 1916, which was very
different from what our condition now Is.
We were then debtors 10 The Bank. He
gave brief history Of the financial difficult
ties & operations Of that perlol.
A Bankrupt law was then proposed. He
was opposed to that measure then and still,
as harsh, but above all as unconstitutional.
He who would try Bank of the u. 5. now
| G..l al. ,l.,l,, T.,
as one ofihe State Rights party, was OPP
posed TO U. S. Bank as unconstitutional,
! inexpedent, and tending To tho coucerl,a-
ton Of power in the Government. His
own course in relation 10 the U. S. Bank he
explained. He had submitted To Bank
under state OF things which he considered
irreversible in 1916. There was but one
mode in which the government could IeG-
mite itself with the banks, but tia, was OBJ
jectionable he meant by creating the
Pennsylvania Bank OF the U. S. the fiscal
agent oil the Government This would
compel resumption nf spraip ,,nyrial4ls in
a less disastrous manner than ly tie esaLy
lishment of q new bank. But he would oI
pose this, because he would nat give his
sanction Ia the creation OF an agent wholly
under the control ola State and he would
not a id 10 give that Bank a triumph over
! Government, much as he believed The Gov
ernment in the wrong in the ialc contest
between them. He objected 10 reunion
which would make the credit OF the Cow
eminent Identical with the credit Of Bank.
He illustrated his arguments by a reference
10 cases ola supposlitious character in pri
vate life.
As government operations contract or ex-
pand, so would the bank circulation. He
traced the present disastrous condition OF
the country back TO the year 1884, when
the Tariff system was remodelled. In 1898,
the evil was increased by new Tariff act.
One effect was the expansion of the bank
currency; another was the increase Of Gus
tom House Bonds. These causes sweIIed
the expansion OF The circulation ofthe bank
oi the L. 5. in 1881, and it was not the
fault Of Mai institution that It's issues were
thus expanded. The re-charter OF the
Bank Of England in 1882 had It's fleet on
tie course of things Ii was at that time
that tie President Of the L. S., not COM
pretending The real slate Of things, struck
his blow at tie L. S. bank, a bluw which
completed the catastrophe. 1t was remark
able that the three great suspensions Of
specie payments, nnw, in 1912, and in Eng
land 1897, resulted from the connection OF
the banks and the government. He wished
t. knnw IN what principle we could lend
the credit OF the Government Ia a body oi
Stockholders, in preference To any other ol
ihe citizens Of the u. S. The effect was
10 give preference To one body, 10 the in
plry of all The resi- OF the community. The
Increase oG The banks was enormonS, s. still
increasing in an enormous degree. The
various remedies proposed, would he inef-
lectual To produce relief, and only ef!eclua
to increase the evil. He touched on the
corrupt practices and corruptng influences
CONNECTED with legislation on tie sui CT al
hanks. He then commented on the course
Of President Jackson, who had produced
the infinite connection between the Gov
eminent and the hanks in 1884, which had
ever since existed, and which would Tor
| long Time cnmmingle The national politics,
and the hanks. i then there could be no
reunion with the banks, and no U. S. hank,
nothing .enains but to reorganizc the Tret-
sury to meet the new condition OF things
He had no, looked into The present bill but
he would object to any measure which re-
cessarIy swells the patronage al the gov
ernment. The resumption Of specie pay
menis, however, under the existing law,
would renew the connection with the banks. |
He would al a proper time submit on a.
amendment providing that after the lsl day
of January next, three lourlhs OF the debts
10 the u. S. may he paid in The notes OF
specie paying banks, and gradually TO re-
duce The proportion each year until the To-
tai separation should be effected. He oh
jected to issuing Treasury notes bearing
interest, because !, looks like debt but il
issued without interest, these notes will
form q new currency. He believed, that
| If ,,tnl s-nsratipn from HE hanks WAS 10