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

United States, he says, I. This bank Is no
more than part Of the commercial commu-
nity in which ii is established, and any en-
barrassment Of the bank must press, also, on
the whole commercial community, that COM
nunity soould be the frst 10 giue ,cay an such
case, and this would produce a run on the
bank, and compel the stoppage Of payment
/ cannot imagine TO myself more decisive
step. in the present embarrassed condition oil
the country and the banks, than the passage
of this bill, to force the banks TO continue the
stoppage Of payments, and finally to wind up
their business. Ii such would be the effect
what would be the consequences to the pco-
pie. let the President Of the United States,
when he was Governor of New York, an
swer In his annual message TO the Legisla-
ture Of New York, Mr.. Van Buren, speaking
upon the expediency Of renewing the charters
Of many Of the New York banks, which were
about to expire, portrayed the ruinous effects
which their discontinuance would produce
upon the State and the people, expressed him
self in these forcible and conclusive terms:
But we cannot close our eyes to the difficulties and
pecunary endorsements that must result from sudden
y stopping the operations Of many and such long es
lablished ,nstituons, Of the thirty millions that are
owing them, the principal part Is probably duo from
merchants manufacturers, and other large dealers III
their vicinity hat hey turn hare their demands agdhsi
persons pursuing s,niar business ~ The eonaty and
those again must look 10 their cnsfoacrs, us e'at de'ng
all ciasses Of society. IN The habrtty 10 contribute To-
rards gsaerai settlement. The amount due from the
banks, especially oil that portion which consists IN bills
From even this snper.ira Of the subject, IL must
be evident TO all rejecting minds, that the pccnniars
conyulsion that must result from compulsory close OF
these extensive concerns, would be neither SLIGHT IN
It's degree, TRANSIENT an MS darqtioa You wili
am convinced CONCUR with me IN the sentiment that
responsibility Of SO seions character, and fearful
in Il, possble consequences, should be incurred
slight grounds or from motives Of exPedcncy IN the
least degree questionable"
Mr.. Calhoun, in speech in the Senate, in
1884, speaking upon the subject OF the banks
and the effects of their sudden suppression,
thus expresses himself, TO suppress them
(the banks) at once would, if it were posi-
bic, work greater revolution, a greater change
in the relative condition OF the various classes
Of the community, than would the conquest
Of the country by savage enemy" This
sentiment is true, inevitably trne, and by It
propose to test the effects which the destruc-
ton of the banks would at this time produce
upon the people. In 1884, the people were
indebted to the banks $324, 900 900; in 1897,
1891 100000, IL then the suppression Of the
banks in 1874 would have produced such dis
tressing effects, what would it do now -
Ruin the whole community When the banks
are pressed, they press in turn the mercantile
community, and that presses the people who
are the victims, for they have no debtors to
resort to, they must resort to their property.
Again If the Government demands specie
in payment Of the public revenue, the MGR
chants must in turn demand specie Of their
debtors, THE PEOPLE, which, il they cannot
procure, will lead to the most destructive
sacrifices in the sales of their property No
creditor is bound to receive any thing but
specie, and this system will afford pretcxt
for such demand for the creditor may we'll
refuse to receive discredited, deprecated
bank paper, and therefore cause immense
sacrifices Of property.
Mr.. Chairman, the bank circulation is al
ready reduced from about l60 to 100 millions
dollars. as is also the active specie circula-
ton greatly reduced; the present circulation
is founded upon an adequate specie basis, and
cannot, with due regard to the interest of the
people, be further reduced This system will
render a further reduction inevitable, and pro-
duce corresponding inability on the part Of
the people to pay debts, and fearful dcpreci-
alton in the value Of property, and in this
point of view will operate most injuriously
upon the debtor class Of the community.
The eighth objection which have to the
proposed system is, that it will greatly enlarge
the Executive patronage, and fearfully in
crease its power Upon this point, Mr.. Chair
man, am brought into direct collision with
the opinion of the President, who seems to be
of the opinion that this measure will not only
not increase but actually diminish Executive
patronage am not satisfied with the rea-
soning Of the message, and find nothing in it
although ably urged to change the opinion
which took up in 1884, as to the effect Of
such measure. The Secretary Of the 1'rca-
sury seems to think that by the appointment
of ten additional officers and an increased OK
penditure Of about 60, 900 dollars, will enable
that department to conduct this system with
success. In this opinion, Mr.. Chairman,
differ widely with the Secretary, although |
do not doubt his sincerity All propositions
for the creation Of new systems arc accom-
panied with the most rigid regard 10 economy,
but after their organization their wants gradu-
ally dcvelope themselves, till finally, by lcgis
lation after legislation, the officers and the
expenses are fcarfully increased. All the
departments Of the Government had small
and economical beginnings, yet in the pro-
gress Of time the number of their officers and
the amount Of their salaries, and other OK
penses, have greatly increased, such will be
the course Of this system, this will be but the
germ, and your ten additional officers and
100000 additional expense, will swell into
hundreds Of officers, and hundreds Of thou
sands Of increased expenditure. 10 tell me
that all the increase of clerks, house rent,
stationary, and other incidental expenses
which this system will require can be met
with 100000, is to tax my credulty with the
belief Of an utter impossibiity. Sir, the Sc