The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1837-10-12

to public gaze begets risk, and the necessar,
employment OF sufficient guard 10 protect i
against robbery, will incur heavy expenses
all this is avoided by the aid OF the banks, fol
they now transfer public money, 10 any poin
directed by the Treasury department, az thei
own risk and charge. The Treasury De
partment, which has had the superintendence
OF this operation from the foundation of the
Government, and which can therefore, afford
the most satisfactory evidence upon this poin
is uniform and undertaking in its testimony in
favor Of the bank system, which should re.
gard as conclusive. But what substitute are
we TO have for this convenience, safety. and
destitution Of expense under the proposed
system. Nothing sir, but Treasury drafts
that can perceive. These will not answer
the purpose unless sufficient amount of
money can always be found at every point
where it is wanted. This. in the nature Of
things cannot be so, and to supply the amount
necessary, specie must be transported, or
Treasury drafts employed as medium OF
circulation, which would introduce system
If government paper circulation incapable Of
adequate restriction, liable To abuse, and
at war with the genius of our institutions.
This system in the course OF time might be
perverted to the most dangerous purposes, and
become an engine of most potent influence,
Sound policy is opposed to the creation Of
Government paper of any kind as a perma-
nent circulating medium, liable TO the catas-
trophe of the old continental paper system,
1t would in effect, become Government
Bank, which Legislation might be found totally
incapable OF regulating or controlling If
the Government receives and pays out nothing
but specie, the inevitable result will be, that
It's drafts must become not only medium
of transfer, but of circulation also.
The fourth objection which | urge is, that
it will indefinitely postpone the resumption of
specie payments by the banks. do moi
profess, Mr.. Chairman, to be skilled in matters
of finance, or versed in banking operations,
but am clearly convinced that this increased
and continual demand for specie, must operate
a heavy drain upon the vaults of the banks,
the very moment they resume specie pay
men,s. The merchants who have duties to
pay, can only rely upon the banks to supply
them, for they have il not themselves. The
banks already suffering under pressure
which was well nigh exhansting them, fore
seeing the effect Of this new demand would
forbear to resume, and this would not only
seriously mbarrass ahc merchants and the
people, but the Government itself; for as !
before remarked, the passage Of the bill will
neither coin money, or put 1t into the pockets
of the merchants or the people. then, en-
phatically ask how is this demand to be met.
Sir. you may call spirits from the vastly deep,
but calling will not bring them. You may
pass this bill, but it will not coin gold aud
silver Connected withthis objection is that OF
the arrangement Of the exchanges, and the
general confusion Of business which this
system will produce. There is no United
States Bank in existence which can regulate
and supply the exchange demand lndiVldu-
al sources have been almost entirely destroy
ed by the banking system. The State Banks
then afford the only certain reliance to the
community for the supply and regulation Of
commercial exchanges need not urge
upon the committee, that which every mans
observation and experience must have taught
him, that next TO the means of commerce, the
facility of sound well regulated, uniform
system of exchanges is essential to its sue
cesslul operation. The demand for such
system for the accommodation of our widely
extended, and constantly increasing com
meree, both foreign and domestic, must be
manifest to every one. If, then, the policy Of
the Government shall compel the banks, and
this system must necessarily do So still fur
Their to curtail their circulation and loans, and
restrict their exchange accommodations, is It
not most manifest that the effect will be still
more to embarrass commercial intercourse,
and paralyse the industry and business of the
whole country. BY curtailing the already
too limited exchange accommodations with
a deranged, unsteady, nuctuating system of
exchanges, commerce becomes embarrassed,
and with it the whole business of the coun-
try.
The limitation of exchanges below the
demands Of commerce, the still further re-
duction of bank circulation, connected with
the continued suspension of specie payments,
will force upon the importing merchants the
necessity of purchasing specie at heavy and
exorbitant premiums, TO meet the claims oil
the Government and their foreign creditors,
if even they can procure 1t IN sufficient
amounts at any premium These profits
they are at first paid by the MGR
chants, are generally exaoted from the agri.
cultural and mechanical portions Of the com
munily, who principally consume foreign
goods, in the shape of profits; and in this
way heavy tax is imposed upon them.
Thus while the apparch, operation is upon
the merchant, under the guise of an indirect
system of taxation, yet the real operation is
upon the laboring class, and thus a system
for the good Of the pcoplc, will
operate to their serious injury For sir, be
assured that the people who purchase, are
always taxed with these cxactions upon the
merchants. This system will also exert a
very deleterious influence upon the commerce
of the country, by divering from the ordinary
channels of trade, the amount Of specie which
will be in active requisition TO meet the de-
mnnds &c the Gnrnrnment which | think